In the insurance relationship, the insurance contract is one of the most important documents, which defines the agreement between the parties such as insurance payments, the amount of compensation, settlement of disputes … The contract is clear and very strong. The relationship will be, thus helping to protect the interests of the parties and reduce potential conflicts.
In order to ensure consistency and coordination with the relevant laws, especially the Civil Code, Law on Insurance Business No. 08/2022/QH15 passed by the National Assembly on 16 June 2022 (“Law on Insurance Business 2022”) has introduced several changes related to insurance contracts. Some notable aspects of the Law on Insurance Business can be mentioned as follows:
Types of insurance contracts under the new law
The current Law on Insurance Business specifies three types of contracts, including: (i) personal insurance, (ii) property insurance and (iii) civil insurance. The Law on Insurance Business 2022 specifies five types of insurance contracts, which came into effect on 01 January 2023, including: (i) life insurance, (ii) health insurance, (iii) property insurance; (iv) property damage insurance and (v) financial insurance.
In addition, the parties may also agree to sign a joint agreement from among the above-mentioned types. Note that the merger must also ensure compliance with regulations prohibiting the insurance business of foreign insurance companies and branches of non-insurance businesses.
Time to consider participating in insurance
The Insurance Business Act 2022 has released new “out of the box” legislation on when to consider getting involved in insurance. From 01 January 2023, for insurance contracts with a term of more than one year, the representative will have 21 days to consider after receiving the insurance contract. At this time, if the owner refuses to continue participating, the contract will be terminated, and the money will be returned.
Those who have policies will accept this law so that they do not lose their rights and interests. However, it should be noted that when the insurance money is refunded, it will be deducted from the amount to be refunded to the insurance company, and if the damage is caused by an accident, it will not be paid.
Additional information linking the Law on Insurance Business with the current Civil Code
The new law adds provisions on the cancellation of insurance contracts, the purpose of performance, the conditions for the contract to be valid, the termination of the contracts … to do.
According to the current laws, the time to start a lawsuit on an insurance contract should be 03 years from the time the dispute started. However, these arrangements sometimes face many obstacles in practice, when the parties struggle to know the exact time when the disputes occurred during the insurance contract. the application of time limits for litigation will be contractual according to the laws of the state. Specifically, the time limit for filing a lawsuit will be 03 years from the date the applicant knows (or should know) about the violation of his rights and interests. Therefore, the combination of the Law on Insurance Business 2022 and the civil law will help the parties to know when to be sued more easily in practice.