- Hoạt động kinh doanh bảo hiểm, kinh doanh tái bảo hiểm, nhượng tái bảo hiểm, môi giới bảo hiểm khi không có giấy phép thành lập và hoạt động.
Luật Kinh doanh bảo hiểm của Quốc hội, số 08/2022/QH15
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QUỐC HỘI Luật số: 08/2022/QH15 |
CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM |
LUẬT
KINH DOANH BẢO HIỂM
Căn cứ Hiến pháp nước Cộng hòa xã hội chủ nghĩa Việt Nam;
Quốc hội ban hành Luật Kinh doanh bảo hiểm.
NHỮNG QUY ĐỊNH CHUNG
Trong Luật này, các từ ngữ dưới đây được hiểu như sau:
Cơ quan nhà nước, tổ chức khác, cá nhân phải sử dụng thông tin được cung cấp đúng mục đích và không được cung cấp cho bên thứ ba mà không có sự chấp thuận của bên mua bảo hiểm, người được bảo hiểm, trừ trường hợp cung cấp theo quy định của pháp luật.
Doanh nghiệp bảo hiểm, doanh nghiệp tái bảo hiểm, chi nhánh nước ngoài tại Việt Nam, doanh nghiệp môi giới bảo hiểm chủ động thiết lập, duy trì và vận hành hệ thống công nghệ thông tin phù hợp với quy mô hoạt động và đáp ứng yêu cầu tối thiểu sau đây:
HỢP ĐỒNG BẢO HIỂM
Hợp đồng bảo hiểm quy định tại các điểm c, d và đ khoản này thuộc loại hình bảo hiểm phi nhân thọ.
Việc giao kết và thực hiện hợp đồng bảo hiểm phải tuân thủ các nguyên tắc cơ bản của pháp luật dân sự và các nguyên tắc sau đây:
Hợp đồng bảo hiểm phải được lập thành văn bản. Bằng chứng giao kết hợp đồng bảo hiểm là hợp đồng, giấy chứng nhận bảo hiểm, đơn bảo hiểm hoặc hình thức khác theo quy định của pháp luật.
Trường hợp hợp đồng bảo hiểm có điều khoản không rõ ràng dẫn đến có cách hiểu khác nhau thì điều khoản đó được giải thích theo hướng có lợi cho bên mua bảo hiểm.
Doanh nghiệp bảo hiểm, chi nhánh doanh nghiệp bảo hiểm phi nhân thọ nước ngoài hoặc bên mua bảo hiểm có quyền đơn phương chấm dứt thực hiện hợp đồng bảo hiểm trong trường hợp sau đây:
Tranh chấp về hợp đồng bảo hiểm được giải quyết thông qua thương lượng giữa các bên. Trường hợp không thương lượng được thì tranh chấp được giải quyết thông qua hòa giải hoặc Trọng tài hoặc Tòa án theo thỏa thuận trong hợp đồng bảo hiểm và quy định của pháp luật.
Đối với các hợp đồng bảo hiểm có thời hạn trên 01 năm, trong thời hạn 21 ngày kể từ ngày nhận được hợp đồng bảo hiểm, bên mua bảo hiểm có quyền từ chối tiếp tục tham gia bảo hiểm. Trường hợp bên mua bảo hiểm từ chối tiếp tục tham gia bảo hiểm thì hợp đồng bảo hiểm sẽ bị hủy bỏ, bên mua bảo hiểm được hoàn lại phí bảo hiểm đã đóng sau khi trừ đi chi phí hợp lý (nếu có) theo thỏa thuận trong hợp đồng bảo hiểm; doanh nghiệp bảo hiểm không phải bồi thường, trả tiền bảo hiểm khi xảy ra sự kiện bảo hiểm.
Doanh nghiệp bảo hiểm cấp bảo hiểm tạm thời cho bên mua bảo hiểm kể từ thời điểm nhận được yêu cầu bảo hiểm và phí bảo hiểm tạm tính của bên mua bảo hiểm. Thời hạn bảo hiểm, số tiền bảo hiểm, điều kiện bảo hiểm tạm thời do doanh nghiệp bảo hiểm và bên mua bảo hiểm thỏa thuận. Bảo hiểm tạm thời kết thúc sau khi doanh nghiệp bảo hiểm chấp nhận hoặc từ chối bảo hiểm hoặc trường hợp khác theo thỏa thuận.
Trường hợp người được bảo hiểm chết, bị thương tật hoặc đau ốm do hành vi trực tiếp hoặc gián tiếp của người thứ ba gây ra, doanh nghiệp bảo hiểm, chi nhánh doanh nghiệp bảo hiểm phi nhân thọ nước ngoài vẫn có nghĩa vụ bồi thường, trả tiền bảo hiểm theo thỏa thuận trong hợp đồng bảo hiểm mà không có quyền yêu cầu người thứ ba bồi hoàn khoản tiền mà doanh nghiệp bảo hiểm, chi nhánh doanh nghiệp bảo hiểm phi nhân thọ nước ngoài đã trả cho người thụ hưởng. Người thứ ba vẫn phải chịu trách nhiệm bồi thường cho người được bảo hiểm theo quy định của pháp luật.
Số tiền bảo hiểm là số tiền mà bên mua bảo hiểm và doanh nghiệp bảo hiểm, chi nhánh doanh nghiệp bảo hiểm phi nhân thọ nước ngoài thỏa thuận trong hợp đồng bảo hiểm để bảo hiểm cho tài sản và thiệt hại trên cơ sở yêu cầu của bên mua bảo hiểm theo quy định của Luật này.
Doanh nghiệp bảo hiểm, chi nhánh doanh nghiệp bảo hiểm phi nhân thọ nước ngoài không chịu trách nhiệm bồi thường trong trường hợp tài sản được bảo hiểm bị tổn thất do hao mòn tự nhiên hoặc do bản chất vốn có của tài sản, trừ trường hợp có thoả thuận khác trong hợp đồng bảo hiểm.
Trường hợp xảy ra tổn thất, người được bảo hiểm không được từ bỏ tài sản được bảo hiểm và phải áp dụng các biện pháp cần thiết mà khả năng cho phép để ngăn chặn hoặc giảm thiểu tổn thất, trừ trường hợp pháp luật có quy định khác hoặc các bên có thỏa thuận khác.
Đối tượng bảo hiểm của hợp đồng bảo hiểm trách nhiệm là trách nhiệm dân sự của người được bảo hiểm đối với người thứ ba theo quy định của pháp luật.
Doanh nghiệp bảo hiểm, chi nhánh doanh nghiệp bảo hiểm phi nhân thọ nước ngoài có quyền thay mặt người được bảo hiểm để thương lượng với người thứ ba về mức độ bồi thường thiệt hại, trừ trường hợp có thỏa thuận khác trong hợp đồng bảo hiểm.
Theo yêu cầu của người được bảo hiểm, doanh nghiệp bảo hiểm, chi nhánh doanh nghiệp bảo hiểm phi nhân thọ nước ngoài có thể bồi thường trực tiếp cho người được bảo hiểm hoặc cho người thứ ba bị thiệt hại.
DOANH NGHIỆP BẢO HIỂM, DOANH NGHIỆP TÁI BẢO HIỂM, CHI NHÁNH NƯỚC NGOÀI TẠI VIỆT NAM
Thành viên góp vốn thành lập doanh nghiệp bảo hiểm, doanh nghiệp tái bảo hiểm dưới hình thức công ty trách nhiệm hữu hạn phải là tổ chức, đáp ứng điều kiện chung quy định tại Điều 64 của Luật này và các điều kiện sau đây:
Việc thành lập doanh nghiệp bảo hiểm, doanh nghiệp tái bảo hiểm dưới hình thức công ty cổ phần phải đáp ứng điều kiện chung quy định tại Điều 64 của Luật này và các điều kiện sau đây:
Nhà đầu tư nước ngoài được sở hữu cổ phần, phần vốn góp đến 100% vốn điều lệ của doanh nghiệp bảo hiểm, doanh nghiệp tái bảo hiểm.
Hồ sơ đề nghị cấp giấy phép thành lập và hoạt động bao gồm:
Kết quả kiểm toán nội bộ của chi nhánh nước ngoài tại Việt Nam phải được báo cáo kịp thời cho doanh nghiệp bảo hiểm phi nhân thọ nước ngoài, doanh nghiệp tái bảo hiểm nước ngoài và gửi Giám đốc của chi nhánh nước ngoài tại Việt Nam.
Doanh nghiệp bảo hiểm nước ngoài, doanh nghiệp tái bảo hiểm nước ngoài, tổ chức bảo hiểm nước ngoài nhận tái bảo hiểm phải đạt kết quả xếp hạng của các tổ chức đánh giá tín nhiệm quốc tế và các điều kiện khác theo quy định của Chính phủ.
Doanh nghiệp bảo hiểm, chi nhánh doanh nghiệp bảo hiểm phi nhân thọ nước ngoài tham gia đồng bảo hiểm phải là doanh nghiệp bảo hiểm, chi nhánh doanh nghiệp bảo hiểm phi nhân thọ nước ngoài đã được cấp giấy phép thành lập và hoạt động theo quy định của Luật này.
Việc chuyển giao toàn bộ danh mục hợp đồng bảo hiểm của một hoặc một số nghiệp vụ bảo hiểm, tài sản và trách nhiệm tương ứng giữa các doanh nghiệp bảo hiểm, chi nhánh doanh nghiệp bảo hiểm phi nhân thọ nước ngoài được thực hiện trong trường hợp sau đây:
Chế độ kế toán áp dụng đối với doanh nghiệp bảo hiểm, doanh nghiệp tái bảo hiểm, chi nhánh nước ngoài tại Việt Nam phải thực hiện theo quy định của pháp luật về kế toán.
Ngoài các trách nhiệm quy định tại các điều 111, 112 và 113 của Luật này, doanh nghiệp bảo hiểm, doanh nghiệp tái bảo hiểm, chi nhánh nước ngoài tại Việt Nam bị áp dụng biện pháp cải thiện, can thiệp sớm, kiểm soát còn có trách nhiệm sau đây:
Trường hợp có thay đổi nội dung thông tin đã công khai, doanh nghiệp bảo hiểm, doanh nghiệp tái bảo hiểm, chi nhánh nước ngoài tại Việt Nam phải cập nhật kịp thời, đầy đủ nội dung thay đổi và lý do thay đổi so với thông tin đã công khai trước đó.
Doanh nghiệp bảo hiểm, chi nhánh doanh nghiệp bảo hiểm phi nhân thọ nước ngoài, bên mua bảo hiểm, người được bảo hiểm và các bên có liên quan có trách nhiệm trong việc đề phòng, hạn chế tổn thất và phòng, chống gian lận bảo hiểm.
ĐẠI LÝ BẢO HIỂM, DOANH NGHIỆP MÔI GIỚI BẢO HIỂM, TỔ CHỨC, CÁ NHÂN CUNG CẤP DỊCH VỤ PHỤ TRỢ BẢO HIỂM
Đại lý bảo hiểm là tổ chức, cá nhân được doanh nghiệp bảo hiểm, chi nhánh doanh nghiệp bảo hiểm phi nhân thọ nước ngoài, tổ chức tương hỗ cung cấp bảo hiểm vi mô ủy quyền trên cơ sở hợp đồng đại lý bảo hiểm để thực hiện hoạt động đại lý bảo hiểm.
Hợp đồng đại lý bảo hiểm phải có các nội dung chủ yếu sau đây:
Các quy định về tổ chức và hoạt động của doanh nghiệp môi giới bảo hiểm bao gồm: hình thức tổ chức hoạt động; tỷ lệ sở hữu của nhà đầu tư nước ngoài; thời hạn cấp giấy phép thành lập và hoạt động; thẩm quyền cấp, cấp lại, sửa đổi, bổ sung, thu hồi giấy phép thành lập và hoạt động, đình chỉ nội dung hoạt động; công bố nội dung giấy phép thành lập và hoạt động; thu hồi giấy phép thành lập và hoạt động được thực hiện theo quy định tại các điều 62, 68, 70, 71, 72 và khoản 1, khoản 3 Điều 75 của Luật này.
BẢO HIỂM VI MÔ
Sản phẩm bảo hiểm vi mô có các đặc điểm cơ bản sau đây:
QUẢN LÝ NHÀ NƯỚC VỀ HOẠT ĐỘNG KINH DOANH BẢO HIỂM
ĐIỀU KHOẢN THI HÀNH
Sửa đổi, bổ sung ngành, nghề số thứ tự 29 và bổ sung ngành, nghề số thứ tự 29a vào sau số thứ tự 29 của Phụ lục IV về Danh mục ngành, nghề đầu tư kinh doanh có điều kiện như sau:
Luật này được Quốc hội nước Cộng hòa xã hội chủ nghĩa Việt Nam khóa XV, kỳ họp thứ 3 thông qua ngày 16 tháng 6 năm 2022.
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CHỦ TỊCH QUỐC HỘI |
thuộc tính Luật 08/2022/QH15
Cơ quan ban hành: | Quốc hội | Số công báo: |
Đã biết
Vui lòng đăng nhập tài khoản gói Tiêu chuẩn hoặc Nâng cao để xem Số công báo. Nếu chưa có tài khoản Quý khách đăng ký tại đây! |
Số hiệu: | 08/2022/QH15 | Ngày đăng công báo: |
Đã biết
Vui lòng đăng nhập tài khoản gói Tiêu chuẩn hoặc Nâng cao để xem Ngày đăng công báo. Nếu chưa có tài khoản Quý khách đăng ký tại đây! |
Loại văn bản: | Luật | Người ký: | Vương Đình Huệ |
Ngày ban hành: | 16/06/2022 | Ngày hết hiệu lực: | Đang cập nhật |
Áp dụng: | Tình trạng hiệu lực: |
Đã biết
Vui lòng đăng nhập tài khoản gói Tiêu chuẩn hoặc Nâng cao để xem Tình trạng hiệu lực. Nếu chưa có tài khoản Quý khách đăng ký tại đây! |
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Lĩnh vực: | Bảo hiểm |
Từ 01/01/2023, doanh nghiệp bảo hiểm không được đầu tư kinh doanh bất động sản
Ngày 16/6/2022, Quốc hội đã thông qua Luật Kinh doanh bảo hiểm số 08/2022/QH15.
Theo đó, doanh nghiệp bảo hiểm, doanh nghiệp tái bảo hiểm, chi nhánh nước ngoài tại Việt Nam không được đầu tư kinh doanh bất động sản, trừ trường hợp mua cổ phiếu của doanh nghiệp kinh doanh bất động sản niêm yết trên thị trường chứng khoán, chứng chỉ quỹ của quỹ đại chúng.
Ngoài ra, doanh nghiệp bảo hiểm cũng không được kinh doanh bất động sản trực tiếp, nhưng được phép mua, đầu tư, sở hữu bất động sản để sử dụng làm trụ sở kinh doanh, địa điểm làm việc hoặc cơ sở kho tàng phục vụ trực tiếp cho các hoạt động nghiệp vụ; cho thuê trụ sở kinh doanh chưa sử dụng hết thuộc quyền sở hữu hoặc sử dụng. Đồng thời, doanh nghiệp được nắm giữ bất động sản do xử lý trái phiếu có bảo đảm bằng bất động sản, do đối trừ công nợ phải thu bằng bất động sản trong thời hạn 03 năm kể từ ngày nắm giữ.
Bên cạnh đó, kể từ ngày 01/01/2023, doanh nghiệp bảo hiểm, chi nhánh doanh nghiệp bảo hiểm phi nhân thọ nước ngoài dừng trích nộp Quỹ bảo vệ người được bảo hiểm. Toàn bộ số dư của Quỹ Bảo vệ người được bảo hiểm được Bộ Tài chính quản lý để sử dụng cho mục đích bảo vệ quyền lợi của người được bảo hiểm trong trường hợp doanh nghiệp bảo hiểm mất khả năng thanh toán hoặc phá sản. Chính phủ quy định chi tiết về quản lý và sử dụng số dư của Quỹ Bảo vệ người được bảo hiểm.
Luật này có hiệu lực thi hành kể từ ngày 01/01/2023.
Xem chi tiết Luật 08/2022/QH15 tại đây
tải Luật 08/2022/QH15
THE NATIONAL ASSEMBLY Law No. 08/2022/QH15 |
THE SOCIALIST REPUBLIC OF VIETNAM |
LAW
On insurance business
Pursuant to the Constitution of the Socialist Republic of Vietnam;
The National Assembly promulgates the Law on Insurance Business.
Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation
1. This Law prescribes the organization and operation of insurance business and define the rights and obligations of organizations as well as individuals participating in insurance; and State management over insurance business.
2. This Law does not apply to social insurance, health insurance, deposit insurance and other types of insurance, which are provided by the State and do not bear the commercial nature.
Article 2. Subjects of application
1. Insurance enterprises, reinsurance enterprises, insurance agents, insurance brokerage enterprises, organizations and individuals providing insurance auxiliary services, mutual support organizations providing microinsurance.
2. Branches of foreign non-life insurance enterprises and branches of foreign reinsurance enterprises (hereinafter referred to as Vietnam-based foreign branches).
3. Representative offices of foreign insurance enterprises, foreign reinsurance enterprises, foreign insurance brokerage enterprises, foreign finance and insurance groups in Vietnam (hereinafter referred to as Vietnam-based foreign representative offices).
4. Insurance buyers, the insured and beneficiaries.
5. State management agencies in charge of insurance business
6. Organizations and individuals involved in the insurance business.
Article 3. Application of the Law on Insurance Business, relevant laws and international practices
1. In case it is necessary to regulate provisions, on insurance contracts, establishment, organization of operations, professional operations, finance, accounting and financial reporting, solvency and interventions for insurance enterprises, reinsurance enterprises, foreign branches in Vietnam, mutual support organizations providing microinsurance, insurance brokerage enterprises in other laws promulgated after the effective date of this Law, different from those of this Law, the implementation or non-implementation contents shall be specified in accordance with this Law.
2. The parties to an insurance, reinsurance, or insurance brokerage contract may reach an agreement on applying international practices in case at least one of the parties is a foreign organization or individual, or both parties are Vietnamese organizations or Vietnamese citizens, but the object of insurance is placed in another country or the performance of the contract is carried out abroad. If the consequences of the application of international practices are contrary to the basic principles of Vietnamese laws, Vietnamese laws shall prevail.
Article 4. Interpretation of terms
For the purpose of this Law, the terms below are construed as follows:
1. Insurance business activities include insurance business, reinsurance business, reinsurance transfer and activities related to insurance business, including insurance agents, insurance brokerage and insurance auxiliary services.
2. Insurance business means the operation carried out by insurance enterprises, branches of foreign non-life insurance enterprises, mutual support organizations providing microinsurance, whereby the enterprises accept risks incurred by the insured on the basis of insurance premium payment by the insurance buyers so that the insurance enterprises, branches of foreign non-life insurance enterprises, mutual support organizations providing microinsurance shall indemnify and pay insurance money upon occurrence of insured events as agreed upon in insurance contracts.
3. Reinsurance business means the operation carried out by insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches, whereby the enterprises receive an amount of reinsurance premium paid by other insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches, foreign insurance enterprises, foreign reinsurance enterprises, foreign insurance organizations for the commitment to pay compensation for the liabilities which the former have accepted for insurance.
4. Reinsurance transfer means the operation carried out by insurance enterprises, reinsurance enterprise, or Vietnam-based foreign branch, whereby the enterprises transfer part of the liability received for reinsurance to other insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches, foreign insurance enterprises, foreign reinsurance enterprises, foreign insurance organizations on the basis of on the basis of payment of reinsurance transfer premiums.
5. Insurance agency activity means one or several activities authorized by insurance enterprises, branches of foreign non-life insurance enterprises or mutual support organizations providing microinsurance, including consulting insurance products; introducing insurance products; offering and selling insurance products; arranging the conclusion of insurance contracts; collecting insurance premiums; collecting records to serve the settlement of compensation, insurance payment.
6. Insurance brokerage activities mean the provision of information and consultancy to the insurance buyers on types of insurance, insurance products, insurance programs, insurance conditions, insurance terms, premium rates, insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches; and activities relating to the negotiation, arrangement, conclusion and performance of insurance and reinsurance contracts.
7. Insurance auxiliary services include insurance consultancy, insurance risk assessment, insurance actuary, insurance loss assessment, and insurance claim settlement support. Insurance auxiliary services do not include the self-implementation by insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches and mutual support organizations providing microinsurance in order to carry out their own insurance and reinsurance business activities.
8. Consultancy means the provision of consultancy services on insurance programs, insurance products, insurance risk administration, and loss prevention and restriction.
9. Insurance risk assessment means the identification, classification, and assessment of the nature and level of risks and assessment of the administration of human, property and civil liability risks to obtain grounds for insurance or reinsurance participation.
10. Insurance actuary means the collection and analysis of statistical figures, calculation of insurance premiums, technical reserves, capital and solvency, assessment of business operation performance, and enterprise valuation so as to ensure financial safety of insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches or mutual support organizations providing microinsurance.
11. Insurance loss assessment means the determination of the current situation, causes, and levels of loss, and allocation of responsibilities for compensation to serve as a basis for insurance claim settlement.
