Precedent No. 85/2026/AL on the participation in proceedings of member insurance enterprises under a co-insurance master agreement was adopted by the Council of Justices of the Supreme People’s Court on May 21, 2026, and announced under Decision No. 162/QĐ-CA dated May 29, 2026, of the Chief Justice of the Supreme People’s Court.

1. What is a Precedent?

A precedent refers to the arguments and rulings in legally effective judgments and decisions of the Court regarding a specific case, selected by the Council of Justices of the Supreme People’s Court and announced by the Chief Justice of the Supreme People’s Court as a precedent for courts to study and apply in adjudication. (Article 1 of Resolution 04/2019/NQ-HĐTP)

Precedents selected must meet the following criteria:

– Has the value of clarifying legal provisions that are subject to different interpretations, analyzing and explaining legal issues and events, and indicating the principles, guidelines for handling, and legal norms to be applied in a specific case, or demonstrating fairness for matters not yet specifically regulated by law;

– Is exemplary;

– Has the value of guiding the consistent application of law in adjudication.

2. Precedent No. 85/2026/AL on the participation in proceedings of member insurance enterprises under a co-insurance master agreement

2.1. Source of the Precedent

Appellate Judgment No. 64/2024/DS-PT dated June 3, 2024, of the People’s Court of Quang Nam province regarding the civil case “Dispute over insurance contract” between the plaintiff Mr. Luong Van H and the defendant General Insurance Corporation B; with 02 persons having related rights and obligations.

Location of the precedent content:

Paragraphs 7, 8, 10, and 11 of the “Court’s Opinion” section.

2.2. Overview of the Precedent’s Content

– Precedent Situation:
The co-insurance master agreement between insurance enterprises stipulates that the leading insurance enterprise has the obligation to enter into an insurance contract with the policyholder, settle claims, pay compensation when an insured event occurs, and has the right to request member insurance enterprises to contribute compensation according to the co-insurance ratio when an insured event occurs; it does not stipulate that member insurance enterprises are directly responsible to the policyholder.
The policyholder did not enter into contracts with member insurance enterprises but with the leading insurance enterprise, and a dispute arose from this contract. During the resolution of the case at the first-instance court, the leading insurance enterprise did not request the inclusion of member insurance enterprises as persons with related rights and obligations in the proceedings.
– Legal Solution:
In this case, the Court must determine that member insurance enterprises are not persons with related rights and obligations in the case and should not be included in the proceedings.

Legal provisions related to the precedent:

Clause 4, Article 68 Civil Procedure Code of Vietnam 2015 (amended and supplemented in 2019, 2020, 2022, 2023, 2024, and 2025).

Keywords of the precedent:

“Insurance contract”; “Co-insurance master agreement”; “Leading insurance enterprise”; “Member insurance enterprise”.

CASE CONTENT:

In the statement of claim, during the resolution of the case as well as at the court hearing, the person protecting the legitimate rights and interests of the plaintiff stated:

On August 27, 2019, Mr. Luong Van H signed fishing vessel insurance contract No. QNA.BHHS.19.1611 with Insurance Company B1 for the insurance of his fishing vessel with registration number QNa-909xx-TS. Specifically: the insured amount was 2,450,000,000 VND (Two billion four hundred fifty million dong), the insurance period was from August 28, 2019, to August 28, 2020.

At 12:20 PM on June 2, 2020, Mr. Luong Van H’s fishing vessel with registration number QNa-909xx-TS, with Mr. H as captain, departed from Border Guard Checkpoint A, N district, Quang Nam province, with 05 crew members to go fishing for squid, meeting all conditions for departure as regulated by Border Guard Checkpoint A’s vehicle control. While moving offshore, at 7:00 PM on the same day, the vessel was at coordinates 15°32’N 109°16’E when it was suddenly hit by a thunderstorm and large waves, causing the bow on both sides to break, and water to flood the vessel. Mr. H called out to the crew to use 02 pumps to pump water and use plastic cans to bail water out of the vessel, but due to the large break, it could not be remedied. At that time, Mr. H saw a light about 08 to 09 nautical miles away, so he steered the vessel towards it for assistance, but when it was about 500m away, the vessel’s engine died and it gradually sank. Realizing that the vessel could not be saved, Mr. H had the crew board 04 fishing baskets to leave the vessel and row to a nearby fishing vessel, QNg-98772-TS from Quang Ngai province, where Mr. H and all crew members were rescued.

