English
RSS
Accordingly, the cooperative fund shall determine the level, reasons, and responsibilities for asset losses and take actions against such losses as follows:
Firstly, to define objective reasons, force majeure events (such as natural disasters, epidemics, fire, accidents or political risk), and subjective reasons.
Secondly, the individual or group causing such loss shall make compensation for damage and/or incur penalties in accordance with law provisions for the loss caused by subjective reasons. The cooperative fund prescribes the compensation, decides the compensation amount which must be conformable with law provisions, and assume responsibility for its decision. In case the asset insurance has been purchased in accordance with law provisions, the asset loss shall be settled in accordance with the insurance policy.
Thirdly, the financial reserve fund of the cooperative fund shall be used for offsetting the value of asset loss that remains after being offset using compensation amounts of the individual or group at fault, the insurer, and/or provisions included in the fund’s expenses. In case the balance on the financial reserve fund is not sufficient to offset the asset loss, the remaining value of the asset loss shall be recorded as the fund’s expenses in the period.
Circular 52 takes effect on October 01, 2022.