12. Insurance claim settlement support means the provision of support to insurance buyers, the insured, beneficiaries, or insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches, mutual support organizations providing microinsurance in carrying out procedures for settlement of insurance claim and insurance payment.
13. Life insurance means a type of insurance provided to cases where the insured is alive or dead.
14. Non-life insurance means a type of insurance for property damages and other losses or civil liabilities to a third person.
15. Health insurance means a type of insurance provided to cases where the insured suffers an injury, accident, illness, disease or needs health care.
16. An insurance contract is the agreement reached between insurance buyers and insurance enterprises, Vietnam-based branches of foreign non-life insurance enterprises, mutual support organizations providing microinsurance, whereby insurance buyers shall have to pay insurance premiums while the insurance enterprises, Vietnam-based branches of foreign non-life insurance enterprises, mutual support organizations providing microinsurance shall have to indemnify and pay insurance sum as agreed in the contract.
17. Insurance enterprises are those which are established, organized and operate under the provisions of this Law and relevant laws, for insurance business, reinsurance business, or reinsurance transfer. Insurance enterprises include life insurance enterprises, non-life insurance enterprises, and health insurance enterprises.
18. Reinsurance enterprises are those which are established, organized and operate under the provisions of this Law and relevant laws, for reinsurance business, or reinsurance transfer.
19. Branches of foreign non-life insurance enterprises are dependent units of foreign non-life insurance enterprises, that have no legal status, are guaranteed by foreign non-life insurance enterprises and take responsibility for all obligations and commitments during their operations in Vietnam.
20. Branches of foreign reinsurance enterprises are dependent units of foreign reinsurance enterprises, that have no legal status, are guaranteed by foreign reinsurance enterprises and take responsibility for all obligations and commitments during their operations in Vietnam.
21. Insurance brokerage enterprises are those which are established, organized and operate under the provisions of this Law and relevant laws for insurance brokerage activities.
22. Microinsurance is insurance aimed at low-income individuals and households to protect them against risks to life, health and property.
23. Mutual support organizations providing microinsurance are organizations with legal status, independent accounting, established by members or member representative organizations to deploy non-profit microinsurance in order to support and help each other among insurance members on the principle of voluntariness, financial autonomy and legal responsibility within the scope of assets formed from microinsurance activities.
24. Insurance buyers means are organizations or individuals that enter into insurance contracts with insurance enterprises, branches of foreign non-life insurance enterprises or mutual support organizations providing microinsurance, and pay premium.
25. The insured means organizations or individuals that have property, civil liabilities, health, life, obligations or economic interests are insured under insurance contracts.
26. The beneficiaries mean organizations or individuals designated by the insurance buyers or the insured to receive insurance money as agreed in insurance contracts.
27. Insured events mean objective events mutually agreed upon by the parties or prescribed by law upon the occurrence of which the insurance enterprises, branches of foreign non-life insurance enterprises, or mutual support organizations providing microinsurance shall have to pay the insurance money or pay indemnities as agreed in the insurance contracts.
28. Premium means a sum of money to be paid by the insurance buyers to insurance enterprises, branches of foreign non-life insurance enterprises or mutual support organizations providing microinsurance in accordance with law provisions or as agreed upon by the parties in the insurance contracts.
29. Co-insurance means a case where insurance enterprises and branches of foreign non-life insurance enterprises conclude an insurance contract with the insurance buyers, in which the insurance enterprises and branches of foreign non-life insurance enterprises shall receive premium and pay the insurance money or indemnities at the rate as agreed in the insurance contract.
Article 5. Policies on insurance business development
1. The State shall protect the legitimate rights and interests of organizations and individuals participating in insurance and organizations engaged in insurance business.
2. The State shall encourage and create favorable conditions for insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches and mutual support organizations providing microinsurance to research and develop products and services, and to apply advanced technologies in insurance business activities.
3. The State shall encourage and create favorable conditions for insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches and mutual support organizations providing microinsurance to invest in the economy, re-invest, and develop the insurance market.
4. The State shall encourage and create favorable conditions for the deployment of, and participation in, agricultural, forestry and fishery insurance products, microinsurance products and insurance products for social and security purposes.
Article 6. Principles of provision and use of insurance services
1. Organizations and individuals in Vietnam who have demands for insurance may only participate in insurance at insurance enterprises, branches of foreign non-life insurance enterprises, and mutual support organizations providing microinsurance licensed to establish and operate in Vietnam, except for the case of using cross-border insurance services under treaties to which the Socialist Republic of Vietnam is a contracting party.
2. The Government shall detail the provision and use of cross-border insurance services, cross-border insurance brokerage services, and cross-border insurance auxiliary services in accordance with treaties to which the Socialist Republic of Vietnam is a contracting party.
Article 7. Types of insurance
1. Types of insurance shall include:
a) Life insurance;
b) Health insurance;
c) Non-life insurance.
2. The Government shall detail insurance operations corresponding to the types of insurance specified in Clause 1 of this Article.
Article 8. Compulsory insurance
1. The compulsory insurance means a type of insurance for the purpose of protecting the public interests, the environment and social safety.
2. The compulsory insurance shall include:
a) Compulsory insurance for motor vehicle owner’s civil liability;
b) Compulsory fire and explosion insurance;
c) Compulsory insurance in construction investment activities;
d) Compulsory insurance prescribed in other laws that meets the conditions provided in Clause 1 of this Article.
3. Organizations and individuals subject to compulsory insurance shall be obliged to buy compulsory insurance and be selected to participate in compulsory insurance at insurance enterprises and branches of foreign non-life insurance enterprises that are permitted to deploy compulsory insurance.
4. Insurance enterprises and branches of foreign non-life insurance enterprises that are permitted to deploy compulsory insurance may not refuse to sell when organizations and individuals fully satisfy the conditions for purchasing compulsory insurance as prescribed by law.
5. The Government shall detail insurance conditions, premium rates and minimum insurance amounts for compulsory insurance specified in Clause 2 of this Article.
Article 9. Prohibited acts
1. Conducting insurance business, reinsurance business, reinsurance transfer, insurance brokerage activities without establishment and operation license.
2. Conducting insurance business, reinsurance business, reinsurance transfer, insurance brokerage activities not in accordance with the licensed scope.
3. Acting as an insurance agent or providing insurance auxiliary services when the operating conditions are not satisfied as prescribed by law.
4. Committing fraudulent acts including:
a) Colluding with beneficiaries to settle indemnity and pay insurance money in contravention of law;
b) Forging documents, intentionally falsifying information in dossiers of request for indemnity and insurance payment;
c) Forging documents, intentionally falsifying information to refuse indemnity or insurance payment when the insured event has occurred;
d) A person causes damage to his/her own property or health in order to enjoy insurance benefits.
5. Threatening or forcing the conclusion of insurance contracts.
Article 10. Socio-professional insurance business organizations
1. Socio-professional insurance business organizations shall be established and operate in accordance with the law on associations and be responsible for complying with the law on insurance business and subject to supervision by the Ministry of Finance.
2. Socio-professional insurance business organizations shall be responsible for promulgating a code of professional ethics, rules and standards for general application to their members; coordinate with State management agencies in charge of insurance business activities in propagating and disseminating the law on insurance business.
Article 11. Database on insurance business activities
1. The State shall invest in developing the database on insurance business activities. The Ministry of Finance shall be responsible for building, managing and operating the database on insurance business activities in order to serve State management activities, protect the legitimate rights and interests of the parties in insurance business activities.
2. Insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches, insurance brokerage enterprises, organizations providing insurance auxiliary services, mutual support organizations providing microinsurance shall be responsible for providing information on the insurance buyers, the insured, objects of insurance, insurance agents and other relevant information to build the database on insurance business activities.
3. The collection, use, storage and provision of information about the database on insurance business activities must ensure confidentiality and information security, and comply with the law on protection of private life, personal secrets, family secrets and business secrets.
State agencies, other organizations and individuals must use the provided information for the proper purposes and are not allowed to provide it to a third party without the consent of the insurance buyers or the insured, except for the case of providing in accordance with the law.
4. The database on insurance business activities shall be connected to other national and specialized databases.
5. The Government shall detail the development, collection, use, storage, management and provision of information about the database on insurance business activities, the connection between the database on insurance business activities with other national and specialized databases.
Article 12. Application of information technology in insurance business activities
1. Information technology shall be applied in insurance business activities for the following purposes:
a) To improve the efficiency of insurance business activities, including insurance product development and design, risk assessment, appraisal, contract conclusion, contract management, loss assessment, settlement of indemnity and payment of insurance; corporate governance and methods of providing insurance products and services;
b) To modernize statistics and reporting; reduce administrative procedures; build information technology system and database on insurance business activities to serve the management, supervision, analysis and forecast of the insurance market and prevention and control off insurance fraud.
2. The application of information technology in insurance business activities shall comply with this Law, the law on e-transactions, information technology, cybersecurity, anti-money laundering and other relevant laws.
3. The Government shall stipulate new problems related to the application of information technology in insurance business activities.
Article 13. Requirements for application of information technology in insurance business activities
Insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches, and insurance brokerage enterprises shall actively establish, maintain and operate an information technology system suitable to the scale of operation and satisfy the following minimum requirements:
1. Having a server system, software system and technical solutions to update, statistic, process and archive information to meet the requirements for management of insurance business activities and the requirements for cybersecurity and cyberinformation security;
2. Having an information technology system to facilitate the operation and control of risks of enterprises and the inspection and supervision by management agencies;
3. Having information technology solutions to prevent disasters and ensure uninterrupted business operations.
Article 14. Provision of insurance products and services on the network environment
1. Organizations and individuals permitted to provide insurance services and products on the network environment include:
a) Insurance enterprises, branches of foreign non-life insurance enterprises and mutual support organizations providing microinsurance;
b) Insurance agents;
c) Insurance brokerage enterprises.
2. Organizations and individuals providing insurance services and products on the network environment shall comply with the following regulations:
a) Insurance enterprises, branches of foreign non-life insurance enterprises, insurance brokerage enterprises and mutual support organizations providing microinsurance may choose types of providing insurance services and products on the network environment;
b) Insurance agents may only provide insurance products and services on the network environment within the scope of the insurance agency contracts;
c) Insurance enterprises, branches of foreign non-life insurance enterprises, insurance agents, insurance brokerage enterprises and mutual support organizations providing microinsurance that provide insurance services and products on the network environment shall be responsible to the insurance buyers if the provision of such insurance products or services affects the legitimate rights and interests of the insurance buyers;
d) Organizations and individuals entering into insurance contracts on the network environment shall be responsible for truthfully and accurately providing information as prescribed in Article 22 of this Law.
3. The Minister of Finance shall detail this Article.
Chapter II
INSURANCE CONTRACTS
Section 1. GENERAL PROVISIONS ON INSURANCE CONTRACTS
Article 15. Insurance contracts
1. Types of insurance contract shall include:
a) Life insurance contracts;
b) Health insurance contracts;
c) Property insurance contracts;
d) Damage insurance contracts;
dd) Liability insurance contracts.
Insurance contracts specified at Points c, d and dd of this Clause belong to the type of non-life insurance.
2. Insurance enterprises, branches of foreign non-life insurance enterprises and insurance buyers may reach an agreement on conclusion of a type of contract or a combination of several types of insurance contracts specified in Clause 1 of this Article and ensure compliance with Clause 3 Article 63 of this Law.
3. Maritime insurance contracts shall comply with the Maritime Code; for contents not prescribed by the Maritime Code, the provisions of this Law shall apply.
4. Contents related to insurance contracts not specified in this Law shall comply with the provisions of the Civil Code.
Article 16. Principles of conclusion and performance of insurance contracts
The conclusion and performance of insurance contracts shall comply with the basic principles of civil law and the following principles:
1. Principle of absolute honesty: the parties to insurance contracts must provide information and perform the rights and obligations in the most honest manner, on the basis of absolute trust in each other in the process of concluding and performing insurance contracts;
2. Principle of insurable interests: Insurance buyers shall have insurable interests in accordance with each type of insurance contract according to this Law;
3. Principles of indemnity: The amount of indemnity received by the insured must not exceed the actual damage in the insured event, unless otherwise agreed in the insurance contract;
4. Principle of subrogation: The insured shall be responsible for transferring to the insurance enterprise or branch of the foreign non-life insurance enterprise the right to request the third party who has caused damage to be liable for reimbursement within the insurance indemnity amounts. This principle does not apply to life insurance contracts and health insurance contracts;
5. Principle of random risk: Insurable risks must be unexpected, unforeseeable risks.
Article 17. Contents of insurance contracts
1. An insurance contract must contain the following major details:
a) Insurance buyers, the insured, the beneficiaries (if any), insurance enterprises or the branches of foreign non-life insurance enterprises;
b) The objects of insurance;
c) The sum insured or property value insured or limit of liability insured;
d) Insurance scope or benefits; insurance rules, conditions and terms;
dd) Rights and obligations of insurance enterprises, branches of foreign non-life insurance enterprises and insurance buyers;
e) The insurance duration, the effective time of insurance contracts;
g) Premium rate, mode of premium payment;
h) Mode of indemnification and insurance payment;
i) Method of dispute settlement.
2. The Minister of Finance shall detail Clause 1 of this Article for life insurance contracts and health insurance contracts.
Article 18. Form and evidence of the conclusion of insurance contracts
The insurance contracts must be made in writing. The evidence of conclusion of insurance contracts shall be the contracts, insurance certificates, insurance applications and other forms as prescribed by law.
Article 19. Provisions on exclusion of insurance liability
1. The provisions on exclusion of insurance liability shall stipulate cases where insurance enterprises and branches of foreign non-life insurance enterprises shall not have to pay indemnities or insurance money.
2. In case there are the provisions on exclusion of insurance liability, insurance enterprises and branches of foreign non-life insurance enterprises must clearly specify the provisions in insurance contracts. The insurance enterprises and branches of foreign non-life insurance enterprises must clearly and fully explain the provisions and have evidence to confirm that insurance buyers have been fully explained and understood when the contracts are made.
3. In case there is a force majeure event or an objective obstacle that leads to the insurance buyers’ delay in notifying the insured event, insurance enterprises and branches of foreign non-life insurance enterprises are not allowed to apply the provisions on exclusion of insurance liability for the late notification.
Article 20. Rights and obligations of insurance enterprises and branches of foreign non-life insurance enterprises
1. Insurance enterprises and branches of foreign non-life insurance enterprises shall have the following rights:
a) To collect premiums as agreed upon in the insurance contract;
b) To request the insurance buyer to fully and honestly supply information relating to the conclusion and performance of the insurance contract;
c) To cancel the insurance contracts according to the provisions in Clause 2 Article 22 or unilaterally suspend the performance of the insurance contracts according to the provisions in Article 26 of this Law;
d) To decline to pay the insurance money or to pay indemnity for cases outside the scope of insurance liability or cases of exclusion of insurance liability as agreed upon in the insurance contract;
dd) To request the insurance buyer to take measures to prevent or limit losses according to the provisions of this Law and other relevant law provisions;
e) To request the third party to refund the insurance money which the insurance enterprise or branch of the foreign non-life insurance enterprise has indemnified the insured for the losses caused by the third party to the property, economic interests or obligations to perform a contract or obligations under the law and civil liability;
g) Other rights prescribed by law.
2. Insurance enterprises and branches of foreign non-life insurance enterprises shall have the following obligations:
a) To provide insurance buyers with an insurance request, a questionnaire related to the insured risk, the insured object, the insurance rules, conditions and terms;
b) To explain clearly and fully to insurance buyers about the insurance benefits, the provisions of exclusion of insurance liability, the rights and obligations of insurance buyers when entering into insurance contracts;
c) To provide insurance buyers with evidence of the conclusion of insurance contracts specified in Article 18 of this Law;
d) To issue insurance premium receipts to insurance buyers as agreed in insurance contracts and relevant laws;
dd) To indemnify and pay insurance money when insured events occur;
e) To explain in writing the reasons for declining to pay the insurance money or the indemnity;
g) To coordinate with the insurance buyer in settling the third party's claim for compensation for the losses which fall under the insured liability when the insured event occurs;
h) To archive insurance contract dossiers in accordance with the law;
i) To maintain confidentiality of information provided by insurance buyers or the insured, except at the request of competent state agencies or with the consent of insurance buyers or the insured;
k) Other obligations prescribed by law.
Article 21. Rights and obligations of the insurance buyers
1. Insurance buyers shall have the following rights:
a) To choose insurance enterprises or branches of foreign non-life insurance enterprises for the conclusion of insurance contracts;
b) To request insurance enterprises or branches of foreign non-life insurance enterprises to provide an insurance request, a questionnaire related to the insured risk, the insured object, the insurance rules, conditions and term, and the explanation of the insurance conditions and terms;
c) To request insurance enterprises and branches of foreign non-life insurance enterprises to provide evidence of the conclusion of insurance contracts specified in Article 18 of this Law;
d) To request insurance enterprises and branches of foreign non-life insurance enterprises to issue insurance premium receipts as agreed in insurance contracts and relevant laws;
dd) To cancel insurance contracts specified in Clause 3 Article 22 and Article 35 or unilaterally suspend the performance of insurance contracts according to the provisions in Article 26 of this Law;
e) To request insurance enterprises and branches of foreign non-life insurance enterprises to pay the insurance money or the indemnity when the insured event occurs;
g) To transfer the insurance contract as agreed upon in the insurance contract or under the provisions of law;
h) Other rights prescribed by law.
2. Insurance buyers shall have the following obligations:
a) To declare fully and honestly all information related to insurance contracts at the request of insurance enterprises or branches of foreign non-life insurance enterprises;
b) To clearly understand the insurance conditions and terms, the rights and obligations of insurance buyers when entering into insurance contracts and other contents of the insurance contracts;
c) To pay premiums fully, according to time limits as agreed upon in the insurance contract;
d) To notify cases to insurance enterprises or branches of foreign non-life insurance enterprises where risks may increase or decrease, or additional liability of insurance enterprises or branches of foreign non-life insurance enterprises may arise in the course of performing the insurance contract as agreed upon in the insurance contract;
dd) To notify insurance enterprises or branches of foreign non-life insurance enterprises of the occurrence of the insured event as agreed upon in the insurance contract; to coordinate with insurance enterprises and branches of foreign non-life insurance enterprises in loss assessment;
e) To apply measures to prevent or limit losses according to the provisions of this Law and other relevant law provisions;
g) Other obligations prescribed by law.
Article 22. Liability and legal consequences of breaching the obligation to provide information
1. When entering into insurance contracts, the insurance enterprises and branches of foreign non-life insurance enterprises shall be responsible for fully and accurately providing information on the insurance contracts, explaining insurance conditions and terms to the insurance buyers; the insurance buyers shall be responsible for fully and honestly providing information related to the objects of insurance to the insurance enterprises and branches of foreign non-life insurance enterprises.
2. In case insurance buyers intentionally provide incomplete information or provide untruthful information in order to enter into insurance contracts to receive indemnity and insurance money, insurance enterprises or branches of insurance enterprises shall have the right to cancel insurance contracts. Insurance enterprises or branches of insurance enterprises shall not be required to indemnify or pay insurance money and must return the premium to the insurance buyers after deducting reasonable expenses (if any) as agreed in the insurance contract. The insurance buyers must indemnity for the damage incurred to the insurance enterprises or branches of foreign non-life insurance enterprises (if any).
3. Where insurance enterprises or branches of foreign non-life insurance enterprises intentionally fail to fulfill obligation to provide information or provide untruthful information with a view to entering into insurance contracts, the insurance buyers may cancel the insurance contracts and get refunds of premiums paid. The insurance enterprises and branches of foreign non-life insurance enterprises shall have to pay compensation for the damage caused to the insurance buyers (if any).
Article 23. Changes in degrees of insured risks
1. When there appear changes in the factors used as a basis for premium calculation, thus leading to the reduction in the insured risks, based on the agreement in the insurance contract, the insurance buyers may request the insurance enterprises or branches of foreign non-life insurance enterprises to perform one of the following:
a) To reduce the premiums for the remaining periods of the insurance contracts;
b) To increase the insured sum for the remaining periods of the insurance contracts;
c) To extend the insurance duration;
d) To extend the insurance scope for the remaining periods of the insurance contracts.
2. In case where the insurance enterprises or branches of foreign non-life insurance enterprises refuse to accept the request in Clause 1 of this Article, the insurance buyers may unilaterally terminate the performance of the insurance contracts, but have to immediately notify such in writing to the insurance enterprises or branches of foreign non-life insurance enterprises.
3. When there appear changes in the factors used as a basis for premium calculation, thus leading to the increase in the insured risks, based on the agreement in the insurance contract, the insurance enterprises and branches of foreign non-life insurance enterprises may perform one of the following:
a) To recalculate the premium for the remaining periods of the insurance contracts;
b) To reduce the insured sum for the remaining periods of the insurance contracts;
c) To shorten the insurance duration;
d) To narrow the insurance scope for the remaining periods of the insurance contracts.
4. Where the insurance buyers refuse to accept the request in Clause 3 of this Article, the insurance enterprises or branches of foreign non-life insurance enterprises may unilaterally terminate the performance of the insurance contracts, but shall have to immediately notify such in writing to the insurance buyers.
