Need to know

  • 1.FOR THOSE WHO HAVE NOT BEEN JOINING IN INSURANCE
  • What are the differences between non-life insurance and life insurance?

    - The basic difference between non – life insurance and life insurance is that you are only paid the compensation when the insurance event happens. If not, you will not receive anything when the contract is expired.
    - Non – life insurance often sale with a very low premiums compared with life-insurance, payment timeline and insured timeline are also very short ( 1- 2 years)
    - Non –life insurance insures not only the human risks (health, accident, travel,…), but also assets (houses, cars,…) and responsibilities…
    - Non – life insurance products meant to help customers to reduce financial difficulty when unexpected events occur (life, commodities, facility,….)

  • What will I get when I participate in non – life insurance?

    -Compensated for the damages towards provisions in the contract.
    -Got short-term and long term benefits to ensure current life and more stable future for yourself and families.
    -Shared a small part of money used for buying insurance to help the unlucky persons through insurance company.

  • How long does it take to resolve the claim request of insurance benefits?

    - After receiving fully necessary documents for claims, VASS will transfer the amount of insurance payment to the bank account of the beneficiary within 15 working days.
    - VASS will explain the reasons why we reject the claim request (If any).

  • In case of hospitalization under society insurance program, whether applicant of Peace individual insurance or Teachers Insurance can get subsidies of hospitalization or not. What documents VASS request to submit in case they do not have medical bills.

    - The insured has a right to claim subsidies for hospitalization from VASS (if patients are treated under the insurance contract) by submitting these below documents:
    +Notice form and claim request form
    +Health certificates with detailed information about the disease, treatment methods and numbers of days of hospitalization.
    +Related medical records.

  • In case the insured is died, if a policy owner purchases more than one contract, whether the beneficiary can pay insurance benefits from all contracts or not ?

    - If the cause of death of insured is covered under the contract, the beneficiary is paid for benefits from all contracts.

  • What is payment method of VASS?

    - VASS will send resolve insurance benefits notification to the insured or the beneficiary according to the address filled in on the notice form and claim request form.
    - The payment will be transferred to the bank account provided by the Insured or the Beneficiary. If the insured requests for cash payment, they may receive cash payment in accounting department closed to his/her residence.

  • 2.FOR THOSE WHO ARE IN PROCESS OF USING INSURANCE AT VASS
  • What is personal accident and health care insurance?

    - In life, people always face with risks that may occur as illness, sickness, accident,... damaging to health, life, causing financial damage, affecting lives of people at risk and society. Personal accident and health care insurance are born and developed in order to ensure financial issue for human life and society.
    - Personal accident and health care insurance is a type of insurance whose object is life, health and working capacity of humans.
    - In terms of technical, personal accident and health care insurance has a purpose of benefits payment or certain amount to the insured or the beneficiary of insurance, in case of the occurrence of the event which affects the insured
    - In terms of legal, personal accident and health care insurance is a type of insurances that the insured pays premiums, the insurers commit to pay for the insured or the beneficiary a certain amount of insurance under the agreement upon the occurrence of an insured event.
    + Thus, personal accident and health care insurance ensures a direct impact risks to the insured as accidents, sickness, disease, ... only damage on human body is the subject of insurance contract.
    + For example, in a car accident can cause both damage to people and damage to property ...people damage is belonging to this insurance's object, and property damage is under different types of insurance.

  • How does VASS determine the sum insured and duration of insurance?

    - The sum insured of the contract is determined by agreement between VASS and the policyowner within the amount that VASS has limited coverage for each insured condition.
    - the insurance period is usually 01 years, starting when the insured has signed contracts and agreed on insurance premiums payment as regulations in the contract or certificate insurance.
    - If either party requests to cancel insurance contract, they must notify the other party before 30 days of the cancellation. If the contract is canceled based on the agreement of two parties, VASS will refund 80% of the premium of the remaining time with conditions of VASS has not paid any insurance amount up to time provided.

  • Does it have a term of insurance value in PA & Healthcare insurance of VASS? What is a foundation of determining the sum insured and payment?

    - Because life and health of human beings are invaluable, personal accident and health care issuance contract does not exist any terms of insurance values. The issue of insurance above the value, lower insurance value is not mentioned in personal accident and health care insurance contract.
    - To determine the maximum liability of VASS in insurance payment and have cost determination basis for personal accident and health care insurance contract, VASS must determine the sum insured of contract.
    - The sum insured is selected based on the agreement between the policyowner and VASS, but that is not money expression of the insured. The sum insured of contract is often classified as several different levels based on some factors such as the average income of the population; the average cost of health care; the competitive situation in the market of insurance products which have the same insurance type,...

  • What is a core principle of controlling benefits payment in PA & Healthcare insurance of VASS? How do these principles express specifically?

    The insurance payment of almost of personal accident and health care accident is governed by the principle of exchange. According to this principle, when occurring insurance event, VASS based on the sum insured of contract signed and the agreed regulations in the contract to pay the insurance benefits. This amount is not intended to compensate for damage but to implement commitment of the contract under regulated exchange principles.
    When applying exchange principles:
    - If the insured is died due to accident, sickness, disease,... VASS pays fully the sum insured.
    - If the insured is injured by accident, VASS pays under the table of disability insurance payment rate.
    - If the insured is hospitalized due to illness, disease,... or by accident, VASS pay each day of hospitalization in a certain percentage of the sum insured.
    - If the insured has to do operation due to illness, disease,... or by accident, VASS will pay based on surgery payment rate.
    As a result of applying these principles, the double insurance is not mentioned, and not applied the principle of subrogation in personal accident and health care insurance.

