BROSS & Partners secures landmark victory for foreign-invested life insurer in prolonged suicide exclusion dispute

BROSS & Partners achieved a major win for a leading foreign-invested life insurance company in Vietnam (the “Insurer”). We successfully defended the Insurer in a highly complex, five-year-plus dispute over life insurance benefits following the Insured’s suicide.

The case centered on a policy that had lapsed due to the Policyholder’s (“PO”) failure to pay premiums within the grace period. The PO later reinstated the policy by submitting a written request and settling arrears. The Insurer denied the death benefit claim, invoking the standard two-year suicide exclusion clause applicable from the reinstatement date.

The PO challenged the denial, asserting that the policy had never truly lapsed—alleging the premium delay stemmed from the Insurer’s fault—and therefore the exclusion period had already run, entitling them to full benefits.

What initially appeared straightforward escalated into an arduous legal marathon involving multiple adjournments, evidence supplements, forensic assessments, and intensive proceedings. BROSS & Partners collaborated closely with the Insurer’s internal team, leveraging deep industry knowledge and precise argumentation to address technical insurance concepts before the court.

Ultimately, the Court of First Instance ruled entirely in the Insurer’s favor, dismissing the PO’s claims. The PO appealed, but the Appellate Court rejected the appeal and affirmed the first-instance judgment.

This outcome highlights several key lessons for the insurance sector:

• The pressing need for digital transformation in life insurance operations to reduce payment errors, streamline reinstatement processes, and minimize similar disputes.
• The critical importance of specialized legal expertise that combines profound understanding of insurance products with the ability to communicate complex technical issues effectively in court.

BROSS & Partners extends sincere thanks to the Insurer for its sustained trust and partnership throughout the five-year effort, as well as to the Courts and Procuracies for their thorough and diligent handling of the case.

This landmark resolution reinforces BROSS & Partners’ strong track record in defending foreign-invested insurers in high-stakes, protracted disputes under Vietnam’s evolving insurance regulatory framework.

The team of BROSS & Partners: Partner Nguyen Huy Hoang, Partner Nguyen Van Thai and Senior Associate Doan Thanh Binh.