Decision No. 34/2005/QĐ-BNV Approving the Charter of the Vietnam Insurance Association

Pursuant to …;

Regarding the approval of the Charter of the Vietnam Insurance Association

_______________________________

THE MINISTER OF THE MINISTRY OF HOME AFFAIRS

Pursuant to Decree No. 102/SL-L004 dated May 20, 1957 on the right to establish Associations;

Pursuant to the Government Decree No. 45/2003/NĐ-CP dated May 9, 2003 on the functions, tasks, powers, and organizational structure of the Ministry of Home Affairs;

Pursuant to the Government Decree No. 88/2003/NĐ-CP dated July 30, 2003 on the organization, operation, and management of associations;

Considering the proposal of the Vietnam Insurance Association and the Director of the Department of Non-Governmental Organizations, Ministry of Home Affairs,

DECISION:

Article 1. Approves the Charter of the Vietnam Insurance Association which was adopted at the Second General Assembly on January 27, 2005.

Article 2. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 3. The Chairman of the Vietnam Insurance Association, the Director of the Department of Non-Governmental Organizations, and the Director of the Office of the Ministry of Home Affairs shall be responsible for implementing this Decision./.

 

CHARTER
Vietnam Insurance Association

 

(annexed to Decision No. 34/2005/QĐ-BNV signed by the Minister of Home Affairs on March 11, 2005

regarding the approval of the Charter of the Vietnam Insurance Association)

PART I

Name of the Association:

Article 1. The Association takes the name of the Vietnam Insurance Association (hereinafter referred to as the Association), international trade name in English: Association of Vietnamese Insurers, abbreviated as A.V.I.

Article 2. The Association is a voluntary social-professional organization of insurance enterprises operating legally within the territory of Vietnam (hereinafter referred to as members). The purpose of the Association is to represent and protect the legitimate rights and interests of its members, link, support, cooperate, promote mutual development in a healthy manner in the Vietnamese insurance market within the framework of Vietnamese laws.

Article 3. The Association operates under Vietnamese state laws, has legal personality, has a seal, has an account, has assets, and has its own emblem. The Association is subject to unified management by the Ministry of Home Affairs and is subject to management by the Ministry of Finance in the field of operation of the Association.

The headquarters of the Association is located in Hanoi.

If necessary, the Association will open representative offices or branches in provinces and cities within the country and abroad according to the provisions of the law.

Chapter II

TASKS AND POWERS OF THE ASSOCIATION

Article 4. The Association has duties and powers:

1. To represent members in providing opinions on draft policies and legal regulations of the State concerning insurance and related issues; to contribute opinions with state management agencies in the study and construction of strategies for the development of the Vietnamese insurance industry; to collect and reflect to competent state authorities the opinions of members on policy and system issues applicable to the insurance industry;

2. To organize forums to train and disseminate knowledge, laws, and policies of the State; through practical implementation, to provide opinions to improve current legal regulations on insurance and related issues;

3. To build and adopt general principles on the content of cooperation activities among members, self-management rules to create a fair competitive environment in insurance business operations;

4. To represent members in providing opinions or reviewing, criticizing insurance rules, terms, and premium rates issued by the Ministry of Finance. To organize research and construction or review, criticize insurance rules, terms, and premium rates of other insurance businesses upon request of members or the Ministry of Finance. To advise and criticize issues within the scope of the Association's activities upon request of organizations or individuals;

5. To organize the Information Center of the Association in accordance with the law; to conduct statistical surveys of insurance business within the Association;

6. To evaluate the results of insurance market activities; to propose directions for the insurance industry's activities;

7. To organize training centers, consulting services on insurance in accordance with the law. To coordinate activities among members in training, upgrading, seminars, and insurance business workshops, agent training;

8. To advise members on organizational activities, business development, and other related issues;

9. To study and propose or participate in opinions on measures to prevent and limit common losses related to member insurance enterprises, to coordinate with members and relevant agencies to implement them;

10. To organize domestic and international insurance activity promotions; to publish internal newsletters, insurance magazines, and materials to disseminate insurance business knowledge in accordance with the law;

11. To establish relationships with agencies, units, economic organizations, and associations related to the Association's activities. To cooperate with insurance associations of other countries and participate in international organizations as prescribed by the State;

12. To mediate disputes between members; to make recommendations to state functional agencies about handling cases of violations of laws in the insurance sector;

13. To perform certain administrative public services or participate in activities within the management domain authorized by the Ministry of Finance or state agencies;

14. To accept lawful financial support from organizations and individuals both domestically and internationally in accordance with the law.

