Insurance Buyer’s Duty of Full and Truthful Disclosure Under the Law on Insurance Business 2022

Short answer: The insurance buyer has the obligation to fully and truthfully declare all details relating to the insurance contract as required by the insurer; in case of breaching this obligation, the insurer has the right to handle it in accordance with the Law on Insurance Business 2022.

Obligation to provide information of the insurance buyer

Under the Law on Insurance Business 2022 (No. 08/2022/QH15), when entering into an insurance contract, the insurance buyer has the obligation to fully and truthfully provide information relating to the insured subject to the insurer. The insurer is responsible for clearly explaining the insurance terms and conditions to the insurance buyer.

What happens when the duty of truthful disclosure is breached?

Where the insurance buyer fails to perform or improperly performs the duty of full and truthful declaration, the insurer has the right to unilaterally suspend performance of the contract, and the breaching party must compensate for arising damage in accordance with the Law on Insurance Business 2022 and the agreement in the contract.

Applicable legal basis

• Law on Insurance Business 2022 (08/2022/QH15, replacing the Law on Insurance Business 2014).
• Decree 46/2023/ND-CP detailing the implementation of a number of articles of the Law on Insurance Business.

Notes on applying current legal regulations

This article belongs to the Corporate & M&A Knowledge group and is presented for reference, helping readers understand the legal issue at an overview level before preparing dossiers or carrying out transactions.

Legal regulations may change over time, by locality, dossier type and specific circumstances. Where you need to determine the exact legal basis applying to your dossier, please contact an ANT Legal lawyer at 0966.475.966 for review and advice before proceeding.

Common risks to note

• Applying a legal document that has been amended, supplemented or replaced.
• Preparing incomplete dossiers, documents or evidence.
• Misunderstanding the conditions, procedures, time limits or competent authorities.
• Signing, submitting dossiers or carrying out transactions without fully assessing legal risks.

How can ANT Legal help?

ANT Legal supports reviewing specific situations, checking dossiers, determining the applicable legal basis, advising on handling options and representing clients in working with individuals, organizations or competent authorities when necessary.

For quick advice, you may contact a lawyer at 0966.475.966.

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