After being rescued and brought ashore, Mr. H reported the entire incident to Border Guard Checkpoint A and completed all legal procedures for declaration and application for Insurance Company B1 to pay the fishing vessel insurance money to Mr. H according to the insurance contract, and completed all valid documents by December 19, 2020. However, Insurance Company B1 did not pay the fishing vessel insurance money to Mr. H as per the signed contract.

Now Mr. Luong Van H requests the Court to compel General Insurance Corporation B to pay the insurance money for fishing vessel QNa-909xx-TS in the amount of 2,401,000,000 VND (Two billion, four hundred one million dong) after deducting 02% of the compensation amount as per the contract, and late payment interest on the insurance money from December 19, 2020 (the date of submitting complete insurance claim documents as confirmed in the Survey Report of V Joint Stock Company) temporarily calculated until July 7, 2023, for 02 years and 06 months at an interest rate of 10%, totaling 600,250,000 dong.

During the resolution of the case as well as at the court hearing, the authorized representative of the plaintiff stated:

Agrees with the content presented by the person protecting the legitimate rights and interests of the plaintiff.

During the resolution of the case as well as at the court hearing, the authorized representative of the defendant stated:

General Insurance Corporation B (hereinafter referred to as Insurance B) acknowledges that Mr. Luong Van H participated in insurance for fishing vessel QNa-909xx-TS under fishing vessel insurance contract No. QNA.BHHS.19.1611 dated August 27, 2019. On June 2, 2020, fishing vessel QNa-909xx-TS encountered an accident in Vietnamese waters. On June 3, 2020, Mr. Luong Van H reported the loss, and Insurance B sent staff to Mr. H’s home to collect documents. On June 9, 2020, Insurance B requested a survey from V Joint Stock Company to survey the loss of fishing vessel QNa-909xx-TS. However, based on the final survey report on fishing vessel hull loss No. 36 TT/20VJC dated May 11, 2023, of V Joint Stock Company, the cause of fishing vessel QNa-909xx-TS sinking as declared by the vessel owner, due to Southwest winds of level 5 to level 6, accompanied by thunderstorms and strong waves hitting the bow causing it to break and sink, was inconsistent with the actual weather conditions in the area where the vessel sank as confirmed by document No. 174/ĐKTTVTTTB dated May 6, 2022, of the Central Central Meteorological and Hydrological Station. Furthermore, according to the survey report, it was noted that fishing vessel QNa-909xx-TS had been in use for 08 years, and the time since the vessel was dry-docked for maintenance, caulking, and hull painting was 11 months, so under normal weather conditions during the voyage when the accident occurred, it was highly likely due to natural wear and tear and hull perforation, leading to water ingress and sinking when exposed to waves and wind during the sea journey.

Based on the final survey report on fishing vessel hull loss No. 36 TT/20VJC dated May 11, 2023, Insurance B does not agree with Mr. Luong Van H’s entire claim.

Regarding the independent survey unit, V Joint Stock Company, it is a unit designated by Insurance B to conduct the survey and is responsible for acting on behalf of Insurance B to work with and request documents from the insured to issue the survey report and is responsible for its survey report. Insurance B’s request for V Joint Stock Company to conduct the survey was made by Insurance B itself, without consulting Mr. Luong Van H.

Regarding the time V Joint Stock Company received complete insurance claim documents from Mr. Luong Van H, Insurance B is not aware because Mr. H submitted them directly to V Joint Stock Company.

Insurance B will only accept or reject Mr. Luong Van H’s insurance claim based on complete insurance claim documents, and the deadline to accept or reject the insurance is 30 days from the date of receiving complete documents. The date of receiving complete documents, as determined by Insurance B, is May 11, 2023 – the date V Joint Stock Company issued the final survey report on fishing vessel hull loss No. 36 TT/20VJC. From May 11, 2023, until now, Insurance B has not yet issued a written acceptance or rejection of Mr. Luong Van H’s insurance claim. However, since Mr. Luong Van H has filed a lawsuit, the defendant has stated its disagreement with the plaintiff’s claim.

