Vietnam’s life insurance market currently has about 19 companies, providing more than 500 life insurance and health insurance products. With nearly 14 million insurance policies in effect, life insurance is increasingly common. However, recently life insurance contract disputes have become a hot topic for debate.
When a life insurance dispute occurs, what options do people have to protect their interests? Can commercial mediation – a growing dispute resolution method in Vietnam be the optimal solution? Lawyer Nguyen Hung Quang – President of Vietnam International Commercial Mediation Center had an interview on this topic with the Voice of Ho Chi Minh City People (VOH).
Disputes over life insurance contract
Talking to the Business Forum, Lawyer Nguyen Hung Quang expressed that life insurance contracts are often complicated. The Law on Insurance Business clearly stipulates the rights and responsibilities of the parties when participating in insurance, the fundamental content of an insurance contract.
Therefore, policyholders should read the contract carefully to understand their rights and responsibilities. Where the will to form a life insurance contract is not consistent with the conditions of the contract, it may lead to the policyholder claiming that they are not protected when a dispute occurs.
Commercial Mediation – The ultimate solution for life insurance contract disputes
The Law on Insurance Business has introduced dispute resolution methods including negotiation, mediation, arbitration, and court. Thus, a flexible mediation method can be the parties’ choice for a life insurance contract dispute. According to Lawyer Nguyen Hung Quang, commercial mediation is superior to other dispute resolution methods.
Specifically, the disputing parties can jointly find the optimal solution according to the contract, the law, or the parties’ wishes with the help of a third-party mediator. Therefore, in commercial mediation, justice is decided by the parties themselves.
One of the other advantages of commercial mediation is privacy and confidentiality. Unlike the court, which must publicize the judgment after the trial, for commercial mediation, all information shared by the parties during the mediation process will be completely confidential.
Dispute resolution procedures through commercial mediation are considered friendly and flexible. The mediation process will begin only when the disputing parties agree to participate in mediation. Mediation takes place through discussions between the parties in a friendly and flexible environment without requiring the strict application of any formalities like a court hearing.
In mediation, the parties control the outcome of the dispute resolution. As a result, mediation results can be beneficial to the disputing parties. In addition, the cost of mediation is usually lower than the cost of litigation. The flexible and simple procedure also helps the parties save time and effort in preparation and avoid a delay in opening the trial in the litigation proceedings.
People can search for information about commercial mediation centers, arbitration centers providing commercial mediation services, and ad-hoc mediators on the Ministry of Justice‘s website, and other Departments of Justice in Vietnam.
Listen to the full interview here: “Business Forum: Commercial Mediation in Life Insurance Disputes” or News at 5:30 AM on April 15, 2023.