Article 24. Interpretation of insurance contracts
In case where an insurance contract contains ambiguous clauses, thus leading to different interpretations, such clauses shall be interpreted in favor of the insurance buyer.
Article 25. Null and void insurance contracts
1. An insurance contract shall become null and void in the following cases:
a) The insurance buyer has no interests which can be insured at the time of entering into the insurance contract;
b) The object of insurance no longer exists at the time of entering into the insurance contract;
c) The insurance buyer, at the time of entering into the insurance contract, knows the insured event has already occurred;
d) The purpose and content of the insurance contract violate the prohibition of the law and are contrary to social ethics;
dd) Insurance enterprises, branches of foreign non-life insurance enterprises and insurance buyers enter into fake insurance contracts;
e) The insurance buyers are minors; persons who lose their civil act capacity; persons who have difficulty in perceiving and controlling their acts; or persons who have limited civil act capacity;
g) An insurance contract is entered into with a mistake that causes one or the parties to fail to achieve the purpose of entering into the contract, except where the purpose of entering into the contract of the parties has been achieved or the parties can immediately remedy the confusion so that the purpose of entering into the contract is still achieved;
h) An insurance contract is entered into due to deception, except for the case specified in Article 22 of this Law;
i) An insurance contract is entered into due to intimidation or coercion;
k) The insurance buyer is not aware of, or controls his/her behavior when entering into an insurance contract;
l) An insurance contract fails to comply with the regulations on form specified in Article 18 of this Law.
2. When an insurance contract becomes null and void, the contract is invalid from the time of entering into the insurance contract. Insurance enterprises, branches of foreign non-life insurance enterprises and insurance buyers shall return to each other what they have received. The party at fault causing damage must indemnity.
Article 26. Unilateral termination of the performance of insurance contracts
Insurance enterprises, branches of foreign non-life insurance enterprises or insurance buyers may unilaterally terminate the performance of insurance contracts in the following cases:
1. Insurance buyers fail to pay the premium or fail to fully pay the premium within the time limit as agreed upon in the insurance contract or after the extended time limit for premium payment;
2. Insurance enterprises, branches of foreign non-life insurance enterprises, and insurance buyers refuse to accept the requests for changes in degrees of insured risks specified in Article 23 of this Law;
3. The insured fails to take measures to ensure the safety of the object of insurance specified in Clause 3 Article 55 of this Law;
4. Insurance buyers refuse to transfer the list of insurance contracts specified in Clause 4 Article 92 of this Law.
Article 27. Legal consequences of the unilateral termination of the performance of insurance contracts
1. In case of unilaterally terminating the performance of insurance contracts specified in Clause 1 Article 26 of this Law, the following procedures shall be followed:
a) The insurance buyer shall still have to fully pay the premium to the time of unilaterally terminating the performance of an insurance contract. This provision shall not apply to life insurance contracts, health insurance contracts, except for group insurance contracts;
b) For life insurance contracts and health insurance contracts, insurance enterprises or branches of foreign non-life insurance enterprise shall be responsible for paying insurance premiums to the insured when the insured event occurs before the time of unilaterally terminating the performance of insurance contracts and may deduct the premium to the time of unilaterally terminating the performance of insurance contracts;
c) For property insurance contracts, damage insurance contracts and liability insurance contracts, insurance enterprises or branches of foreign non-life insurance enterprise shall be responsible for indemnifying the insured when the insured event occurs before the time of unilaterally terminating the performance of the insurance contract and may deduct premiums as agreed in the insurance contract.
2. In case of unilaterally terminating the performance of insurance contracts specified in Clauses 2 and 3 Article 26 of this Law, insurance enterprises or branches of foreign non-life insurance enterprises shall be responsible for refunding the premium paid for the remaining period of the insurance contracts as agreed in the insurance contracts. Insurance enterprises or branches of foreign non-life insurance enterprises shall be responsible for indemnifying and paying insurance money amounts as agreed in insurance contracts when the insured event occurs before the time of unilaterally terminating the performance of insurance contracts.
3. In case of unilaterally terminating the performance of insurance contracts specified in Clauses 1 and 2 Article 26 of this Law, for a life insurance contract with a refundable value, insurance enterprises shall pay insurance buyers the refundable value of insurance contracts, unless otherwise agreed by the parties.
4. In case of unilaterally terminating the performance of insurance contracts specified in Clause 4 Article 26 of this Article, insurance buyers shall be entitled to receive the refundable value or premium paid in proportion to the remaining period of insurance contracts in accordance with each insurance product. Where the property value is lower than the professional reserves of the transferred insurance contract list, the amount of money the insurance buyers receive back shall be calculated on the basis of the ratio between the property value and the professional reserves of the transferred insurance contract list.
Article 28. Transfer of insurance contracts
1. The insurance buyer may transfer the insurance contract. For life insurance contracts, the transfer must be agreed in writing by the insured or the insured's legal representative.
2. The transferee of an insurance contract must have insurable interests and inherit the rights and obligations of the transferor.
3. The transfer of an insurance contract shall be only effective when the insurance buyer gives a written notice and is agreed in writing by the insurance enterprise or branch of foreign non-life insurance enterprise, unless the transfer is made according to international practice or as agreed in the insurance contract.
Article 29. Liability in case of reinsurance
1. The insurance enterprises and branches of foreign non-life insurance enterprises shall be responsible only to the insurance buyers under the insurance contracts, including cases of reinsurance of the insured liabilities. Insurance enterprises and branches of foreign non-life insurance enterprises are not allowed to refuse or delay in performing their responsibilities towards the insurance buyers, even if the reinsurance enterprises or organizations fail to fulfill the obligation to pay reinsurance for the received liabilities.
2. The reinsurance enterprises or organizations must not demand the insurance buyers pay the premiums directly to them, except otherwise agreed upon in the insurance contracts.
3. The insurance buyers must not demand the reinsurance enterprises or organizations pay the insurance money or indemnities to them, except otherwise agreed upon in the insurance contracts.
Article 30. Time limit for submission of dossiers claiming insurance money or indemnities
1. The time limit for submission of dossiers claiming insurance money or indemnities under insurance contracts shall be one year from the date the insured event occurs. The time of occurrence of force majeure events or objective obstacles shall be not included in the time limit for submission of dossiers claiming insurance money or indemnities.
2. Where the insured or the beneficiary can prove that he/she does not know the time when the insured events occur, the time limit prescribed in Clause 1 of this Article shall be counted from the date the insurance buyer or beneficiary knows the occurrence of such insured events.
3. Where the third party demands the insurance buyer compensate for damage covered by the insurance as agreed upon in the insurance contract, the time limit prescribed in Clause 1 of this Article shall be counted from the date the third party so demands.
Article 31. Time limit for payment of indemnities or insurance money
1. Upon the occurrence of insured events, insurance enterprises or branches of foreign non-life insurance enterprises shall have to pay the insurance money or indemnities within the time limit already agreed upon in the insurance contracts. In case of the absence of the agreement on such time limit, the insurance enterprises or branches of foreign non-life insurance enterprises shall have to pay the insurance money or indemnities within 15 days from the date of receiving complete and valid dossiers claiming insurance money or indemnities.
2. In case of delay in indemnities and insurance payment as prescribed in Clause 1 of this Article, insurance enterprises or branches of foreign non-life insurance enterprises shall pay interest on the late payment amount corresponding to the late payment period. The interest rate for the late payment amount shall be determined according to the agreement between the parties in accordance with the provisions of the Civil Code.
Article 32. Method of dispute settlement
Disputes over insurance contracts shall be settled through negotiation between the parties. In case of failure to negotiate, the disputes shall be resolved through conciliation or an arbitration or court as agreed in insurance contracts and provisions of law.
Section 2. LIFE INSURANCE CONTRACTS AND HEALTH INSURANCE CONTRACTS
Article 33. Objects of life insurance contracts and health insurance contracts
1. The objects of life insurance contracts shall be the human age and life.
2. The objects of health insurance contracts shall be the human health.
Article 34. Insurable interests of life insurance contracts and health insurance contracts
1. The insurance buyers shall have interests that can be insured for the following persons:
a) The insurance buyers themselves;
b) Their spouses, children and/or parents;
c) Their blood brothers and sisters; person with ties of fostering and financial support;
d) Persons having financial interests or labor relations with the insurance buyers;
dd) The insured agrees in writing for the insurance buyer to buy health insurance.
2. At the time of entering into an insurance contract, the insurance buyer shall have insurable interests.
Article 35. Duration to consider participating in insurance
For insurance contracts with a term of more than 1 year, within 21 days from the date of receiving the insurance contract, the insurance buyer may refuse to continue participating in insurance. In case the insurance buyer refuses to continue participating in insurance, the insurance contract shall be canceled and the insurance buyer shall be refunded the premium paid after deducting reasonable expenses (if any) as agreed in the insurance contract. Insurance enterprises shall not be required to indemnify or pay insurance premiums when the insured event occurs.
Article 36. Temporary insurance in life insurance
Insurance enterprises shall issue temporary insurance to insurance buyers from the time of receiving the insurance claim and the provisional premium of the insurance buyers. The time limit, insured sum, and temporary insurance conditions shall be agreed upon by insurance enterprises and insurance buyers. Temporary insurance shall end after insurance enterprises accept or refuse insurance or other cases as agreed.
Article 37. Payment of life insurance premiums
1. The insurance buyers may pay the insurance premiums in lump sum or in installments according to the time limit and mode agreed upon in the insurance contracts.
2. Where the insurance premiums are paid in installments and the insurance buyers have already paid the premiums in one or several installments but cannot further pay the insurance premiums in subsequent installments, the time limit for premium payment may be extended for a duration of 60 days.
3. The parties may agree to restore the effect of insurance contracts already unilaterally terminated from their performance as provided for in Clause 1 Article 26 of this Law within two years from the date the contracts are terminated and the insurance buyers have already paid the outstanding insurance premium amounts.
4. Where the insurance buyer fails to pay or fails to fully pay the premium, the insurance enterprise may not arbitrarily deduct the premium from the refundable value of the insurance contract without the consent of the insurance buyer and may not sue the insurance buyer to pay the insurance premium. This provision shall not be applicable to group insurance.
Article 38. Not entitled to demand refund by the third party
Where the insured dies, gets disable or sick as a direct or indirect result of the third party's acts, the insurance enterprises and branches of foreign non-life insurance enterprises shall still be obliged to indemnify or repay the insurance money amount but have no right to demand the third party refund the money amount already paid to the beneficiary. The third party shall have to indemnify the insured according to the provisions of law.
Article 39. Entering into life insurance contracts or health insurance contracts for the case of other persons’ death
1. When the insurance buyers enter into life insurance or health insurance contracts for case of other persons' death, they must get the latter's written consents clearly inscribing the insured sum and the beneficiary thereof.
2. Life insurance contracts and health insurance contracts for the death of the following persons are not allowed to be entered into:
a) Minors, except where it is agreed in writing by the fathers, mothers or guardians of such persons;
b) Persons who have lost their civil act capacity;
c) Persons who have difficulty in perceiving and controlling their acts;
d) Persons who have a limited civil act capacity.
Article 40. Cases of non-indemnity or non-payment of insurance money
1. Insurance enterprises or branches of foreign non-life insurance enterprises shall not have to indemnify or pay the insurance money in the following cases:
a) The insured dies of suicide within two years counting from the date the first sum of insurance premium is paid or from the date the insurance contract restores the effect;
b) The insured dies due to the intentional fault of the insurance buyer or the intentional fault of the beneficiary, except for the cases specified in Clause 2 of this Article;
c) The insured suffers from infirmity due to the intentional fault of the insured or the insurance buyer, or the intentional fault of the beneficiary, except for the cases specified in Clause 2 of this Article;
d) The insured dies due to the execution of death sentence;
dd) Other cases as agreed in the insurance contract.
2. Where there are multiple beneficiaries, if one or several beneficiaries intentionally cause death or infirmity to the insured, the insurance enterprise or branches of foreign non-life insurance enterprises shall still have to indemnify, pay the insurance money to other beneficiaries as agreed upon in the insurance contract.
3. For cases prescribed in Clause 1 of this Article, the insurance enterprises or branches of non-life insurance enterprises shall have to return to the insurance buyers the value of the insurance contracts or the entire paid premium amounts after subtracting the reasonable expenses (if any) as agreed in the insurance contract, except for the cases specified in Clause 2 of this Article. If the insurance buyer dies, the returned amount shall be handled according to the law on inheritance.
Article 41. Designation and change of beneficiaries
1. The insurance buyers may designate beneficiaries, except for group insurance contracts. Where the insurance buyer is not the insured, the insurance buyer must obtain the written consent of the insured when designating the beneficiary; where the insured is underage or has lost his/her civil act capacity or has difficulties in cognition and behavior control or has limited civil act capacity, the designation of the beneficiary must be approved by the legal representative.
2. Where there are multiple beneficiaries, the persons entitled to designate beneficiaries under this Law may determine the order or proportion of the beneficiaries. Where the order or proportion of benefits are not determined, all the beneficiaries shall be entitled to benefit in the same proportion.
3. The insurance buyer may change the beneficiary but must obtain the written consent of the insured and notify in writing the insurance enterprise or branch of the foreign non-life insurance enterprise. In case the insured is underage or has lost his/her civil act capacity or has difficulties in cognition and behavior control or has limited civil act capacity, the change of beneficiary shall be approved by the legal representative. Insurance enterprises and branches of foreign non-life insurance enterprises shall certify in insurance contracts or other documents attached to insurance contracts after receiving the notification of the insurance buyers.
Article 42. Group insurance contracts
1. A group insurance contract means an agreement between the insurance buyer and insurance enterprise or branch of foreign non-life insurance enterprise to insure the insured in the group participating in insurance in the same insurance contract.
2. A group participating in insurance contracts must be a group that has been formed not for the purpose of participating in insurance.
3. The insurance buyer and the insured may agree to jointly pay the premium.
4. The insured may designate beneficiaries for the case of the insured's death.
5. The insurance buyers and insurance enterprises or branches of foreign non-life insurance enterprises may amend and supplement group insurance contracts in the following cases:
a) When at least an insured is no longer a member of the group;
b) The premium for each insured person is not paid as agreed in insurance contracts;
c) Other cases as agreed in insurance contracts.
6. Apart from the contents specified in Article 17 of this Law, a group insurance contract must contain the following contents:
a) Conditions for participation in insurance for the insured;
b) Conditions and procedures for change to an individual insurance contract.
Section 3. PROPERTY INSURANCE CONTRACTS AND DAMAGE INSURANCE CONTRACTS
Article 43. Objects of property insurance contracts and damage insurance contracts
1. Objects of property insurance contracts are property according to the provisions of the Civil Code.
2. Objects of damage insurance contracts are any economic benefits or performance obligations or legal obligations incurred by the insured when the loss occurs.
Article 44. Insurable interests of property insurance contracts and damage insurance contracts
1. For a property insurance contract, the insurance shall be considered having insurable interests when he/she owns or has other rights over such property; or has ownership and use rights other than those belong to the property owner.
2. For a damage insurance contract, the insurance shall be considered having insurable interests when he/she has financial benefits; financial obligations and responsibilities; economic damages toward the objects of insurance.
3. When the loss occurs, the insurance buyer or the insured must have insurable interests.
Article 45. Insured sum
The insured sum shall be agreed upon by the insurance buyers and the insurance enterprises or branches of foreign non-life insurance enterprises in the insurance contracts to insure property and damage at the request of the insurance buyers in accordance with this Law.
Article 46. Notification of the occurrence of the insured events
1. The insurance buyers shall notify the insurance enterprises or branches of foreign non-life insurance enterprises when knowing that the insured event occurs within the time limit agreed upon in the insurance contracts. In case the insurance buyer fails to perform or delays to perform this obligation, the insurance enterprises or branches of foreign non-life insurance enterprises may deduct the indemnity amount corresponding to the damage suffered by the insurance enterprises or branches of foreign non-life insurance enterprises, except for the force majeure events or objective obstacles.
2. The insurance enterprises or branches of foreign non-life insurance enterprises may not apply the provisions of Clause 1 of this Article if the insurance contracts do not have an agreement on the insurance buyer's liability, sanctions for failure to perform or the late notification of the occurrence of the insured events.
Article 47. Over-value property insurance contracts
1. Over-value property insurance contracts mean contracts in which the insured sums are higher than the market prices of the insured property at the time of entering into contracts. The insurance enterprises, branches of foreign non-life insurance enterprises and insurance buyers are not allowed to intentionally enter into over-value property insurance contracts.
2. In case the over-value property insurance contracts are concluded due to unintentional faults of the insurance buyer, the following procedures shall be followed:
a) If the insured event has not occurred, insurance enterprises or branches of foreign non-life insurance enterprises must return to the insurance buyer the already paid insurance premium amount corresponding to the insured sum in excess of the market price of the insured property at the time of entering into the contracts, after subtracting relevant reasonable expenses (if any) as agreed in the insurance contracts;
In cases where the insured event occurs, insurance enterprises or branches of foreign non-life insurance enterprises shall only have to pay indemnities for the damage corresponding to the market price of the insured property at the time the damage occurs, and return to the insurance buyer the already paid insurance premium amount corresponding to the insured sum in excess of the market price of the insured property at the time of entering into the contracts, after subtracting relevant reasonable expenses (if any) as agreed in the insurance contracts.
Article 48. Under-value property insurance contracts
1. The under-value property insurance contracts mean contracts in which the insured sums are lower than the market prices of the insured property at the time of concluding the contracts.
2. Where an under-value property insurance contract is concluded, the insurance enterprises or branches of foreign non-life insurance enterprises shall have to pay the indemnities according to the proportion between the insured sum and the market price of the insured property at the time of conclusion or agreement in the insurance contract.
Article 49. Coincident insurance contracts
1. A coincident insurance contract is the case where there are two or more insurance contracts to insure the same scope, objects, with the same duration and insured event in which the total insured sum exceeds the market price of the insured property at the time of entering into the insurance contract.
2. In case where parties enter into a coincident insurance contract, when the insured event occurs, the indemnity amounts of each insurance contract shall be calculated according to the proportion of the insured sum agreed upon against the total insured sums of all contracts concluded by the insurance buyer. The total sum of indemnities of the insurance contracts shall not exceed the value of actual damage caused to the property.
Article 50. Damage due to natural tear and wear or inherent nature of the property
Insurance enterprises or branches of foreign non-life insurance enterprises shall not bear responsibility for indemnity in cases where the insured property is damaged due to natural tear and wear or their inherent nature, unless otherwise agreed upon in the insurance contracts.
Article 51. Bases for indemnity
1. The indemnity amounts which the insurance enterprises or branches of foreign non-life insurance enterprises have to pay to the insured shall be determined on the basis of the market prices of the insured property at the time when and the place where the damage is caused and the actual damage extent, unless otherwise agreed upon in the insurance contracts. The expenses for determining the market prices and damage extent shall be borne by the insurance enterprises or branches of foreign non-life insurance enterprises.
2. The indemnity amounts to be paid by the insurance enterprises or branches of foreign non-life insurance enterprises to the insured shall not exceed the insured sums, unless otherwise agreed upon in the insurance contracts.
3. Apart from the indemnity amounts, the insurance enterprises and branches of foreign non-life insurance enterprises shall also have to pay to the insured necessary and reasonable expenses as agreed in the insurance contracts for the loss prevention and limitation as well as arising expenses incurred by the insurance buyer or the insured to follow the instructions of the insurance enterprises and branches of foreign non-life insurance enterprises.
Article 52. Forms of indemnity
1. The insurance buyers and the insurance enterprises, branches of foreign non-life insurance enterprises may agree on one of the following indemnity forms:
a) Repairing the damaged property;
b) Replacing the damaged property with other property;
c) Paying indemnity money.
2. Where the insurance enterprises, branches of foreign non-life insurance enterprises and the insurance buyers cannot reach an agreement on indemnity forms, the compensation shall be made in money.
3. Where the indemnity is made according to the provisions at Points b and c, Clause 1 of this Article, the insurance enterprises, branches of foreign non-life insurance enterprises may recover the damaged property after they are replaced or fully compensated at the market prices.
Article 53. Expertise of damage
1. Upon the occurrence of the insured events, the insurance enterprises, branches of foreign non-life insurance enterprises or persons authorized by the insurance enterprises, branches of foreign non-life insurance enterprises shall carry out the expertise in order to determine the cause and extent of the damage. The expenses for expertise of damage shall be borne by the insurance enterprises or branches of foreign non-life insurance enterprises.
2. Where the parties cannot reach agreement on the cause and extent of the damage, they can hire independent experts, except otherwise agreed upon in the insurance contracts. Where the parties cannot reach an agreement on hiring independent experts, one of the parties may request a competent court or arbitrator to invite for independent experts. The conclusions made by the independent experts shall be binding on all parties.