  • Why does VASS not mention about double insurance in PA & Healthcare insurance?

    It is understood that the benefits of the insurance beneficiaries in the PA & Healthcare insurance contract are independent. A person may also be the insured in many different PA & Healthcare insurance contracts, when having insurance event related to the responsibility of insurance payment of contracts, insurance payment issue is paid independently.
    Example: Mr. Nguyen Van A simultaneously participates in Personal Accident insurance, travel insurance, and passengers accident insurance. During the validity period of the contract, on the road traveling by bus, he died due to a car accident (risk insurance). In this case, the liability to pay under the Personal Accident Insurance contract, travel insurance contract, and passenger accident insurance contract for the beneficiary is independent.

  • Does insurance of personal accident and health care of VASS apply subrogation?

    VASS is not allowed to apply the principle of subrogation. In all cases, the insured is died, injured, or sick caused by directly or indirectly behaviors of a third party, VASS is still obliged to pay a benefit and does not have a right to oblige third party for taking responsibilities on what they have caused. A third party is responsible for reimbursing for the insured based on laws.
    In the above example, assumed that Mr. A got car accident caused by other truck, besides receiving benefit payments under the PA & Healthcare insurance contract, legal heirs of Mr. A also receive compensation amount from the truck owners and bus owners. VASS cannot take the right of claiming for this responsibility.
    This is stipulated in Article 37 of the Business Insurance Law. However, there are exceptions in medical costs insurance when this business applies completely compensation rules.

  • What are the advantages of personal accident insurance product of VASS compared with other 24/24 accident insurance product of almost insurers in the current market?

    - VASS provides many responsible levels from 60 million VND, 125 million VND, 250 million VND to 500 million VND, customers can participate in a high level of responsibility separately
    - insurance benefit: Personal accident insurance has some specified benefits which differ from the traditional products , such as. hospitalization allowance, transportation support, foster child support, burial support... the cost is charged based on actual medical expenses caused by accidents which is not over the regulated limit.
    - Accidents at work in the field of craft, construction / installation, mining, drilling platforms, mechanical, metallurgical, porters will not insured under the rules. Customers who wish to be insured during the working process of above mentioned fields need to enroll in additional terms of high risk occupations.
    Premiums: calculated by age and sex will reduce the comparation of cost when operating

  • If I participate in 2 contracts of personal accident insurance of VASS, when having insurance event, do I get insurance benefits from both contracts?

    In case the insured participate in more than one personal accident insurance contract with VASS, VASS will pay benefits under all insurance policies except from " medical support due to accident” is only paid under the insurance contract with the highest level of benefits.

  • If I participate in personal accident insurance of VASS, after 2 months, I am no longer participating, can I get the refund of premium?

    - In case the insured requires of cancelling the contract: VASS will refund 80% of the Insured's premium in remaining time, unless within the effective period, there is an insurance event happened and incurred paying insurance benefit responsibility
    - In case of cancellation insurance from VASS: VASS will refund the Insured 100% premium in remaining time.

  • If the insured gets permanent disability due to accident and died after that, does the insured get benefits payment from 2 kinds of insurance benefits?

    The contract will pay a part of insurance benefit of the "Death by Accident" or "permanent disability due to accident," but not for both. Deaths due to the consequences of accident within 12 (twelve) months, VASS will pay for the difference between the sum insured for this section and the amount paid for the "Permanent disability due to accident ".

  • What is property insurance contract?

    - Property insurance contract is a insurance contract, whose insured object is property, including objects, money, assets, and property rights;
    - Property insurance contract is a common name of the following fundamental group of insurance contracts:
    - Freight by sea, road, inland waterway, rail, aviation insurance contract.
    - Hull insurance contract;
    - Fire and special risks insurance contract;
    - Construction and erection insurance contract;
    - Physical damage coverage for motor vehicles insurance contract;
    - Industrial risks insurance contract;
    - Machinery and electronic equipment insurance contract;
    - Fuselage and aircraft components insurance contract;
    - Money insurance contract;
    - Oiled and gas energy insurance contract;
    - Private house insurance contract;
    - Property and business interruption insurance contract;
    - Crop insurance contract;
    - Pet insurance contract;
    - Theft insurance contract;
    - Other property insurance contracts.

  • When participating in property insurance, which conditions that the policyowner has to follow?

    Necessary and sufficient conditions to apply for the insurance and they become the insured in property insurance contract include:
    - Having sufficient capacity for signing contract: qualified civil actions (if the subject is a natural person) or civil legal capacity (for legal entities).
    - Having sufficient capacity to perform the contract: the ability to perform rights and obligations under insurance contract.
    - Having a right to ensure the insured property: the insured party has to be the one who owns the insured property legally or is empowered to own and use the insured property by the ownership. The insured has to be the one who incur losses when the insured property is damaged or lost.

  • What are obligations of the insured when making agreement and implementing property insurance contract?

    Principal obligation of the insured when implementing property insurance contract are:
    - Provide the necessary information related to the agreement and implementation of insurance contract.
    - Pay premiums.
    - Implement some methods to prevent and limit damage to the insured property.
    - Inform the insurer in case risks happen.
    - Implement the necessary works to let insurance companies ask for those who cause damage to the insured property, he/she is also known as the third party.

  • How is obligation of payment ruled?

