Buying life insurance is a long-term financial commitment — yet many people sign the contract without knowing how the law protects them. Since 01/01/2023, the Law on Insurance Business 2022 (No. 08/2022/QH15) sets out 8 rights of the insurance buyer in Clause 1, Article 21. Knowing these rights helps you stay in control before, during, and after signing.
1. The right to choose your insurer
Insurance buyers are free to choose any insurer or foreign non-life insurance branch to contract with. No organization or individual may force you to buy from a particular insurer — not even when insurance is bundled with a bank loan.
2. The right to full disclosure and explanation of terms
You may require the insurer to provide the insurance request form, risk questionnaires, insurance rules, conditions and clauses — and to explain them clearly. This is the most important pre-signing right, especially regarding exclusion clauses that allow the insurer to deny payment.
3. The right to proof of contract
After contracting, you may require evidence of the insurance contract under Article 18 — typically the insurance certificate or policy. Keep these documents safe; they are your legal basis in any dispute.
4. The right to premium invoices
You may require premium invoices as agreed in the contract and under the law. Invoices prove you have fulfilled your premium obligation — a decisive factor when claiming benefits.
5. The right to cancel or unilaterally terminate the contract
The law distinguishes two situations:
- Cancellation (Clause 3, Article 22; Articles 25, 35): applies when the insurer breaches its duty to provide information — the insurer must then refund all premiums paid and compensate damages (if any);
- Unilateral termination (Article 26): the buyer voluntarily ends the contract, with financial consequences (surrender value) governed by the contract terms.
6. The right to claim payment when the insured event occurs
When the insured event occurs, you may demand compensation or insurance payment. If denied, the insurer must explain the denial in writing — and you may appeal that decision.
7. The right to transfer the insurance contract
You may transfer the insurance contract as agreed in the contract or under the law — for example, assigning rights and obligations to another person instead of terminating and losing part of the value.
8. Other rights under the law
This open-ended clause covers rights arising from guiding regulations and contract terms — such as personal data confidentiality and the right to complain to the state insurance regulator.
9. The accompanying duties: rights are protected only if you perform your duties
Alongside the 8 rights, Article 21 also sets out the buyer’s duties: full and truthful disclosure of all relevant information; reading and understanding the terms; paying premiums in full and on time. Misrepresentation is the most common reason contracts are cancelled and claims denied.
10. Frequently asked questions
Q: I signed and then discovered I was mis-sold. Can I cancel?
A: Yes, if you can show the insurer (through its agent) breached its duty to provide information — under Article 35, you may cancel and receive a full refund of premiums paid.
Q: The insurer denied my claim without explanation. What should I do?
A: Demand a written explanation (the insurer’s duty); if unsatisfactory, complain to the Insurance Supervisory Authority under the Ministry of Finance or sue in court.
Q: Can I transfer my life insurance contract to someone else?
A: Yes, as agreed in the contract or under the law (point g, Clause 1, Article 21).
Having trouble with a life insurance contract and need your rights reviewed? Contact us for advice.
This article was prepared by the FLAW AI Legal Council. The content is pending QA Council review prior to approval; the information is for reference only and does not replace legal advice for your specific circumstances.