The defendant does not agree with the date the plaintiff claims to have submitted complete compensation claim documents, which is December 19, 2020, because on June 28, 2022, V Joint Stock Company issued document No. 146/VJC requesting Mr. H to provide additional evidence and sent it by mail to Mr. H, but the exact sending time is unclear. However, currently, the defendant has not provided evidence of sending the request document to Mr. H.

During the resolution of the case as well as at the court hearing, the person with related rights and obligations, Ms. Bui Thi P, stated:

Fishing vessel QNa-909xx-TS is the joint property of my husband and I (Luong Van H and Bui Thi P). I agree with the plaintiff Mr. Luong Van H’s claim and the presentation of the person protecting the legitimate rights and interests of the plaintiff.

During the resolution of the case as well as at the court hearing, the authorized representative of the person with related rights and obligations, Bank A, stated:

Based on Credit Agreement No. 4208LAV202000189 dated February 12, 2020, Mr. Luong Van H borrowed funds from Bank A, N district, Quang Nam province, in the amount of 2,700,000,000 VND (Two billion seven hundred million dong). The collateral for the loan is fishing vessel QNa-909xx-TS according to Asset Mortgage Agreement No. 17B/01/2019-HĐTC dated January 21, 2019, which has been registered for secured transactions.

Fishing vessel QNa-909xx-TS suffered an accident and sank at sea, and Mr. Luong Van H filed a lawsuit requesting Insurance B to compensate for the insurance money. Therefore, Bank A requests the People’s Court of Tam Ky city to consider, if Mr. Luong Van H’s claim is accepted, to resolve as follows:

Compel Insurance B to transfer the insurance compensation money for fishing vessel QNa-909xx-TS of Mr. Luong Van H to Bank A as the first and sole beneficiary according to the agreement in Article 3 of the Commitment to Transfer Insurance Beneficiary Rights No. QNA.BHHS.19.161 dated August 27, 2019, signed between the three parties: Bank A – N district branch, Quang Nam province, Mr. Luong Van H, and Insurance Company B1. Temporarily calculated until July 5, 2023, Mr. Luong Van H must pay Bank A the debt under Credit Agreement No. 4208LAV202000189 dated February 12, 2020, including: principal debt: 2,700,000,000 VND (Two billion, seven hundred million dong); interest debt: 1,041,616,653 VND (One billion, forty-one million, six hundred sixteen thousand, six hundred fifty-three dong). Total: 3,741,616,653 VND (Three billion, seven hundred forty-one million, six hundred sixteen thousand, six hundred fifty-three dong).

Request the Trial Panel to compel Insurance B to transfer the insurance compensation amount for fishing vessel QNa-909xx-TS to Mr. Luong Van H’s account number: 459901 at Bank A – N district branch, Quang Nam province, to settle Mr. H’s loan and interest debt under the credit agreement.

With the above content, in Civil Judgment No. 141/2023/DS-ST dated July 7, 2023, of the People’s Court of Tam Ky city, Quang Nam province, based on: Articles 12, 13, 14, 15, Point a, Clause 3, Article 16, Articles 18, 28, 29, 30, 32, 40, 46, and 47 of the Law on Insurance Business 2000 (amended and supplemented in 2010 and 2019); Articles 117, 274, 275, 357, and Clause 2, Article 468 of the Civil Code 2015; Article 26 of Resolution No. 326/2016/UBTVQH14 dated December 30, 2016, of the Standing Committee of the National Assembly regulating the collection, exemption, reduction, payment, management, and use of court fees and charges. Declared:

Accept the plaintiff Mr. Luong Van H’s claim against the defendant Insurance B regarding: “Dispute over insurance contract”.

Compel Insurance B to compensate Mr. Luong Van H and Ms. Bui Thi P for the insurance money for the hull, machinery, and equipment of fishing vessel QNa-909xx-TS according to Fishing Vessel Insurance Certificate No. QNA.BHHS.19.1611 dated August 27, 2019, in the amount of: 2,401,000,000 VND (Two billion, four hundred one million dong) and late payment interest on the insurance money, in the amount of: 599,583,056 VND (Five hundred ninety-nine million, five hundred eighty-three thousand, fifty-six dong). Total: 3,000,583,056 VND (Three billion, five hundred eighty-three thousand, fifty-six dong).