    For property insurance contract, premium is determined by the premium rate multiple with the sum insured. The premiums are determined by years and tax on value added. VAT rate for property insurance in Vietnam is 10% set by the government.
    The sum insured is reached an agreement by two sides based on the value of the property insured at the time of signing insurance contract. The sum insured is specified in insurance contract, certificated of insurance, or insurance form.
    The premium rate is determined for each asset and adjusted according to the risk level of each contract and customer policies of insurance companies. The premium rate is high or low also depends on market factors (national and international) and self-insurance of the insured. For example, if the insured requires for increasing rate of depreciation, the insurers will reduce premiums according to appropriate level.
    In case there are other agreements in insurance contract, the insured must fulfill the obligation to pay premiums right after signed the contract and insurance responsibilities only arises when the policyowner has done their duty of paying premium. All agreement of payment due date, extension for paying premium are all private agreements of insurance contract.
    Premiums can be paid by cash or bank transfer. Depending on specific insurance contract, premiums can be calculated in Vietnam dong or foreign currency. In general, the insurer pay compensation by the currency used to pay for premiums.

  • How is the obligation of implementing some methods to limit property damage defined?

    Article 50, Law of business insurance states:
    “The insured must implement the provisions about fire preventing, fire fighting, safety, labor safety, industrial hygiene and other provisions of the relevant legislations to ensure safety for the insured. This obligation must be made during the implementation process in order to prevent risks, occurring to the insured. When risks happen, the insured must take all possible measures to minimize the damage of the insured.
    Insurers have a right to check all conditions to ensure the safety of the insured or recommendations, requests the insured to apply limiting risks measures. Insurers may apply the precautionary measures to ensure the safety of the insured when getting agreement of the policyowner or jurisdictional government agencies
    In case the insured do not implement the measures to ensure the safety of the insured, the insurance companies may set a time limit for the insured to implement such measures; if exceeding the time limit to ensure the safety, the insurers have the right to increase premiums or unilaterally suspend the implementation of insurance contract.

  • How is the obligation for the insurer to recourse the third person who has responsibility in the occurrence of risks defined?

    Article 49, Law of Business Insurance prescribes:
    - "In case the third party causes damage to the insured and insurers have paid compensation for the insured, the insured must give a right of requesting the third party for reimbursing the amount of money that the insured recieved for the insurers
    - In case the insured rejects turning right for insurance companies, without reservation or waive the right to request the third party for compensation, insurers have the right to deduct the amount of compensation depending on a fault of the insured.
    - Insurers are not allowed to request father, mother, spouse, child, sibling of the insured to reimburse the amount of money that insurers paid for the insured, except from these people cause damages intentionally. "
    In fact, insurers may require the insured to complete the necessary procedures for insurers to have legal grounds to claim the third party. There are materials for proof of damages which blame third party and authorize for insurance companies to carry out the request third party for reimbursement. There are also some cases that the insurer requires the insured to cover procedures for lawsuit and propose court or other competent authorities implement measures to ensure or enforce third party for reimbursement obligation.

  • When entering and performing property insurance contract, what are the obligations of insurance companies?

    When entering and performing property insurance contracts, insurers must implement the following main duties:
    - Explanation for policyowner about the conditions and terms of insurance; rights and obligations of the policyowner;
    - Issue policyowner the certificates of insurance, insurance policies, insurance application form after receiving the insurance contract;
    - Compensation for the insured upon the occurrence of insured events;

  • What is the obligation of explaining for the policyowner about regulations, insurance terms, rights and obligations of the policyowner?

    Insurance contract is type of contracts in which terms and conditions of insurance are usually composed by insurance company drafting in the pre-printed forms. Terminologies, languages and expressions of insurance contract are not always easy to understand. Therefore, the as agree and implement the insurance contract, the insurance company are obliged to explain clearly to the policyowner to avoid misunderstanding and misperception of policyowner.
    Any terms which are not clear, can be understood in different ways and may lead to disadvantages for the insurer. If there aree any disputes, arbitration or court will resolve disputes by explaining to the most favorable meaning to the policyowner.

  • How is obligation of giving the policyowner certificate of insurance, insurance policy defined?

    Insurance certificate or insurance policy are considered as a proof of a conclusion of insurance contract. While the certificate of insurance only expresses a sort of information and the most basic of the insurance contract (information about insurance company, the insured, insurance period, sum insured, premiums ...), the insurance policy expresses information in a comprehensive way. Besides the information showed in the certificate of insurance, insurance policies also show information about coverage, insurance exclusions, rights and obligations of the parties, calculation and payment of compensation, provisions on disputing settlement...
    Normally insurance certificate is provided for policyowner with insurance contract by insurance company, an insurance contract may include one or more insuarnce certificates, but insurance policyis usually granted independently as a normal practice in insurance operations.
    The insurance certificate or insurance form of the insurer is one of the evidences to confirm that the insurer has accepted responsibility for the risk of the insured.

  • What is the compensation obligation of the insured when having insurance events?

    When risks and problems which belong to insurance responsibility happen, the insurer must compensate for the insured. The compensation obligation of the insurer was stipulated by insurance business law as follows:
    1 - On the compensation base:
    + The indemnity that the insurer have to pay for the insured was defined on the basis of the market value of the property insured at time and the place that losses and actual extent of damage occur unless there is another agreement in the insurance contract. Cost of determining the market price and the damage level will be paid by the insurers.
    + The amount of compensation that insurers pay for the insured shall not exceed the sum insured, unless there is another agreement in the insurance contract.
    + Apart from the compensation amount, the insurer must pay essential and reasonable costs to the insured in order to beware and reduce damages and accrued expenses that the insured must bear to perform instructions of the insurer.
    2 – On the compensation form:
    + The insured and the insurer may reach an agreement in one of three compensation forms, those are: repairing the damaged property, replacing the damaged property with the other properties; paying compensation.
    + In case of the insurer and the insured may not reach an agreement in compensation form, the compensation will be performed by money.
    + In case of the insurer replaced the damaged property with another property or compensated the entire according to the market value of the property, the insurer will have a right to recover damaged property
    3 – On the period of compensation: the insurer must compensate for the insured in accordance with the period of an agreement in the insurance contract. In case of there is no agreement of compensation period, the insurer has to compensate in the period of 15 days, from the day of receiving all valid documents and claim request of the insured.