Article 54. Transfer of the right to request refunds
1. When the insured event occurs, in case the third party is responsible for indemnification due to the act of causing damage to the insured, the following actions shall be taken:
a) After the insurance enterprises or branches of foreign non-life insurance enterprises pay the indemnity, the insured shall be responsible for transferring to the insurance enterprises, branches of foreign non-life insurance enterprises the right to request the third party to to indemnify the money amount that the enterprises have indemnified;
b) The insurance enterprises or branches of foreign non-life insurance enterprises may deduct the indemnity sum depending on the degree of fault committed by the insured, if the insured refuses to transfer such right to the third party to indemnify.
2. When the insurance enterprises, branches of foreign non-life insurance enterprises exercise the right to request refunds to a third party, the insured shall be responsible for providing the insurance enterprises or branches of foreign non-life insurance enterprises with necessary documents and relevant information as agreed in the insurance contracts.
3. The insurance enterprises and branches of foreign non-life insurance enterprises are not allowed to request fathers, mothers, spouses, offspring, siblings of the insured to refund the sums they have paid to the insured, except for the cases where these persons intentionally cause the damage.
Article 55. Regulations on safety
1. The insured must abide by the regulations on fire prevention and fighting, on labor safety, labor hygiene and other relevant law provisions in order to ensure safety for the insurance objects.
2. The insurance enterprises and branches of foreign non-life insurance enterprises may inspect the conditions to ensure safety for insurance objects or propose, request the insured to apply measures to prevent and limit risks.
3. Where the insured fails to take measures to ensure safety for the insurance objects, the insurance enterprises and branches of foreign non-life insurance enterprises may set a time limit for the insured to apply such measures. If past such time limit, the safety measures have not yet been applied, the insurance enterprises and branches of foreign non-life insurance enterprises may raise the insurance premiums or unilaterally suspend the performance of the insurance contracts.
Article 56. Not to abandon insured property
In cases where damage is caused, the insured are not allowed to abandon the insured property and must take all necessary measures to prevent or minimize the damage, unless otherwise provided for by law or agreed upon by the parties.
Section 4. LIABILITY INSURANCE CONTRACTS
Article 57. Objects of liability insurance contracts
Subject of liability insurance contracts shall be the insured's civil liability toward the third party as prescribed by law.
Article 58. Responsibility of insurance enterprises and branches of foreign non-life insurance enterprises
1. Responsibility of insurance enterprises and branches of foreign non-life insurance enterprises shall arise only if the third party requests the insured to pay compensations for damage caused due to the insured’s fault to the third party during the insurance duration.
2. The third party shall not be entitled to directly request the insurance enterprises and branches of foreign non-life insurance enterprises to pay the indemnities, unless otherwise provided for by law.
Article 59. Limits of insured liability
1. Limits of insured liability mean the amounts the insurance enterprises and branches of foreign non-life insurance enterprises have to pay to the insured as agreed in insurance contracts.
2. Within the limits of the insurance liability, the insurance enterprises and branches of foreign non-life insurance enterprises shall have to pay the insured the amounts which, under the provisions of law, the insured has to indemnify the third party.
3. Apart from paying the indemnities as provided for in Clause 2 of this Article, the insurance enterprises and branches of foreign non-life insurance enterprises shall also have to pay for expenses related to the settlement of disputes over the liability for the third party and the interests to be paid to the third party as the insured defer the payment of compensation under the instructions of the insurance enterprises and branches of foreign non-life insurance enterprises.
4. The total indemnities of the insurance enterprises and branches of foreign non-life insurance enterprises as prescribed in Clauses 2 and 3 of this Article shall not exceed the limits of insured liability, except otherwise agreed upon in the insurance contracts.
5. Where the insured have to pay deposits or collateral in order to have the property not kept in custody or to avoid lawsuits at courts, the insurance enterprises and branches of foreign non-life insurance enterprises, at the request of the insured and according to the agreement in the insurance contracts, shall have to provide guarantee or collateral within the limits of the insured liability.
Article 60. Right to represent the insured
The insurance enterprises and branches of foreign non-life insurance enterprises may represent the insured in negotiations with the third party on the levels of compensation for damage, except otherwise agreed upon in the insurance contracts.
Article 61. Mode of indemnification
At the insured's request, the insurance enterprises and branches of foreign non-life insurance enterprises may pay indemnities directly to the insured or the victims being the third party.
Chapter III.
INSURANCE ENTERPRISES, REINSURANCE ENTERPRISES AND VIETNAM-BASED FOREIGN BRANCHES
Section 1. ESTABLISHMENT AND OPERATION LICENSES
Article 62. Operational forms of insurance enterprises and reinsurance enterprises
1. Joint-stock company.
2. Limited liability company.
Article 63. Operation contents of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches
1. Operation contents of insurance enterprises and branches of foreign non-life insurance enterprises include:
a) Insurance business, reinsurance business and reinsurance transfer;
b) Fund management and capital investment from insurance business activities;
c) Provision of insurance auxiliary services;
d) Other activities directly related to insurance business activities.
2. Contents of operation of reinsurance enterprises and branches of foreign reinsurance enterprises include:
a) Reinsurance business and reinsurance transfer;
b) Fund management and capital investment from reinsurance business activities;
c) Other activities directly related to reinsurance business activities.
3. Insurance enterprises and branches of foreign non-life insurance enterprises shall be only permitted to conduct business in a type of insurance specified in Clause 1 Article 7 of this Law, except for the following cases:
a) Life insurance enterprises conduct health insurance business;
b) Non-life insurance enterprises and branches of foreign non-life insurance enterprises engaged in the business of health insurance products with a term of 1 year or less and death risk insurance products with a term of 1 year or less;
c) Health insurance enterprises engaged in the business of death risk insurance products with a term of 1 year or less.
Article 64. General conditions for grant of establishment and operation licenses for insurance enterprises and reinsurance enterprises
1. Conditions on founding shareholders and capital-contributing members:
a) Organizations and individuals have the right to establish and manage enterprises in Vietnam in accordance with the Law on Enterprises;
b) Organizations which have legal status and are operating lawfully must operate profitably in the latest 3 consecutive financial years up to the time of submitting the application dossiers for grant of licenses and satisfy the financial conditions prescribed by the Government, in case of contributing 10% or more of the charter capital;
c) Insurance enterprises and reinsurance enterprises that have been granted establishment and operation licenses in Vietnam and contribute capital to establish new insurance enterprises, reinsurance enterprises must operate profitably in the latest 3 consecutive financial years up to the time of submitting the application dossiers for grant of licenses and satisfy the capital adequacy ratio as prescribed by this Law.
2. Condition on capital:
a) The charter capital shall be contributed in Vietnamese dong and not less than the minimum amount prescribed by the Government;
b) Founding shareholders and capital-contributing members may not use borrowed capital or investment trust capital of other organizations or individuals to contribute capital.
3. Condition on human resources: Having the Chairperson of the Board of Directors or the Chairperson of the Member’s Council, the Director or General Director, the legal representative, an actuary who is expected to meet the conditions and standards on management capacity, experience and professional expertise specified in Article 81 of this Law.
4. Having operational forms in accordance with this Law and having a draft charter in accordance with the Law on Enterprises.
Article 65. Conditions for founding capital-contributing members of insurance enterprises and reinsurance enterprises in the form of limited liability companies
Founding capital-contributing members of insurance enterprises and reinsurance enterprises in the form of limited liability companies must be organizations satisfying the general conditions specified in Article 64 of this Law and the following conditions:
1. Conditions for organizations established under foreign laws:
a) Being insurance enterprises, reinsurance enterprises, foreign financial or insurance groups;
b) Being certified by foreign competent authorities that the insurance enterprises, reinsurance enterprises, foreign financial or insurance groups have not seriously violated the provisions of the law on insurance business of the countries where the enterprises are headquartered within 3 consecutive years up to the time of submitting application dossiers for grant of licenses;
c) The proposed field of application for grant of permit to perform in Vietnam is the field in which insurance enterprises, reinsurance enterprises, foreign financial or insurance groups are directly engaged or have subsidiaries to perform for at least the last 7 consecutive years;
d) Having total property of not less than USD 2 billion in the year immediately preceding the year in which application dossiers for grant of establishment and operation licenses are submitted;
dd) Committing to support in finance, technology, corporate governance, risk management, executive and operations for insurance enterprises and reinsurance enterprises to be established in Vietnam; ensuring that the insurance enterprises and reinsurance enterprises shall comply with regulations on financial safety and risk management in accordance with this Law;
d) Insurance enterprises, reinsurance enterprises, foreign financial or insurance groups meeting the conditions specified at Points b, c, d and dd of this Clause may authorize subsidiaries specializing in offshore investment to establish insurance enterprises or reinsurance enterprises in Vietnam. Subsidiaries specializing in offshore investment must satisfy the conditions specified at Point d of this Clause;
2. Conditions for economic organizations established under Vietnamese laws: Having total property not less than VND 2,000 billion in the year immediately preceding the year in which application dossiers for permits are submitted;
3. Pursuant to the provisions of Point d Clause 1 and Clause 2 of this Article, the Government shall specify the minimum total property level applicable to each period.
Article 66. Conditions on structure of founding capital-contributing members of insurance enterprises and reinsurance enterprises in the form of joint-stock companies
The establishment of insurance enterprises or reinsurance enterprises in the form of joint-stock companies must satisfy the general conditions specified in Article 64 of this Law and the following conditions:
1. There are at least 2 institutional shareholders and each shareholder meets the following conditions:
a) Contributing 10% or more of the charter capital of the insurance enterprise or reinsurance enterprise;
b) The conditions specified in Article 65 of this Law;
2. An individual shareholder may not contribute more than 10% of the charter capital of the insurance enterprise or reinsurance enterprise.
Article 67. Conditions for being granted of establishment and operation licenses for Vietnam-based foreign branches
1. When establishing a branch in Vietnam, foreign non-life insurance enterprises and foreign reinsurance enterprises must satisfy the following conditions:
a) Having head-office in the country that has signed treaties with Vietnam, including an agreement on the establishment of Vietnam-based foreign branches; the State management agency in charge of foreign insurance of the country where the enterprise's head office is located has signed an international agreement with the Ministry of Finance of Vietnam on management and supervision of operations of the branches;
b) Being licensed to establish a branch in Vietnam to operate within the approved scope of insurance operations by the State management agency in charge foreign insurance of the country where the enterprise's head office is located;
c) Having at least 7 years of experience in the field expected to request for grant of licenses in Vietnam;
d) Having the total property at least satisfying the conditions specified at Point d Clause 1 and Clause 3 Article 65 of this Law;
dd) The enterprises must operate profitably in the latest 3 consecutive financial years up to the time of submitting the application dossiers and meeting financial conditions as prescribed by the Government;
e) Committing to guarantee and take responsibility for all obligations and commitments of the Vietnam-based foreign branches.
2. Branches of foreign non-life insurance enterprises and branches of foreign reinsurance enterprises that are expected to be established and operate in Vietnam must satisfy the following conditions:
a) Having capital allocated in Vietnamese dong which is not less than the minimum amount prescribed by the Government;
b) Using the legal capital source, not using loan capital or investment trust capital in any form;
c) Having a Director of the branch, an actuary who is expected to meet the conditions, standards on management capacity, professional experience and expertise specified in Article 81 of this Law.
3. After being granted establishment and operation licenses, Vietnam-based foreign branches are allowed to operate as insurance enterprises or reinsurance enterprises which are established and operate in Vietnam in accordance with this Law.
Article 68. Holding rate of foreign investors
Foreign investors shall be entitled to own shares or contributed capital up to 100% of charter capital of insurance enterprises and reinsurance enterprises.
Article 69. Dossiers of application for establishment and operation licenses
A dossier of application for an establishment and operation license shall include:
1. A written request for establishment and operation licenses;
2. Draft charter for insurance enterprises and reinsurance enterprises; draft regulations on organization and operation of Vietnam-based foreign branches;
3. The plan for operation in the first five years, clearly stating the insurance operations to be implemented, risk management model, modes of deduction for setting up professional reserves, reinsurance program, capital investment and solvency of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches;
4. Curriculum vitae, Judicial record card, copies of diplomas and certificates proving the capacity, professional qualifications of the persons to be appointed as Chairpersons of the Boards of Directors or Chairpersons of the Member's Councils, Directors or General Directors, legal representatives, actuaries;
5. The contributed capital level and mode of capital contribution, the list of founding organizations and individuals or members and shareholders expected to contribute 10% or more of the charter capital; and documents proving the satisfaction of conditions corresponding to each type of insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch as prescribed in Articles 64, 65, 66 and 67 of this Law of the such organizations and individuals;
6. List of beneficial owners of insurance enterprises and reinsurance enterprises. The Government shall prescribe criteria for determining beneficial owners of insurance enterprises and reinsurance enterprises.
Article 70. Time limit for being granted establishment and operation licenses
1. Within 60 days after receiving complete and valid dossiers, the Ministry of Finance shall grant or refuse to grant establishment and operation licenses. In case of refusal to grant licenses, it shall reply in writing, clearly stating the reason.
2. In case of granting the establishment and operation licenses, the Ministry of Finance shall issue a written approval on the principle to the persons to be appointed as Chairperson of the Board of Directors or Chairperson of the Member's Council, Director or General Director, legal representative, actuaries.
Article 71. Competence to grant, re-grant, amend, supplement and revoke establishment and operation licenses, suspension of operation contents
1. The establishment and operation licenses shall also be valid as the enterprise registration certificates.
2. The Ministry of Finance shall have competence to grant, re-grant, amend, supplement and revoke the establishment and operation licenses, suspend a part or entire operation contents of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches in accordance with this Law and relevant laws.
3. After granting, amending, supplementing or revoking the establishment and operation licenses, the Ministry of Finance shall be responsible for notifying in writing to the business registration agency of province where an insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch is headquartered to update in the national information system on enterprise registration.
4. The Government shall detail dossiers, order and procedures for grant, re-grant, amendment, supplementation and revocation of establishment and operation licenses; partial or wholly suspension of operation contents of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches.
Article 72. Announcement of contents of establishment and operation licenses
1. The Ministry of Finance shall be responsible for announcing contents of establishment and operation licenses of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches on its e-portal within 30 days from the date of issuance.
2. At least 30 days before officially operating, insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches that have been granted establishment and operation licenses must announce contents of such licenses and the date of official commencement of operation on one print newspaper in 3 consecutive issues or on Vietnam's newswires.
Article 73. Conditions for official commencement of operation
1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must officially operate within 12 months from the date of issuance of the establishment and operation license, unless there is a force majeure event or objective obstacle. In force majeure case or in case of objective obstacles, insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must report in writing and obtain written approval from the Ministry of Finance of the extension of the time limit for official commencement of operation; the maximum extended duration is 12 months.
2. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must meet the following regulations for official commencement of operation:
a) Transferring the capitals at the frozen account to charter capital or allocated capital;
b) Building the organizational structure, apparatus for internal control and management, internal audit, risk management system conformable with the operation forms specified in this Law and relevant laws; appointing or voting the at-law representatives; voting or appointing titles already approved by the Ministry of Finance on the principles specified in Clause 2 Article 70 of this Law;
c) Formulating internal management regulations on operation and organization, internal regulations on risk management and basic professional processes in accordance with law provisions;
d) Paying sufficient deposit as prescribed by this Law at commercial banks operating in Vietnam;
dd) Having headquarters, physical and technical foundations, technology systems conformable with the professional process on insurance business;
e) Announcing contents of establishment and operation licenses as prescribed in Clause 2 Article 72 of this Law.
3. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must notify the Ministry of Finance the satisfaction of provisions of Clause 2 of this Article at least 15 days before of official commencement of operation. The Ministry of Finance may suspend the official operation of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches if they fail to satisfy provisions of Clause 2 of this Article.
4. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches are not allowed to conduct business activities before the date of official commencement of operation.
Article 74. Changes subject to approval or announcement
1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must obtain the Ministry of Finance's written approval when changing one of the following:
a) Name and address of headquarter;
b) Charter capital and allocated capital;
c) Operation contents, scope and duration;
d) Transfer of shares, capital contribution portions resulting in shareholders or capital-contributing members owning 10% or more of the charter capital or reducing it to less than 10% of the charter capital;
dd) Chairperson of the Board of Directors, or Chairperson of the Member's Council, Director or General Director, actuary;
e) Division, separation, merger, consolidation, dissolution, transformation of enterprise;
g) Conducting offshore investment, including opening branches, representative offices and other commercial presence forms in other countries.
2. Within 10 days from the date the Finance Ministry approves the changes prescribed in Clause 1 of this Article, the Ministry of Finance shall be responsible for making public the approved changes on its e-portal.
3. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must notify the Ministry of Finance in writing within 15 days after changing one of the following:
a) Changing the operating charter of insurance enterprises and reinsurance enterprises; regulations on organization and operation of Vietnam-based foreign branches;
b) Opening, terminating or relocating branches, representative offices of insurance enterprises or reinsurance enterprises;
c) Opening, terminating or relocating business location;
d) Changing beneficial owners of insurance enterprises and reinsurance enterprises.
4. The Government shall detail conditions, dossiers, order and procedures for approval of changes specified in Clause 1 and dossiers, order and procedures for recording changes specified at Point b Clause 3 of this Article.
Article 75. Revocation of establishment and operation licenses
1. An insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch shall have its establishment and operation license revoked in one of the following:
a) Its dossier of application for grant of an establishment and operation license contains fraudulent information to qualify for a license;
b) Past time limit specified in Clause 1 Article 73 of this Law but it fails to commence its operation;
c) It is divided, separated, merged, consolidated, dissolved or has its operation terminated;
d) It operates in contravention of the contents prescribed in its establishment and operation license;
dd) After the court announces an insurance enterprise or reinsurance enterprise bankruptcy;
e) A foreign non-life insurance enterprise or foreign reinsurance enterprise of a Vietnam-based foreign branch becomes bankrupt or has its license revoked.
2. Insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches that have their establishment and operation licenses revoked under Point a, c, d and e Clause 1 of this Article must immediately stop entering into new insurance contracts or reinsurance contracts. Insurance enterprises and branches of foreign non-life insurance enterprises that have their establishment and operation licenses revoked must transfer the list of insurance contracts; such transfer shall not apply to null and void insurance contracts as prescribed in this Law.
3. Decisions on revocation of establishment and operation licenses of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall be publicized by the Ministry of Finance on its e-portal.
Article 76. Vietnam-based foreign representative offices
1. Foreign insurance enterprises, foreign reinsurance enterprises, foreign finance and insurance groups, foreign insurance brokerage enterprises may locate their representative offices in Vietnam. Vietnam-based foreign representative offices are affiliated units of foreign insurance enterprises, foreign reinsurance enterprises, foreign finance and insurance groups, foreign insurance brokerage enterprises and are not allowed to conduct insurance businesses activities in Vietnam.
2. Vietnam-based foreign representative offices may carry out the following activities:
a) Acting as a liaison office;
b) Studying the market;
c) Promoting the construction of investment projects of foreign insurance enterprises, foreign reinsurance enterprises, foreign finance and insurance groups, foreign insurance brokerage enterprises in Vietnam;
d) Promoting and monitoring the implementation of projects sponsored by foreign insurance enterprises, foreign reinsurance enterprises, foreign finance and insurance groups, foreign insurance brokerage enterprises in Vietnam;
dd) Other activities as prescribed by Vietnamese laws.
3. The operation duration of a Vietnam-based foreign representative office is 5 years maximum, and this duration may be extended.
4. Operation reports, notification of changes and information disclosure of Vietnam-based foreign representative offices shall comply with the Minister of Finance's regulations.
Article 77. Grant, re-grant, amendment, supplementation, extension, cancellation and revocation of permits for locating foreign representative offices in Vietnam
1. Foreign insurance enterprises, foreign reinsurance enterprises, foreign finance and insurance groups, foreign insurance brokerage enterprises locating their foreign representative offices in Vietnam must satisfy the following conditions:
a) Operating for at least the last 5 years;
b) Obtaining permits for locating a representative office in Vietnam from the State management agency in charge of foreign insurance where the headquarter is located.
2. The Government shall detail conditions, dossiers, order and procedures for grant, re-grant, amendment, supplementation, extension, cancellation and revocation of permits for locating foreign representative offices in Vietnam.
3. The Ministry of Finance shall have the competence to grant, re-grant, amend, supplement, extend and revoke the permits for locating foreign representative offices in Vietnam, or terminate operations of foreign representative offices in Vietnam.
Section 2. ORGANIZATION OF OPERATIONS
Article 78. Organization of operations of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches
1. The forms of operation organization in Vietnam of an insurance enterprise or reinsurance enterprise include the headquarters, branch, representative office and business location.
2. The forms of operation organization in foreign countries of an insurance enterprise or reinsurance enterprise include branch, representative office or other forms of commercial presence in accordance with law regulations.
3. The forms of operation organization of a Vietnam-based foreign branch in Vietnam include headquarters and business location.
Article 79. Management organization structure of insurance enterprises and reinsurance enterprises
1. An insurance enterprise or reinsurance enterprise established in the form of joint stock company may choose the management organization structure according to one of the following two models:
a) General Meeting of Shareholders, Board of Directors, Supervisory Board, Director or General Director. The Supervisory Board shall have between 3 and 5 supervisors according to the company charter.
b) General Meeting of Shareholders, Board of Directors, Director or General Director, in which at least 20% of the members of the Board of Directors must be independent members and an Audit Committee shall be required in the Board of Directors. The organizational structure, functions and tasks of the Audit Committee shall be specified in the company charter or operation regulation of the Audit Committee issued by the Board of Directors.