Compel Insurance B to transfer the insurance compensation amount for fishing vessel QNa-909xx-TS and late payment interest on the insurance money, totaling: 3,000,583,056 VND (Three billion, five hundred eighty-three thousand, fifty-six dong) to the beneficiary Bank A (transfer to account number: 459901 of Bank A – N district branch, Quang Nam province) to fulfill Mr. Luong Van H’s debt repayment obligation under Credit Agreement No. 4208LAV202000189 dated February 12, 2020.

In addition, the first-instance judgment also decided on court fees, litigation costs, enforcement obligations, late payment obligations, and the right to appeal of the parties.

After the first-instance trial, on July 19, 2023, the defendant Insurance B appealed the entire first-instance judgment.

At the appellate court hearing, the representative of the People’s Procuracy of Quang Nam province expressed opinions:

– Regarding compliance with law during the resolution of the civil case at the appellate stage: The assigned Judge directly resolving the case correctly implemented legal provisions regarding case acceptance, case resolution deadlines, and transferring case files to the Procuracy for study to participate in adjudication. At the court hearing, the Trial Panel and the Court Clerk correctly followed the procedures as prescribed by law. The parties correctly exercised their rights and obligations as prescribed by law.

– Regarding the resolution of the case: request the Trial Panel to apply Clause 1, Article 308 of the Civil Procedure Code 2015, and reject Insurance B’s appeal.

COURT’S OPINION:

[1] Based on the documents and evidence examined at the court hearing, the results of the arguments at the court hearing, and the opinions expressed by the representative of the Procuracy, the Appellate Trial Panel finds:

[2] Regarding procedure:

[3] At the appellate court hearing, the plaintiff did not withdraw the statement of claim, and the defendant Insurance B did not withdraw the appeal requesting the appellate court to review the entire first-instance judgment.

[4] Regarding the appeal period: the defendant Insurance B appealed within the prescribed period, so the People’s Court of Quang Nam province accepted the appellate case as stipulated in Article 285 of the Civil Procedure Code.

[5] The authorized representatives of Insurance B, including Ms. Do Phuong A, Mr. Dinh Duy H1, and Ms. Do Minh A1, were duly served for the second time but were still absent, so the Trial Panel proceeded with the trial in their absence as stipulated in Article 227 of the Civil Procedure Code 2015.

[6] Considering the appeal of the defendant Insurance B, it is found that:

[7] Insurance B claims that the first-instance court seriously violated procedural rules by not including member insurance companies, including Insurance M, Insurance P, and Insurance I, in the proceedings as persons with related rights and obligations, affecting the legitimate rights and interests of these companies.

[8] The Trial Panel finds that at the first-instance and appellate levels, Insurance B failed to provide the Court with the insurance contract signed between Mr. Luong Van H and the member insurance companies, including Insurance M, Insurance P, Insurance I, and Insurance B. Furthermore, according to Co-insurance Master Agreement for Offshore Fishing Operations No. 01/2014/ĐBH and Co-insurance Plan Agreement No. 01/2014 signed between Insurance B and Insurance M, Insurance P, Insurance I, Insurance B is the leading insurance enterprise (Leader) in Quang Nam province with an insurance ratio of 55%; the remaining co-insurance enterprises, Insurance M, Insurance P, Insurance I (Follower), have an insurance ratio of 15%. Article 2 of Co-insurance Master Agreement for Offshore Fishing Operations No. 01/2014/ĐBH clearly states the responsibilities and powers of the leading insurance company (Leader) as Insurance B, which must have the obligation to sign insurance contracts, settle claims, pay compensation when an insured event occurs, and has the right to request co-insurance companies to contribute compensation according to the co-insurance ratio when an insured event occurs. In this case, Insurance B signed the insurance contract with Mr. Luong Van H, so Insurance B must have the obligation to settle claims and pay compensation to Mr. Luong Van H. Therefore, Insurance B’s claim that the first-instance court seriously violated procedural rules by not including member insurance companies, including Insurance M, Insurance P, and Insurance I, in the proceedings as persons with related rights and obligations is unfounded.

[9] Fishing vessel QNa-909xx-TS is the joint property of Mr. Luong Van H and Ms. Bui Thi P, for which the Quang Nam Provincial Fisheries Sub-Department issued Fishing Vessel Registration Certificate No. 0001/2019/GCNĐK dated October 3, 2019, registered in the name of Mr. Luong Van H as the vessel owner, and Fishing License No. 0925/2020/QNa-GPKTTS dated May 22, 2020, for the main occupation of squid fishing in Vietnamese offshore waters.