  • In the property insurance contract; how to determine the insurance value and the sum insured?

    1 – Property’s insurance value is a real value of the property at the moment of signining the insurance contract. The insurance value can be determined by various methods.
    + With the new property, the insurance value might be determined by a new purchase price in the market added shipping cost, installation cost or renewable cost, rebuild cost
    +With used property, the insurance value might be determined by the surrender value ( original value deduct the depreciation); reevaluation value (according to the conclusion of the price evaluation board or independent assessment experts); or by another ways.
    2 – The sum insured of property insurance is sum of money that the insured requires and the insurer accepts to insure the property. Basing oneself on dealing the sum insured in the property insurance contract is the insurance value. The insured and the insurer are not allowed to insure the property with the sum insured which is higher than the insurance value. The sum insured in the property insurance contract is a foundation for the insurer to determine premium and define compensation liability when insurance events occur.

  • Property of the insured is valid for 100 million VND, the sum insured which was dealt in the contract is 80 million VND, insurance events occur, and the accrued rational repairing costs is 50 million VND. How much will the insured receive?

    This is the case of insurance under the asset value (the sum insured is lower than the insurance value), unless the insurance contract has another regulation, the insurer will determine the compensation amount in accordance with this following formula:
    Benefit amount
    =
    Damage value
    x
    Sum insured / Insurance value
    Thus, in the above case, if there is no another agreement in the insurance contract, the insured will receive compensation amount:
    Compensation amount = 50.000.000 x 80.000.000/100.000.000 = 40.000.000 VND

  • roperty of the insured is valid for 100 million VND, the insured asked the insurance with the sum insured of 120 million VND. In this case, what is the regulation of insurance business law?

    In Article 42, Insurance Business Law specified property insurance contract with the sum insured is higher than the property’s market value which insured at the time of signing the contract is the above value property insurance contract. Insurers and policyowner are not allowed to sign the above value property insurance contract.
    In case the above value property insurance contract is allowed to be signed due to unintentional faults of policyowner, the insurer must return policyowner the paid premium which is in proportion to the sum insured exceeds the market value of insured assets, after deducting the related resonable expenses . In case, insurance events occur, the insurer just takes responsibility for compensating damage which does not exceed the insured property’s value.
    Thus, in this above case, the insurer is not allowed to sign the insurance contract with sum insured of 120 million VND. If the insurer just agrees the insurance contract relying on the basis of declared value of policyowner and signed insurance policy with - sum insured of 120 million VND, the insurer must return a part of paid premium to policyowner when detecting insured the above property value. In case of occurring damages for insured property, the insurer will compensate according to real damages that the insured incurred which does not exceed over 100 million VND.

  • Property is insured with the sum insured of 100 million VND. In the same year, the contract occurs 2 insurance events. After the first insurance event, the property was fixed and restored to initial value and the insurer compensated the insured for 40 million VND. In the second insurance event, the property was total damaged. How much will the insurer compensate?

    Unless the policyowner agreed with the term of automatically restore sum insured in the insurance contract and paid extra premiums, at the time of contract period. After each compensation, the responsibility of insurer to insure property will reduce with appropriate level. Thus, in this above situation, if there is no agreement of restoring sum insured, the insurer just compensate the insured for a sum of money = 100 – 40 = 60 million VND in the second claim.

  • The insured’s property is valid for 100 million VND. It is concurrent insured by 2 insurance contracts of the insurer A and the insurer B with sum insured respectively 70 million VND and 80 million VND. These two insurance policies have similar insurance coverage range. If the incident causing damage of 45 million VND and belonging to the compensation responsibility of both insurers, how much will above insurers compensate? And how much will the insured receive the compensation?

    Basing on the article 44 of The insurance business law, this is the case that property was insured coincidentally. To coincident insurance policy, when occurring insurance events, each insurer just takes responsibility for compensation according to the rate of agreed sum insured on total premiums of all insurance policies that the policyowner agreed. Total compensation amounts of all insurers do not exceed property’ real damaged value.
    Thus, in this above instance, two insurers will share the compensation responsibility by this way:
    - Compensation amount of the insurer A is defined by this formula:
    Compensation amount = 45.000.000 x 70.000.000 / (70.000.000 + 80.000.000) = 21.000.000
    - Similarly, compensation amount of the insurer B is:
    Compensation amount = 45.000.000 x 80.000.000 / (70.000.000 + 80.000.000) = 24.000.000
    - Total compensation amount that the insured is allowed to receive:
    21.000.000 + 24.000.000 = 45.000.000 đ.

  • In case the insured property is sold when the insurance policy of this property is currently effective, shall the new owner of this property be entitled to get benefits of insurance policy in remaining time?