2. The management organization structure of an insurance enterprise or reinsurance enterprise established in the form of limited liability company includes Members’ Council, Director or General Director. The insurance enterprise or reinsurance enterprise may decide to establish a Supervisory Board in accordance with law regulations.
Article 80. Managers and controllers of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches
1. Managers of an insurance enterprise or reinsurance enterprise include the following titles:
a) The chairperson of Board of Directors, member of Board of Directors or the chairperson of Members’ Council, member of Members’ Council;
b) Director or General Director, Deputy Director or Deputy General Director, at-law representative;
c) Chief Accountant, Director of branch, head of representative office, heads of professional divisions and equivalent titles as prescribed in the company charter.
2. Managers of a Vietnam-based foreign branch include the following titles:
a) Director, Deputy Director;
b) Chief Accountant, heads of professional divisions and equivalent titles according to regulations on organization and operation of the Vietnam-based foreign branch.
3. Controllers of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches are entitled to professional independence, including the following titles:
a) Head of the Supervisory Board and supervisor;
b) Head of risk administration department, head of compliance control department, head of internal audit department;
c) Actuary.
4. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must maintain the titles of Directors and actuaries or General Directors and actuaries. In case of any change, within 75 days from the date on which their Directors or General Directors, actuaries cease to hold their positions, the insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches must submit valid dossiers to request the Ministry of Finance to approve the new Directors or General Directors, actuaries.
Article 81. Conditions and criteria for managers and controllers of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches
1. General conditions and criteria:
a) Have the right to manage enterprises in accordance with the Law on Enterprises;
b) Have not been administratively sanctioned in the field of insurance business, have not been disciplined in the form of dismissal due to a violation of internal procedures for 03 consecutive years before the time of appointment; have not been prosecuted by a competent agency as prescribed by law at the time of election or appointment.
2. Conditions and criteria for Chairpersons of Boards of Directors, Chairpersons of Members’ Councils, members of Boards of Directors, members of Members’ Councils:
a) General conditions and criteria specified in Clause 1 of this Article;
b) Possess a university or higher degree;
c) Chairpersons of Boards of Directors, Chairpersons of Members’ Councils have directly worked in the field of insurance, finance or banking for at least 5 years or are persons in charge of management, execution, control in an enterprise operating in the field of insurance, finance or banking for at least 3 years; members of Boards of Directors, members of Members’ Councils have directly worked in the field of insurance, finance or banking for at least 3 years or are persons in charge of management, execution, control in an enterprise operating in the field of insurance, finance or banking for at least 3 years.
3. Conditions and criteria for Director or General Director and at-law representatives:
a) General conditions and criteria specified in Clause 1 of this Article;
b) Possess a university or higher degree in insurance business. Those who do not possess such a degree must possess a university or higher degree in another discipline and an insurance certificate granted by an insurance training institution lawfully established and operating in Vietnam or abroad;
c) Have at least 5 years of working experience in the field of insurance, finance or banking, including at least 3 years of acting as a manager or controller of an insurance enterprise, reinsurance enterprise or foreign branch.
d) Reside in Vietnam during their term of office.
4. Conditions and criteria for managers other than cases specified in Clauses 2 and 3 of this Article of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches:
a) General conditions and criteria specified in Clause 1 of this Article;
b) Possess a university or higher degree in insurance business. Those who do not possess such a degree must possess a university or higher degree in another discipline and an insurance certificate suitable for the enterprise’s type of insurance permitted to be provided that is granted by an insurance training institution lawfully established and operating in Vietnam or abroad;
c) Have at least 3 years of working experience in the field of insurance, finance, banking or in the professional field where they are expected to work. Particularly for heads of professional divisions, at least 3 years of working experience in the field of insurance or professional field where they are expected to work is required;
d) Reside in Vietnam during their term of office.
5. Controllers of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must satisfy the general conditions and criteria specified in Clause 1 of this Article and other conditions and criteria as prescribed by the Government.
6. The Minister of Finance shall detail Point b Clause 3 and Point b Clause 4 of this Article, training contents, dossiers, order and procedures for testing, grant, revocation and renewal of insurance certificates granted by insurance training institutions lawfully established and operating in Vietnam.
Article 82. Principles of holding positions
1. A chairperson of the Board of Directors, chairperson of the Members’ Council, member of the Board of Directors or member of the Members’ Council of an insurance enterprise or reinsurance enterprise may not concurrently act as a member of the Board of Directors or a member of the Members’ Council of another insurance enterprise or reinsurance enterprise operating in the same field of life insurance, non-life insurance, health insurance or reinsurance in Vietnam.
2. The Director or General Director of an insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch may not concurrently work for another insurance enterprise, reinsurance enterprise or foreign branch operating in the same field of life insurance, non-life insurance, health insurance or reinsurance in Vietnam.
3. The Director or General Director, director of branch, head of representative office of an insurance enterprise or reinsurance enterprise may concurrently act as the director of only one branch or head of only one representative office or professional division of such insurance enterprise or reinsurance enterprise. The director of a Vietnam-based foreign branch shall be the at-law representative and may concurrently act as the head of only one professional division of such branch.
4. The titles of actuary, head of risk administration department, and head of compliance control department of insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches may not concurrently hold any managerial title at the same organization; may not concurrently work at another insurance enterprise, reinsurance enterprise or foreign branch operating in Vietnam. Actuaries shall perform their tasks in accordance with the Minister of Finance’s regulations.
5. The head of Supervisory Board and supervisors may not concurrently hold any managerial title at the same organization. The head of Supervisory Board may not be concurrently a supervisor or manager of another insurance enterprise or reinsurance enterprise operating in Vietnam.
6. Chief Accountants, heads of internal audit departments of insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches may not concurrently hold any title at the same organization; may not concurrently work at another insurance enterprise, reinsurance enterprise or foreign branch operating in Vietnam.
Article 83. Termination, suspension of the exercise of rights and obligations of Chairpersons of the Boards of Directors, Chairpersons of the Members' Councils, Directors or General Directors, actuaries
1. The Ministry of Finance has the right to terminate or suspend the exercise of rights and obligations of Chairperson of the Board of Directors, Chairperson of the Members' Council, Director or General Director, actuary of an insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch that violates the principles of holding positions specified in Article 82 of this Law or no longer satisfies the conditions and criteria specified in Article 81 of this Law.
2. Within 75 days from the date the Ministry of Finance issues a document on suspension, the insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch must submit a valid dossier of application to the Ministry of Finance for approval of the new Chairperson of the Board of Directors, Chairperson of the Members' Council, Director or General Director, actuary.
3. The persons whose exercise of rights and obligations is terminated or suspended prescribed in Clause 1 of this Article shall be responsible for taking part in dealing with problems and violations related to their personal liability at the request of the insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches.
4. The Government shall detail the termination, suspension of the exercise of rights and obligations of Chairpersons of the Boards of Directors, Chairpersons of the Members' Councils, Directors or General Directors, actuaries as specified in Clauses 1 and 2 of this Article.
Section 3. INTERNAL CONTROL, INTERNAL AUDIT AND RISK MANAGEMENT
Article 84. Internal control
1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must carry out the internal control to meet the following requirements:
a) Efficiency and safety in operations and protection, management and use of assets and force sources;
b) Honesty, reasonability, timeliness and sufficiency in the financial information and management information systems;
c) Compliance with laws, regulations, procedures and internal regulations.
2. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must establish standards, process and procedures for internal control; ensuring that the managers, controllers and employees clearly understand and strictly implement them.
3. The internal control activities of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must be annually assessed by internal audit department.
4. The Minister of Finance shall detail this Article.
Article 85. Internal audit
1. Insurance enterprises and reinsurance enterprises must establish internal audit departments. Vietnam-based foreign branches may establish internal audit departments or use internal audit units of foreign non-life insurance enterprises or foreign reinsurance enterprises.
2. On an annual basis, insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must carry out the internal audit according to the following contents:
a) Reviewing and assessing the risk management and internal control activities in an independent and objective manner;
b) Carrying out an independent assessment of the conformity and compliance with regulations, internal policies, procedures and processes formulated within the insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches;
c) Recommending to amend and remedy errors, proposing measures to perfect and raise the efficiency of systems, processes and regulations, contributing to ensure that insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches operate safely and effectively in accordance with law provisions.
3. Internal audit results of insurance enterprises or reinsurance enterprises must be promptly reported to the Boards of Directors, Members’ Councils and sent to the Directors or General Directors of the enterprises.
Internal audit results of Vietnam-based foreign branches must be promptly reported to foreign non-life insurance enterprises, foreign reinsurance enterprises and sent to the Directors of Vietnam-based foreign branches.
4. The Minister of Finance shall detail this Article.
Article 86. Risk management
1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall be responsible for establishing risk management systems in order to identify, measure, evaluate, report and control effectively risks arising from business activities.
2. The risk management of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must meet the following requirements:
a) Being able to identify and quantify in accordance with the nature, scope and complex extent of risks arising from business activities, impacts on capital, operational and financial safety;
b) Specifying the role and responsibility of each department and individual in risk management activities and risk management structure;
c) Adopting a clear and transparent risk management policy, specifying types of material risks and relevant risks arising from business activities, risk appetite and methods of management over each type of risk. Risk management policies must be adopted by the Boards of Directors, Members’ Councils of insurance enterprises, reinsurance enterprises or foreign non-life insurance enterprises, foreign reinsurance enterprises of Vietnam-based foreign branches;
d) Fully establishing limits for assumption of each type of material risks and relevant risks, correlation between such risks. Limits for assumption of risks must conform to the risk management policies, business strategies, human resources and information technology conditions;
dd) Fully establishing risk management procedures, including procedures for monitoring, receiving and feed backing any risk changes in a timely manner.
3. On an annual basis, insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall be responsible for making reports on assessment of solvency and risk management, assessing the sufficient level of the risk management and solvency at that time and in future with the time frame consistent with the business plan; determining finance sources required for the management of business activities within the capacity of assumption of risks and business plans; inspecting the endurance and analyzing the ability to further operation.
4. The Minister of Finance shall detail this Article.
Section 4. PROFESSIONAL ACTIVITIES
Article 87. Building, designing, developing and providing insurance products
1. Insurance enterprises and branches of foreign non-life insurance enterprises may actively build, design and develop insurance products and take self-responsibility thereof.
2. Principles, terms and tariffs formulated by insurance enterprises and branches of foreign non-life insurance enterprises must meet the following requirements:
a) Compliance with the law and conformity with Vietnamese common practices, ethical standards, cultures and customary practices;
b) Languages used in insurance principles and terms must be accurate, simple and easy to understand. Specialized terminologies must be defined clearly in the insurance principles and terms;
c) Insurance interests, objects of insurance, insurance scope and risks, rights and obligations of the insurance buyers and the insured, responsibility of insurance enterprises and branches of foreign non-life insurance enterprises, terms on exclusion of insurance liability, payment methods and provisions on dispute settlement;
d) Premiums must be calculated based on the statistical data corresponding to the insurance conditions and liability, ensuring the solvency of insurance enterprises and branches of foreign non-life insurance enterprises.
3. Insurance enterprises and branches of foreign non-life insurance enterprises must register and obtain an approval from the Ministry of Finance of methods and basis for calculation of premiums of insurance products belonging to life insurance, health insurance, and motor vehicle insurance operations, except for insurance for motor vehicle owner’s civil liability.
4. Insurance enterprises and branches of foreign non-life insurance enterprises may actively supply insurance products in the following forms:
a) Supplying directly;
b) Supplying through insurance agents or insurance brokers;
c) Supplying through bidding;
d) Supplying through e-transactions;
dd) Other forms in accordance with law provisions.
5. The Government shall detail the dossiers, order and procedures for registering methods and basis for premium calculation prescribed in Clause 3 of this Article.
6. The Minister of Finance shall detail the methods and basis for premium calculation prescribed in Clause 3 of this Article and the supply of insurance products prescribed in Clause 4 of this Article.
Article 88. State-sponsored insurance products
1. The deployment and participation in agricultural, forestry and fishery insurance products and insurance products for social and security purposes shall be encouraged, sponsored and facilitated by the State through one or several measures as follows:
a) Simplifying administrative procedures;
b) Propagandizing insurance policies;
c) Establishing risk insurance funds;
d) Developing database, supporting the application of technologies in designing, developing insurance products, insurance loss assessment and compensation;
dd) Forming channels for distributing by agricultural, forestry and fishery production value chains;
e) Partially sponsoring insurance expenses, sponsored expenses shall be guaranteed from the central and local budgets, and be allocated in the annual state budget estimate or other lawful financial sources in accordance with law provisions;
g) Formulating the mechanisms of coordinating and sharing management and supervision information among relevant ministries and sectors in order to connect and coordinate in insurance business activities.
2. The Government shall detail measures specified in Clause 1 of this Article according to the development orientations and socio-economic development conditions in each period.
Article 89. Reinsurance, reinsurance transfer, co-insurance, motor vehicle insurance fund and risk insurance fund
1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches may share risks with other insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches, foreign insurance enterprises, foreign reinsurance enterprises and foreign insurance organizations in the forms of reinsurance and reinsurance transfer.
Foreign insurance enterprises, foreign reinsurance enterprises and foreign insurance organizations that receive the reinsurance must be ranked by international credit rating agencies and meet other conditions as prescribed by the Government.
2. Insurance enterprises and branches of foreign non-life insurance enterprises may provide the co-insurance on the basis of consistently entering into an insurance contract with the insurance buyers, in which the insurance enterprises and branches of foreign non-life insurance enterprises shall receive premium and pay the insurance money or indemnities at the rate as agreed in the insurance contract.
Insurance enterprises and branches of foreign non-life insurance enterprises participating in co-insurance must be those who have been granted with establishment and operation licenses in accordance with this Law.
3. The motor vehicle insurance fund is formed from the contributions of non-life insurance enterprises and branches of foreign non-life insurance enterprises that are currently deploying compulsory insurance for motor vehicle owner’s civil liability, and other lawful sources for humanitarian purposes and other activities in order to strengthen the implementation of compulsory insurance for motor vehicle owner’s civil liability. The motor vehicle insurance fund shall be concentratedly managed. The mechanism for management and use of the motor vehicle insurance fund shall comply with the Government’s regulations.
4. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches may reach an agreement on establish a risk insurance fund in order to distribute and share insurance for major risks and risks with disaster nature or newly-arising risks not yet been insured or rarely insured on the market. Agreements on establishing risk insurance fund with the State participation or sponsorship shall comply with the Government's regulations. In case of being sponsored by the State budget, the provisions of the Law on the State Budget shall be complied with.
5. The Minister of Finance shall detail the reinsurance, reinsurance transfer and co-insurance.
Article 90. Outsourcing
1. Outsourcing means an insurance enterprise, reinsurance enterprise or a Vietnam-based foreign branch agrees to conclude an outsourcing contract with other organizations or individuals to perform a part of processes or activities, except for the following activities:
a) Internal control;
b) Internal audit;
c) Risk management;
d) Consulting, introducing and selling insurance products, arranging the conclusion of insurance contracts.
2. In case of outsourcing a part of processes or activities directly involved in the insurance business, an insurance enterprise, reinsurance enterprise or a Vietnam-based foreign branch shall still bear the only and the last liability towards the insurance buyer and have the following obligations:
a) Formulating the regulations on outsourcing management, including provisions on the scope of activities eligible for outsourcing, relevant risk assessment frame, criteria for approving outsourcing contracts and conditions applicable to outsourcers in accordance with law provisions. The outsourcing management regulation must be approved by the Board of Directors, Members’ Council of an insurance enterprise, reinsurance enterprise or competent authority of a Vietnam-based foreign branch;
b) Developing the outsourcing procedures, and procedures for risk management and internal control applicable for outsourcing activities and taking measures to prevent, minimize and handle timely risks arising from the outsourcing, especially those related to legitimate rights and interests of the insured and insurance buyers;
c) Suspending, adjusting or terminating the outsourcing in case of detecting it cause adverse effects to the legitimate rights and interests of the insured and insurance buyers;
d) Developing a backup plan to ensure the un-interrupted business operation in case the outsourcer cannot or fails to properly follow its liability towards outsourcing activities as prescribed in the outsourcing contract;
dd) Regularly inspecting and supervising the outsourcers during the performance of the outsourcing agreement to ensure the quality and schedule as specified in the outsourcing contract. The outsourcer must ensure to self-implement at least 75% of the value of the outsourced task. In case of hiring a subcontractor to partially perform such task, the prior consent in writing from the insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch is required, and the outsourcer liabilities and obligations shall not change;
e) Keeping clients’ data and information confidential as prescribed by law;
g) Monitoring and accounting separately the outsourcing activities.
3. The outsourcing contract must be made in writing and include the following key contents:
a) The outsourcing scope and contents;
b) Time and location of the outsourcing implementation;
c) Rights and obligations of insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches and outsourcers;
d) Criteria and requirements for the outsourcing implementation quality;
dd) Mechanisms and responsibility for providing information and reporting of the outsourcers towards the insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches during the outsourcing;
e) Backup plans, plans for damage remediation and compensation of the outsourcers in case they cannot or fail to properly implement agreements in the outsourcing contracts;
g) Mechanisms for monitoring, controlling and auditing the outsourcing implementation of the outsourcers; requiring the outsourcers to monitor and account outsourcing activities in the field of insurance separately from other outsourcing activities, and separately account outsourcing activities from different insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches;
h) Regulations on limiting the conclusion of subcontracts;
i) Clients’ data and information confidentiality mechanisms;
k) Methods of dispute settlement.
Section 5. TRANSFER OF INSURANCE CONTRACT LISTS
Article 91. Cases where the list of insurance contracts is transferred
The wholly or partially transfer of the list of insurance contracts of one or a number of insurance operations, corresponding assets and responsibilities among branches of foreign non-life insurance enterprises and insurance enterprises shall be carried out in the following cases:
1. Upon the Ministry of Finance's requests as prescribed at Points c and d Clause 8 Article 113 of this Law;
2. Narrowing operation scope and contents;
3. Division, separation, merger, consolidation, dissolution and termination of operations;
4. The cases specified at Points a, dd and e Clause 1 Article 75 of this Law.
Article 92. Conditions for transfer of the list of insurance contracts
1. Insurance enterprises and branches of foreign non-life insurance enterprises may be transferred the list of insurance contracts if meeting the following conditions:
a) Currently conducting business in the transferred insurance operations;
b) Ensuring the capital adequacy ratio and solvency in accordance with this Law;
c) Ensuring to meet the conditions for carrying out insurance operations after the transfer.
2. The transfer of the list of insurance contracts must be made together with the transfer of assets corresponding to professional reserves of the entire insurance contract list to be transferred.
3. The rights and obligations under the to-be-transferred insurance contracts shall not alter till the expiry of the insurance contracts. In case of transferring the list of insurance contracts specified in Clause 1 Article 91 of this Law, if the asset value is lower than the professional reserve value of the to-be-transferred insurance contract list, the transferee insurance enterprise or transferee branch of a foreign non-life insurance enterprise must reach an agreement with the insurance buyers and the insured on the reduction of the insurance sums or insurance interests and other obligations as provided in the insurance contracts.
4. In case of disapproval of the transfer, the insurance buyer may unilaterally terminate the performance of the insurance contract.
Article 93. Procedures for transfer of the list of insurance contracts
1. An insurance enterprise or branch of a foreign non-life insurance enterprise that transfers the list of insurance contracts must send a written request for transferring the insurance contract list to the Ministry of Finance, specifying the reasons for transfer; the transfer plan and contract shall be sent together with such written request. The transfer of insurance contract lists shall be carried out only after it is approved in writing by the Finance Ministry.
2. Within 30 days after the Ministry of Finance approves the transfer of the insurance contract list, an insurance enterprise or branch of a foreign non-life insurance enterprise that transfers the insurance contract list must announce such transfer on its website and notify the insurance buyers in writing.
3. The Government shall detail dossiers, order and procedures for transfer of the list of insurance contracts.
Section 6. FINANCE, COST ACCOUNTING AND FINANCIAL REPORT
Article 94. Capital
1. Charter capital is the total amount contributed or committed to contribute when establishing a limited liability company by the members, which is the total of par value of the shares already sold or permitted to register when establishing a joint-stock company. Such charter capital shall be recorded in the charter of an insurance enterprise or reinsurance enterprise.
2. Allocated capital of a Vietnam-based foreign branch is the capital the foreign non-life insurance enterprise or foreign reinsurance enterprise allocates to its Vietnam-based branch.
3. Owner’s equity includes contributed charter capital, allocated capital of a Vietnam-based foreign branch, reserve funds, undistributed after-tax profits, owner's funds are set aside from profit after tax in accordance with regulations.
4. Real capital includes owner’s equity and other sources permitted to record, exempt or reduce in accordance with the Ministry of Finance's regulations.
