Consolidated Document No. 31/VBHN-VPQH: Law on Insurance Business (Consolidated)
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Based on:08/2022/QH15; 139/2025/QH15 - Government Official Gazette
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This is the officially consolidated text (Consolidated Document No. 31/VBHN-VPQH) of Vietnam's Law on Insurance Business No. 08/2022/QH15 (effective January 1, 2023), incorporating amendments from Law No. 139/2025/QH15 (effective January 1, 2026, with several clauses effective July 1, 2026). The law is the framework governing insurance and reinsurance business, insurance brokerage, and foreign insurance branches operating in Vietnam, as well as the rights and obligations of policyholders. The 2025 amendment updates 'cybersecurity' requirements for insurers' IT systems, narrows the scope of compulsory construction insurance, and sets out four categories of compulsory insurance: motor vehicle civil liability, fire and explosion, construction-activity insurance, and other lines mandated by separate laws. For SMEs, the law is mainly relevant through compulsory insurance obligations (construction, fire and explosion, motor vehicles) and policyholder-protection rules that apply in coverage disputes: a 21-day free-look period, ambiguous clauses interpreted in the buyer's favor, and a default 15-day claim-payment deadline.
Overview
This is Consolidated Document No. 31/VBHN-VPQH, merging the Law on Insurance Business No. 08/2022/QH15 (passed June 16, 2022, effective January 1, 2023) with amendments under Law No. 139/2025/QH15 (passed December 10, 2025, effective January 1, 2026, with several clauses effective July 1, 2026). It is the framework law governing all insurance business activity in Vietnam.
Scope and application
The law applies to insurers, reinsurers, insurance agents, insurance brokers, providers of auxiliary insurance services, mutual microinsurance organizations, and Vietnam branches of foreign non-life insurers and reinsurers, as well as policyholders, insureds, and beneficiaries. It does not apply to social insurance, health insurance, or deposit insurance run by the State on a non-commercial basis.
Notable changes from the 2025 amendment (Law No. 139/2025/QH15)
- 'Information safety' language for IT-system requirements is replaced with 'cybersecurity' (Articles 11, 13).
- The scope of compulsory construction insurance narrows from 'construction investment activities' to 'construction activities' (Article 8).
- References to 'cross-border auxiliary insurance services' are removed from several provisions, effective July 1, 2026.
- Article 69 is repealed, along with one clause in Article 71 on licensing authority.
Insurance contracts (Chapter II)
The law recognizes five contract types: life, health, property, damage/loss, and liability insurance. Core principles include utmost good faith, insurable interest, indemnity not exceeding actual loss, subrogation, and fortuity of risk. Key policyholder protections:
- A 21-day free-look period for contracts over one year, with a refund of premiums (minus reasonable costs) if cancelled.
- Ambiguous contract clauses are interpreted in the policyholder's favor.
- Insurers must clearly explain exclusion clauses and prove the buyer understood them.
- A default 15-day claim-payment deadline from receipt of a complete valid claim file; late payment accrues interest.
- A one-year time limit to file a claim from the date of the insured event.
Compulsory insurance (Article 8)
Four categories of compulsory insurance: (1) motor vehicle owner civil liability; (2) fire and explosion; (3) construction-activity insurance; (4) other compulsory lines mandated by separate laws. Licensed insurers may not refuse to sell to eligible buyers.
Insurers, licensing, and foreign branches (Chapter III)
The Ministry of Finance issues, amends, and revokes establishment-and-operation licenses (which double as business registration certificates), with a 60-day processing window. Branches of foreign non-life insurers or reinsurers must hold capital in Vietnamese dong from lawful sources (no borrowed capital), and appoint a branch director and appointed actuary meeting statutory standards. Licensed entities must commence operations within 12 months of licensing.
IT systems and data
Insurers must build IT systems that meet cybersecurity requirements and disaster-recovery capability. The law also establishes a national insurance-business database managed by the Ministry of Finance, linked to other national databases, with personal-data and trade-secret confidentiality requirements.
What it means for businesses
For most SMEs, this law matters mainly through compulsory insurance obligations (construction, fire and explosion, motor vehicles) and policyholder-protection rules that apply in coverage disputes - favorable interpretation of unclear terms, the 15-day payment deadline, and the 21-day cancellation right are worth knowing.