Circular No. 115/2014/TT-BTC guides the implementation of policies on marine fishing insurance as stipulated in Decree No. 67/2014/NĐ-CP dated July 7, 2014, of the Government regarding certain policies to develop fisheries.

CIRCULAR

Guidelines for implementing insurance policies stipulated in Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on certain policies to develop fisheries

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Pursuant to the Insurance Business Law 2000, the Law Amending and Supplementing Certain Provisions of the Insurance Business Law, and guiding documents for implementation;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to Decree No. 89/2015/ND-CP dated October 7, 2015 of the Government amending and supplementing certain articles of Decree No. 67/2014/ND-CP dated July 7, 2014 of the Government on some policies for developing fisheries;

At the proposal of the Director of the Department of Management and Supervision of Insurance;

The Minister of Finance hereby issues guidelines for implementing insurance policies stipulated in Article 5 of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on certain policies to develop fisheries.

Chapter I. GENERAL PROVISIONS

Article 1. Scope of Regulation

These Circulars provide guidelines for implementing insurance policies stipulated in Article 5 of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on certain policies to develop fisheries (hereinafter referred to as Decree No. 67/2014/NĐ-CP).

Article 2. Applicability

1. Insurance enterprises approved to implement insurance according to Decree No. 67/2014/NĐ-CP (hereinafter referred to as insurance enterprises).

2. Organizations and individuals meeting the conditions to be supported with funds to purchase insurance according to Decree No. 67/2014/NĐ-CP.

3. Agencies, organizations, and individuals related to the implementation of insurance policies stipulated in Decree No. 67/2014/NĐ-CP.

Chapter II SPECIFIC PROVISIONS

Article 3. Principles of Implementing Insurance

1. Implement insurance for all risks with the highest limit of indemnity within the scope of insurance and the amount of insurance as prescribed by laws on insurance business and insurance contracts, except for risks arising from subjective actions of the insured person and fraudulent claims.

2. Ship owners have the responsibility to purchase accident insurance for crew members working on their ships and to conclude accident insurance contracts with insurance enterprises.

3. Financial support for purchasing insurance shall be implemented through insurance enterprises according to the procedures and formalities stipulated in Article 8 of these Circulars after concluding insurance contracts and when such contracts have generated insurance liabilities.

4. Insurance enterprises must implement insurance according to common rules, terms, and premium rates that have been registered and approved in writing by the Ministry of Finance.

Article 4. Requirements for Insurance Enterprises

Insurance enterprises must meet the following requirements:

1. Financial capacity requirements

a) Having a minimum charter capital of 800 billion VND and total assets of at least 2,000 billion VND at the end of the most recent fiscal year.

b) Ensuring solvency margin as prescribed by law.

2. Corporate governance requirements

a) Having a system of procedures for underwriting, surveying, and compensating for accident insurance for seafarers; hull, equipment, and fishing gear insurance (hereinafter referred to as marine fishing insurance).

b) Having a reinsurance program to protect the marine fishing insurance program.

3. Network deployment requirements for marine fishing insurance Having branches in at least 10 centrally governed cities and provinces where vessels are registered to operate.

4. Experience requirements in deploying marine fishing insurance

a) Having at least 10 years of experience in operating insurance businesses, including at least 5 years of experience in deploying marine fishing insurance.

b) Having a total premium income from marine fishing insurance over the last five years of at least 15 billion VND.

5. Commitment to comply with legal regulations and directives issued by the Ministry of Finance.

6. Being approved in writing by the Ministry of Finance for the deployment of marine fishing insurance.

Article 5. Documents and procedures for requesting approval to implement marine fishing insurance

1. The documents for requesting approval to implement marine fishing insurance include the following materials:

a) A request document to implement marine fishing insurance according to the model prescribed in Appendix 1 issued together with this Circular.

b) Copies of documents proving compliance with the conditions stipulated in Clause 2, Article 4 of this Circular and a report on revenue and marine fishing insurance compensation for the last five years, confirmed by the legal representative of the insurance company.

2. Within five (05) working days from the date of receiving complete and valid documents as prescribed in Clause 1 of this Article, the Ministry of Finance shall issue a response regarding approval or rejection of approval. In case of rejection, the Ministry of Finance must clearly state the reasons.

Article 6. Subjects eligible for financial support to purchase insurance

1. Owners of distant water fishing vessels and distant water fishing service support vessels with main engine power of 90HP or more that meet the following requirements:

a) They are members of fishing teams or cooperatives;

b) They have a vessel registration certificate and a technical safety certificate issued by competent authorities in accordance with the law;

c) They have a fishing permit for distant water fishing vessels or have registered as distant water fishing service support vessels in accordance with the law;

d) They have registered crew members and received a crew member registry book issued by competent authorities in accordance with the law;

đ) They have confirmation from the People's Committee of the commune regarding eligibility for support.