5. Risk-based capital is determined based on the size and quantification of the impact of risk groups on the business activities of an insurance enterprise, reinsurance enterprise or a Vietnam-based foreign branch, including:
a) Insurance risks, including risks arising due to the fluctuation of technical factors corresponding to the types of life insurance, non-life insurance and health insurance;
b) Market risks including risks arising from the market, for investment activities of an insurance enterprise, reinsurance enterprise or a Vietnam-based foreign branch;
c) Operation risks including risks arising from the process of operations, systems, management of an insurance enterprise, reinsurance enterprise or a Vietnam-based foreign branch;
d) Other risks, including risks arising from other counterparties or factors not yet calculated in insurance risks, market risks and operation risks.
6. The Government shall detail the minimum levels of charter capital and allocated capital for each type of insurance enterprise, reinsurance enterprise and Vietnam-based foreign branch.
Article 95. Capital adequacy ratio
1. The capital adequacy ratio means the ratio between the real capital and risk-based capital.
2. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must always maintain their capital adequacy ratios not lower than the prescribed ratio.
3. When determining the capital adequacy ratio, an insurance enterprise, reinsurance enterprise or a Vietnam-based foreign branch shall not include in the actual capital the investment amount in the form of capital contribution to, or purchase of shares from other insurance enterprises, other reinsurance enterprises, or subsidiaries of insurance enterprises or reinsurance enterprises.
4. The Minister of Finance shall detail the capital adequacy ratio, risk-based capital and actual capital.
Article 96. Escrow account
1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall have to use part of their charter capital and allocated capital for escrow account at commercial banks operating in Vietnam.
2. The escrow account amount shall be equal to 2% of the minimum charter capital and minimum allocated capital at the time of establishing an insurance enterprise, reinsurance enterprise or a Vietnam-based foreign branch.
3. An insurance enterprise, reinsurance enterprise or a Vietnam-based foreign branch may only use the escrow account amount to meet commitments with the insurance buyers when the solvency is shortage and such use must be approved in writing by the Ministry of Finance. Within 90 days from the date of using the escrow account money, an insurance enterprise, reinsurance enterprise or a Vietnam-based foreign branch shall be responsible for offsetting the escrow account amount already used.
4. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches may only wholly withdraw the escrow account money upon terminating their operations.
Article 97. Professional reserves
1. Professional reserves are the money amounts which must be set up with deductions by the insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches for the purpose of paying for insured liabilities, which may arise from the concluded insurance contracts.
2. The setting up with deductions of professional reserves must meet the following requirements:
a) Setting aside for each insurance operation;
b) The setting aside must correspond to the proportion of the committed responsibility as agreed in the insurance contracts;
c) Separating between insurance contracts of objects of insurance inside and outside the territory of Vietnam, including within the same insurance operation or insurance product, unless otherwise provided by law;
d) There always be assets corresponding to the professional reserves already set aside, at the same time, separating them from the assets corresponding to the reserves specified at Point c of this Clause;
dd) Using calculation experts to calculate and set up with deductions of professional reserves;
e) Regularly reviewing and evaluating the setting up with deductions of professional reserves; timely take measures to ensure to fully set aside reserves in order to pay for responsibility of an insurance enterprise, reinsurance enterprise or a Vietnam-based foreign branch.
3. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must register and obtain approval from the Ministry of Finance for their methods of deduction for establishment of professional reserves.
4. The Government shall detail the setting up with deductions of professional reserves, dossiers, order and procedures for registering the methods of deduction for establishment of professional reserves.
Article 98. Reserve funds
1. The insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches and the insurance brokerage enterprises must set up compulsory reserve funds in order to supplement owner’s equity and ensure their solvency.
2. The level of 05% of the after-tax profits shall be deducted annually for the compulsory reserve funds until reaching the maximum level as prescribed by the Government.
3. Apart from the compulsory reserve fund, the insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches may set up other reserve funds from after-tax profits of the fiscal year as provided for in the charters of the insurance enterprises or reinsurance enterprises, operation and organization rules of Vietnam-based foreign branches.
Article 99. General provisions on investment
1. Investment sources of an insurance enterprise, reinsurance enterprise or a Vietnam-based foreign branch includes:
a) Owner’s equity;
b) Idle capital portion from professional reserves in accordance with the Government’s regulations;
c) Other lawful sources as prescribed by law.
2. The investment of an insurance enterprise, reinsurance enterprise or a Vietnam-based foreign branch must comply with the following principles:
a) Ensuring safety, liquidity and efficiency; complying with the law, taking self-responsibility for investment activities;
b) Professional reserves shall be used only for investment in Vietnam, except for the cases specified at Point b Clause 2 Article 100 of this Law;
c) Loans are not allowed for use to invest, entrust to invest in securities, real estate business or capital contribution to other enterprises;
d) It is not allowed to invest more than 30% of the investment capital in companies in the same group of companies with mutual ownership relationship. This provision does not apply to the making of deposits to credit institutions, and offshore investment capital in the form of establishing enterprises or branches in other countries;
dd) It is not allowed to re-invest in shareholders, capital-contributing members or affiliated persons of such shareholders or capital-contributing members in any forms in accordance with the Law on Enterprises, except for deposits at shareholders and members being credit institutions.
e) It is not allowed to purchase corporate bonds issued to restructure debts of the bond-issuing enterprise;
g) In case of investment entrustment, entrusted organizations must be licensed to carry out the activities of receiving investment entrustment in accordance with the investment entrustment content.
3. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches are not allowed to carry out the following investment activities:
a) Conducting real estate business, except for the case of purchasing stocks of a real estate enterprises listed on the securities market, fund certificates of public funds; purchasing, investing or owning real estates for use as business headquarters, workplace or warehouses directly serving professional operations; leasing unused business headquarters under the ownership or use right; holding real estate due to the handling of bonds secured by real estate, due to the clearing of debts with real estate within 3 years from the date of holding;
b) Investing in precious metals and gems;
c) Investing in intangible fixed assets, except for the case of serving the insurance business activities of an enterprise or a branch;
d) Investing in derivatives or derivative contracts, except for the cases where derivatives are listed in order to prevent risks arising from insurance or reinsurance contracts and from securities investment portfolio held by insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches.
4. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall evaluate invested asset value in accordance with the Minister of Finance’s regulations.
5. The Government shall detail invest limits applicable to insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches.
Article 100. Offshore investment
1. Insurance enterprises and reinsurance enterprises may only conduct offshore investment activities in the following forms:
a) Establishing or contributing capital to establish, contributing capital, purchasing shares, purchasing capital contribution portions of an overseas insurance enterprise, reinsurance enterprise; establishing branches of an overseas insurance enterprise, reinsurance enterprise; opening representative offices and other types of commercial presences overseas;
b) Purchasing and selling securities, other valuable papers or investing through other overseas financial intermediaries, securities investment funds in accordance with the Government’s regulations.
2. Insurance enterprises and reinsurance enterprises may carry out offshore investment from the following sources:
a) The remaining owner’s equity after deducting the capital portion meeting the capital adequacy ratio and solvency as prescribed by this Law;
b) The idle capital portion from professional reserves of insurance contracts having interests and rights connected with foreign investment indicators and the idle capital portion from professional reserves of insurance contracts signed with overseas organizations and individuals.
3. The offshore investment of insurance enterprises and reinsurance enterprises must comply with general provisions on investment specified in Article 99 of this Law and the following regulations:
a) Ensuring the capital adequacy ratio and solvency of insurance enterprises and reinsurance enterprises;
b) Complying with the law on insurance business, investment and foreign exchange control;
c) Performing in the name of such insurance enterprise or reinsurance enterprise;
d) Managing and monitoring separately the investment sources, invested assets, turnover, and expenses for offshore investment activities;
dd) It is not allowed to use cashes and assets of the domestic insurance buyers to offset the cash shortage of the offshore investment activities, unless otherwise prescribed by law;
e) Obtaining the Ministry of Finance's approval in writing before carrying out offshore investment activities.
4. Vietnam-based foreign branches are not allowed to carry out offshore investment activities.
5. The Government shall detail conditions, limits, dossiers, order and procedures for approving the offshore investment of insurance enterprises and reinsurance enterprises.
Article 101. Separation of owner’s equity and premium sources, division of surplus
1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must register their principles with the Ministry of Finance and separate, record and monitor separately:
a) The owner’s equity, premium sources and equivalent assets of each capital source;
b) Turnover, expenses, and results of the insurance business and investment activities of the owner’s equity and premium sources;
c) Premium sources from insurance business activities inside and outside the territory of Vietnam; turnover, expenses, professional reserves and equivalent expenses from insurance business activities inside and outside the territory of Vietnam.
2. Life insurance enterprises must separate, record and monitor separately assets, capital sources, turnover, expenses and results of the implementation of life insurance contracts with profit shared according to the methods approved by the Ministry of Finance.
3. The Government shall detail the dossiers, order and procedures for registration and approval mentioned in Clauses 1 and 2 of this Article.
4. the Minister of Finance shall detail the separation of the owner’s equity and premium sources, principles for division of surplus for life insurance contracts with profit sharing.
Article 102. Financial regimes
1. The financial regimes of the insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall be implemented in accordance with this Law and other relevant laws.
2. The Government shall detail the financial regimes applicable to insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches.
Article 103. Fiscal year
1. The fiscal year of the insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches commences on January 01 and ends on December 31 of the same calendar year.
2. The first fiscal years of the insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall start from the dates they are granted the establishment and operation licenses and end on the last day of the same year.
Article 104. The accounting regime
The accounting regime applicable to insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall follow the accounting law.
Article 105. Independent auditing
1. Insurance enterprises, reinsurance enterprises, and Vietnam-based foreign branches must carry out annually independent auditing for annually financial statements.
2. Insurance enterprises, reinsurance enterprises, and Vietnam-based foreign branches must obtain a certification from an independent audit firm for their risk management and solvency assessment reports; reports on separation of the owner’s equity and premium sources; reports on the implementation of universal life funds, unit linked funds and pension funds.
3. An independent audit firm, when auditing and certifying reports mentioned in Clauses 1 and 2 of this Article shall be responsible for:
a) Complying with the law on independent auditing;
b) Employing calculation experts when auditing the capital adequacy ratio and professional reserves; risk management experts when auditing the risk management and other experts related to the independent auditing contents;
c) Explaining, providing information and data related to the audit of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches upon request of the Ministry of Finance;
d) Notifying in writing to the Ministry of Finance upon detecting any insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch that has material misstatements in audited and certified reports due to failure to comply with laws, has insurance fraudulent, or abnormal transactions which may cause serious impacts on the financial safety or rights and interests of the insurance participants;
dd) Keeping information confidential as prescribed by law.
4. The Minister of Finance shall detail Clause 2 of this Article.
Article 106. Reporting and providing information
1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must submit the following reports:
a) Financial statements. In case of having an opinion or conclusion other than unqualified conclusion of an independent audit firm toward any audited report or activity, an insurance enterprise, reinsurance enterprise or a Vietnam-based foreign branch must report the causes and situation to the Ministry of Finance;
b) Reports on professional activities;
c) Reports on separation of owner’s equity and premium sources;
d) Reports on risk management and solvency assessment;
dd) Reports on changes to capital related to each type of risks.
2. In addition to reports specified in Clause 1 of this Article, insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must report the Ministry of Finance when:
a) Occurring any abnormal development affecting the solvency and prestige of an enterprise or a branch in insurance business;
b) Failing to meet financial requirements and other requirements as prescribed.
3. The Minister of Finance shall detail provisions on reporting and providing information provided in Clauses 1 and 2 of this Article.
Article 107. Transfer of profits and property abroad
1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches may transfer profits and property abroad in accordance with Vietnamese laws and the following regulations:
a) Transferring the remaining profits under the foreign investors’ ownership after making deductions for establishment of funds and fulfilling all financial obligations as well as ensuring the capital adequacy ratio and solvency as prescribed by this Law;
b) Transferring the remaining profits under the foreign investors’ ownership after termination of their operation in Vietnam.
2. The transfer abroad of money and other assets shall comply with the provisions of Vietnamese laws.
Article 108. Financial management
1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall have financial autonomy, and be liable for managing and supervising their operation efficiency; fulfill obligations and commitments with the insurance buyers, relevant organizations and individuals, and the State in accordance with law provisions.
2. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must formulate strategies, processes, procedures, regulations and organizational structure for the management and supervision of their financial activities, ensuring safety and efficiency in accordance with law provisions; actively prevent and minimize risks.
Section 7. SOLVENCY AND INTERVENTION MEASURES
Article 109. Financial safety
1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall be considered financial safety when satisfying provisions on capital, solvency and investment.
2. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must, during their operations, actively review processes, regulations, risk management systems, business plans, and evaluate their insurance and reinsurance business, financial operations, while ensuring safety, efficiency and complying with the law provisions for financial safety in accordance with this Law.
3. The Minister of Finance shall prescribe cases of applying improvement, early intervention and control measures specified in Articles 111, 112 and 113 of this Law for financial safety.
Article 110. Solvency
1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must maintain their solvency throughout their operations.
2. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall be considered solvent when they concurrently satisfy the following conditions:
a) Fully setting up through deductions the professional reserves;
b) Ensuring the capital adequacy ratio.
Article 111. Improvement measures
1. In case where improvement measures are required, insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall actively select and organize to take one or several improvement measure(s) specified in Clause 2 of this Article, and notify in writing the Finance Ministry of the situation, causes and applied measures.
2. Improvement measures include:
a) Increasing charter capital, allocated capital;
b) Increasing the efficiency of business activities, including concentrating in exploiting effective insurance products; reviewing insurance premiums corresponding to the insurance conditions and liabilities; restructuring reinsurance programs; reducing operation, management and selling expenses; limiting remuneration, salary and bonus payment for managers;
c) Restructuring the investment portfolio, including increasing to hold highly liquid assets; selling, transferring inefficient assets or high-risk assets;
d) Strengthening the risk management; re-organizing the management apparatus and human resources; limiting the purchase of fixed assets; minimizing the setting aside and use of funds;
dd) Other measures in accordance with law.
3. In the course of applying the improvement measures, insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches are not allowed to carry out the following activities:
a) Transferring profits abroad, distributing profits, paying dividends;
b) Increasing reinsurance.
Article 112. Early intervention measures
1. In case where the insurance enterprises’, reinsurance enterprises’ or Vietnam-based foreign branches’ capital adequacy ratio remains at a level requiring early intervention measure application, or the improvement measures prescribed in Article 111 of this Law have been taken for 12 consecutive months but the capital adequacy ratios cannot be remedied, the Ministry of Finance shall issue a document on applying early intervention measures.
2. Within 60 days after the Ministry of Finance issues a document on applying early intervention measures, insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches shall formulate plans to remedy the capital adequacy ratio under Clause 4 of this Article, and organize the implementation, at the same time, report the Ministry of Finance the situation, reasons and measures to remedy the capital adequacy ratio. The Ministry of Finance shall issue a document requesting insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches to adjust the remedy plan in case of necessity.
3. The maximum period for taking the remedy plan is 12 months, from the date the Ministry of Finance issues a document on taking early intervention measures.
4. A remedy plan must contain one or several measure(s) as follows:
a) Measures specified in Clause 2 Article 111 of this Law;
b) Removal from office or relief of duty of managers;
c) Narrowing inefficient operation contents or scope; suspending new exploitation of ineffective insurance products or operations.
5. In the course of applying the early intervention measures, insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches are not allowed to carry out the following activities:
a) Activities specified in Clause 3 Article 111 of this Law;
b) Purchase of treasury stocks;
c) Expansion of operation contents, scope and duration.
6. In case insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches fail to develop the plan to remedy the capital adequacy ratio within the period prescribed in Clause 2 of this Article, or if past the period prescribed in Clause 3 of this Article, they fail to remedy the capital adequacy ratio, depending on the risk nature and level, the Ministry of Finance shall request them to take one or several measure(s) provided in Clause 4 of this Article.
7. The Ministry of Finance shall publicize the list of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches that have to take early intervention measures on its e-portal.
8. The Ministry of Finance shall consider and decide on issuing a document on terminating the application of early intervention measures for an insurance enterprise, reinsurance enterprise, or a Vietnam-based foreign branch falling in one of the following cases:
a) Being certified the remedy of capital adequacy ratio by an independent audit firm;
b) Being taken control measures as prescribed in Article 113 of this Law.
Article 113. Control measures
1. In case insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches have a capital adequacy ratio at a level requiring the application of control measures, the Ministry of Finance shall consider and decide on issuing a document on applying control measures and send such document to the insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches.
2. The Ministry of Finance shall notify the application of control measures on the following subjects:
a) Owners, capital-contributing members, shareholders contributing 10% of charter capital or more of an insurance enterprise, reinsurance enterprise, or a foreign non-life insurance enterprise or foreign reinsurance enterprise whose branches are located in Vietnam;
b) State management agencies in charge of foreign insurance that are competent to manage companies holding 100% of charter capital or allocated capital of an insurance enterprise, foreign reinsurance enterprise or Vietnam-based foreign branch.
3. Within 30 days from the date on which the Ministry of Finance issues a document on applying control measures, an insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch must hire an independent audit firm to review and assess the financial situation, evaluate the real value of charter capital, allocated capital and solvency. In case an insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch fails to hire an independent audit firm within the prescribed period, the Ministry of Finance shall designate an independent audit firm. Audit costs shall be paid by such insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch.
4. Within 120 days after the Ministry of Finance issues a document on applying control measures, insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches shall formulate plans to remedy the capital adequacy ratio, and organize the implementation, at the same time, report the Ministry of Finance the situation, reasons and measures to remedy the capital adequacy ratio. The Ministry of Finance shall issue a document requesting insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches to adjust the remedy plan in case of necessity.
5. The maximum period for taking the remedy plan is 18 months, from the date the Ministry of Finance issues a document on taking control measures.
6. A remedy plan must contain one or several measure(s) as follows:
a) Measures specified in Clause 4 Article 112 of this Law;
b) The suspension of operations may lead to the non-assurance of capital adequacy ratio.
7. In the course of applying the control measures, insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches are not allowed to carry out the following activities:
a) Activities specified in Clause 5 Article 112 of this Law;
b) Participating in contributing capital to establish an enterprise; purchasing real estates for use as the business headquarters, workplace or warehouses directly serving professional operations;
c) Investing in high-risk assets or performing business activities, resulting in the reduction of capital adequacy ratio.
8. In case insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches fail to develop the remedy plan within the period prescribed in Clause 4 of this Article, or if past the period prescribed in Clause 5 of this Article, they fail to remedy the capital adequacy ratio, depending on the risk nature and level, the Ministry of Finance shall request them to take one or several measure(s) as follows:
a) Partially or wholly suspending operations operation of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches;
b) Requesting the division, splitting or merger of insurance enterprises or reinsurance enterprises;
c) Requesting transfer of the list of insurance contracts;
d) Designating other insurance enterprises or branches of foreign non-life insurance enterprises to make capital contribution, purchase shares, or receive the transfer of the list of insurance contracts of the insurance enterprise or branch of foreign non-life insurance enterprise put under control.
9. During the suspended duration specified at Point a Clause 8 of this Article, insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches still have to fully set up professional reserves in accordance with law provisions; strictly follow effective insurance contracts; ensure to timely and sufficiently pay compensation, insurance payment as agreed in the insurance contracts according to the law; fulfill tax obligations; continue to pay loans, complete the performance of contracts signed with insurance buyers and workers in accordance with law provisions, unless otherwise agreed by both parties.
10. The Ministry of Finance shall publicize the list of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches that have to take control measures on its e-portal.
11. The Ministry of Finance shall consider and decide on issuing a document on terminating the application of control measures for an insurance enterprise, reinsurance enterprise, or a Vietnam-based foreign branch falling in one of the following cases:
a) An insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch put under control that is certified the remedy of capital adequacy ratio by an independent audit firm;
b) An insurance enterprise or reinsurance enterprise that is consolidated, merged or dissolved;
c) An insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch that fails to remedy the situation of being taken control measures.
Article 114. Responsibility of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches in case of being taken improvement measures, early intervention measures or control measures
Apart from responsibility specified in Articles 111, 112 and 113 of this Law, insurance enterprises, reinsurance enterprises or Vietnam-based foreign branches being taken improvement measures, early intervention measures or control measures shall have the following responsibility:
1. Conducting administration and control of business operations and ensuring property safety;
2. Taking responsibility for the accuracy of information, data, dossiers and issues related to the organization, operation and relevant matters;
3. Reporting the Ministry of Finance the performance and improvement level on a monthly basis or at request of the Ministry of Finance;
4. Other responsibilities as prescribed by law.
Article 115. Dissolution of insurance enterprises, reinsurance enterprises, termination of operations of Vietnam-based foreign branches
1. An insurance enterprise or reinsurance enterprise shall dissolve; or Vietnam-based foreign branch shall have its operations terminated in the following cases:
a) It voluntarily requests for dissolution or termination of its operation;
b) Its operation duration prescribed in the establishment and operation license has expired;
c) Its establishment and operation license has been revoked under the provisions at Points a, b, d and e Clause 1 Article 75 of this Law;
d) The Vietnam-based foreign branch fails to remedy the capital adequacy ratio after the period of taking the control measures;
dd) Other cases as prescribed by law.
