Insurance Recovery Issues Following Vietnam Unrest

Recent turmoil and violence at manufacturing parks throughout Vietnam over the last few weeks is impacting both local and global manufacturers and the complex supply chains currently utilised by MNCs could mean relatively small local losses might result in larger global losses.

Whether or not the relevant manufacturers and/or suppliers can recover these losses from their insurers will depend on the specific language in their insurance policies, and the application of the relevant governing law, be it the laws of Vietnam, Singapore, PRC or another country.

The following questions will need to be considered carefully to determine whether or not an insured can recover under its insurance policy in Vietnam, be it a Material Damage/Property Damage All Risk policy, Trade & Credit Risk policy or Political Risk policy: