Resolving Marine Insurance Disputes in Import-Export Activities in Vietnam
1. Why are marine insurance disputes becoming more common in import-export operations?
Vietnam's import-export activities are becoming increasingly vibrant, leading to a surge in demand for marine insurance. However, the complexity of this field makes marine insurance disputes almost inevitable. According to several legal experts, marine insurance contracts are often based on complex templates, containing ambiguous clauses regarding the insured object, coverage scope, insured value, etc., which can easily lead to misunderstandings between the parties.
Moreover, the rapidly growing market with limited awareness of indemnity principles also poses risks. For instance, the fluctuating value of assets (such as ships and cargo) may cause discrepancies in the insured amount, leading to disputes when claims are made.
2. The latest legal framework for marine insurance disputes in Vietnam
2.1 Insured objects and claims settlement procedures
According to the 2015 Vietnam Maritime Code, the subjects of marine insurance include ships, cargo, related assets, and even contract values such as shipping fees, vessel charter rates, estimated profits, and arising civil liabilities.
When a loss event occurs, the insurer is entitled to request that the insured party provide sufficient evidence and documentation to assess the compensation level.
2.2 Statute of limitations for initiating insurance disputes
A crucial point that import-export enterprises in Vietnam must remember: under Article 336 of the 2015 Vietnam Maritime Code, the statute of limitations for initiating a marine insurance dispute is two years from the date the dispute arises. Missing this deadline may result in losing your legal right to protection.
2.3 Principles and mechanisms for dispute resolution
Pursuant to Article 338 of the 2015 Vietnam Maritime Code, two core principles apply:
Disputes can be resolved through negotiation – mediation, or via arbitration or competent court proceedings.
If at least one party is a foreign organization or individual, the disputing parties may agree to resolve the dispute either abroad or within Vietnam.
3. Common methods of dispute resolution in Vietnam
3.1 Negotiation & Mediation – A flexible and preferred route
This is the most straightforward and flexible approach when disputes arise. The involved parties communicate directly to find a mutually agreeable solution, avoiding third-party intervention.
Example: Company X (an exporter based in Vietnam) and Insurance Company Y can create a mutual agreement or request the assistance of a mediator to reach a joint conclusion, maintaining a long-term business relationship.
3.2 Arbitration – Fast, confidential, and enforceable
If the contract contains an arbitration clause, the dispute can be brought to commercial arbitration, offering the following advantages:
Simple procedures and shorter resolution time.
Confidential hearings to protect sensitive business information.
Final and binding arbitral awards with legal enforceability.
Notably, reputable arbitration centers such as the Singapore Chamber of Maritime Arbitration, London Maritime Arbitrators Association, or New York arbitration bodies are common choices in international maritime disputes.
3.3 Court litigation – When a formal ruling from the Vietnamese state is required
If no arbitration agreement exists, or if parties prefer the authority of the Vietnamese legal system for enforcement purposes, a lawsuit can be filed with a competent People’s Court.
According to the 2015 Civil Procedure Code, courts have all the necessary tools to enforce judgments and rulings against the involved parties.
4. Action plan for import-export businesses in Vietnam
1. Review and store insurance contracts: Clearly define the insured object, scope of insurance, and dispute resolution clauses (arbitration or court, jurisdiction, language, etc.)
2. In case of loss: Immediately notify the insurer and collect evidence: on-site reports, photos, invoices, bills of lading, insurance contracts, etc.
3. Prioritize negotiation and mediation: Contact the insurer to settle the issue, saving time and costs. Maintain a cooperative and flexible approach.
4. If negotiation fails: Review the contract: if an arbitration clause exists, initiate the arbitration process. Otherwise, consider taking legal action through court.
5. Pay attention to the statute of limitations: Do not let more than 2 years pass from the date the dispute arises, or you risk losing your legal protection.
6. Legal support from experts: Consider engaging maritime insurance lawyers in Vietnam for effective and professional legal assistance.
5. Conclusion
Resolving marine insurance disputes in Vietnam's import-export activities is both a challenge and an opportunity for businesses to strengthen their risk management capacity.
By understanding the legal framework—including insured objects, statute of limitations, and available dispute resolution mechanisms—businesses can act decisively to protect their rights.
If you are seeking practical legal advice, don’t hesitate to contact us – DEDICA Law Firm – where we offer robust, empathetic, and efficient legal solutions for businesses navigating the complexities of international trade and maritime insurance.
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