Decree No. 42/2001/ND-CP provides detailed regulations for implementing certain provisions of the Insurance Business Law.

DECREE OF THE GOVERNMENT

Detailed Implementation Rules for Certain Provisions of the Insurance Business Law

 

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Insurance Business Law on December 9, 2000;

At the proposal of the Minister of Finance,

 

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Application

1. This Decree provides detailed implementation rules for certain provisions of the Insurance Business Law.

2. This Decree applies to insurance business activities, reinsurance business activities, insurance brokerage activities, and insurance agency activities carried out by insurance companies, insurance brokers, and insurance agents.

3. This Decree does not apply to social insurance, health insurance, deposit insurance, and other types of insurance implemented by the State without a commercial nature.

Article 2. The State's Policy on Insurance Programs Serving Agricultural, Forestry, and Fisheries Development Objectives

1. The State shall have financial mechanisms and policies to support organizations and individuals participating in insurance.

2. The State shall provide technical assistance to insurance companies in researching and developing insurance products; facilitate the establishment of insurance companies; expand the content, scope, and areas of operation.

3. The State shall have other preferential policies as prescribed by law.

Article 3. The State's Policy on State-Owned Insurance Companies

1. The State shall ensure sufficient charter capital for operating enterprises.

2. The State shall invest resources to implement insurance operations serving economic and social development programs.

3. The State shall have other preferential policies as prescribed by law.

Article 4. Principles of Insurance Participation

1. Organizations and individuals with insurance needs may only participate in insurance at insurance companies operating in Vietnam.

2. Organizations and individuals with insurance needs may participate in insurance at insurance companies without offices in Vietnam in the following cases:

a) Insurance companies operating in Vietnam cannot provide the type of insurance product that organizations and individuals wish to participate in.

b) As stipulated by international treaties to which the Government of Vietnam has signed or joined.

3. Insurance contracts concluded between Vietnamese organizations and individuals and insurance companies without offices in Vietnam contrary to the provisions of Clause 2 of this Article shall be deemed void.

Article 5. Insurance Products

1. Based on the types of insurance operations prescribed in Article 7 of the Insurance Business Law, the Ministry of Finance shall publish a detailed list of insurance products.

2. Insurance companies may only operate insurance products specified in their establishment and operation licenses, according to insurance rules, terms, and premium rates registered with the Ministry of Finance or approved and promulgated by the Ministry of Finance.

Article 6. Compulsory Insurance

1. Insurance companies engaged in compulsory insurance may not refuse to sell compulsory insurance.

2. Organizations and individuals subject to compulsory insurance have the obligation to participate in compulsory insurance.

 

PART I

INSURANCE COMPANIES

Section 1

ESTABLISHMENT AND OPERATION OF INSURANCE COMPANIES

Article 7. Licensing Fees for Establishment and Operation of Insurance Companies

Insurance companies granted licenses for establishment and operation must pay licensing fees for establishment and operation; the fee for each license issuance is 0.1% of the statutory capital.

Article 8. Procedures before an insurance company commences operations

1. Within twelve months from the date of issuance of the license for establishment and operation, the insurance company must complete all necessary procedures as prescribed by law to commence operations. If the insurance company does not start operating within this period, its license will be revoked.

2. Within thirty days from the date of issuance of the license for establishment and operation, the insurance company must publish in five consecutive issues of a central daily newspaper and a local daily newspaper where the company's main office is located, the following main contents:

a) The name, address of the main office, branch offices, and representative offices of the insurance company;

b) The content, scope, and duration of operations;

c) The charter capital amount and the contributed capital amount;

d) The name and title of the legal representative of the company;

đ) The license number and the date of issuance of the license for establishment and operation;

e) Insurance products permitted to be operated.

Article 9. Notification of Issuance, Revocation, Amendment, and Supplement of the License for Establishment and Operation

In cases where the Ministry of Finance issues, revokes the license for establishment and operation, or approves changes to one of the contents stipulated in Clause 1 of Article 69 of the Law on Insurance Business, the Ministry of Finance shall immediately notify in writing along with a copy of the license for establishment and operation, the decision to revoke the license for establishment and operation, or the decision approving the amendment and supplement of the license for establishment and operation to the provincial business registration authority where the company's main office, branches, or representative offices are located.