    On the article 579, Civil Law of the Socialist Republic of Viet Nam in 2005, this problem is stipulated as follows: “In case proprietary rights to insured properties are transferred to others, new owners automatically replace old owners in insurance contract from the moment of transferring the propprietary right of property. Old owner is policyowner must inform new owner about insured property and timely notify insurers of transferring proprietary rights to the property.”
    Thus, in case the insured asset is sold, property buyers will have a right to replace old owner to insurance contract. When insured property is damaged belonging to the insurance responsibility, property buyers (new owner) will be entitle to request the insurer to compensate for the damage. This is a case of assigning insurance contract which is stipulated in the civil law. This rule is not allowed to apply in the hull insurance (the fields of marine insurance).

  • Which objects are applied by, fire and perilsinsurance contract?

    Fire and perils insurance is applied for immovable property, movable property (except transportation, animals, crops, and property which is in the process of being built and installed in other insurance types) belonging to proprietary rights and legal management of organizations and individuals of all economical background.
    In particular, objects including:
    - Construction and architectural works already in use (except land);
    - Machinery and equipment, means of labor for production;
    - Products and materials, goods stored in the warehouse;
    - Raw materials, incomplete products, finished products in the production line;
    - Other properties like: shed, market, stores, hotels, …

  • Which basic risks are insured according to standard insurance policy of fire and perils insurance?

    According to the standard insurance policy, the basic risk which may be insured including three following risks:
    - Fire in the common sense, fire is understood as a chemical reaction with heat and emitted light. Fire is burning occurs beyond the control of people, in addition to specialized sources of fire and damage to people and / or property. That would be considered as an insured fire if it meets sufficient factors:
    + It actually emits fire;
    + Fire is not a specialized fire;
    + Emitting fire must be a sudden or accidental fire to the insured, but not because of deliberation, their intentional or accomplice. However, a fire occurred due to the careless of the insured also belongs to the insurance coverage range;
    + Fire causing insured damage must be due to outside factors. In spite of having random elements, immanent reasons and being spontaneous from the insured property that suddenly prove effects and cause damages are not considered as the insured fire.
    However, the insurer just excludes damages of spontaneous combustion property, but not excludes the next fire consequence from blaze. For examples, a cattle-feed warehouse suddenly caught fire. Before the fire brigade up to the scene, the fire had spread and the wind blew the fire in the side grain storage. Excluding applied insurance policy for cattle-feed warehouse because of its auto-ignition, but will not be applied in the grain storage. Besides the elimination of property damage caused by spontaneous or affected by a heat treatment process, the standard insurance policy also excludes cases of fires by earthquakes, volcano or other changes of nature such as fires in underground coal-mine and oil wells, ... and damages caused by or as the result of the forest burning, shrubs, grasslands, deserts, jungles or burning with the purpose of cleaning field, land in spite of being random. To these exclusions, if the insured requests, it still be insured by the additional risks or supplemental terms.
    - Lightning is a discharge phenomenon of the charged cloud and the ground which impacts on the insured. The insurer will compensate when the property is destroyed directly by lightning, or by lightning causing fires. So, when lightning without distortion or causing fire to the insured property, it is not within the scope of compensation liability of insurance.
    It should be noted that when lightning directly destroyed or emitted fire, then caused fire to electrical equipment, it shall be compensated by the insurance. If lightning just change currents, without causing a fire and resulting in damage to the electrical equipment, it shall not be entitled to compensate under this risk.
    - Detonation is a fire phenomenon which rapidly occurs and creates a big pressure with loud noise, generated by the sudden expansion of the liquid, solid or gas. Cases of detonation that caused a fire are insured if the detonation does not caused by exclusive reasons. Detonation in basic risks only limit in case of boiler and gas service activities, but excludes the damages caused by earthquake, volcano, or other fluctuations of the nature. This problem is also insured when it happens in a factory which is related to a boiler just be used to boil the broth in the canteen. Damages caused by the explosion but not causing fire, except the case of boiler and gas service activities, will not be entitled to compensate under this risk. In case of damage due to explosion arising from fire, the first damage by a fire will be compensated ,and damage caused by the explosion, outside the boiler and gas for life, will not be compensated.

  • In the field of construction and erection insurance, what are main insurance products?

    Primary insurance products in the area of construction and erection include:
    1 – Investment counselling and planner liability insurance
    2 - Project Risks Insurance (Contractors' all Risks (CAR) policy)
    3 - Erection all risks (EAR) policy.
    4 - Responsibility of employer Insurance, responsibility insurance for the third party
    5 - Machinery damage Insurance, existing assets during construction and construction equipment.
    6 – Warranty insurance.

  • Which objects are applied by construction insurance policy?

    Objects in construction insurance include:
    1 - The public buildings, houses, industrial buildings, water transportation, energy and other projects that structural uses cement, steel such as plants, factories, warehouses, museum, schools, hospitals, offices, roads, railway station, harbors, bridges, dams, drainage systems ...
    2 – Building Equipment to serve the construction process like:
    + The temporary works. This is the value of temporary works required for the project.
    + Machinery and factory, including fencing, cables, generators, ...
    3 – Building Machines to serve the construction process. The insurer is only guaranteed for the service machinery of the construction process.
    4 - Part of the installation and / or constitute is a part of the construction process.
    5 - The assets available as above and within the construction area belongs to the ownership, management, supervision and control of the insured.
    6 - The cost of cleaning up after the loss. This object is just insured when the incurred expenses relating to insured losses.
    Depending on each insurance contract, items apart from the main building of works like parts of construction machinery, machinery and factory, cleaning costs, ... will be insured by adding the list of assets to the contract or may be covered by the additional insurance.

