Decision No. 53/2014/QD-TTg On piloting financial mechanisms for the Insurance Management and Supervision Department - Ministry of Finance

Pursuant to …;

Regarding the pilot financial mechanism

for the Insurance Supervision and Management Department,  - Ministry of Finance

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

According 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. 130/2005/NĐ-CP dated October 17, 2005 of the Government on the self-management and self-responsibility regime regarding the use of staff positions and administrative management funds for state agencies;

Pursuant to Decree No. 117/2013/NĐ-CP dated October 7, 2013 of the Government amending and supplementing certain articles of Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government on the self-management and self-responsibility regime regarding the use of staff positions and administrative management funds for state agencies;

Implementing Decision No. 193/QĐ-TTg dated February 15, 2012 of the Prime Minister on the Strategy for Developing the Insurance Market in Vietnam for the period 2011-2020;

At the proposal of the Minister of Finance,

The Prime Minister issues this Decision on the pilot financial mechanism for the Insurance Supervision and Management Department - Ministry of Finance.

Article 1. To implement the pilot financial mechanism for the Insurance Supervision and Management Department. The pilot period will run from 2015 to 2019.

Article 2. Sources of self-managed funds and usage content:

1. Sources of self-managed funds for the Insurance Supervision and Management Department include:

a) State budget funds allocated to ensure regular operations according to current regulations;

b) Contributions from insurance businesses aimed at strengthening management and supervision of the insurance market. Insurance businesses contribute directly to the Insurance Supervision and Management Department, which may use 100% of these contributions to enhance management and supervision activities. The contribution rate is 0.03% of annual gross premium income (for insurance companies); 0.03% of annual reinsurance premium income (for reinsurance companies); 0.03% of annual insurance brokerage commission income (for insurance brokers). These contributions are recorded as legitimate expenses of insurance businesses.

c) Revenue from research, training, and certification activities for insurance agents: units under the Insurance Supervision and Management Department collect revenue according to regulations.

Point d) Other lawful sources of funds.

2. Usage content of self-managed funds:

a) Expenditure for management and supervision:

- Salary expenditure with a maximum salary coefficient not exceeding twice the state-prescribed salary level (grade, rank, and various allowances, excluding night shift and overtime pay);

- Administrative expenditure according to prescribed standards;

- Purchase of assets for management and supervision purposes;

- Expenditure to strengthen management and supervision, inspection, and audit;

- Special activity expenditure;

- Other expenses as prescribed by law.

b) Expenditure for public service units: Expenditure to support the activities of public service units (having legal personality and self-funding their operations).

c) If there is any surplus in the self-managed funds, the Insurance Supervision and Management Department may allocate it for expenditures as stipulated in Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government on the self-management and self-responsibility regime regarding the use of staff positions and administrative management funds for state agencies, Decree No. 117/2013/NĐ-CP dated October 7, 2013 of the Government amending and supplementing certain articles of Decree No. 130/2005/NĐ-CP, and relevant laws.

Article 3. Funds allocated without implementing the self-management system

In addition to the self-managed funds, the Insurance Supervision and Management Department will be allocated state budget funds annually to perform special tasks according to prescribed regulations.

Article 4. In case of necessity, the Minister of Finance shall proactively coordinate the use of revenues specified in Points b and c, Clause 1, Article 2 of this Decision within the Insurance Supervision and Management Department.

Article 5. Implementation

1. The Ministry of Finance shall guide the management and use of revenue for business management and supervision activities as stipulated in this Decision.

2. The Ministry of Finance shall instruct the Insurance Supervision and Management Department to organize implementation, periodically assess the situation, and ensure compliance with objectives and requirements.

3. By the third quarter of 2019, the Ministry of Finance shall organize a review and evaluation of the results of the pilot financial mechanism for the Insurance Supervision and Management Department - Ministry of Finance, based on which it shall coordinate with relevant agencies to submit

Article 6. Effectiveness

Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial People's Committees directly under the central government, and related agencies, organizations, and individuals are responsible for implementing this Decision./.

Ministers: Finance, Home Affairs, Labor, Invalids and Social Affairs; Director of the Insurance Supervision and Management Department and heads of relevant agencies are responsible for enforcing this Decision.