Article 10. Forms of Organization and Operation of Insurance Companies

Insurance companies may be organized and operate under the following forms:

1. For State-owned Insurance Corporations:

a) The main office of the Corporation;

b) The main offices of member units;

c) Representative offices.

2. For other state-owned insurance companies, joint-stock insurance companies, and foreign-invested insurance companies:

a) The main office of the company;

b) Branches;

c) Representative offices.

3. Establishing branches or representative offices of Vietnamese insurance companies abroad must be approved by the Ministry of Finance and comply with relevant laws.

Article 11. Branches of Insurance Companies

1. A branch of an insurance company is a dependent unit of the insurance company, operating according to the provisions of this Decree and stipulated in the company's articles of association. The insurance company is responsible for all activities of the branch.

2. An insurance company may establish a branch outside the province or centrally-administered city where the company's main office is located to carry out activities specified in the license for establishment and operation.

3. The application for establishing a branch includes:

a) Application for establishing a branch;

b) Report on the company's operational situation in the previous fiscal year;

c) Survey report on insurance demand at the location where the insurance company requests to establish a branch;

d) Business plan of the branch for the next three years, specifying the content, scope of operations, expected insurance products to be operated; organizational structure and staffing plans; location of the branch;

đ) Curriculum vitae, diplomas, and certificates of the branch manager;

4. Within thirty days from the date of receipt of a complete application, the Ministry of Finance must respond in writing regarding approval or rejection. In case of rejection, the Ministry of Finance must provide a written explanation of the reasons.

Article 12. Representative Office of Insurance Enterprises

1. The representative office is a dependent unit of insurance enterprises and shall not engage in business operations.

2. Insurance enterprises may establish representative offices outside the province or centrally governed city where the enterprise's headquarters or branch is located.

3. The application for establishing a representative office includes:

a) An application to establish a representative office;

b) Documentation explaining the necessity of establishing the representative office; the scope of activities; the location of the representative office;

c) Curriculum vitae, diplomas, and certificates of the head of the representative office.

4. Within thirty days from the date of receipt of a complete application, the Ministry of Finance must respond in writing regarding approval or rejection. In case of rejection, the Ministry of Finance must provide a written explanation of the reasons.

Article 13. Changes in Content, Scope, and Duration of Operations

1. In cases where insurance enterprises wish to change the content, scope, or duration of operations specified in their establishment and operation permit, the insurance enterprise must submit a request to amend and supplement the permit to the Ministry of Finance.

2. If an insurance enterprise wishes to expand the content and scope of operations specified in its establishment and operation permit, the insurance enterprise must also submit rules, terms, and premium schedules for proposed insurance products; business plans, including customer needs; market forecasts; expected business results; technical infrastructure.

3. Within thirty days from the date of receipt of the request to amend and supplement the establishment and operation permit, the Ministry of Finance must respond to the insurance enterprise regarding approval or rejection. In case of rejection, the Ministry of Finance must provide a written explanation of the reasons.

4. In cases where the Ministry of Finance approves changes to one of the contents stipulated in Article 69 of the Insurance Business Law, the insurance enterprise must publish the approved content according to Clause 2 of Article 8 of this Decree.

Article 14. Chairman of the Board of Management, General Director (Director)

1. The Chairman of the Board of Management of an insurance enterprise must be a person with reputation, professional ethics, and experience in insurance business operations.

2. The General Director (Director) of an insurance enterprise must be a person with reputation, professional ethics, practical experience in managing business or state management in insurance for at least three years, and must reside permanently in Vietnam during their tenure.

3. The appointment or change of the Chairman of the Board of Management, General Director (Director) of an insurance enterprise must be approved by the Ministry of Finance, except in cases where the Chairman of the Board of Management and General Director of a state-owned insurance enterprise are appointed by the Prime Minister.

4. Within thirty days from the date of receipt of the written request from the insurance enterprise, the Ministry of Finance must respond to the insurance enterprise regarding approval or rejection. In case of rejection, the Ministry of Finance must provide a written explanation of the reasons.

Section 2

INSURANCE OPERATIONS

Article 15. Selling Insurance

1. Insurance enterprises may invite customers to participate in insurance within the content and scope of operations specified in their establishment and operation permit. Invitations to participate in insurance may be made directly to customers or through their representatives.