2. The dissolution of insurance enterprises, reinsurance enterprises, termination of operations of Vietnam-based foreign branches must the obtain written approval from the Ministry of Finance.
3. The Government shall detail the conditions, dossiers, order and procedures for dissolution of insurance enterprises, reinsurance enterprises, termination of operations of Vietnam-based foreign branches.
Article 116. Bankruptcy of insurance enterprises and reinsurance enterprises
1. After the Ministry of Finance issues a document on terminating control measures specified at Point c Clause 11 Article 113 of this Law, insurance enterprises and reinsurance enterprises are obligated to submit a written request to the court to open the procedures for bankruptcy in accordance with the Law on Bankruptcy. In case insurance enterprises and reinsurance enterprises fail to submit the written requests for opening bankruptcy procedures, the Ministry of Finance shall submit such written requests.
2. Upon receiving the request for opening bankruptcy procedures for an insurance enterprise or reinsurance enterprise as prescribed in Clause 1 of this Article, the court shall open the procedures for settlement of the request for bankruptcy announcement and immediately apply procedures for liquidating such insurance enterprise's or reinsurance enterprise's assets without holding a creditors’ meeting or carrying out procedures for recovery of business operations.
3. The division of assets of an insurance enterprise or reinsurance enterprise in case of bankruptcy shall be carried out according to the following order:
a) Bankruptcy costs;
b) Debts of salary, severance allowance, social insurance, health insurance for workers;
c) Compensation and insurance payments for claims for compensation and insurance payments approved by the insurance enterprise or reinsurance enterprise to pay the refund value, account value insurance contract or reimbursement of insurance premiums;
d) Financial obligations towards the State; unsecured debts payable to creditors in the list of creditors; secured debts that have not been paid because the value of the security assets is not enough to pay the debt;
dd) Owners, capital-contributing members, and shareholders of insurance enterprises and reinsurance enterprises.
4. In case the asset value is not enough for the payments specified in Clause 3 of this Article, subjects of the same order of priority shall be paid at the percentage corresponding to the debt.
5. Any content related to bankruptcy of insurance enterprises and reinsurance enterprises that is not mentioned in this Article shall comply with the Law on Bankruptcy.
Section 8. INFORMATION DISCLOSURE
Article 117. Responsibility of information disclosure
1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must disclose the information specified in Articles 118, 119 and 120 of this Law and shall be responsible before law for the contents of information to be disclosed. The information disclosure must be accurate, prompt, sufficient, easy to monitor and comply with law regulations.
In case there is a change in contents of the disclosed information, the insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches must promptly and fully update the changed content and the reason for the change.
2. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must post the information to be disclosed on their websites. The posting of information shall comply with regulations of the Minister of Finance. Time limit for information disclosure shall be as follows:
a) Within 07 working days from the end of the time limit for sending reports as specified in Article 118 of this Law or from the occurrence of one of the events related to the information to be disclosed as prescribed in Article 119 of this Law;
b) Within 03 working days after the occurrence of one of the events related to the information to be disclosed as prescribed in Article 120 of this Law.
3. Within 07 working days from the date of information disclosure, insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall notify the Ministry of Finance of the contents of information to be disclosed.
4. Insurance enterprises, reinsurance enterprises being public companies shall disclose the information in accordance with this Law and the Law on Securities.
Article 118. Information to be periodically disclosed
1. Audited annual financial statements, semiannual financial statements.
2. Reports on risk administration and insolvency assessment.
3. Actual capital and capital adequacy ratio.
Article 119. Information to be regularly disclosed
1. Information about insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches includes:
a) Information stated in establishment and operation licenses;
b) Information about the chairperson of Board of Directors or chairperson of Members’ Council, Directors or General Directors, at-law representatives and actuaries;
c) Names and addresses of the headquarter, branches representative offices and business locations;
d) Hotline.
2. Information about professional operations includes:
a) Rules, terms and charge rates of each provided insurance product, the content related each insurance product that customers need to pay attention to;
b) Process, dossiers of application and time limit for insurance claim settlement and insurance payment;
c) Objectives and policies of investment management;
d) Objectives and policies of capital adequacy ratio assessment.
Article 120. Information to be irregularly disclosed
1. Information to be irregularly disclosed includes:
a) The suspension of operation or forcible termination of operation contents, revocation of establishment and operation licenses;
b) The division, splitting, merger, consolidation, dissolution, transformation of enterprises, offshore investment, establishment or closure of branches and representative offices;
c) The termination of operation of Vietnam-based foreign branches;
d) The changes in applicable accounting policies; results of retrospective restatement of financial statements; opinions on the financial statements other than the opinion about the whole acceptance by an independent auditing organization; the selection or change of an independent audit organization;
dd) The transfer of shares or contributed capital that results in a shareholder or capital-contributing partner owning 10% or more of the charter capital or less than 10% of the charter capital;
e) Decisions on sanctioning administrative violations related to the insurance business activities;
g) The court’s judgments or decisions related to the operation of insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches which have already taken effect;
h) The court’s decisions on initiation of bankruptcy procedures for insurance enterprises, reinsurance enterprises;
i) Decisions on initiation of a criminal case for enterprises, managers, controllers related to the business of insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches;
k) The events that seriously affect the lawful rights and interests of persons participating insurance;
l) Information related to insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches that materially affect the capital, solvency, risk administration and enterprise governance;
m) Asset loss valued at 10% or more of their owner’s equity;
n) Transfer of the list of insurance contracts;
o) Other information as prescribed by law.
2. The Minister of Finance shall detail the contents of information to be irregularly disclosed specified at Point k and l, Article 1 of this Article.
Section 9. LOSS PREVENTION AND LIMITATION, INSURANCE FRAUD PREVENTION AND COMBAT
Article 121. Responsibilities of loss prevention and limitation, insurance fraud prevention and combat
Insurance enterprises, branches of foreign non-life insurance enterprises, insurance buyers, the insured and related parties shall be responsible for loss prevention and limitation, insurance fraud prevention and combat.
Article 122. Loss prevention and limitation
1. Prevention and limitation of losses in the insurance business activities mean the implementation of measures to prevent and minimize losses that may occur to the object of insurance.
2. Insurance buyers and the insured shall be responsible for proactively implementing measures for loss prevention and limitation; immediately notify the occurrence of an insured event to insurance enterprises, branches of foreign non-life insurance enterprises; and apply measures to prevent and limit losses according to insurance enterprises’ guidance (if any).
3. Insurance enterprises, branches of foreign non-life insurance enterprises shall be responsible for implementing the following measures for loss prevention and limitation:
a) Organize training, propaganda and education; support the training in and propaganda on insurance business policy;
b) Finance and support means and materials to prevent and limit risks;
c) Assist in the construction of works for the purpose of preventing and mitigating the degree of risk to the objects of insurance;
d) Hire other organizations and individuals to supervise, prevent and limit losses.
4. Relevant agencies and organizations shall guide and organize propaganda on the implementation of measures for loss prevention and limitation.
Article 123. Insurance fraud prevention and combat
1. The prevention and combat of insurance frauds in the insurance business activities mean the implementation of measures to prevent and restrict fraudulent acts committed in the process of entering into and performing insurance contracts in order to appropriate money and property from insurance enterprises, branches of foreign non-life insurance enterprises and insurance buyers.
2. Insurance enterprises, branches of foreign non-life insurance enterprises shall be responsible for proactively formulating and organizing the implementation of measures to prevent, detect and minimize acts of insurance fraud; organizing propaganda on insurance fraud prevention and combat.
3. Insurance buyers and the insured shall proactively participate in the insurance fraud prevention and combat; if detecting acts of insurance fraud, they shall promptly notify them to the insurance enterprises, branches of foreign non-life insurance enterprises and competent agencies.
4. Relevant agencies and organizations shall coordinate with insurance enterprises, branches of foreign non-life insurance enterprises, insurance buyers and the insured in organizing the insurance fraud prevention and combat.
Chapter IV
INSURANCE AGENTS, INSURANCE BROKERAGE ENTERPRISES, ORGANIZATIONS AND INDIVIDUALS PROVIDING INSURANCE AUXILIARY SERVICES
Section 1. INSURANCE AGENTS
Article 124. Insurance agents
Insurance agents are organizations and individuals, that are authorized by insurance enterprises, branches of foreign non-life insurance enterprises or mutual support organizations providing microinsurance on the basis of insurance agency contracts to carry out the insurance agency activities.
Article 125. Conditions for insurance agency activities
1. Individuals who conduct insurance agency activities must meet the following conditions:
a) Being Vietnamese citizens permanently residing in Vietnam;
b) Having full civil act capacity;
c) Having suitable insurance agency certificates as specified in Article 130 of this Law.
2. Organizations which conduct insurance agency activities must meet the following conditions:
a) Being lawfully established and operating in Vietnam;
b) Having registered the business line of insurance agency activities in accordance with the Law on Enterprises. For organizations operating in conditional business lines, permits, certificates or other written certifications and approvals (if any) of competent agencies with contents of insurance agency activities are required;
c) Having personnel directly performing the insurance agency activities that satisfy conditions prescribed in Clause 1 of this Article;
d) Conditions on personnel and other conditions as prescribed by the Government.
3. Organizations or individuals must not enter into or perform insurance agency contracts in the following cases:
a) Organizations being commercial legal persons that are being examined for penal liability, organizations that are being subject to suspension from operation, termination of operation or banned from conducting business or operating in fields related to insurance;
b) Persons who are being examined for penal liability or serving their imprisonment penalty or serving the penalty of prohibition from practicing insurance professions.
Article 126. Contents of insurance agency contracts
An insurance agency contract must contain the following major details:
1. The name and address of the insurance agent;
2. The name and address of headquarters of the insurance enterprise, the branch of the foreign non-life insurance enterprise, the mutual support organization providing microinsurance;
3. The rights and obligations of the insurance enterprise, the branch of the foreign non-life insurance enterprise, the mutual support organization providing microinsurance, the insurance agent;
4. The contents and scope of operation of the insurance agent;
5. The insurance agency commission, insurance agency bonus, support and other benefits (if any);
6. The term of the contract;
7. Method of dispute settlement.
Article 127. Principles of operation of insurance agents
1. An individual shall not concurrently act as an insurance agent for another insurance enterprise or branch of a foreign non-life insurance enterprise operating in the same type of insurance as the insurance enterprise or the branch of foreign non-life insurance enterprise for which he/she is currently acting as an agent. An individual who is acting as an insurance agent for a mutual support organization providing microinsurance may not concurrently act as an insurance agent for another mutual support organization providing microinsurance.
2. An organization may not concurrently act as an insurance agent for another insurance enterprise, branch of a foreign non-life insurance enterprise or mutual support organization providing microinsurance if obtaining no written consent from the insurance enterprise, branch of a foreign non-life insurance enterprise or mutual support organization providing microinsurance for which it is currently acting as an agent.
3. Individuals conducting insurance agency activities and employees in organizations conducting insurance agency activities may only perform insurance agency activities for insurance products in which they have been trained.
4. Information of individuals conducting insurance agency activities and employees in organizations conducting insurance agency activities that directly conduct insurance agency activities must be registered and updated in the database of insurance business activities specified in Article 11 of this Law.
5. An individual that has been granted an insurance agency certificate but has not operated as an insurance agent for 3 consecutive years must take an exam to obtain a new insurance agency certificate before acting as an insurance agent.
Article 128. Rights and obligations of insurance enterprises, branches of foreign non-life insurance enterprises, mutual support organizations providing microinsurance in insurance agency activities
1. Insurance enterprises, branches of foreign non-life insurance enterprises, mutual support organizations providing microinsurance have the following rights:
a) Organize the system of insurance agents in line with the business strategy;
b) Recruit insurance agents and enter into insurance agency contracts;
c) Decide on the payment level of insurance agency commission, insurance agency bonus, support and other benefits in the insurance agency contracts, but not exceeding the maximum level prescribed by the Minister of Finance;
d) Receive and manage the insurance agents’ deposit or collateral, if so agreed in the insurance agency contracts;
dd) Request the insurance agents to pay the collected premium as agreed in the insurance agency contracts;
e) Inspect and supervise the performance of insurance agency contracts, evaluate the quality of consultancy and introduction of insurance products by insurance agents and employees in organizations conducting insurance agency activities;
g) Enjoy other lawful rights and interests from insurance agency activities;
h) Other rights as prescribed by law.
2. Insurance enterprises, branches of foreign non-life insurance enterprises, mutual support organizations providing microinsurance have the following obligations:
a) Take responsibility for the organization, management and use of insurance agents;
b) Organize the training and give updated knowledge to insurance agents in accordance with law regulations;
c) Guide and provide fully and accurately necessary information and documents related to insurance agency activities;
d) Perform the responsibilities arising under the signed insurance agency contracts;
dd) Pay the insurance agency commission, insurance agency bonus, support and other benefits as agreed in the insurance agency contracts, but not exceeding the maximum level prescribed by the Minister of Finance;
e) Return to the insurance agents the escrow account money or mortgaged property as agreed;
g) Be responsible for performing the obligations agreed in insurance contracts that are arranged for conclusion by insurance agents or employees in organizations conducting insurance agency activities. In cases the breach of insurance agency contracts by insurance agents, employees in organizations conducting insurance agency activities cause damage to the lawful rights and interests of the insured or the insurance buyers, insurance enterprises, branches of foreign non-life insurance enterprises or mutual support organizations providing microinsurance are still responsible for performing the obligations agreed in the insurance contracts that are arranged for conclusion by the insurance agents;
h) Submit to the inspection and supervision by competent state agencies of their insurance agency activities;
i) Ensure and do not obstruct the lawful rights and interests of the insurance agents as agreed in the insurance agency contracts and in accordance with law regulations;
k) Report on the training and use of insurance agents in accordance with regulations of the Minister of Finance;
l) Register and update information of individuals conducting insurance agency activities and employees in organizations conducting insurance agency activities that directly conduct insurance agency activities in the database of insurance business activities specified in Article 11 of this Law;
m) Other obligations as prescribed by law.
Article 129. Rights and obligations of insurance agents
1. An insurance agent has the following rights:
a) Select, and enter into an insurance agency contract with, an insurance enterprise, branch of a foreign non-life insurance enterprise, mutual support organization providing microinsurance in accordance with law regulations;
b) Be provided with information and conditions necessary for performance of its/his/her insurance agency contract;
c) Enjoy the insurance agency commission, insurance agency bonus, support and other benefits from insurance agency activities according to the agreement in the insurance agency contract;
d) Request the insurance enterprise, branch of a foreign non-life insurance enterprise or mutual support organization providing microinsurance to return its/his/her escrow account money or mortgaged property as agreed upon in the insurance agency contract;
dd) Other rights as prescribed by law.
2. An insurance agent has the following obligations:
a) Perform the obligations stated in the insurance agency contract;
b) Perform escrow or mortgage a property to the insurance enterprise, branch of foreign non-life insurance enterprise, mutual support organization providing microinsurance as agreed upon in the insurance agency contract;
c) Fulfill all the financial obligations as prescribed by law regulations;
d) Consult, introduce, offer and sell insurance products; provide adequate and accurate information about insurance products, the insurance enterprise, branch of foreign non-life insurance enterprise or mutual support organization providing microinsurance to insurance buyers and provide a clear and complete explanation of insurance benefits, terms on exclusion of insurance liability, rights and obligations of the insurance buyers; do not declare information for insurance buyers without obtaining their consent; perform other obligations within the scope of authorization stated in the insurance agency contract;
dd) Participate in courses of training, knowledge updates organized by the insurance enterprise, the branch of the foreign non-life insurance enterprise or the mutual support organization providing microinsurance;
e) Submit to the inspection and supervision of the insurance enterprise, the branch of the foreign non-life insurance enterprise or the mutual support organization providing microinsurance;
g) Refund to the insurance enterprise, branch of the foreign non-life insurance enterprise or mutual support organization providing microinsurance the amounts such insurance enterprise, branch of foreign non-life insurance enterprise or mutual support organization providing microinsurance has indemnified the insured, insurance buyers in cases the insurance agents, employees in organizations conducting insurance agency activities breach the insurance agency contracts, causing damage to lawful rights and interests of the insured, insurance buyers;
h) Comply with standards on insurance agency activities specified by the insurance enterprise, branch of foreign non-life insurance enterprise, mutual support organization providing microinsurance;
i) Keep customer information confidential, use customer information for the proper purposes and do not provide the information to any third party without customers’ consent, except the cases prescribed by law;
k) Other obligations as prescribed by laws.
3. An insurance agent may not carry out the following acts:
a) Provide untrue information or make untrue advertisements about the contents and scope of operation of its/his/her insurance enterprise, branch of foreign non-life insurance enterprise or mutual support organization providing microinsurance, or about insurance conditions and terms, thus infringing upon lawful rights and interests of insurance buyers;
b) Obstruct insurance buyers to provide information relating to insurance contracts or incite insurance buyers or the insured not to declare information relating to insurance contracts;
c) Vie for clients through obstructing, enticing, buying off or intimidating employees or clients of another insurance enterprise, branch of foreign non-life insurance enterprise, mutual support organization providing microinsurance, insurance agent or insurance brokerage enterprise;
d) Incite in any forms clients to cancel insurance contracts still in effect.
4. The Minister of Finance shall detail Point d, Clause 2 of this Article.
Article 130. Insurance agent certificates
1. Insurance agent certificates include:
a) Life insurance agent certificates;
b) Non-life insurance agent certificates;
c) Health insurance agent certificates.
2. The main contents of training for insurance agent certificates include:
a) General knowledge of insurance; principles of insurance operations suitable to each type of insurance agent certificate;
b) Codes of professional ethics and conduct for insurance agents;
c) Rights and obligations of insurance enterprises, branches of foreign non-life insurance enterprises, mutual support organizations providing microinsurance, insurance agents in insurance agency activities;
d) Vietnamese laws of insurance business activities;
dd) Skills and practice of insurance agent activities.
3. The Minister of Finance shall detail the types of insurance agent certificates; training contents, dossiers, order and procedures for testing, grant, revocation and renewal of insurance agent certificates.
Section 2. INSURANCE BROKERAGE ENTERPRISES
Article 131. Contents of insurance brokerage enterprises’ activities
1. Primary insurance brokerage activity, reinsurance brokerage activity.
2. Provision of insurance auxiliary services.
3. Other activities related to insurance contracts at the request of insurance buyers.
Article 132. Principles of insurance brokerage activities
1. Ensure honesty, objectivity, and transparency; guarantee lawful rights and interests of related parties.
2. Comply with the code of professional ethics promulgated by socio-professional organizations.
3. Insurance brokerage enterprises must make a written agreement with customers when providing insurance brokerage services.
Article 133. Conditions for grant of insurance brokerage enterprise establishment and operation licenses
1. Conditions for shareholders, capital-contributing partners include:
a) Organizations and individuals have the right to establish and manage enterprises in Vietnam in accordance with this Law on Enterprises;
b) Organizations have the legal person status, lawfully operate and satisfy the financial conditions specified by the Government.
2. Capital-related conditions include:
a) Contributions to charter capital shall be made in Vietnamese dong; the minimum charter capital must comply with the Government’s regulations;
b) Shareholders, capital-contributing partners’ contributed capital must not be a loan or investment capital entrusted by another organization or individual.
3. Personnel-related conditions: the tentative chairperson of the Board of Directors or chairperson of the Members’ Council, Director or General Director, at-law representative must satisfy the conditions and standards on management capacity, experience and professional expertise as prescribed in Article 138 of this Law.
4. Having a form of organization and operation in accordance with this Law and a draft charter in accordance with the Law on Enterprises.
5. An organization established under foreign law that make capital contribution, purchase shares or contributed capital amount of 10% of the charter capital or more of an insurance brokerage enterprise must satisfy the following conditions:
a) Being an organization established under foreign law that is directly carrying out or has a subsidiary performing insurance brokerage activities for the last 5 consecutive years up to the time of submitting the dossier of application for a establishment and operation license;
b) Having been permitted by a foreign competent agency to establish an insurance brokerage enterprise in Vietnam and certified that it does not seriously violate law regulations on insurance brokerage of the country where the organization’s headquarter is located for the last 3 consecutive years up to the time of submitting the dossier of application for a establishment and operation license.
Article 134. Dossier of application for grant of insurance brokerage enterprise establishment and operation licenses
1. A dossier of application for an establishment and operation license comprises:
a) A written request for an establishment and operation license;
b) The draft charter of the enterprise;
c) The plan for operation in the first five years, clearly stating contents of activities to be implemented;
d) Curricula vitae, criminal record certificates and copies of diplomas and certificates evidencing the capabilities as well as professional qualifications, of persons expected to be appointed to the Chairperson of the Board of Directors or the Chairperson of the Members’ Council, Director or General Director and at-law representatives;
dd) The contributed capital level and mode of capital contribution, the list of founding organizations and individuals or members, shareholders expected to contribute 10% or more of the charter capital and documents proving the satisfaction of conditions specified in Article 133 of this Law.