[10] According to Fishing Vessel Insurance Certificate No. QNA.BHHS.19.1611 dated August 27, 2019, for fishing vessel QNa-909xx-TS, Mr. Luong Van H’s vessel was insured by Insurance Company B1 (under General Insurance Corporation B), including: hull, machinery, and equipment with a total insured value of: 2,450,000,000 VND (Two billion four hundred fifty million dong). Of which: hull is 1,500,000,000 VND, machinery is 450,000,000 VND, and equipment is 500,000,000 VND; Crew accident insurance: 3,220,000,000 VND; insurance period from 00:00 on August 28, 2019, to 24:00 on August 27, 2020.

[11] Fishing Vessel Insurance Certificate No. QNA.BHHS.19.1611 dated August 27, 2019, for fishing vessel QNa-909xx-TS is a form of insurance contract, ensuring the form, content, and validity conditions of a civil transaction as stipulated in Article 117 of the Civil Code 2015 and Articles 12, 13, 14, and 15 of the Law on Insurance Business 2000 (amended and supplemented in 2010 and 2019), thus becoming effective from 00:00 on August 28, 2019, to 24:00 on August 27, 2020, as stated in Fishing Vessel Insurance Certificate No. QNA.BHHS.19.1611 dated August 27, 2019.

[12] Regarding the cause leading to the legal event that gave rise to insurance liability for fishing vessel QNa-909xx-TS according to Fishing Vessel Insurance Certificate No. QNA.BHHS.19.1611 dated August 27, 2019:

[13] According to Mr. Luong Van H and the crew members on board: While fishing vessel QNa-909xx-TS was moving offshore, at 7:00 PM on June 2, 2020, the vessel was at coordinates 15032’N 109016’E when it was suddenly hit by a thunderstorm and large waves, causing the bow on both sides to break, water to flood in, and the vessel to sink, despite Mr. Luong Van H and the crew members on board using all measures to save the vessel but failing, leading them to abandon the vessel.

[14] Insurance B, based on Survey Report No. 36TT/20JVC dated May 11, 2023, of V Joint Stock Company (the unit requested by Insurance B to survey the cause and loss due to the vessel sinking), claims that the cause of fishing vessel QNa-909xx-TS sinking as declared by Mr. H was inconsistent with the weather in the area as reported in document No. 174/ĐKTTVTTTB dated May 6, 2022, of the Central Central Meteorological and Hydrological Station, and that fishing vessel QNa-909xx-TS had been in use for 08 years, and the time since the vessel was dry-docked for maintenance, caulking, and hull painting was 11 months, so “…it was highly likely due to natural wear and tear and hull perforation, leading to water ingress and sinking when exposed to waves and wind during the sea journey.” to reject payment of insurance money as requested by Mr. Luong Van H.

[15] It is found that: Document No. 174/ĐKTTVTTTB dated May 6, 2022, of the Central Central Meteorological and Hydrological Station providing weather information in the sea area where fishing vessel QNa-909xx-TS sank to V Joint Stock Company, confirming the weather at 7:00 PM on June 2, 2020, at coordinates 15032’N 109016’E based on satellite cloud images and meteorological and hydrological observations. This result cannot record localized weather patterns that change rapidly at specific times in the reported sea area. The survey report claiming that the cause of the accident leading to the vessel sinking was due to natural wear and tear and perforation is unfounded, because: according to Fishing Vessel Technical Safety Certificate No. 4800855 issued on December 20, 2019, by the Q Fisheries Sub-Department, fishing vessel QNa-909xx-TS met technical safety conditions to operate until the end of December 18, 2020. Furthermore, the vessel was not salvaged by Insurance B and V Joint Stock Company to survey the cause of the sinking; this is merely a subjective inference about the cause of the sinking without evidence to prove it, and thus is not accepted. Therefore, there is a basis to determine that the cause leading to the legal event that gave rise to insurance liability for fishing vessel QNa-909xx-TS according to Fishing Vessel Insurance Certificate No. QNA.BHHS.19.1611 dated August 27, 2019, was due to a thunderstorm and large waves hitting the bow on both sides, causing water to flood in and the vessel to sink, as stated by Mr. Luong Van H and the crew members, which is well-founded.

[16] Regarding Insurance B’s disagreement to pay late payment interest on insurance money to Mr. Luong Van H.

