Circular No. 3780-TC/TCNH of 1996 by the Ministry of Finance guiding insurance business activities in the market, allowing multiple enterprises to participate and recommending not to impose administrative measures when purchasing insurance. The circular also proposes strict handling of violations of customer rights.
Scope of application
Ministries, ministerial-level agencies, government-affiliated agencies - People's Committees of provinces and centrally governed cities
Key points
- Insurance companies are allowed to operate equally under state laws in exploiting insurance in all fields and areas.
- Do not issue documents imposing administrative measures on purchasing insurance that affect the rights of policyholders.
- Detect, prevent, and strictly handle violations of policyholders' rights.
- Create conditions for new insurance companies such as Bao Minh, Bao Long, PJICO, PVIC, VINARE, and INCHINBROK to operate.
- Recommend not to impose administrative measures on purchasing insurance, especially in areas such as student insurance, construction installation, import-export goods, and ships.
🌐 Social impact of this document
- Positive impact: Promote healthy competition among insurance companies, reduce insurance premiums, and improve service quality.
- Negative impact: May cause difficulties for local administrative management if not implemented according to regulations.
❓ Frequently asked questions
Where can new insurance companies operate?
New insurance companies are allowed to operate equally in all fields, industries, and areas according to state laws.
Why should administrative measures not be imposed when purchasing insurance?
To ensure policyholders can freely choose suitable insurance companies based on their needs and the most reasonable insurance premiums.
How will violations of customer rights be handled?
Violations will be detected, prevented, and strictly handled according to management authority.
When did these new insurance companies start operating?
Since 1994, the Ministry of Finance has issued certificates to companies such as Bao Minh, Bao Long, PJICO, PVIC, VINARE, and INCHINBROK.
Who does this circular apply to?
Applies to ministries, ministerial-level agencies, government-affiliated agencies; People's Committees of provinces and centrally governed cities.
Full text
LETTER
OF THE MINISTRY OF FINANCE NO. 3780 TC/TCNH ON OCTOBER 24, 1996 REGARDING THE OPERATION OF INSURANCE BUSINESS
IN THE MARKET
Dear: - Ministries, ministerial-level agencies, government agencies
||| Provincial People's Committees, centrally governed cities.
In accordance with the policy of developing the economy under a market mechanism with state management, on December 18, 1993, the Government issued Decree No. 100/CP on insurance business, allowing many enterprises from various economic sectors to participate in insurance activities. Besides Vietnam Insurance Corporation (Vinac保险公司业务活动的管理)，自1994年起，财政部根据第100/CP号法令的规定，已为一些新成立并开始运营的越南保险企业颁发了符合保险业务经营条件的标准证书。这些公司是：
- Ho Chi Minh City Insurance Company (Bao Minh)
- Dragon Stock Corporation Insurance Company (Bao Long)
- Petrolimex Corporation Insurance Company (PJICO)
- Vietnam Oil and Gas Insurance Company (PVIC)
- Vietnam National Reinsurance Corporation (Vinare)
- Vietnam Insurance-Inchcape Joint Venture Brokerage Limited Company (Inchinbrok)
Immediately after their establishment, some newly established insurance companies have quickly organized branch networks and representatives in many localities throughout the country, soon stabilizing operations and contributing to more fully meet the diverse insurance needs of customers. With the presence of various types of insurance companies, competition within the framework of the law has formed and had positive effects, bringing insurance premiums to reasonable levels, correctly reflecting insurance costs, benefiting insurance buyers. Due to competition, the quality of service provided by insurance companies to customers has also been given attention and improved compared to when only one company was operating.
However, due to competitive pressure, some insurance companies have adopted certain negative measures that are inconsistent with the market economy, such as influencing local authorities (at all levels of People's Committees), industry management agencies (Ministries, Departments, even District and County Offices) or through State-Owned Enterprises to compel managed entities and subordinate units to purchase insurance from designated companies without the basis of analysis and choice by the insured party. This situation is widespread in student insurance, construction and installation insurance, import and export goods insurance, marine vessel insurance, etc. The administrative imposition trend in insurance business affects the rights of insurance buyers and contradicts the direction of developing the Vietnamese insurance market.
As the state management agency for insurance business activities, the Ministry of Finance requests Ministries, ministerial-level agencies, and agencies under the Government; Provincial People's Committees and Municipal People's Committees directly under the Central Government to pay attention and guide this issue according to the following principles:
1. Creating conditions for insurance enterprises to operate equally under state laws in tapping insurance in all fields, industries, and regions.
2. Not issuing administrative documents that affect the legitimate rights of insurance participants in choosing insurance companies that provide the best service, with reasonable premiums, and quality.
3. Timely detecting, preventing, and depending on authority, strictly handling violations of the rights of insurance participants as well as other related violations within the scope of management.
The Ministry of Finance hopes for close cooperation from Ministries, sectors, and Provincial People's Committees and Municipal People's Committees directly under the Central Government to gradually build a healthy insurance market for the benefit of insurance participants.
If any difficulties arise during implementation, please report to the Ministry of Finance for coordination in resolution.
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