2. Insurance enterprises shall not compel organizations or individuals to purchase insurance in any form.

Article 16. Selling Insurance Through Insurance Agents and Brokers

1. An insurance company may authorize an insurance agent to sell insurance products.

2. An insurance broker shall guide and advise customers to participate in insurance according to the customer's requirements.

3. Insurance brokers and agents have the obligation to:

a) Honestly explain information about insurance products so that the insurance buyer fully understands the intended insurance product;

b) Not disclose or provide information that harms the rights and legitimate interests of the insurance buyer.

4. Insurance brokers and agents shall not influence the insurance buyer to provide false or fail to provide necessary information for the insurance company.

Article 17. Insurance Through Auctions

1. The purchase and sale of insurance can be conducted through auctions.

2. The organization of auctions must comply with the following regulations:

a) Ensuring transparency, bidding conditions must be applied equally to all participating insurance companies;

b) The bidding documents of insurance companies must clearly state the insurance conditions, insurance period, insurance rules, insurance premiums, and other provisions as required by the bidding documents;

c) The basis for evaluation is the bidding invitation document, the quoted insurance premium, and related services.

3. The auction procedures shall be carried out in accordance with the provisions of the law.

Article 18. Rules, Terms, and Premium Schedules for Insurance

1. The Ministry of Finance shall issue insurance rules, terms, premium levels, and minimum insurance amounts for each type of mandatory insurance.

2. For life insurance, health insurance, and personal accident insurance products, insurance companies must comply with the insurance rules, terms, and premium schedules approved by the Ministry of Finance.

3. For other insurance products, insurance companies must register with the Ministry of Finance the insurance rules, terms, and premium schedules before implementation, in accordance with the Ministry of Finance's guidelines.

4. In cases where an insurance company enters into an insurance contract not in accordance with the rules, terms, and premium schedules issued, approved, or registered with the Ministry of Finance, the insurance company must compensate the insurance buyer for any resulting losses, and the insurance buyer is not responsible for paying the insurance premium.

Article 19. Approval Procedures for Insurance Products

1. For types of insurance products subject to approval of rules, terms, and premium schedules as stipulated in Clause 2 of Article 18 of this Decree, insurance companies must submit a written request to the Ministry of Finance along with the following documents:

a) The rules, terms, premium schedule, and insurance commission of the proposed insurance product;

b) The formula, method, and explanation of the basis for calculating premiums and business reserves of the proposed insurance product.

2. Within thirty days from the date of receipt of complete documents, the Ministry of Finance must respond in writing to approve or reject the approval. In case of rejection, the Ministry of Finance must provide a written explanation of the reasons.

Article 20. Insurance Commissions

1. Insurance companies may only pay insurance commissions from the actual insurance premiums collected at the rate specified by the Ministry of Finance for each insurance business.

2. The recipients of insurance commissions include:

a) Insurance brokers;

b) Insurance agents.

3. Insurance commissions shall not be paid to the following entities:

a) Organizations and individuals not permitted to operate as insurance agents or brokers in Vietnam;

b) Organizations and individuals directly purchasing insurance, except in the case of an insurance agent purchasing life insurance for themselves;

c) Employees of the insurance company itself.

Section 3

REINSURANCE ACTIVITIES

Article 21. Reinsurance

An insurance enterprise may reinsure with other insurance enterprises in an effective manner and must ensure its committed liability to the policyholder.

Article 22. Compulsory Reinsurance

1. In cases where reinsurance is provided for insurance enterprises located abroad, the insurance enterprise must reinsure 20% of the liability of the concluded insurance contracts to the Vietnam National Reinsurance Corporation. The reduction in compulsory reinsurance ratio shall be in accordance with international treaties to which Vietnam has acceded or joined.

2. The rights and obligations of the Vietnam National Reinsurance Corporation towards each risk related to the contract of accepting compulsory reinsurance will commence and terminate concurrently with the original insurance contract of the insurance enterprises.

3. The Ministry of Finance shall stipulate the list of reinsurance business, compulsory reinsurance commissions.

Article 23. Ceding Reinsurance

An insurance enterprise may transfer part of the liability it has accepted for insurance to one or more other insurance enterprises but shall not cede the entire liability of the insurance contract it has accepted to another insurance enterprise to receive reinsurance commission.