Chapter III

MEMBERS

Article 5. Legal Vietnamese corporate entities that have been granted licenses to operate insurance in Vietnam, who accept the Charter, and voluntarily apply to join the Association may become members of the Association.

Representatives of members at the Association must be members of the leadership board (Board of Directors, Management Board) or authorized representatives of member enterprises and must be Vietnamese citizens.

Article 6. There are two types of members: regular members and associated members.

1. Regular members have the following rights:

a) To vote at term general assemblies, extraordinary general assemblies, annual meetings, and extraordinary meetings,

b) To nominate, elect, and run for positions in the Association's Executive Committee,

c) To participate in discussions, propose opinions, and make recommendations on issues related to insurance business operations,

d) To receive full and timely information about the Association's activities.

e) To enjoy benefits derived from the Association's common activities in accordance with the Association's duties and powers.

2. Associated members do not have rights a and b of regular members. When enterprises or organizations with activities related to insurance apply to join the Association but do not meet the conditions stipulated in Article 5 of this Charter, they are considered associated members. Upon admission of members, the Association's Executive Committee will announce their membership status.

Article 7. Members have the following obligations:

1. Comply with this Charter and resolutions, decisions adopted by the Term Congress, Extraordinary Congress, Extraordinary Meeting, Annual Meeting, and the Board's resolutions;

2. Fulfill the Association's requirements for statistical data provision, information, and reports;

3. Undertake tasks assigned to implement the Association's duties as stipulated in Article 4;

4. Pay membership fees fully and on time according to the Association's Financial Regulations;

5. Strengthen the solidarity and unity of the Association, giving members all possible preferences in arranging joint insurance and reinsurance.

Article 8. Procedures for admission and removal from the member list:

1. Admission of members

Insurance enterprises wishing to become members must submit a voluntary application to join the Association, commit to complying with the Charter and the Association's Financial Regulations; resolutions and decisions of the Term Congress, Extraordinary Congress, Annual Meeting, and Extraordinary Meeting of the Association, and resolutions and decisions of the Board.

Associated members wishing to join the Association must also submit an application to the Board of the Association.

The admission of members is decided by the Board and announced to the members.

2. Removal from the member list

Members who request to leave the Association and those who seriously violate the Charter, the Association's Financial Regulations, resolutions, and decisions of the Term Congress, Extraordinary Congress, Annual Meeting, and Extraordinary Meeting of the Association, and resolutions and decisions of the Board of the Association, damaging the Association's reputation, will be removed from the member list.

The removal from the member list is decided by the Board and announced to the members.

Before leaving the Association or being removed from the member list, members must settle any outstanding financial obligations to the Association.

Chapter IV

ORGANIZATION OF THE ASSOCIATION

Article 9. The organizational structure of the Association includes:

1. Term Congress;

2. Annual Meeting of the Association;

3. Board of the Association;

4. Audit Committee;

5. Permanent Office of the Association;

6. Representative offices of the Association where necessary;

7. Affiliated legal entities such as the Insurance Training Center, Insurance Consulting Service Center, Insurance Research Institute, Insurance Magazine Editorial Department... These entities will be established when needed to achieve the Association's goals and tasks, in accordance with current laws.

Article 10. The General Assembly of the Association, with the participation of all members, is the highest authority of the Association.

Article 11. The Term Congress of the Association convenes every five years and has the following responsibilities:

1. Discussing the report on the Association's activities during the previous term and approving the direction of activities for the next term;

2. Deciding on major principles regarding organization, operation, and the Financial Regulations of the Association;

3. Approving the new Charter or amendments and supplements to the Charter;

4. Electing the Board of the Association and the Audit Committee of the Association;

5. Approving the Chairman, Vice Chairmen of the Board, and the Head of the Audit Committee elected by the Board and the Audit Committee;

6. Dismissing or relieving from duty the positions of Chairman, Vice Chairmen, Board members, Head of the Audit Committee, and Audit Committee members;

7. Deciding on the establishment of affiliated legal entities;

8. Deciding on other matters of the Association.

Under permissible conditions, the Term Congress of the Association may be held concurrently with the Annual Meeting of the Association.

