Decree No. 45/2018/ND-CP stipulates on agricultural insurance and support policies for agricultural insurance premiums in Vietnam. This Decree takes effect from June 5, 2018.
适用范围
Ministers, Heads of ministerial-level agencies, Heads of government agencies under the central government, Chairpersons of provincial/municipal People's Committees directly under the central government, and other entities subject to this Decree.
要点
- Regulations on agricultural insurance for crops, livestock, and aquaculture
- Support policy for agricultural insurance premiums
- Responsibilities of the Ministry of Finance, the Ministry of Agriculture and Rural Development, and the People's Committee of provinces/cities directly under the central government in implementing agricultural insurance and support policies for agricultural insurance premiums.
- Requirement for insurance companies to comply with rules, terms, and approved premium schedules.
- The time frame for implementing support for agricultural insurance premiums is specified in the Prime Minister's Decision.
🌐 本文件的社会影响
- Enhance prevention and mitigation capabilities for risks in agricultural production.
- Economic support for rural residents when encountering natural disasters and epidemics.
- Improve the investment environment for insurance companies participating in the agricultural insurance sector.
❓ 常见问题
When does this Decree take effect?
Decree No. 45/2018/ND-CP takes effect from June 5, 2018.
Who is responsible for implementing agricultural insurance and support policies for insurance premiums?
The Ministry of Finance, the Ministry of Agriculture and Rural Development, and the People's Committee of provinces/cities directly under the central government are responsible for organizing the implementation of agricultural insurance and support policies for agricultural insurance premiums.
What regulations must insurance companies comply with?
Insurance companies must strictly comply with approved rules, terms, and premium schedules. Any changes must be approved by the Ministry of Finance before implementation.
全文
| THE GOVERNMENT |
SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness |
| Number: 58/2018/NĐ-CP | Hanoi, April 18, 2018 |
DECREE
On agricultural insurance
Pursuant to the Law on Government Organization dated June 19, 2015;
Pursuant to the State Budget Law on June 25, 2015;
Pursuant to the Insurance Business Law on December 9, 2000 and the Law Amending and Supplementing Certain Provisions of the Insurance Business Law on November 24, 2010;
Pursuant to Resolution No. 32/2016/QH14 dated November 23, 2016 of the National Assembly on continuing to enhance the effectiveness of implementing the national target program for new rural development in conjunction with restructuring the agricultural sector;, effectiveness in the implementation of the national target program for building new rural areas in conjunction with restructuring the agricultural sector;
At the proposal of the Minister of Finance;
The Government issues this Decree on agricultural insurance.
PART I
GENERAL PROVISIONS
Article 1. Scope of Regulation
This Decree stipulates on agricultural insurance and support policies for agricultural insurance aimed at encouraging non-life insurance enterprises to implement agricultural insurance and creating conditions for organizations and individuals engaged in the agricultural, forestry, and fisheries sectors to proactively mitigate and compensate financial losses due to risks occurring during production.
Article 2. Applicability
This Decree applies to:
1. Organizations and individuals engaged in the agricultural, forestry, and fisheries sectors (hereinafter referred to as organizations and individuals engaged in agricultural production).
2. Non-life insurance enterprises, branches of foreign non-life insurance enterprises (hereinafter referred to as insurance enterprises), reinsurance enterprises established, organized, and operated in accordance with the Insurance Business Law and relevant laws.
3. Agencies, organizations, and individuals related to the implementation of agricultural insurance and support policies for agricultural insurance.
Article 3. Explanation of Terms
In this Decree, the following terms are understood as follows:
1. The purchaser of agricultural insurance is an organization or individual entering into an agricultural insurance contract with an insurance enterprise and paying the insurance premium. The purchaser of agricultural insurance may simultaneously be the insured party under the agricultural insurance contract.
2. The insured party under agricultural insurance is an organization or individual whose production objects in the agricultural, forestry, and fisheries sectors are insured under the agricultural insurance contract.
3. Agricultural insurance is a type of insurance covering production objects in the agricultural, forestry, and fisheries sectors, whereby the purchaser of insurance pays the insurance premium, and the insurance enterprise compensates the insured party when an insured event occurs.
4. Co-insurance in agricultural insurance involves two or more insurance enterprises jointly entering into an insurance contract with the purchaser of insurance to insure a single agricultural insurance object under the same rules, terms, and premium rates.
5. Reinsurance in agricultural insurance is the activity of an insurance enterprise or reinsurance enterprise receiving a portion of the agricultural insurance premium from another insurance enterprise to commit to compensating for liabilities already insured.
Article 4. Types of agricultural insurance
1. Named risk insurance, whereby when an insured event occurs, the insurance enterprise compensates for actual losses caused by specific risks agreed upon in the agricultural insurance contract.
2. All-risk insurance, whereby when an insured event occurs, the insurance enterprise compensates for actual losses caused by all risks, except for cases excluded from liability as agreed in the agricultural insurance contract.
3. Income loss insurance, whereby when an insured event occurs, the insurance enterprise compensates for production costs to offset losses caused by insured risks as agreed in the agricultural insurance contract.
4. Yield index insurance, whereby when an insured event occurs, the insurance enterprise compensates according to the actual decline in yield of a geographic area (district, commune, etc.) as agreed in the agricultural insurance contract, regardless of the actual loss of the insured object.
5. Weather index insurance, whereby when an insured event occurs, the insurance enterprise compensates according to changes in weather indices (rainfall, wind, drought, flooding, frost damage, hail, dew, earthquakes, tsunamis, etc.) as agreed in the agricultural insurance contract, regardless of the actual loss of the insured object.
