During the implementation of an insurance contract, policyholders and the insured need to note 3 milestones to properly ensure their rights.

Time limitation for claiming insurance payment or indemnity

For personal and property insurance contract, the Law on Insurance Business stipulates the time limit for claiming payment or compensation is one (01) year from the date of occurrence of the insured event (which refers to an objective event agreed by the parties, or required by law that if and when such an event occurs, the insurer shall pay the insurance indemnity to the beneficiary or indemnify the insured).

However, this period does not include any period when a force majeure event or an objective obstacle occurs to the policyholder or the insured. Since the Law on Insurance Business does not have a separate definition for "force majeure events" and "objective obstacles", these should be referred to the current Civil Code 2015, accordingly:

• • Force majeure event is an event that occurs objectively, which is unforeseeable and cannot be overcome, despite all necessary measures and permissible ability.
• • Objective obstacle refers to an obstacle impacted by objective circumstances that prevent the person with civil rights and obligations from knowing that their legitimate rights and interests are infringed upon, or unable to exercise their civil rights and obligations;

In addition to the two types of events mentioned above, the laws also stipulates that, if the policyholder proves that he or she did not know when the insured event occurred, the one (1) year period shall be calculated from the date the policyholder knows about the occurrence of such event.

As for the civil liability insurance contract, the time limit to request insurance money or compensation is one (01) year from the date the third party asks the policyholder to compensate for damages under insurance liability as agreed in the insurance policy.

Time limitation for payment of insurance indemnity or compensation 

When an insured event occurs, the insurer shall proceed with insurance indemnity or compensation in accordance to the agreed-upon time in the insurance contract; in case the time limit agreement is absence, these obligations shall be fulfilled within 15 days from the receipt date of a complete and valid dossier on the claim.

Statute of Limitations 

If both parties have a dispute over any matter related to the policy and/or the performance of such policy, the two parties will have the right to sue the other party at a competent dispute settlement agency as agreed in the insurance contract or accordance with the laws.

The statute of limitations for a lawsuit is three (03) years from the moment the dispute arises.

Also note, this calculation will not apply the time when force majeure events and objective obstacles occur according to the general provisions of the Civil Code.