Article 12. The Association Congress may convene extraordinary sessions upon the request of two-thirds of the official members or at the call of the Association President.

Article 13. The Annual Meeting convenes once a year and has the following responsibilities:

1. Evaluating the Association's operational situation in the previous year;

2. Deciding on the Association's program of activities for the upcoming year;

3. Approving the financial settlement of the previous year and the budget for the upcoming year;

4. Appointing or relieving from duty the Board before the end of its term.

Article 14. The Term Congress, Extraordinary Congress, Annual Meeting, and Extraordinary Congress are only considered valid if attended by three-quarters of the official members. In cases where less than three-quarters of the official members attend, the aforementioned congresses and meetings must be postponed by ten to fifteen days from the date of the announced call. If, after the expiration of the ten to fifteen-day period (depending on the case), there is still insufficient attendance of three-quarters of the official members, the aforementioned congresses and meetings are considered valid if attended by at least two-thirds of the official members.

Article 15. The Board of the Association represents the Association between two terms of the Term Congress. Members of the Board of the Association are elected by the Term Congress from among representatives of official member enterprises, with a term of five years. The number of members of the Board of the Association each term is decided by the Term Congress.

Article 16. The Board of the Association has the following responsibilities:

1. Establishing the annual and term activity programs and reporting on the Association's activities;

2. Directing and urging the implementation of resolutions and activity programs of the Association between two terms of the Term Congress on behalf of the Association;

3. Reporting on the financial settlement of the previous year and the budget for the upcoming year;

4. Deciding on the establishment of the Permanent Office and its organizational structure; deciding on the appointment or relief from duty of the Secretary-General of the Association, Deputy Secretaries-General, Heads of specialized semi-specialized departments, and departments of the Permanent Office of the Association;

5. Reviewing and announcing the admission and removal of members to the members;

6. Deciding on rewards and punishments for members;

7. Preparing the content of the program and calling the Term Congress, Extraordinary Congress, Annual Meeting, and Extraordinary Meeting.

Article 17. The Inspection Board has the duty to assist the Congress in conducting inspections and supervision over the organization and members in their compliance with the Charter of the Vietnam Insurance Association, the Financial Regulations of the Association, resolutions and decisions of the Association and the Executive Board. The term of office of the Inspection Board coincides with that of the Executive Board. The number of members of the Inspection Board is determined by the Congress of the term. The Chairman of the Inspection Board has the right to attend meetings of the Executive Board of the Association, express opinions but not participate in voting when the Chairman is not a member of the Executive Board.

Article 18. Decisions of the Congress of the term, the Annual Meeting, and the Executive Board of the Association regarding issues related to the Association shall only take effect when they are approved by three-quarters of the present formal members or Executive Board members at the meetings. In cases of amending or supplementing the Charter, approval from state management agencies according to the provisions of the law is required.

All relevant members have the obligation to implement these decisions.

Article 19.

1. The President and Vice Presidents of the Association are elected by the Executive Board of the Association on a rotational basis among formal member enterprises within the members of the Executive Board and must be approved by the Congress of the term and extraordinary congresses.

2. The term of office of the President and Vice Presidents is five years. They may be re-elected but not more than two terms.

3. The President has powers and duties:

a) To represent the Association legally according to current laws;

b) To convene and chair meetings of the Congress of the term, the Annual Meeting, and the Executive Board of the Association;

c) To introduce the General Secretary and Deputy General Secretaries of the Permanent Office of the Association;

d) To be responsible before the Congress of the term and the Annual Meeting for the implementation of decisions and resolutions of the Congress of the term and the Annual Meeting;

đ) To represent the Association in internal and external relations;

e) To meet regularly (every three or six months) with the General Secretary to hear reports on work completed in the previous period and the activity plan for the next period of the Permanent Office. Approve and direct the implementation of this plan, and report the results of the meeting to other members of the Executive Board.

Article 20. The Vice President assists the President and represents the President in the absence of the President.

Article 21. Members of the Executive Board and the Inspection Board are automatically relieved of their positions when the enterprise member changes its representative at the Association or when the incumbent member is arrested, prosecuted criminally, seriously ill, or deceased.