Article 24. Accepting Reinsurance

An insurance enterprise may accept reinsurance liability that another insurance enterprise has accepted for insurance. When accepting reinsurance, the insurance enterprise must assess the risk to ensure it is consistent with the financial capacity of the enterprise.

Section 4

OTHER ACTIVITIES OF INSURANCE ENTERPRISES

Article 25. Prevention and Limitation of Losses

1. An insurance enterprise may apply preventive measures to ensure the safety of the insured object upon the consent of the policyholder or competent state authority.

2. Measures for prevention and limitation of losses include:

a) Organizing propaganda and education;

b) Subsidizing and supporting means and materials to prevent and limit risks;

c) Supporting the construction of works aimed at preventing and mitigating the level of risk for insured objects.

3. Insurance enterprises are allowed to allocate a certain percentage of the actual premium income according to the regulations of the Ministry of Finance to implement preventive and loss-limiting measures.

Article 26. Inspection of Losses

1. The inspection of losses shall be carried out in accordance with the provisions of Article 48 of the Law on Insurance Business. The inspection agency shall be responsible for the results of the inspection.

2. The inspection of losses must ensure honesty, objectivity, scientific accuracy, timeliness, and precision.

3. The results of the inspection of losses must be recorded in the inspection report.

Article 27. Transfer of Insurance Contracts

1. The transfer of insurance contracts shall be carried out in accordance with the provisions of Articles 74, 75, and 76 of the Law on Insurance Business.

2. In cases where the entire insurance contract of one or several insurance businesses is transferred, the insurance enterprise must submit a written request to the Ministry of Finance to amend and supplement the establishment and operation license.

 

Chapter III

INSURANCE AGENTS AND INSURANCE INTERMEDIARIES

Section 1

INSURANCE AGENTS

Article 28. Principles of Insurance Agency Operations

1. Organizations and individuals engaged in insurance agency operations must meet the conditions for agency operations as stipulated in Article 86 of the Law on Insurance Business and must sign an insurance agency contract in accordance with Article 87 of the Law on Insurance Business.

2. Employees of insurance enterprises shall not act as agents for the same insurance enterprise.

3. Organizations and individuals shall not simultaneously act as agents for other insurance enterprises without the approval of the insurance enterprise they are currently representing.

Article 29. Rights and Obligations of Insurance Enterprises in Insurance Agency Activities

1. The insurance enterprise has the following rights:

a) To select insurance agents and conclude insurance agency contracts;

b) To stipulate the level of commission payment in insurance agency contracts in accordance with legal provisions;

c) To receive and manage the deposit money or collateral assets of insurance agents, if agreed upon in the insurance agency contract;

d) To request insurance agents to pay the insurance premiums collected as agreed in the insurance contract;

đ) To inspect and supervise the implementation of insurance agency contracts;

e) To enjoy other lawful benefits from insurance agency activities.

2. The insurance enterprise has the following obligations:

a) To organize training and issue certificates for insurance agents in accordance with legal regulations;

b) To guide and provide complete and accurate information necessary for insurance agency activities;

c) To fulfill responsibilities arising from signed insurance agency contracts;

d) To pay commissions as agreed in the insurance agency contract;

đ) To refund deposit money or collateral assets to insurance agents as agreed;

e) To be responsible for damages or losses caused by its own insurance agency activities as agreed in the insurance agency contract;

g) To be subject to inspection and supervision by competent state agencies regarding activities carried out by its insurance agents.

Article 30. Rights and Obligations of Insurance Agents

1. Insurance agents have the following rights:

a) To select and conclude insurance agency contracts with insurance enterprises in accordance with legal regulations;

b) To participate in training courses, enhancement programs, and advanced training sessions organized by insurance enterprises;

c) To be provided with necessary information for their activities and other conditions to implement insurance agency contracts;

d) To enjoy commissions and other lawful benefits from insurance agency activities;

đ) To request insurance enterprises to refund deposit money or collateral assets as agreed in the insurance agency contract.