2. Crew members working on vessels that meet the requirements stipulated in Clause 1 of this Article.

Article 7. State Support

1. Level of support The state budget supports the cost of purchasing insurance for distant water fishing vessels and distant water fishing service support vessels that are members of fishing teams or cooperatives and have main engine power of 90HP or more, specifically as follows:

a) Annually provide 100% funding for the cost of purchasing crew accident insurance for each crew member working on the vessel.

b) Annually provide funding for the cost of purchasing hull, equipment, and fishing gear insurance for each vessel at the following rates: - 70% of the insurance cost for vessels with main engine power from 90HP to less than 400HP; - 90% of the insurance cost for vessels with main engine power of 400HP or more.

2. Funding for support The funding for support is guaranteed from the central government budget and local government budget and is allocated in the state budget estimate, specifically as follows:

a) The central budget shall provide 100% funding for localities that cannot balance their budgets independently and the province of Quang Ngai.

b) The central government budget provides 50% of the funding for localities with a distribution rate of shared revenue below 50%, while the local government budget ensures the remaining 50%.

c) The remaining localities use their own budgets to implement.

3. Method of support Insurance companies are reimbursed by the state budget for marine fishing insurance premiums (the portion supported according to regulations) in accordance with the procedures and formalities stipulated in Article 8 of this Circular.

Article 8. Documents, procedures, and formalities for reimbursement of marine fishing insurance premiums supported by the state budget

1. Documents for requesting reimbursement of marine fishing insurance premiums supported by the state budget

a) A request form for reimbursement of marine fishing insurance premiums according to the model prescribed in Appendix 2 issued together with this Circular.

b) Confirmation from the People's Committee of the commune regarding eligibility for support according to the model prescribed in Appendix 3 issued together with this Circular.

c) An itemized list (with copies attached) of the insurance certificate issued by the insurance company to the vessel owner according to the models prescribed in Appendices 4 and 5 issued together with this Circular.

2. Procedures and formalities for reimbursement of marine fishing insurance premiums supported by the state budget

a) Within ten (10) days from the end of the month, the insurance company prepares the documents for requesting reimbursement of marine fishing insurance premiums supported by the state budget as prescribed in Clause 1 of this Article and sends them to the Department of Agriculture and Rural Development.

b) Within ten (10) days from the date of receiving complete documents as prescribed in Clause 1 of this Article, the Department of Agriculture and Rural Development, in coordination with the Department of Finance, completes the review process and submits it to the People's Committee of the province for consideration and decision on reimbursement of marine fishing insurance premiums supported by the state budget to the insurance company.

c) Within ten (10) days from the date of receiving the report from the Department of Finance, the People's Committee of the province, along with provincial functional agencies, completes the reimbursement to the insurance company of the full marine fishing insurance premium supported by the central and local government budgets.

Article 9. Budget Estimation

The establishment and implementation of the budget estimation shall be carried out in accordance with the provisions of the State Budget Law, guiding documents for its implementation, and the instructions provided in this Circular.

1. In conjunction with the annual budget estimation period, based on the number of vessels and the list of seafarers working on the vessels confirmed by the People's Committee of the commune; the Department of Agriculture and Rural Development shall determine the financial needs to implement the marine fishing insurance policy (specifying clearly the local budget portion that must be balanced and the central government support portion according to regulations) and send it to the Department of Finance for consolidation and reporting to the People's Committee of the province together with the local budget expenditure plan as stipulated by the State Budget Law. It shall also be sent to the Ministry of Finance for consolidation into the annual state budget estimate as prescribed.

2. For the year 2014, the People's Committee of the province shall direct relevant agencies to compile and forecast the financial needs to implement the marine fishing insurance policy, report to the Ministry of Finance and the Ministry of Agriculture and Rural Development for consolidation and submission.

Article 10. Budget Allocation, Management, and Settlement of Funds

1. Allocation of Budget Estimates

a) Annually, based on the budget estimate

b) Based on the budget estimate obtained

2. Regarding management and settlement of funds

a) The People's Committee of the province shall be responsible for managing and using the funds, ensuring they are used for their intended purposes and in compliance with the State Budget Law. If at the end of the year, there is unused funding for marine fishing insurance premium support (if any), it may be transferred to the following year for continued support; the locality may not use it for other purposes. In cases where there is insufficient funding during the year, localities shall proactively advance the necessary funds to pay the insurance companies; simultaneously, they shall submit written reports to the Ministry of Finance and the Ministry of Agriculture and Rural Development for consideration to supplement from the central budget (for localities supported by the central budget). Upon completion of the implementation of the marine fishing insurance policy, any remaining central government support funds (if any) shall be requested to be returned to the central government.

b) The insurance premium support funds under Article 5 of Decree No. 67/2014/NĐ-CP shall be consolidated into the annual state budget expenditure settlement of each level of budget in accordance with the State Budget Law, guiding documents for the Law, and the current State Budget Manual.