When the term of the Congress has not yet ended, the new representative of a formal member enterprise replacing an old member of the Executive Board and the Inspection Board must be approved by the Executive Board and the Annual Meeting.

Article 22.

1. The Permanent Office of the Association is an assisting body for the Association and manages daily operations of the Association.

2. The Permanent Office of the Association includes the General Secretary, Deputy General Secretaries, and specialized departments.

The General Secretary and Deputy General Secretaries must be individuals who are knowledgeable about insurance and have at least five years of experience in management or professional work in the Vietnamese insurance industry.

The Permanent Office is led by the General Secretary.

Article 23. The General Secretary works full-time and has the following rights and duties:

1. To manage the regular operations of the Association according to the resolutions and decisions of the Congress of the term, the Annual Meeting, and the Executive Board of the Association;

2. To recruit staff for the specialized departments based on standards and numbers decided by the Executive Board of the Association; dismiss staff when they fail to fulfill commitments between employees and the Permanent Office of the Association;

3. To communicate internally and externally;

4. To maintain regular contact with Association members;

5. To organize secretarial work for sessions of the Congress of the term, extraordinary congresses, the Annual Meeting, and the Executive Board of the Association;

6. To prepare reports, programs, and annual income and expenditure budgets for presentation to the Executive Board of the Association and the Annual Meeting for decision;

7. To report regularly (every three or six months) or unexpectedly to the President of the Association on work completed in the previous period and the work plan for the next period of the Permanent Office and any urgent matters;

8. The General Secretary or Deputy General Secretary may attend annual work summary meetings of member enterprises upon invitation by the member enterprises.

Article 24. The Deputy General Secretary assists the General Secretary. The Deputy General Secretary represents the General Secretary in the absence of the General Secretary.

Article 25. The number of specialized departments of the Permanent Office of the Association is proposed by the General Secretary and decided by the Executive Board of the Association based on the tasks of the Association. Each specialized department has a Head and Deputy Head (if necessary) directly managing the department's work.

The number of semi-specialized departments is proposed by the General Secretary and decided by the Executive Board of the Association. Each semi-specialized department consists of members appointed by member enterprises. Semi-specialized departments meet at least once every six months to review professional activities and develop joint action plans.

The General Secretary chairs meetings of semi-specialized departments. The Heads and Deputy Heads of semi-specialized departments are elected by members of the department.

Chapter V

FINANCIAL MATTERS OF THE ASSOCIATION

Article 26. The Vietnam Insurance Association is a non-profit organization, primarily funded by membership fees paid by members to cover the Association's expenses.

Article 27. The fiscal year of the Association begins on January 1 and ends on December 31 of each Gregorian calendar year.

Article 28. The Congress of the term decides the principle of membership fee payment by members.

Article 29. Financial management of the Association must comply with current laws and the Financial Regulations of the Vietnam Insurance Association.

Chapter VI

REWARDS AND DISCIPLINE

Article 30. Staff, members, and organizations or individuals with achievements in building the Association are considered for commendation or awards by the Association or recommended for commendation or awards by relevant authorities at various levels.

Article 31. Officers and members who violate the Articles of Association, Financial Regulations of the Association, and resolutions, decisions of the Term Congress, Annual Meeting, Extraordinary Meeting, and Executive Board, thereby adversely affecting the reputation of the Association, shall be disciplined with forms of reprimand, warning, removal from office, expulsion from the Association, or dismissal from the permanent agency. In cases of violation of the law, they will be handled by state law enforcement agencies according to current laws.

Chapter VII

FINAL PROVISIONS

Article 32. Procedure for amending and supplementing the Articles of Association:

1. The amendment of the Articles of Association shall be conducted at the Term Congress or Extraordinary Congress. When necessary, the amendment and supplementation of the Articles of Association may be carried out at the Annual Meeting with the presence of at least two-thirds of the official members attending.

2. The content of the amendment and supplementation of the Articles of Association must be approved by the Term Congress, Extraordinary Congress, or Annual Meeting and ratified by the competent state authority to become effective.

Article 33. This Articles of Association consists of 7 Chapters and 33 Articles, which were adopted at the Second Term Congress on January 27, 2005./.