  • Which object must participate in the compulsory construction insurance according to Law of Viet Nam?

    Nowadays, in Viet Nam, according to Circular No. 76/2003/ TT-BTC dated 04/8/2003, some objects must participate in the compulsory construction insurance include:
    1 - Construction works of investment projects that use state budget, credit capitalguaranteeby state, credit development investment capital of the state, investment capital of state enterprises. For projects that use other sources, the State encourages to buy construction insurance;
    2 - Insure for supplies, equipment and factory served for construction.

  • What are benefits when participating in material damage insurance of a car at VASS?

    VASS compensates car’s material damages due to:
    - Unexpected accident, out of control of the owner, driver: Collisions, overturning, fall; sinking; fire or explosion; other objects are falling,
    - Irresistible disasters caused by the natural: Storms, floods, landslides, lightning, earthquakes, hail, tsunami;
    - Stealing, losing rob the entire car.
    - Accidents caused by other risks outside the exclusion specified in Insurance Regulation.
    Besides, VASS also pays incurred expenses so as to prevent, limit losses, protect, limit damages to the car and bring it to the nearest places of repair to assess damages. In all cases, the total amount of compensation insurance shall not exceed the amount that stated in the Certificate of Insurance.

  • What is the foundation for the insurer to determine the value of a car participating in insurance?

    Car value is the actual value of the car the time of participation in insurance. In particular, it is determined on the following basis:
    - For a new car: Car Value is determined based on the retail price of its receipt; CIF price; Prices of the firm; the market price or base on the price list of VASS’s database.
    - For a used car: Car Value is defined on declarations and commitments of all vehicles’s owners; purchase orders Papers; Registration tax receipts; minimum price of local tax department; Prices of issuers, mortgage bank; Upgrade repair bill...

  • How does customer buy car insurance products as purchasing a car without transferring the owner’s name? Can we sign the name of new owner in to car insurance contract withour transferring owner’s name?

    - Customers can purchase insurance as usual. However, it must have name of car owner on the certificate of insurance must be the same as the vehicle registered certificate .
    - As a rule, when purchasing a car, all vehicles must be declared as the procedure to change the owner name. In case the car owners do not transfer in time, they could still join the car insurance. Customers still own the full benefits of car insurance but must keep the name of old owner on insurance certificate ,when losses occur , Insurance company will compensate to the new owner. New owner needs to prove the legal ownership of that car.

  • What are the necessary documents to implement the indemnity payment when insurance events occur?

    A. Documents relating to the vehicle and the driver (certified copy of an insurer after comparing with the original):
    a) Vehicle Registration Certificate;
    b) Driver licenses;
    c) Identity card or passport or other identity papers of the driver;
    d) Certificate of Insurance.
    B. Documents proving the loss of human (A copy of the medical facility or copies certified by the insurer), depending on the levels of damage, it should include one or some of the following documents:
    a) Certificate of injury;
    b) Discharge papers;
    c) Certificate of surgery;
    d) Medical records;
    e) The death certificate (in case of deaths).
    C. Documents evidencing property damage:
    a) Invoices and valid documents of the repairment and replacement of damaged property due to traffic accidents caused by vehicle owners performed at the facility that insurers appointed or accepted .
    b) The proof of the necessary and reasonable cost that the vehicle owner paid to minimize losses or to comply with the instructions of the insurer.
    D. copy of the relevant documents of the legal authorities about the accident:
    a) Minutes of the examination of the scene of the accident;
    b) Schematic scene, the image (if available);
    c) Minutes of the examination of the vehicle-related accidents;
    d) Report on the results of the initial investigation of traffic accidents;
    e) Other documents related to the accident (if any).

  • What is the insurance duration of compulsory third party liability insurance?

    Insurance durantion of compulsory insurance products is 1 year, in case of insurance duration under 1 year only allowed in following conditions:
    a) The temporary import, re-export foreign vehicles with duration of traffic time on the territory of the Socialist Republic Vietnam under 1 year;
    b) Motor vehicles has been used under 1 year;
    c) Motor vehicles subject to temporary registration under the provisions of the law, including:
    -New imported car and Assembly production circulates from warehouses, ports, factories, car dealers to the place of registration, the other repository;
    - Car do necessary procedures of wipe-off record to re-export to the production country;
    -Cars are permitted to transit (except vehicles with the agreement signed by the State);
    -Car testing;
    -Car number plates bearing the trade economic zone as defined by the Government to operate within the territory of Vietnam;
    -New cars assembled in Vietnam running tests on public roads;
    -Vehicles serve for conference and sport at the request of the Government or the Ministry of polices;
    -Other vehicles were allowed to temporarily register as required by law.

  • What is the liability of owner’s third party liability insurance towards the third party and passenger ? How many ?

    The liability insurance is the maximum amount which VASS could be paid for the damages about physical, life and asset of the third party as well as passengers in the accident would be within the scope of liability insurance. As follows :
    1. The liability insurance towards damages about human which is caused by car is 70.000.000 VND/ person/ accident.
    2. The liability insurance towards damages about asset which caused by car, tractor, motorcycle construction, motorcycle agriculture, forestry and other special vehicles which is used for the purpose of security and defense (include trailers towed by car or tractor) is 70.000.000 VND/ accident.

  • How long to settle the insurance claim of compulsory third party liability insurance ?

    The payment period of VASS is within 15 days since the day receiving the compensation profile which is under the responsibility of motor vehicle owners and not over 30 days in case of conducting verification records.

  • What is the coverage of accident insurance of driver, assistant driver and passenger ?