2. Insurance agents have the following obligations:

a) To fulfill commitments in signed insurance agency contracts with insurance enterprises;

b) To provide a deposit or collateral assets to insurance enterprises if agreed upon in the insurance agency contract;

c) To introduce, solicit, and sell insurance; to provide full and accurate information to policyholders; to perform insurance contracts within the scope of authority granted in the insurance agency contract;

d) To be subject to inspection and supervision by competent state agencies and to fully perform financial obligations as prescribed by law.

Article 31. Training of Insurance Agents

1. Organizations permitted to train insurance agents include insurance enterprises and the Vietnam Insurance Association.

2. Conditions for training insurance agents include:

a) Having a training program as specified in Article 32 of this Decree;

b) Training staff must possess specialized knowledge in insurance, legal knowledge, and pedagogical skills;

c) Having sufficient physical facilities to ensure training.

3. Insurance enterprises and the Vietnam Insurance Association wishing to train insurance agents must submit a written request to the Ministry of Finance for approval of the insurance agent training program, accompanied by documentation explaining the qualifications of the training staff and the facilities ensuring training. Within thirty days from the date of receipt of the request from the insurance enterprise or the Vietnam Insurance Association, the Ministry of Finance must respond in writing with approval or rejection. In case of rejection, the Ministry of Finance must provide a written explanation of the reasons.

Article 32. Ctraining program for insurance agents

The insurance agent training program includes the following main contents:

1. General knowledge about insurance;

2. Responsibilities of agents, professional ethics of agents;

3. Laws on insurance business;

4. Contents of insurance products that insurance companies are permitted to sell;

5. Insurance selling skills;

6. Rights and obligations of insurance companies and insurance agents in insurance agency activities;

7. Practical insurance agency practice.

Article 33. Management of insurance agent training

1. The Ministry of Finance shall be responsible for inspecting and supervising insurance agent training activities. In cases where insurance companies or the Vietnam Insurance Association do not meet the conditions for insurance agent training as stipulated in Article 31 of this Decree, the Ministry of Finance will suspend such training activities.

2. Insurance companies and the Vietnam Insurance Association must report annually to the Ministry of Finance on the number of training courses organized, the number of agents trained, and the number of certificates issued in the year.

Section 2

INSURANCE BROKERING COMPANIES

Article 34. Types of insurance broking companies

Types of insurance broking companies include:

1. State-owned insurance broking company;

2. Joint-stock insurance broking company;

3. Limited liability insurance broking company;

4. Partnership insurance broking company;

5. Private insurance broking company;

6. Joint venture insurance broking company;

7. Foreign-invested insurance broking company with 100% foreign capital.

Article 35. Issuance of license for establishment and operation

1. Organizations and individuals wishing to engage in insurance brokering activities as provided for in Article 90 of the Insurance Business Law must establish an insurance broking company.

2. The issuance of licenses for the establishment and operation of insurance broking companies shall be carried out in accordance with the provisions of Article 93 of the Insurance Business Law. However, the application for a license to establish and operate an insurance broking company does not need to specify the method of setting aside business reserves, reinsurance programs, investment funds, and payment capacity in the business plan.

3. Insurance broking companies granted a license for establishment and operation must pay a licensing fee. The licensing fee rate each time is 0.1% of the statutory capital.

Article 36. Principles of insurance brokering operations

Insurance broking companies can only advise and introduce to policy buyers insurance rules, terms, and premium rates that have been issued, approved by the Ministry of Finance or registered with the Ministry of Finance by insurance companies.

Article 37. AApplication of other regulations

Procedures before commencing operations; organizational forms of insurance broking companies; changes in the scope, content, and duration of operations of insurance broking companies; provisions regarding the Chairman of the Board of Directors and General Manager (Director) shall be applied according to the provisions of Articles 8, 10, 13, and 14 of this Decree.

 

Chapter IV

INSURANCE COMPANIES,

FOREIGN-INVESTED INSURANCE BROKERING COMPANIES

Section 1

INSURANCE COMPANIES,

FOREIGN-INVESTED INSURANCE BROKERING COMPANIES

Article 38. Capital contribution ratio in joint venture insurance companies and insurance broking companies

1. The capital contribution ratio of the Vietnamese side in joint venture insurance companies and insurance broking companies must not be less than 30% of the charter capital.

