In an insurance relationship, the insurance contract is one of the most important documents, stipulating the agreement between the parties such as the insurance premium, the amount of compensation, the settlement of disputes… The more detailed the contract, the more transparent and tight the insurance. relationship will be, thus helping to protect the interests of the parties and to minimize potential conflicts.
In order to ensure consistency and synchronization with the relevant legal system, in particular the Civil Code, the Law on Insurance Activities No. 08/2022/QH15 adopted by the National Assembly on 16 June 2022 (“Law insurance business 2022”) has a series of changes related to insurance contracts. Some notable points of the insurance business law can be mentioned as follows:
Types of insurance contracts according to the new law
The current law on insurance activities provides for three types of contracts, namely: (i) personal insurance, (ii) property insurance and (iii) civil liability insurance. The Insurance Business Law of 2022 stipulates five types of insurance contracts, which apply from January 1, 2023, namely: (i) life insurance, (ii) health insurance, (iii ) property insurance; (iv) property damage liability insurance and (v) liability insurance.
In addition, the parties can also agree to sign a combined contract from several of the types of contracts mentioned above. It should be noted that this combination must also ensure compliance with the regulations on restrictions of insurance business lines of foreign insurance companies and branches of non-life insurance companies.
It’s time to consider participating in insurance
The Insurance Business Act 2022 released new “fresh out of the oven” regulations on when to consider participating in insurance. From January 1, 2023, for insurance contracts with a duration of more than one year, the policyholder will have up to 21 days to reflect after receiving the insurance contract. During this period, if the policyholder refuses to continue to participate, the contract will be terminated and the premium will be refunded.
Insured persons must read these regulations so as not to disregard their rights and legitimate interests. However, it should be noted that when the insurance premium is refunded, it will also be deducted from the reasonable costs of returning it to the insurance company, and if damage occurs unfortunately, it will certainly not be covered.
Additional provisions to unify the law on insurance business and the civil code in force
The new law adds provisions on the termination of insurance contracts, the object of performance of the contract, the conditions of effect of the contract, the unilateral termination of contracts… to ensure consistency with the Civil Code 2015, and at the same time for ease of application in practice.
According to the regulations in force, the time limit for legal action on an insurance contract is set at 03 years from the date of the dispute. However, this provision sometimes encounters many obstacles in practice, when the parties have difficulty in determining the exact moment when the disputes arose during the performance of insurance contracts. the application of the prosecution deadline will be unified in accordance with the rules of civil law. Specifically, the time limit for filing a lawsuit is 03 years from the date the plaintiff knows (or should have known) of the violation of his rights and interests. Thus, the unification of the Insurance Business Act 2022 with civil law will help parties to more easily determine the time limit for prosecution in practice.