[17] Insurance B claims that the deadline to accept or reject insurance is 30 days from the date of receiving complete documents. The date of receiving complete documents, as determined by Insurance B, is May 11, 2023 – the date V Joint Stock Company issued the final survey report on fishing vessel hull loss No. 36 TT/20VJC, which is unfounded. Because: The legal representative of Insurance B, Mr. Nguyen Xuan V1 – General Director, confirmed in his self-declaration dated June 26, 2023: “…Immediately after the incident, the vessel owner reported the loss to Insurance Company B1, Tam Giang Commune People’s Committee, and An Hoa Border Guard Post to report the incident… On December 9, 2022, Insurance B received Final Survey Report No. 36TT/20VJC… Final Survey Report No. 36TT/20VJC dated December 9, 2022, issued by V Joint Stock Company…”.

[18] Subsequently, V Joint Stock Company issued Final Survey Report on fishing vessel hull loss No. 36 TT/20VJC dated May 11, 2023, after the Court accepted the case. This report has similar content to Final Survey Report No. 36TT/20VJC dated December 9, 2022, issued by V Joint Stock Company, only the section identifying the cause of fishing vessel QNa-909xx-TS sinking is more detailed, but the basic content remains unchanged.

[19] At the court hearing, the person protecting the legitimate rights and interests of the plaintiff confirmed that Mr. Luong Van H had notarized and submitted all the above documents to Insurance Company N and V Joint Stock Company around the second half of June 2020 but did not receive a receipt. The statement of the person protecting the legitimate rights and interests of the plaintiff is well-founded because it is consistent with the notarization time of these documents and consistent with the content of Official Letter No. 221/VJC dated September 29, 2020, of V Joint Stock Company requesting Mr. H to provide additional documents, all of which were outside the mandatory documents stipulated in Article 8 of the Rules, Terms, and Fee Schedule for Offshore Fishing Vessel Hull Insurance and Offshore Fishing Logistics Vessel Services (Approved for registration under Official Letter No. 18759/BTC-QLBH dated December 16, 2015, of the Ministry of Finance). Therefore, there is no basis to accept the General Insurance Corporation B representative’s claim that Mr. H did not submit complete compensation claim documents.

[20] Thus, after the vessel sinking accident occurred on June 2, 2020, until December 9, 2022, V Joint Stock Company only issued Final Survey Report No. 036TT/20VJC (first time), which was delayed, prolonging the survey period (02 years and 06 months) despite having determined not to salvage the vessel due to salvage costs being higher than the insured value under the contract (salvage quotation dated June 15, 2020, from Nguyen Van V2 Construction and Service Co., Ltd. was 2,500,000,000 VND, salvage quotation dated June 15, 2020, from T Salvage Company was 3,000,000,000 VND), and Insurance B, after receiving the survey report, also did not issue a written notice to Mr. Luong Van H whether it would accept or reject payment of compensation for the loss of fishing vessel QNa-909xx-TS, which affected the legitimate rights of the insured property owner. Therefore, the Trial Panel has sufficient grounds to accept the statement of the plaintiff’s legal representative, determining that the date Mr. Luong Van H submitted valid compensation claim documents was when V Joint Stock Company received Mr. Luong Van H’s Request for Compensation and Insurance Payment on December 19, 2020, as confirmed in Section IX of Final Survey Report No. 036TT/20VJC dated December 9, 2022.

[21] According to Article 10 of the Rules, Terms, and Fee Schedule for Offshore Fishing Vessel Hull Insurance and Offshore Fishing Logistics Vessel Services (Approved for registration under Official Letter No. 18759/BTC-QLBH dated December 16, 2015, of the Ministry of Finance), it states: “When an insured event occurs, the insurance enterprise must pay compensation within 15 working days from the date of receiving complete and valid compensation claim documents. In case of refusal to compensate, the reason must be clearly explained in writing.”

[22] Therefore, the date Insurance B violated its obligation to pay insurance money to Mr. Luong Van H is determined to be from January 8, 2021.

[23] In Fishing Vessel Insurance Certificate No. QNA.BHHS.19.1611 dated August 27, 2019, for fishing vessel QNa-909xx-TS, the parties did not agree on the late payment interest rate for insurance money. Therefore, the applicable late payment interest rate is 10%/year as stipulated in Clause 2, Article 468 of the Civil Code 2015.