2. Parties within joint venture insurance companies and insurance broking companies may agree to transfer the value of their capital contributions in the joint venture, but must prioritize transferring to parties within the joint venture.

Article 39. Content, Scope, and Area of Operation

1. Foreign-invested insurance enterprises and foreign-invested insurance brokerage enterprises are not subject to limitations on the content and scope of their operations when selling insurance products to foreign-invested enterprises, foreign organizations and individuals; non-state-owned enterprises; products serving agricultural, forestry, fishery development programs, financial risk insurance, and professional liability insurance.

2. In addition to the cases stipulated in Clause 1 of this Article, the expansion of the content and scope of operations shall be carried out in accordance with the guidelines of the Ministry of Finance, in line with market development needs and international treaties to which Vietnam is a party.

3. Within the first year of operation, foreign-invested insurance enterprises and foreign-invested insurance brokerage enterprises are only permitted to open one branch outside the main office to conduct insurance and insurance brokerage business.

4. After three years from the date of commencement of operations, foreign-invested insurance enterprises and foreign-invested insurance brokerage enterprises are allowed to open two additional branches to conduct insurance and insurance brokerage business.

5. After five years from the date of commencement of operations, the establishment of additional branches by foreign-invested insurance enterprises and foreign-invested insurance brokerage enterprises shall be carried out based on market development needs and international treaties to which Vietnam is a party.

Article 40. AApplication of other regulations

Other provisions regarding establishment and operation, exploitation of insurance, reinsurance, and other activities for foreign-invested insurance enterprises and foreign-invested insurance brokerage enterprises are applied according to the provisions of Chapter II, Section 2 of Chapter III of this Decree.

Section 2

REPRESENTATIVE OFFICE OF FOREIGN INSURANCE ENTERPRISES,

FOREIGN INSURANCE BROKERAGE ENTERPRISES IN VIETNAM

Article 41. Representative Office

The representative office of foreign insurance enterprises and foreign insurance brokerage enterprises in Vietnam is a subsidiary unit of the foreign insurance enterprise or foreign insurance brokerage enterprise.

Article 42. Content of Activities of the Representative Office

1. The representative office of foreign insurance enterprises and foreign insurance brokerage enterprises in Vietnam shall carry out the following activities:

a) Performing liaison office functions;

b) Market research;

c) Promoting the construction of investment projects by foreign insurance enterprises and foreign insurance brokerage enterprises;

d) Promoting and monitoring the implementation of projects funded by foreign insurance enterprises and foreign insurance brokerage enterprises in Vietnam;

e) Other activities in compliance with Vietnamese law.

2. The representative office of foreign insurance enterprises and foreign insurance brokerage enterprises in Vietnam shall not engage in business activities in Vietnam.

Article 43. Fees for Issuance of License and Publicizing of Content of Operations

1. The fee for each issuance or extension of a license is 1 (one) million Vietnamese dong.

2. Within twelve months from the date of issuance of the license, the representative office must commence its formal operations. Within thirty days from the date of issuance of the license to establish the representative office, the representative office must publicize the contents specified in the license to establish the representative office.

Article 44. Term of Operation

1. The term of operation of the representative office of foreign insurance enterprises and insurance brokerage enterprises in Vietnam shall not exceed five years.

2. If wishing to extend the term of operation, the representative office of foreign insurance enterprises and insurance brokerage enterprises in Vietnam must submit an application for extension.

3. The permit for establishing a representative office shall be revoked in the following cases:

a) Expiration of the term of operation without submitting an application for extension or without approval from the Ministry of Finance;

b) The foreign insurance enterprise or insurance brokerage enterprise being deprived of its license;

c) Operating contrary to the purpose or not complying with the contents stipulated in the permit for establishing a representative office.

4. Upon completion of operations, the representative office of foreign insurance enterprises and insurance brokerage enterprises must fulfill all procedures and obligations as prescribed by law.

Article 45. Reporting on Operations

The representative office of foreign insurance enterprises and insurance brokerage enterprises in Vietnam must report periodically on the activities of the office according to the guidelines of the Ministry of Finance.

