Clearly stipulate the level of purchase and compensation for professional liability insurance of notaries.
Báo Tin Tức•16/11/2024
On the morning of November 15, at the National Assembly House, the National Assembly Standing Committee met to give opinions on explaining, accepting, and revising the draft Law on Notarization (amended).
Ensuring consistent implementation
Chairman of the National Assembly's Law Committee Hoang Thanh Tung speaks. Photo: Doan Tan/VNA
Reporting on the issue of asking for opinions from the Standing Committee of the National Assembly, Chairman of the Law Committee of the National Assembly Hoang Thanh Tung said that regarding the regulations on transactions that must be notarized, the Standing Committee of the Law Committee found that the regulations on the criteria for transactions that must be notarized as in the draft Law are appropriate. Mr. Hoang Thanh Tung explained that the Notarization Law is a formal law, and it is not advisable to specifically regulate transactions that must be notarized in the law so as not to overlap with the provisions of specialized laws. The law needs to stipulate general criteria to avoid each specialized legal document determining transactions that must be notarized according to different criteria, leading to a lack of consistency or possible abuse, affecting the rights and legitimate interests of organizations and individuals. In addition, the draft Law stipulates criteria for determining transactions that must be notarized based on the following factors: the importance, the level of legal security requirements of the transaction, and the authority to regulate transactions that must be notarized. When drafting, appraising and examining legal documents with provisions related to civil and economic transactions, competent entities in the law-making work will consider and evaluate the conformity with the criteria of transactions expected to be notarized; ensuring consistent implementation. However, if this criterion is rigidly stipulated that only new laws are allowed to stipulate transactions that must be notarized as proposed by the Government, it will not ensure flexibility in accordance with practical requirements, and will not ensure the stability of the law, especially in the current conditions of rapid scientific and technological development, many new economic and civil transactions are difficult to predict. In this direction, it will be necessary to study and amend a number of laws to "legalize" transactions that must be notarized, which are currently stipulated in a number of decrees and circulars, including the 2024 Land Law and the 2023 Housing Law that have just come into effect. This is both sensitive and inconsistent with the guiding spirit of innovation in thinking in law-making. Regarding professional liability insurance for notaries, the Standing Committee of the Law Committee proposed to maintain the provision on professional liability insurance for notaries as compulsory insurance as in the draft Law. According to the provisions of current law and the draft Law, notarization is a basic public service, notaries provide public services authorized by the State to ensure legal safety for parties participating in transactions, prevent disputes, contribute to protecting the rights and legitimate interests of individuals and organizations, and stabilize and develop the socio-economy. Therefore, such a provision is consistent with the provisions of the Law on Insurance Business, contributing to protecting public interests, social security, and better protecting the rights of notaries in practicing notarization. Moreover, this is a provision inherited from the current Notary Law and is consistent with the notary laws of a number of countries. Provisions as in the new draft Law ensure strictness, feasibility, and consistency with the obligations of notary organizations in purchasing professional liability insurance for notaries, ensuring the implementation of the goal of protecting public interests and social security. The purchase level and compensation level must be clearly specified.
Minister of Justice Nguyen Hai Ninh speaks. Photo: Doan Tan/VNA
Regarding the continued maintenance of the regulation on notary public professional liability insurance as compulsory insurance, Minister of Justice Nguyen Hai Ninh said that, of the 14 current specialized laws, 11 laws stipulate liability insurance as obligation insurance, requiring professional organizations to purchase professional insurance for their members. “The purchase of professional insurance is an obligation, so it will be purchased on the basis of an agreement between the insurance business enterprise and the professional organization. If it is a compulsory type of insurance, the purchase level and compensation level must be clearly specified,” the Minister of Justice stated.
After reviewing the laws related to auditing, lawyers, medical examination and treatment, the Minister of Justice said that the relevant laws have removed the regulation that professional liability insurance is compulsory, only stipulating the obligation to purchase insurance. Thus, if the draft Law on Notarization (amended) still maintains the regulation that professional liability insurance for notaries is a compulsory type of insurance, then this Law is the only one that requires the purchase of professional insurance. "Buying professional insurance is to protect notaries when there is a risk of personal liability, but compared to doctors, auditors, and lawyers, it is not known who is at greater risk," the Minister of Justice stated. Regarding this issue, Chairman of the National Assembly's Law Committee Hoang Thanh Tung said that the regulation that professional liability insurance for notaries is compulsory will be consistent with the provisions of Article 8 of the Law on Insurance Business, contributing to protecting public interests, social security, and better protecting the rights of notaries in practicing notary. On the other hand, this is a provision that inherits the current Notary Law and is consistent with the notary laws of a number of countries. The fact that notaries have not been compensated in the past when an insurance event occurs as stated by the Government in Official Letter No. 777/CP-PL is a problem in the organization and implementation of the Law. Therefore, the Chairman of the Law Committee proposed that the Government should have solutions to improve the effectiveness of implementing this provision in practice, especially the provisions on mechanisms, terms and principles of insurance in accordance with the characteristics of notary activities," the Chairman of the Law Committee stated. After the Standing Committee of the National Assembly discussed and concluded this content, Vice Chairman of the National Assembly Nguyen Khac Dinh said that the Standing Committee of the National Assembly basically agreed with the issues in the draft Law on Notary (amended) that had been agreed upon by the drafting agency and the reviewing agency. However, regarding the provisions on professional liability insurance for notaries, the National Assembly Standing Committee proposed to design two options for the National Assembly to consider. Option 1, as in the current Law, is to maintain the professional liability insurance for notaries as compulsory insurance. Option 2, as proposed by the Government, does not stipulate that professional liability insurance for compulsory insurance is a type of compulsory insurance, but only stipulates that notary organizations are obliged to purchase this insurance for their compulsory insurance. Previously, in the morning session, the National Assembly Standing Committee met to consider a number of resolutions to implement the Law on Organization of People's Courts in 2024.
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