    The coverage for accident insurance of driver, assistant driver and passenger is physical damage towards the insured caused by accident which happend when they are on board, get in or get off the car, assistant driver while they are working in the car.

  • When do customers participate in the third party liability insurance of the vehicle owner toward the goods carried in vehicle ?

    If the owners of vehicles which transport cargo demand to be insured, VASS will issue the third party liability insurance of the vehicle owner towards the goods carried in that vehicle. When damages happened within the range of insurance, VASS will indemnify goods’ owner for cargo damage which based on the responsibilities that owner has engaged.

  • What is the responsibilities of owner/driver when damages happened ?

    - When damages happened, please contact to VASS via the hotline 19009249 to be supported.
    - The coverage for accident influenced to driver, assistant driver and passenger is physical damage towards the insured caused by accident which happend when they are on board, get in or get off the car, assistant driver while they are working in the car.

  • The insurance contract of cargo by sea apply for which object insurance?

    The insurance contract of cargo by sea is applied for insuring export/ import goods or domestic freight is transported by ship.

  • Who will buy the cargo insurance? Buyer or Seller?

    In cargo insurance, the insurance buyer might be seller or buyer, based on the agreement in the sale contract.
    In the sale contract, if the buyer is obliged to pay to the seller including the premiums, the seller has the obligation to buy insurance for the goods and pay the premiums for VASS. Conversely, if the payment excludes premiums, the buyer will buy insurance for goods.
    If the sellers buy goods insurance, they are people whose rights may be covered until the turn of the risks of goods. Since the moment that transfer risks from the seller to the buyer, who can benefit from insurance is the buyer.

  • The cargo by sea might be insured under which condition?

    For the common goods, the owner should choose the goods insurance by one of insurance conditions of London Insurance Association, i.e. ICC A, ICC B, ICC C 1.1.82 or 1.1.09.
    In 3 conditions mentioned above, the ICC A has the broadest coverage while ICC has the narrowest coverage. Basing on the kind of goods and term of transport or package, the owner might choose the appropriate insurance condition.If wondering which the most beneficial insurance condition is, the owner should request VASS’s advisory. In common, high value goods are easily to be stolen; therefore, the owner should choose the ICC A. If the goods is loaded on the deck or second-hand goods or personal belongings, the owner has to buy insurance condition ICC C.

  • Why the ICC A 1.1.82/1.1.09 does not list out the insured risks, but the excluded risks?

    ICC A is the insurance condition which has broadest coverage, it considered “all risk” insurance condition. When express the insurer’s range of responsibility as the ICC A, the insurer only lists uninsured risks without insured risks. It means that if the reasons which caused damages, losses of goods is not a part of excluded risk, the insurer has obligation to compensate all damages and costs - of the insured object.

  • What is the different between insurance condition ICC B 1.1.82/1.1.09 and ICC C 1.1.82/1.1.09?

    The ICC C has the narrower scope of cover insurance than ICC B. The clearest difference between both of them shown in the following 02 points:
    + First: differernt from ICC B, in term of scope of cover for insurer, ICC C regulates that the insurer is not responsible for:
    The damages are caused by earthquake, volcanic eruption or lightning strike.
    The damages are caused by:
    a. Goods are swept overboard.
    b. Goods are all wet because water from sea, lake or river entering the vessel, barge, cargo transportation container or place of storage.
    c. Any package fallen from ship or meanwhile loaded or unloaded from ship or barge.
    + Second: Apart from ICC B, ICC C is appropriate to goods loaded on deck.

  • When goods are insured based on the insurance condition ICC B 1.1.82/1.1.09 or ICC C 1.1.82/1.1.09, whether the buyer suggest VASS for insuring one or more additional risks?

    Agree. However the amount of extended additional risks will be limited and based on the nature of goods which enclosed insurance charges as agree.

  • What is the benefit which the buyers get when they buy insurance upon insurance condition ICC B or C 1.1.82/1.1.09 plus one or more additional risks?

    In practice, not any cargo might be threatened by all the additional risks. Depending on the particular nature of each type of goods, they can only be affected by one or a few certain additional risks. Therefore, if insuring for one or more additional risks that must choose insurance conditions ICC 01/01/82 A / 1.1.09, it is not the right choice. In other words, if selecting condition ICC B or C insurance plus a few risks instead of buying insurance coverage under condition ICC A, it will help buyers save a part of premiums.

  • What does the owners do if they want to insure their import-export goods from war risk?

    Both the insurance conditions ICC 03 A, B, C 1.1.82 / 1.1.09 are not insured for risks of war. However, if the journey of goods must go through the sea battle or high- risk war and owners want to buy war risk insurance, they should propose with VASS and will have to pay additional premiums as agree if VASS accepted. Then goods would be covered under the terms of war risk insurance.

  • The insured value of import-export goods shall be determined on the basis of the value of goods at the delivery or consignment place?

    The insured value of import-export goods is the actual value of the goods at the place of delivery. When buy insurance, if the policyowner can’t declare this value, the insured value of the goods shall be equal to the price of goods listed on the invoice or the actual price at delevery place if without invoice plus the extra cost of shipping and premiums.

  • How to define the sum insured of import-export goods?

    The sum insured of cargo insurance is the amount which the policyowner declared to suggest the goods are covered under that amount. Besides the price on the sales invoice, shipping costs and premiums, the insurance buyer can aggregate the estimated interest on the sum insured. However, the estimated interest included in the sum insured does not exceed 10% of the payment plus the cost of shipping and premiums (CIF value) of goods. In other words, the maximum sum insured which is accepted is 110% CIF.
    In case the sum insured of goods is lower than CIF value, the goods are considered to be insured under value. In this case, the loss, damage and cost of liability insurance is only compensated according to the ratio of the sum insured and the insured value.