[24] At the court hearing, the representative of Insurance B confirmed that it did not salvage fishing vessel QNa-909xx-TS because the cost of salvage and repair was greater than the value of the insurance contract. Therefore, the Trial Panel has no basis to consider handing over the wreck of fishing vessel QNa-909xx-TS to Insurance B. Thus, the loss of fishing vessel QNa-909xx-TS in the accident is determined to be 100%.

[25] Since fishing vessel QNa-909xx-TS is the joint property of Mr. Luong Van H and Ms. Bui Thi P, there is a basis to compel Insurance B to pay insurance money according to the insurance contract and late payment interest on the insurance money for fishing vessel QNa-909xx-TS to Mr. H and Ms. P.

[26] Compel Insurance B to pay insurance money for the hull, machinery, and equipment of fishing vessel QNa-909xx-TS to Mr. Luong Van H and Ms. Bui Thi P after deducting 02% of the compensation amount, corresponding to: 2,450,000,000 VND – (2,450,000,000 VND x 02%) = 2,401,000,000 VND (Two billion, four hundred one million dong) according to Fishing Vessel Insurance Certificate No. QNA.BHHS.19.1611 dated August 27, 2019.

[27] Regarding the request for late payment interest on insurance money: The date Insurance B violated its payment obligation is from January 8, 2021, until the first-instance trial date (July 7, 2023), which is 02 years, 05 months, and 29 days, at an interest rate of 10%/year, totaling: 2,401,000,000 VND x 10% x 02 years 05 months 29 days = 599,583,056 VND (Five hundred ninety-nine million, five hundred eighty-three thousand, fifty-six dong). Total: 3,000,583,056 VND (Three billion, five hundred eighty-three thousand, fifty-six dong).

[28] From the above findings, the Appellate Trial Panel has no basis to accept Insurance B’s appeal.

[29] Regarding the transfer of beneficiary rights for fishing vessel QNa-909XX-TS insurance money:

[30] According to Credit Agreement No. 4208LAV202000189 dated February 12, 2020, Mr. Luong Van H borrowed from Bank A – N district branch, the amount of 2,700,000,000 VND (Two billion seven hundred million dong), with fishing vessel QNa-909xx-TS as collateral for the loan according to Asset Mortgage Agreement No. 17B/01/2019-HĐTC dated January 21, 2019, which has been registered for secured transactions as prescribed by law.

[31] According to Commitment to Transfer Insurance Beneficiary Rights No. QNA.BHHS.19.161 dated August 27, 2019, between Insurance Company B1, Mr. Luong Van H, and Bank A – N district branch, Bank A – N district branch is the sole beneficiary of the insurance money for fishing vessel QNa-909xx-TS within the scope of the debt (principal and loan interest). Temporarily calculated until the first-instance trial date of July 7, 2023, Mr. Luong Van H’s outstanding debt under Credit Agreement No. 4208LAV202000189 dated February 12, 2020, includes: principal debt of 2,700,000,000 VND (Two billion seven hundred million dong), interest debt of 1,041,616,653 VND (One billion, forty-one million, six hundred sixteen thousand, six hundred fifty-three dong). Total: 3,741,616,653 VND (Three billion, seven hundred forty-one million, six hundred sixteen thousand, six hundred fifty-three dong). Therefore, there is sufficient basis to compel Insurance B to transfer the insurance compensation amount for fishing vessel QNa-909xx-TS according to Fishing Vessel Insurance Certificate No. QNA.BHHS.19.1611 dated August 27, 2019, and late payment interest on the insurance money, totaling: 3,000,583,056 VND (Three billion, five hundred eighty-three thousand, fifty-six dong) to the beneficiary Bank A (transfer to account number: 459901 of Bank A – N district branch, Quang Nam province) to fulfill Mr. Luong Van H’s loan and interest repayment obligation under Credit Agreement No. 4208LAV202000189 dated February 12, 2020.

[32] Regarding court fees:

[33] Regarding first-instance civil court fees: Compel Insurance B to bear first-instance civil court fees, in the amount of: 92,011,660 VND (Ninety-two million, eleven thousand, six hundred sixty dong).

