Does personal health privacy always enjoy absolute protection under the law?

From the perspective of insurance business law, the answer is: NO, especially when such silence breaches the principle of Utmost Good Faith—the cornerstone of any insurance contract.
Recently, Precedent No. 77/2025/AL provided a definitive legal stance on the obligation to disclose information. Let’s dive into how the Court approached this case with THE LAM LAW LLC – Your legal need, Our Mission:

🔍 Case Background
The policyholder entered into three life insurance packages with a total coverage of 5.5 billion VND. In the application forms, he declared “No” to all pre-existing condition queries. However, medical records later revealed he had been treating terminal-stage cancer at multiple major hospitals both locally and abroad right at the time of signing.

⚖️ Judicial Analysis & Approach
The Supreme People’s Court established several pivotal legal principles:

1. Independent Disclosure Obligation: The Court ruled that the insurer’s medical examination DOES NOT substitute for the policyholder’s duty of honest declaration. A policyholder cannot rely on the fact that “the insurer’s doctor examined me” to conceal known serious illnesses.

2. The Element of “Intentional Fault”: Under Article 19 of the Law on Insurance Business 2000 (corresponding to Article 22 of the 2022 Law), knowingly checking “No” while undergoing cancer treatment is defined as an intentional concealment of material facts.

3. Severe Legal Consequences: Since the undisclosed information would have changed the insurer’s decision to accept the risk, the Court affirmed that:
🔹The insurer has the right to terminate the contract.
🔹The insurer is NOT liable for any claims arising from the undisclosed risks (even death).
🔹The insurer only returns the “Contract Account Value” as agreed, which, in many early-stage cases, can be zero.

💡 Key Takeaways
🔹For Clients: Transparency is the ultimate protection for your beneficiaries. Any concealment can render the contract void at the very moment your family needs it most.

🔹For Businesses: While the 2022 Law on Insurance Business (effective from 2023) imposes stricter duties on insurers to explain terms, Precedent 77 reinforces a “fair play” field where fraud is not tolerated.
Privacy is protected, but it cannot be used as a tool for insurance fraud.

📍 Legal Source: Precedent No. 77/2025/AL

⚠️ Disclaimer: The information provided above is for sharing purposes only and does not constitute our formal legal advice.

📩 If you would like to discuss further with the legal team of THE LAM LAW LLC – Your legal need, Our Mission, please feel free to contact us.

THE LAM LAW LLC
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