  • Who is the object of domestic freight insurance?

    - Domestic freight insurance applied to goods transported by road, rail and waterways within the territory of the Socialist Republic of Vietnam.
    - Goods transported within the territory of Vietnam is covered by insurance rule of freight in the territory of Vietnam.
    - Insurance rule mentioned above can also be extended to cover cargo transported from Vietnam to neighbor countries and the transit of goods through Vietnam to neighbor countries by above vehicles.

  • How to regulate the sum insured of domestic freight insurance?

    The sum insured of domestic freight insurance is the value of goods which is declared in accordance with the market value of the goods at the consignment place by the insured. If the insured does not declare the sum insured, they can apply the calculation: The insured value of goods includes the cost of goods on bill (or the actual price at the delevery place if without invoice), plus the cost of shipping and premiums.
    - The insured may be included the estimated interest into the sum insured. However, such interest may not exceed 10% of the insured value.

  • When requesting to buy goods insurance, what information that insurance buyers should provide for VASS?

    Having demands of purchasing insurance, the one whom buy freight insurance should compose and send insurance application form for VASS (as the form VASS provided), including information about:
    + Name and address of the Insured
    + Goods are covered (type of goods, quantity, code, letters of credit, sale contracts, invoices)
    + Insurance value
    + Sum insured
    + Journey line (depature, arrival, transit if any)
    + Transportation information
    + Departure date
    + Insurance Conditions
    - Enclosed documents relating to the cargo (depending on the case), such as sale contracts, Invoice, Bill of lading (B / L), Letters of credit…

  • If there is any damage happened with insured goods which is belong to scope of cover, what should the insured do?

    In case damages happened with insured goods which is belong to VASS’s scope of cover, the insured or their representative should:
    - Declare immediately with local authorities to handle and make records under existing law;
    - Immediately notify VASS according hotline 1900 9249 or representative of VASS by phone number which is indicated on the certificate of insurance to arrange assessment;
    - Taking all necessary methods to rescue and preserve goods to prevent further losses occur;
    - Do the necessary procedures to reserve the right to claim towards the transporter or other third party who is responsible for damage or loss of goods.

  • Which condition and regulation that the owner of vessels operated on range of lake and sea of Vietnam could buy for hull insurance at VASS?

    The owner of vessel operated on rivers, lakes, seas and internal waters of Vietnam can choose to buy insurance for vessels by one of two insurance conditions specified in provisions of hull insurance of VASS, including:
    + Conditions A – Insurance for Total loss and parital loss of hull;
    + Condition B – Insurance for total losses of hull.

  • Does VASS provide third party liability insurance for owner of vessels operated on rivers, lakes, seas and internal waters of Vietnam?

    Ship-owners may suggest VASS to provide insurance by:
    - Rules of third party liability insurance for ship-owner of VASS follow the limit of liability depend on the ship-owner’s choice;
    - And / or based on the Rule of compulsory insurance of third party liability of the business who transports passengers , flammable and explosive goods on the domestic waterways of the Ministry of Finance (for the ship transporting flammable and explosive goods and passengers).

  • Does VASS provide vessel accident insurance for the crew who is working on vessel operating on rivers, lakes, internal water and sea of Vietnam?

    The ship-owner might suggest VASS to provide insurance for the crew follow the limit of liability depend on the ship owner’s choice.
    However, VASS only provides this kind of insurance in case the ship-owner has already buy hull insurance or third party liability insurance for ship-owner at VASS.

  • When requesting to buy ship insurance, what information that insurance buyers should provide for VASS?

    Having demands of purchasing insurance, the one who buy ship insurance should compose and send insurance application form for VASS as the form VASS provided, including information about:
    + Name and address of the Insured
    + Insurance value/ Sum insured/ Liability
    + Ship’s specification (depend on each kind of ship), including at least: name, type, nationality, weight, volume, capacity, scope of activities,…
    + + Insurance Participation expected program (Rules, Terms, Duration…)
    + Enclosed copy of the ship’s registration records which are in effect, include:
    Certificate of registration of the vessel;
    Certificate of ship’s marine safety ability or Certificates of technical safety and environmental protection of domestic waterways transports with the technical inspection records issued by the registry;
    + Number of technical inspection of the registry.

  • When accidents, incidents ,or complaints relating to the insured vessel suddenly happened, what should the insured implement?

    When accidents, incidents or complaints relating to insured vessel occur, the insured should implement adequately all of those provisions:
    + Report immediately to the port authority or local government where is closest to make a record as prescribed;
    + Find ways to notify immediately to VASS (via the hotline 1900 9249) or fax to discuss, organizing an assessment and propose appropriate solutions to limit the damage to a minimum level. At least 05 (five) days since the day of the accident happened or three (03) days since the day the ship arrive to the terminal (depending on which is the earlier ), the ship-owners must notify to VASS or representative of VASS at the nearest place in written document.
    + In case the insured vessel is damaged caused by other people, the insured must immediately notify to VASS or VASS’s representative at the nearest place in written document within 48 hours since the accident vessel arrives to terminal and implement adequately the necessary procedures to reserve the right of complain for VASS.
    - Must promptly take all necessary measures to help and protect people, facilities and assets to prevent and limit losses;
    - Assist VASS’s assessor to accomplish verifying and resolving quickly the consequences of accidents.