[34] Refund to Mr. Luong Van H the amount of first-instance civil court fee advance paid: 45,808,000 VND (Forty-five million, eight hundred eight thousand dong) according to court fee and charge advance receipt No. 0009953 dated January 3, 2023, of the Civil Judgment Enforcement Sub-Department of Tam Ky city, Quang Nam province.

[35] Appellate civil court fees: The Appellate Trial Panel does not accept the appeal of the defendant Insurance B, so the defendant Insurance B must bear the appellate civil court fees.

For the above reasons,

DECISION:

Based on Clause 1, Article 308 of the Civil Procedure Code.

Reject the appeal of the defendant Insurance B, uphold First-instance Civil Judgment No. 141/2023/DS-ST dated July 7, 2023, of the People’s Court of Tam Ky city, Quang Nam province.

Based on: Articles 12, 13, 14, 15, Point a, Clause 3, Article 16, Articles 18, 28, 29, 30, 32, 40, 46, and 47 of the Law on Insurance Business 2000 (amended and supplemented in 2010 and 2019); Articles 117, 274, 275, 357, and Clause 2, Article 468 of the Civil Code 2015; Article 26 of Resolution No. 326/2016/UBTVQH14 dated December 30, 2016, of the Standing Committee of the National Assembly regulating the collection, exemption, reduction, payment, management, and use of court fees and charges. Declared:

1. Accept the plaintiff Mr. Luong Van H’s claim against the defendant Insurance B regarding: “Dispute over insurance contract”;

From the date the judgment takes legal effect and there is an application for judgment enforcement from the judgment creditor for the amount that the judgment debtor is obliged to pay to the judgment creditor until the judgment is fully enforced, the judgment debtor must also bear the interest amount on the remaining judgment amount at the interest rate stipulated in Clause 2, Article 468 of the Civil Code 2015.

2. Regarding court fees:

+ First-instance civil court fees: Compel Insurance B to bear first-instance civil court fees, in the amount of: 92,011,660 VND (Ninety-two million, eleven thousand, six hundred sixty dong).

Refund to Mr. Luong Van H the amount of first-instance civil court fee advance paid: 45,808,000 VND (Forty-five million, eight hundred eight thousand dong) according to court fee and charge advance receipt No. 0009953 dated January 3, 2023, of the Civil Judgment Enforcement Sub-Department of Tam Ky city, Quang Nam province.

+ Appellate civil court fees: The defendant Insurance B must bear 300,000 VND (Three hundred thousand dong) in appellate civil court fees.

In case the judgment is enforced according to Article 2 of the Law on Civil Judgment Enforcement, the civil judgment creditor, civil judgment debtor have the right to agree on judgment enforcement, the right to request judgment enforcement, voluntarily enforce the judgment or be compelled to enforce the judgment according to Articles 6, 7, and 9 of the Law on Civil Judgment Enforcement; the statute of limitations for judgment enforcement shall be implemented according to Article 30 of the Law on Civil Judgment Enforcement.

The appellate judgment takes legal effect from the date of pronouncement (June 3, 2024).

PRECEDENT CONTENT

“[7] Insurance B claims that the first-instance court seriously violated procedural rules by not including member insurance companies, including Insurance M, Insurance P, and Insurance I, in the proceedings as persons with related rights and obligations, affecting the legitimate rights and interests of these companies.

“[10] According to Fishing Vessel Insurance Certificate No. QNA.BHHS.19.1611 dated August 27, 2019, for fishing vessel QNa-909xx-TS, Mr. Luong Van H’s vessel was insured by Insurance Company B1 (under General Insurance Corporation B), including: hull, machinery, and equipment with a total insured value of: 2,450,000,000 VND (Two billion four hundred fifty million dong). Of which: hull is 1,500,000,000 VND, machinery is 450,000,000 VND, and equipment is 500,000,000 VND; Crew accident insurance: 3,220,000,000 VND; insurance period from 00:00 on August 28, 2019, to 24:00 on August 27, 2020.

[*] This precedent was proposed by PhD Candidate Nguyen Van Dung, Chief Judge of the Administrative Court of the People’s Court of Da Nang city.

Precedent No. 85/2026/AL on the participation in proceedings of member insurance enterprises under a co-insurance master agreement

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1. What is a Precedent?

2. Precedent No. 85/2026/AL on the participation in proceedings of member insurance enterprises under a co-insurance master agreement

2.1. Source of the Precedent

2.2. Overview of the Precedent’s Content

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