Professional and Directors Liability Insurance in Vietnam

Professional Liability and Director indemnity are mostly requested for compliance reasons when dealing with Multinational companies MNE. Seek protection and indemnity.

Professional and Directors Liability Insurance in Vietnam

If you are a surgeon, an architect, an auditor, a travel agent or even à Financial advisory - like ourselves - you may be requested by your clients to have à professional indemnity insurance. Your clients/ stakeholders may want to get indemnity for malpractice.

Professional and Directors Liability is low demand and high risk in Vietnam

Professional Liability Insurance for doctors, accountants, CEO, travel agents, architects are in rare demand as those are not compulsory as those would be in more developed countries. Only 1 insurer would cover for professional risk. There are no laws nor compliance regulations to impose professional insurance, therefore demand and offer are low. As the business laws are new, the professional liability is enforced by contractual agreements. The liability on death of bodily injury is based on 30-months salary and material damages are usually repaired at cheap labour costs. Due to very little demand, insurers have not developed the corresponding offer. On the other hand, for surgeons and architects for instance there are very few professional experts to ascertain responsibility. In a court of the law it ends up with a small penalty to indemnify the victim.
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Professional indemnity insurance in Vietnam

Let’s face it: State-of-the-Art professional best practices and techniques are imported from abroad. Therefore local insurers are not equipped with teams of professional experts to assess if -say a brain neurosurgery or a glass building architecture- has been performed sub-standards.

The same goes with CEO and Directors liability: the legal actions are rarely landing into civil courts as a negotiated agreement is the norm. Other ‘big cases’ involving huge money lands into the criminal court, as Vietnam has no boundary in between those courts.

Yes, Vietnam as a developing country has no reputation for reliability, quality and professionalism. It has become an usual practice or compulsory for international clients to protect themselves over quality and professional deliveries. When dealing with orders from large firms; professional compliance, ISO standards, International qualifications or simply protecting themselves from malpractice have become à prerequisite. Insurance solutions are easier to implement than sending a team of their own experts to assess the damages and the responsibility before requesting financial indemnity or starting legal action.

We can help finding professional indemnity insurance but more importantly assess if it is worth purchasing knowing local practices, but more importantly, what amount of liability makes sense in Vietnam so you are well protected in case of malpractice by you or your team members.

In Vietnam, only 1 insurer deals with professional indemnity insurance for a limited number of professions: architects, hospitals medical specialists, accounting auditors, fund managers, some CEOs at MNE multinational enterprises.