Vietnam – Amending And Supplementing The Guidance Of The Law On Insurance Business And Regulations On Compulsory Insurance Of Civil Liability Of Motor Vehicle Owners.

On 28 February 2022, the Ministry of Finance issued Circular No. 14/2022/TT-BTC to amend and supplement the guidance of the Law on Insurance Business and regulations on compulsory insurance of civil liability of motor vehicle owners. The main contents are as follows:

1. Supplementing guidance to the Law on Insurance Business:

The insurance buyers and the insurance enterprises may agree to change the premium payment term or agree to owe the premium payment without guaranteed assets or premium payment guarantee when fully meeting the following conditions:

• Insurance buyers or insurance enterprises are in areas being applied social distancing as prescribed in Directive No. 15/CT-TTg, Directive No. 16/CT-TTg; or areas under medical isolation, pandemic lockdown to control the COVID-19 epidemic as in the document of the local competent authority where has the level of the COVID-19 epidemic at “very high risk”, or “high risk” according to the provisions of Resolution No. 128 /NQ-CP; and

• The insurance buyers arise an obligation to pay the premium during the period from 01 January 2021 until the Prime Minister announces the end of the COVID-19 epidemic. In every event that the term of premium payment cannot exceed the period of coverage under the insurance contract.

2. Amending and supplementing regulations on compulsory insurance for civil liability of motor vehicle owners:

Motor vehicle owners and insurance enterprises can agree to extend the insurance period corresponding to the time when the motor vehicle is not engaged in traffic or not operated due to the application of COVID-19 prevention and control measures when meeting the following condition:

Motor vehicle owners are in areas being applied social distancing as prescribed in Directive No. 15/CT-TTg, Directive No. 16/CT-TTg; or they are in areas under medical isolation, pandemic lockdown to control the COVID-19 epidemic as in the document of the local competent authority where has the level of the COVID-19 epidemic at “very high risk”, or “high risk” according to the provisions of Resolution No. 128 /NQ-CP during the period from 01 January 2021 until the Prime Minister announces the end of the COVID-19 epidemic.

For further information, please contact:

 Minh Ngo Nhat, Managing Partner, BLawyers
minh.ngo@blawyersvn.com