 

Chapter V

STATE MANAGEMENT OF INSURANCE BUSINESS ACTIVITIES

Article 46. Responsibilities of the Ministry of Finance in State Management of Insurance Business

The Ministry of Finance shall have the responsibility:

1. To guide the implementation of legal documents on insurance business; to develop policies, systems related to insurance business activities, strategies, planning, plans, and development policies for the Vietnamese insurance market;

2. To issue and revoke licenses for the establishment and operation of insurance enterprises and insurance brokerage enterprises; to issue and revoke permits for establishing representative offices of foreign insurance enterprises and insurance brokerage enterprises in Vietnam;

3. To promulgate, approve, and guide the implementation of insurance rules, terms, premium rates, and commissions;

4. Ato apply necessary measures to ensure that insurance enterprises meet financial requirements and fulfill commitments to policyholders;

5. To organize information and forecasting of the insurance market situation;

6. To cooperate internationally in the field of insurance;

7. To approve the activities of insurance enterprises and insurance brokerage enterprises operating abroad;

8. To manage the activities of representative offices of foreign insurance enterprises and insurance brokerage enterprises in Vietnam;

9. To organize training and build a team of management and specialized staff in insurance;

10. To inspect and supervise insurance business activities; to handle complaints, denunciations, and violations of laws on insurance business;

11. To organize the dissemination of laws on insurance business;

12. To organize the machinery and train staff to perform state management tasks in insurance business.

Article 47. Responsibilities of Ministries, Agencies Equivalent to Ministries, and Government Agencies in Implementing Laws on Insurance Business

Ministries, agencies equivalent to ministries, and government agencies within their respective functions, duties, and authorities shall have the responsibility:

1. To coordinate with the Ministry of Finance in developing policies and systems related to insurance business activities;

2. To coordinate with the Ministry of Finance in supervising and inspecting the implementation of laws on insurance business; handling complaints, denunciations, and violations of laws on insurance business;

3. To perform other tasks within their authority as prescribed by law.

Article 48. Responsibilities of the People's Committees of provinces and centrally governed cities in implementing insurance business laws Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).The People's Committees of provinces and centrally governed cities shall be responsible within their scope of duties and powers as follows:

Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).1. To handle procedures related to the establishment and operation of insurance enterprises, insurance brokerage enterprises, representative offices of foreign insurance enterprises, and foreign insurance brokerage enterprises within their jurisdiction, after such enterprises have been granted licenses by the Ministry of Finance;

2. To coordinate with the Ministry of Finance in handling complaints, denunciations, and dealing with violations of insurance business laws within their jurisdiction;

Article 49. Inspection of Insurance Business Activities

3. To perform other tasks within their authority as prescribed by law.

The inspection of insurance business activities shall be carried out in accordance with Article 122 of the Insurance Business Law and shall comply with the regulations on inspection work for enterprises under the law.

Article 50. Awards

 

Chapter VI

REWARD AND VIOLATION HANDLING

Organizations and individuals who have made achievements in insurance business activities contributing to economic and social development, ensuring market safety, complying well with legal provisions, and detecting violations of insurance business laws shall be awarded according to the law.

Article 51. Handling Violations

1. Organizations and individuals who violate insurance business laws shall be dealt with by the Ministry of Finance according to the following forms depending on the severity of the violation:

b) Suspension of operations;

a) Warning;

c) Narrowing down the content, scope, and area of operations;

d) Revocation of license.

2. The decision on handling shall be notified in writing to the violating organizations and individuals, relevant agencies, and published publicly.

Article 52. Effectiveness of the Decree

 

Chapter VII

IMPLEMENTING PROVISIONS

2. Decree No. 100/CP dated December 18, 1993 of the Government on insurance business and Decree No. 74/CP dated June 14, 1997 of the Government amending and supplementing certain provisions of Decree No. 100/CP dated December 18, 1993 of the Government on insurance business shall cease to be effective from the date this Decree takes effect.

1. This Decree shall take effect fifteen days from the date of signature.

Article 53. Transitional Provisions

Within one year from the date this Decree takes effect, insurance enterprises currently operating both life insurance and non-life insurance businesses must complete the procedures to separate their life insurance business operations from their non-life insurance business operations.

1. The Minister of Finance shall guide the implementation of this Decree.

Article 54. Implementation Organization

1. The Minister of Finance shall provide guidance for the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairmen Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).Provincial People's Committees under the Central Government are responsible for implementing this Decree./.