Suggestions to modify Vietnam’s legal provisions on the insurable interest in life insurance

Abstract

The insurable interest in life insurance
is a core principle for the parties to enter into an
insurance contract. In case the policyholder does not
have insurable interest to the insured, the life
insurance contract will become invalid or the life
insurance contract will terminate when the
policyholder no longer has insurable interest in
accordance with Vietnam Insurance Business Law.
The practice of life insurance contract performance
has raised many issues related to the insurable
interest that Vietnam Insurance Business Law has not
mentioned or are still lacking. Therefore, the legal
provisions on insurable interest are covered with
many shortcomings, and inconsistent with the
practice of insurance business. On the basis of
analysis of caselaw and insurance statutes in US
jurisdiction, the author proposes to modify the legal
provisions on the insurable interest stipulated in the
Vietnam Insurance Business Law..