Chapter III. RESPONSIBILITIES OF RELEVANT AUTHORITIES

Article 11. Responsibilities of the Ministry of Finance

1. Approve insurance companies to implement marine fishing insurance in accordance with this Circular.

2. Allocate the budget to implement the marine fishing insurance policy as stipulated in this Circular.

3. Inspect and supervise insurance companies approved to implement marine fishing insurance; inspect and supervise the allocation of support funds.

4. Report annually

5. Take the lead in coordinating with relevant ministries and sectors to organize the summary of the implementation of the marine fishing insurance policy.

Article 12. Responsibilities of the Ministry of Agriculture and Rural Development

1. Direct the fisheries management agency at the local level to implement:

a) Guide ship owners to comply with legal regulations on vessel registration, crew registration, inspection, application for fishing permits, qualifications and certificates of seafarers working on vessels, and other related laws on fishing activities.

b) Encourage ship owners to participate in fishing teams and cooperatives; participate in marine fishing insurance to prevent unexpected risks.

c) Provide insurance companies with relevant documents and papers to determine the value of vessels, equipment, and fishing gear participating in marine fishing insurance; identify seafarers working on vessels participating in marine fishing insurance who have registered; verify the legality of qualifications and certificates provided by ship owners to insurance companies and other relevant documents to facilitate prompt and smooth compensation claims.

2. Coordinate with the Ministry of Finance in compiling the budget estimate for insurance premium support under Decree No. 67/2014/NĐ-CP.

Article 13. Responsibilities of the People's Committee at the provincial level

1. Guide ship owners to join fishing teams and cooperatives; direct the People's Committee of the commune and relevant competent authorities to promptly complete the procedures for establishing fishing teams and cooperatives to create conditions for ship owners to meet the requirements for marine fishing insurance participation.

2. Direct the People's Committee of the commune to promptly complete the procedures for confirming eligible beneficiaries for insurance support upon request by ship owners. The confirmation of insurance support beneficiaries for marine fishing insurance shall be conducted according to the model specified in Appendix No. 3 issued along with this Circular.

3. Direct the People's Committee of the commune to notify ship owners about the unilateral termination of insurance contracts by insurance companies after receiving notifications of contract termination from insurance companies.

4. Direct relevant functional agencies of the locality to cooperate with insurance companies to guide ship owners to participate in marine fishing insurance; provide relevant documents to determine the value of vessels, equipment, and fishing gear participating in insurance; determine the cause of loss... and other relevant documents to facilitate prompt and smooth compensation claims by insurance companies.

5. Direct Border Guard units to assist and provide insurance companies and ship owners with relevant documents to determine vessel operations, crew lists, and other related documents to facilitate prompt and smooth compensation claims by insurance companies.

6. Direct the Department of Agriculture and Rural Development to take the lead and coordinate with the Department of Finance to review support applications submitted to the People's Committee of the province for examination and decision-making in accordance with Clause 2, Article 8 of this Circular.

7. Organize publicity about the marine fishing insurance policy under Decree No. 67/2014/NĐ-CP through mass media in the locality.

Article 14. Responsibilities of Insurance Companies

1. Register to implement fishing insurance in accordance with the guidance provided in Article 5 of this Circular.

2. Insurance companies shall be responsible for coordinating to develop rules, terms, and premium schedules for fishing insurance and registering with the Ministry of Finance to implement uniformly.

3. Develop a unified business process regarding the operation, appraisal, and compensation for fishing insurance to apply.

4. Coordinate with Vietnam National Reinsurance Corporation Joint Stock Company to establish a reinsurance program for fishing operations that ensures financial safety and implements reinsurance for domestic insurance companies at the maximum retention level as stipulated by law.

5. Organize the implementation of fishing insurance in accordance with laws governing insurance operations and the rules, terms, and premium schedules approved by the Ministry of Finance.

6. Establish an information technology system to compile, update, and manage the implementation of fishing insurance.

7. Carry out promotional activities regarding the insurance policy for fishing operations.

8. Report to the Ministry of Finance on the results of implementing fishing insurance as follows:

b) In addition to these reports, insurance companies shall be responsible for submitting ad hoc reports as required by the Ministry of Finance.

Chapter IV. IMPLEMENTATION ORGANIZATION

Article 15. Effective Date

1. This Circular takes effect from the date of signature and is applied from August 25, 2014.

2. During the implementation period, if any difficulties arise, they should be reported to the Ministry of Finance for consideration and resolution./.