2. The Government shall detail the conditions, dossiers, order and procedures for granting licenses for establishment and operation of insurance brokerage enterprises.
Article 135. Organization and operation
Regulations on organization and operation of insurance brokerage enterprises shall be as follows: forms of organization and operation; holding rates of foreign investors; time limit for grant of establishment and operation licenses; competence to grant, re-grant, amend, supplement, revoke establishment and operation licenses, terminate operation contents; publish the contents of establishment and operation licenses; revocation of establishment and operation licenses shall comply with Articles 62, 68, 70, 71, 72 and Clauses 1 and 3, Article 75 of this Law.
Article 136. Changes requiring approval or notification
1. An insurance brokerage enterprise must get the Finance Ministry’s approval when changing one of the following contents:
a) Name and location of the head office;
b) The charter capital;
c) Operation contents, scope and duration;
d) The transfer of shares or contributed capital that results in a shareholder or capital-contributing partner owning 10% or more of the charter capital or less than 10% of the charter capital;
dd) Chairperson of the Board of Directors or chairperson of the Members’ Council, Director or General Director;
e) Division, splitting, merger, consolidation, dissolution, transformation of the enterprise; opening of branches, representative offices and other forms of commercial presence in foreign countries.
2. Insurance brokerage enterprises must notify the Ministry of Finance in writing within 15 days from the date of arising the following changes:
a) Change of the operation charter;
b) Opening, termination or change of locations of branches, representative offices.
3. Within 10 days from the date the Ministry of Finance approves the changes prescribed in Clause 1 of this Article, the Ministry of Finance shall announce the approved changes on its website.
4. The Government shall detail the conditions, dossiers, order and procedures for approving the changes as specified in Clause 1 of this Article and the dossiers, order and procedures for recording as defined at Point b, Clause 2 of this Article.
Article 137. Rights and obligations of insurance brokerage enterprises
1. Insurance brokerage enterprises have the following rights:
a) Enjoy original insurance brokerage commission, reinsurance brokerage commission in accordance with the Minister of Finance’s regulations;
b) Earn revenues from insurance auxiliary service provision;
c) Earn revenues from other activities related to insurance contracts at the request of insurance buyers;
d) Other rights as prescribed by law.
2. Insurance brokerage enterprises have the following obligations:
a) Keep the information provided by clients, insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches confidential, except for cases of provision of information at the request of competent state agencies, or with consents of the clients, insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches;
b) Indemnify clients for damage caused by insurance brokerage activities;
c) Disclose information to customers in accordance with regulations of the Minister of Finance;
d) Separately account and monitor the amounts of collection and payment support for insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches;
dd) Buy professional liability insurance suitable for insurance brokerage activities;
e) Other obligations as prescribed by law.
3. Insurance brokerage enterprises shall not carry out the following acts:
a) Obstruct insurance buyers or the insured to provide information relating to insurance contracts, or incite insurance buyers or the insured not to declare details relating to insurance contracts;
b) Offer sales promotion to clients through promising to provide unlawful interests in order to incite them to sign insurance contracts;
c) Incite insurance buyers to cancel insurance contracts being still in effect to buy new ones;
d) Advise clients to buy insurance at an insurance enterprise or a branch of a foreign non-life insurance enterprise with conditions and terms that are less competitive than those of another insurance enterprise or branch of foreign non-life insurance enterprise in order to gain higher brokerage commissions;
dd) Provide clients with information that is false or incompliant with insurance conditions or terms of insurance insurance enterprises or branches of foreign non-life insurance enterprises.
Article 138. Human resources, capital, finance, accounting regime and financial statements of insurance brokerage enterprises
1. Chairpersons of the Boards of Directors, Chairpersons of the Members’ Councils, members of the Boards of Directors, members of the Members’ Councils, Directors or General Directors, at-law representatives, Deputy Directors or Deputy General Directors, Chief Accountants, heads of the professional divisions of the insurance brokerage enterprises must satisfy the conditions and standards for diplomas, certificates, experience and other conditions as prescribed by the Government.
2. Persons who directly carry out insurance brokerage activities must possess a university or higher degree on insurance or possess a insurance certificate in conformity with type of insurance or insurance brokerage certificate granted by a training institution lawfully established and operating in Vietnam or overseas in accordance with the Minister of Finance’ regulations.
3. Insurance brokerage enterprises must maintain their charter capital and owner's equity not lower than the minimum charter capital and perform the financial regime in accordance with the Government’s regulations.
4. For insurance brokerage enterprises, the fiscal year and the accounting regime shall comply with Articles 103 and 104 of this Law and annual independent audit of financial statements is required.
5. Insurance brokerage enterprises must perform the reporting regime in accordance with regulations of the Minister of Finance for the following reports:
a) Financial statements;
b) Regular reports on professional operations, ad hoc reports, provision of other information and data.
6. Foreign-invested insurance brokerage enterprises are allowed to transfer profits and property abroad in accordance with Article 107 of this Law.
7. Insurance brokerage enterprises shall perform financial management in accordance with Article 108 of this Law.
8. Insurance brokerage enterprises shall publish on their websites information about the audited annual financial statements and the changes that must be approved by the Ministry of Finance as prescribed in Clause 1, Article 136 of this Law and the information specified at Points a, b and e, Clause 1, Article 120 of this Law. The responsibility of information disclosure shall comply with Article 117 of this Law.
Article 139. Insurance brokerage certificates
1. Contents of insurance brokerage training include the following contents:
a) General knowledge of insurance and insurance operations;
b) Principles, duties and professional ethics of insurance brokerage;
c) Vietnamese laws of insurance business activities;
d) Skills and practice of insurance brokerage activities.
2. The Minister of Finance shall detail training contents, dossiers, order and procedures for testing, grant, revocation and renewal of insurance brokerage certificates granted by insurance training institutions lawfully established and operating in Vietnam.
Section 3. ORGANIZATIONS AND INDIVIDUALS PROVIDING INSURANCE AUXILIARY SERVICES
Article 140. Organizations and individuals providing insurance auxiliary services
1. Insurance enterprises and branches of foreign non-life insurance enterprises may provide insurance auxiliary services to insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches, insurance brokerage enterprises and mutual support organizations providing microinsurance.
2. Insurance brokerage enterprises may provide insurance auxiliary services to insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches, insurance brokerage enterprises, mutual support organizations providing microinsurance, and other organizations and individuals.
3. Other organizations having the legal person status may provide insurance auxiliary services to insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches, insurance brokerage enterprises and mutual support organizations providing microinsurance.
4. Individuals may provide consultancy services to insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches, insurance brokerage enterprises and mutual support organizations providing microinsurance.
Article 141. Principles of insurance auxiliary service provision
1. Ensuring honesty, objectivity, and transparency; guaranteeing lawful rights and interests of related parties.
2. Complying with standards in the insurance auxiliary field.
3. Complying with the code of professional ethics promulgated by socio-professional organizations.
4. Contracts on insurance auxiliary service provision must be made in writing.
Article 142. Responsibilities of organizations and individuals providing insurance auxiliary services
1. Keep customer information confidential, use customer information for the proper purposes and not provide the information to any third person without customers’ consent, except the cases prescribed by law.
2. Insurance brokerage enterprises may not provide the service of insurance loss assessment for insurance contracts for which they arrange the conclusion.
3. Organizations providing insurance auxiliary services may not provide the services of insurance loss assessment and insurance claim settlement support for insurance contracts in which they are insurance buyers, the insured or beneficiaries.
4. Individuals providing consultancy services must buy professional liability insurance for their provision of consultancy services; organizations providing insurance auxiliary services are required to buy professional liability insurance compatible to each type of insurance auxiliary services they provide.
Article 143. Conditions for insurance auxiliary service provision
1. An individual providing consultancy services must satisfy the following conditions:
a) Having full civil act capacity;
b) Possessing a university or higher degree in insurance business. Those who do not possess such a degree must possess a university or higher degree in another discipline and a consultant certificate for insurance auxiliary granted by a training institution lawfully established and operating in Vietnam or abroad.
2. An organization providing insurance auxiliary services must meet the following conditions:
a) Having the legal person status and being lawfully established and operating;
b) Its staff members who directly perform insurance auxiliary activities must have full civil act capacity; possess degrees and certificates on insurance auxiliary compatible to the type of insurance auxiliary services they perform, which are granted by training institutions lawfully established and operating in Vietnam or abroad;
c) Its staff members who directly perform insurance loss assessment must satisfy conditions specified at Point b of this Clause and the criteria on assessors in accordance with the commercial law;
d) Its staff members who directly perform insurance actuary must satisfy conditions specified at Point b of this Clause and the condition and criteria on actuaries.
3. The Government shall detail Points b, c and d, Clause 2 of this Article.
4. The Minister of Finance shall detail the types of insurance auxiliary certificates, training contents, dossiers, order and procedures for testing, grant, renewal and revocation of insurance auxiliary certificates.
Chapter V
MICROINSURANCE
Article 144. Features of microinsurance products
Microinsurance products have the following basic characteristics:
1. Be designed to be concise, easy to understand, with simple insurance appraisal procedures or without insurance appraisal;
2. Only include interests to meet the basic protection needs against risks of life, health and property of persons participating insurance with the insurance duration not exceeding 05 years;
3. The sums of insurance money on each contract and the annual premium for each insured of a contract must not exceed the maximum amount prescribed by the Government.
Article 145. Design and development of microinsurance products
1. The deployment and participation in microinsurance products is encouraged, supported and facilitated by the State through one or several measures specified at Points a, b, d and e, Clause 1, Article 88 of this Law.
2. Microinsurance-providing organizations must register and have the methods and basis of calculating insurance premiums of microinsurance products approved by the Ministry of Finance.
3. The Government shall detail the measures specified in Clause 1 of this Article in conformity with development orientations and socio-economic conditions in each period; dossiers, order and procedures for registration of methods and basis of calculating premiums of microinsurance products.
4. The Minister of Finance shall detail the methods and basis of calculating premiums of microinsurance products.
Article 146. Microinsurance-providing organizations
1. Microinsurance-providing organizations include:
a) Insurance enterprises, branches of foreign non-life insurance enterprises that are established and operating in Vietnam;
b) Mutual support organizations providing microinsurance that are established and operating in Vietnam.
2. The Government shall prescribe dossiers, order and procedures for granting, re-granting, amending, supplementing, revoking establishment and operation licenses, and terminating operation contents of mutual support organizations providing microinsurance.
3. The Ministry of Finance shall grant, re-grant, amend, supplement, revoke establishment and operation licenses, and terminate operation contents of mutual support organizations providing microinsurance.
Article 147. Insurance enterprises, branches of foreign non-life insurance enterprises providing microinsurance
1. Insurance enterprises, branches of foreign non-life insurance enterprises may proactively provide microinsurance in conformity insurance operation permitted to be deployed in the following forms:
a) Directly;
b) Via insurance agents;
c) Via individuals who are employees or members of socio-political organizations, socio-professional organizations, cooperatives authorized by insurance enterprises or branches of foreign non-life insurance enterprises to consult and arrange the conclusion of microinsurance contracts for their own members;
e) Other forms prescribed by law regulations.
2. Insurance enterprises, branches of foreign non-life insurance enterprises must monitor, separate and separately account revenue and expenses of microinsurance provision from other activities of the enterprises.
Article 148. Mutual support organizations providing microinsurance
1. A mutual support organization providing microinsurance may only provide microinsurance to its own members. A member participating in the insurance shall be both the owner of the mutual support organization providing microinsurance and the insurance buyer.
2. Insurance contracts signed between the mutual support organization providing microinsurance and its members participating in the insurance shall comply with general regulations on insurance contracts, life insurance contracts, health insurance contracts and property insurance contracts as defined in Chapter II of this Law.
3. The Government shall detail the microinsurance provision of mutual support organizations providing microinsurance.
Article 149. Conditions for grant of establishment and operation licenses of mutual support organizations providing microinsurance
1. Conditions for founding members include:
a) Individuals that must be Vietnamese citizens, have full civil act capacity and be members of the expected mutual support organization providing microinsurance;
b) Be a representative organization of members as prescribed by law regulations.
2. Contributions to capital for establishment shall be made in Vietnamese dong; the minimum amount must comply with the Government’s regulations.
3. Have the personnel expected to be the Chairpersons of the Boards of Directors, Directors or General Directors, at-law representatives, and microinsurance actuaries that meet the conditions and standards prescribed by the Government.
4. Have a plan to deploy microinsurance suitable for the number of members and network of the organizations.
5. Have a draft charter suitable for the operational objectives of the mutual support organizations providing microinsurance and the Government's regulations.
6. Have an appropriate information technology system, ensuring the support and monitoring of each microinsurance contract, financial and accounting monitoring of microinsurance activities.
Article 150. Principles of operation of mutual support organizations providing microinsurance
1. Mutual support organizations providing microinsurance operate on the principle of financial autonomy and are responsible before law within the limit of properties obtained from their provision of microinsurance.
2. Mutual support organizations providing microinsurance shall manage and supervise the effectiveness of operations, comply with regulations on financial regime in order to ensure financial safety, and ensure fulfillment of obligations and commitments to members participating in insurance, relevant organizations and individuals as prescribed by law regulations.
3. Mutual support organizations providing microinsurance shall be responsible for performing risk administration to effectively control risks arising from microinsurance provision.
4. The wholly profits earned from the microinsurance provision activity of mutual support organizations providing microinsurance shall be used for serving interests of the members participating insurance by reducing the premium, increase the the insurance benefit of the insured, supporting members and other objectives according to their charter.
5. The Government shall detail the operation organization, risk administration, professional activities, information disclosure, financial regime, accounting and financial statements of mutual support organizations providing microinsurance.
Chapter VI
STATE MANAGEMENT OF INSURANCE BUSINESS ACTIVITIES
Article 151. State management of insurance business activities
1. The Government shall perform the uniform state management of insurance business activities.
2. The Ministry of Finance shall take responsibility before the Government for performing the state management of the insurance business activities and have the tasks and powers as follows:
a) Promulgate and submit to competent agencies for promulgation and guide the implementation of legal documents on insurance business activities, formulate strategies, schemes and policies on development of the insurance market in Vietnam;
b) Make statistics and forecasts on the insurance market;
c) Supervise insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches, mutual support organizations providing microinsurance, insurance brokerage enterprises via their professional activities, financial situation, enterprise governance, risk administration and observance of law regulations on insurance business activities; supervise activities of Vietnam-based foreign representative offices;
d) Supervise insurance agency activities, insurance auxiliary services via insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches;
dd) Inspect and examine insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches, mutual support organizations providing microinsurance, insurance brokerage enterprises; examine activities of Vietnam-based foreign representative offices;
e) Perform international cooperation in the field of insurance;
g) Settle complaints and denunciations, and handle administrative violations related to the insurance business activities.
Article 152. Coordination mechanism in state management of insurance business activities
1. The Ministry of Finance shall coordinate with foreign state management agencies in charge of insurance in managing, supervising, inspecting and examining Vietnam-based foreign branches in accordance with the Government's regulations.
2. The Ministry of Finance shall establish a mechanism for sharing the management and supervisory information with the State Bank of Vietnam, other ministries, branches and socio-professional organizations in insurance business activities.
3. The Ministry of Finance shall coordinate with relevant ministries and branches to implement association and cooperation between insurance business activities and social insurance and health insurance performed by the State.
4. The business registration agency shall not approve the use of the phrase or term “insurance”, “reinsurance” or other phrases or terms in the name of an enterprise if the use of such phrases or terms makes a confusion that the enterprise is an insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch.
5. The business registration agency shall not approve the use of the phrase or term “insurance brokerage”, “reinsurance brokerage” or other phrases or terms in the name of an enterprise if the use of such phrases or terms makes a confusion that the enterprise is an insurance brokerage enterprise.
Article 153. Right to request information of the Ministry of Finance in the inspection, examination and handling of administrative violations related to insurance business activities
1. In the course of inspection, examination and handling of administrative violations related to insurance business activities, in addition to the tasks and powers prescribed by law regulations on inspection, handling of administrative violations and other relevant law regulations, the Ministry of Finance also has the following tasks and powers:
a) Request shareholders, capital-contributing partners, managers, controllers, employees of insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches and insurance brokerage enterprises to provide an explanation and information, documents, data related to inspection and examination contents;
b) Request agencies, organizations and individuals having information, documents and data related to the contents of inspection and examination of insurance business activities to provide such information, documents or data or request organizations and individuals to explain and come to work on inspection and examination contents;
c) Request credit institutions, foreign bank branches to provide information related to the accounts of insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches, insurance agents, insurance brokerage enterprises, organizations providing insurance auxiliary services, companies of fund management of insurance enterprises, Vietnam-based foreign representative offices, and organizations and individuals showing signs of committing the prohibited acts specified in Article 9 of this Law or violating regulations on capital adequacy ratio, investment activities of insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches, financial safety, solvency specified in Articles 95, 99, 100, 109 and 110 of this Law. The order and procedures for requesting and providing information shall comply with the law regulations on banking.
2. The request for organizations and individuals’ coordination, provision of information, documents, data, explanation, their presence for working as prescribed in this Article must be made in writing, clearly stating the purposes, grounds, contents and scope of requests.
3. The information provided by credit institutions, foreign bank branches, organizations and individuals under this Article must be kept confidential in accordance with law regulations and used only for the purposes of inspection, examination and handling of administrative violations of relevant organizations and individuals.
Article 154. Inspection of the insurance business activities
1. The state management agency in charge of insurance business activities shall perform the function of specialized inspection of insurance business.
2. When deeming it necessary, in order to carry out specialized inspection of insurance business, the agency specified in Clause 1 of this Article has the right to hire an independent audit firm, a consulting company or an expert to assess and give professional opinions on a number of contents showing signs of affecting the safety and health of inspection subjects, including:
a) Professional reserves;
b) Insolvency;
c) Reinsurance;
d) Investment;
dd) Separation of owner’s equity from premiums, surplus sharing;
e) Rules, terms and premium rates.
3. The hired independent audit firm, consulting company or expert must be responsible before the law for the accuracy, honesty, objectivity of data and documents related to the explanation and provision of opinions on the required contents.
4. Organization and operation of the specialized insurance inspectorate shall comply with this Law and the law on inspection.
Chapter VII
IMPLEMENTATION PROVISIONS
Article 155. To amend and supplement Appendix IV of the Law No. 61/2020/QH14on Investment that is amended and supplemented by the Law No. 03/2022/QH15
To amend and supplement the sector, trade with ordinal 29 and add the sector, trade with ordinal 29a after the ordinal 29 of Appendix IV on the List of sectors and trades subject to conditional business investment as follows:
“29. Insurance brokerage
29a. Insurance auxiliary services”
Article 156. Effect
1. This Law takes effect on January 01, 2023, except for cases prescribed in Clause 2 of this Article.
2. Clause 3 Article 86, Clauses 4 and 5 Article 94, Article 95, Clauses 3 and 4 Article 99, and Articles 109, 110, 111, 112, 113, 114 and 116 of this Law take effect from January 01, 2028.
3. The Law No. 24/2000/QH10 on Insurance Business that is amended and supplemented by the Law No. 61/2010/QH12 and the Law No. 42/2019/QH14 shall cease to be effective from the effective date of this Law, except the following cases:
a) Clause 1 Article 157 of this Law;
b) Articles 77, 78, 79, 80, 81, 83, 94 and 98 of the Law No. 24/2000/QH10 on Insurance Business that is amended and supplemented by the Law No. 61/2010/QH12 and the Law No. 42/2019/QH14 shall continue to be effective until the end of December 31, 2027.
Article 157. Transitional provisions
1. Insurance contracts that have been entered into before the effective date of this Law and are still valid, shall continue to be performed in accordance with law regulations effective at the time of entering into such insurance contracts, except for cases in which the parties to the insurance contracts reach an agreement on amendment and supplement of the contracts to conform with this Law and to apply regulations of this Law.
2. Insurance agent certificates that were granted before the effective date of this Law may continue to be used until the end of December 31, 2025. The Minister of Finance shall detail the conversion from insurance agent certificates granted before the effective date of this Law to insurance agent certificates specified in this Law.
3. Insurance certificates, insurance brokerage certificates, insurance auxiliary certificates granted before the effective date of this Law may continue to be used.
4. From January 01, 2023, insurance enterprises and branches of foreign non-life insurance enterprises shall stop paying the fund for protection of the insured.
5. The handling of the balance of the fund for protection of the insured specified in Article 97 of the Law on Insurance Business No. 24/2000/QH10 that is amended and supplemented by the Law No. 61/2010/QH12 and Law No. 42/2019/QH14 shall be implemented as follows:
a) The entire balance of the fund for protection of the insured shall be managed by the Ministry of Finance to be used for the purpose of protecting the interests of the insured in cases an insurance enterprise becomes insolvent or goes bankrupt;
b) The Government shall detail the management and use of balance of the fund for the protection of the insured.
This Law was adopted on June 16, 2022, by the XVthNational Assembly of the Socialist Republic of Vietnam at its 3th session.
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CHAIRMAN OF THE NATIONAL ASSEMBLY |
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