6. Remote sensing index insurance, whereby when an insured event occurs, the insurance enterprise compensates according to changes in remote sensing indices as agreed in the agricultural insurance contract, regardless of the actual loss of the insured object.
7. Other types of agricultural insurance as agreed in the agricultural insurance contract.
Article 5. Principles for Implementing Agricultural Insurance and Support Policies for Agricultural Insurance
1. Agricultural insurance shall be implemented on a voluntary basis without limiting organizations and individuals participating in insurance, insured objects, risks covered, and the geographical scope.
2. Support policies for agricultural insurance shall be carried out in accordance with the budget balance capacity during each period, through subsidizing premiums for some organizations and individuals engaged in agricultural production, insured objects, risks covered, and within a certain geographical scope to implement social welfare policies and implement government programs for developing agricultural production.
Chapter II
PROVISIONS ON AGRICULTURAL INSURANCE
Section 1
SPECIFIC PROVISIONS ON IMPLEMENTING AGRICULTURAL INSURANCE
Article 6. Agricultural Insurance Contract
1. In addition to the contents stipulated in the Law on Insurance Business, the policyholder and the insurance company shall specifically agree and clearly record in the agricultural insurance contract the following contents:
a) The name and contact address of the individual who is a unit subordinate to the insurance company responsible for resolving issues arising from the implementation of the agricultural insurance contract.
b) The method for determining the insurance amount.
c) Cases where deductibles or reduced compensation amounts apply (if any).
d) Loss appraisal work; loss appraisal agency; loss appraisal costs.
e) Determination of insurance events, compensation bases; cases of compensation based on disaster or disease announcements or confirmations by authorized agencies; insurance based on indices, specific agreements on indices directly related to the insured object's losses, agencies or organizations determining the actual index deviation compared to the insured index; methods for determining compensation amounts.
f) Compensation forms; claim documents (specifically agreeing on the documents that the policyholder and the insured must provide to the insurance company); compensation deadlines.
g) Responsibilities of the parties in risk control work, prevention, limitation of losses, and anti-fraud measures according to this Decree.
h) Responsibilities of the policyholder and the insured in fully implementing agricultural production procedures and technical standards (if any).
2. The insurance contract concluded between organizations and individuals eligible for subsidized agricultural insurance premiums and the insurance company shall be implemented according to Article 32 of this Decree.
Article 7. Co-insurance in Agricultural Insurance
1. Insurance companies have the right to implement agricultural insurance through co-insurance to distribute and share risks, ensure financial safety, and maintain a healthy competitive environment.
2. In the case of co-insurance in agricultural insurance:
a) The agricultural insurance contract must clearly state the name and co-insurance ratio of each insurance company participating in co-insurance; the name of the lead insurance company responsible for implementing the insurance contract. All insurance companies must jointly bear responsibility for the commitments made in the agricultural insurance contract with the policyholder.
b) The lead insurance company has the responsibility to handle procedures related to the conclusion of the insurance contract and represent other participating co-insurance companies in resolving matters arising from the implementation of the agricultural insurance contract.
Article 8. Reinsurance for Agricultural Insurance
1. In the case of domestic reinsurance, the participating enterprise must ensure:
a) Meeting the requirements regarding capital, solvency margin, and compliance with regulations on accepting reinsurance as stipulated in the Law on Insurance Business and guiding documents.
b) Having an agricultural reinsurance program ensuring safety, effectiveness, and compliance with legal provisions.
2. In the case of overseas reinsurance, insurance enterprises shall implement according to legal provisions on overseas reinsurance.
Article 9. Compensation for Agricultural Insurance
1. When an insured event occurs, the insurance enterprise shall handle compensation in accordance with the agreement in the agricultural insurance contract and legal provisions.
2. The amount of compensation that the insurance enterprise must pay to the insured person is determined based on the market price of the insured object at the time and place of loss and the actual degree of damage, except where otherwise agreed in the insurance contract. In the case of index insurance, the insurance enterprise pays compensation to the insured person based on the change in the actual index compared to the index agreed upon in the insurance contract and legal provisions.
3. The amount of compensation paid by the insurance enterprise to the insured person shall not exceed the amount of insurance, except where otherwise agreed in the insurance contract.
Article 10. Dispute Resolution
1. Disputes arising from the implementation of agricultural insurance contracts shall first be resolved through negotiation in accordance with the agreement in the insurance contract, the Law on Insurance Business, and related legal provisions.
2. If disputes cannot be resolved through negotiation, the parties involved have the right to bring the matter before a competent court in Vietnam for resolution in accordance with legal provisions.
Article 11. Rules, Terms, and Premium Schedules for Agricultural Insurance
1. Insurance enterprises shall proactively establish rules, terms, and premium schedules for agricultural insurance, ensuring compliance with the Law on Insurance Business, relevant legal provisions, and notifying the Ministry of Finance in writing before implementation.
2. In the case of implementing a support policy for agricultural insurance, insurance enterprises must obtain approval from the Ministry of Finance for the rules, terms, and premium schedules for agricultural insurance before implementation. The procedures and formalities for approving agricultural insurance products are carried out in accordance with Article 33 of this Decree.
Article 12. Responsibilities of Insurance Enterprises in Contracting and Implementing Agricultural Insurance Contracts
1. Providing full explanations and information related to the insurance contract, rules, terms, and premium schedules to the insured party. The insurance enterprise shall only enter into an agricultural insurance contract when the insured party confirms understanding of the contents related to the insurance contract, rules, terms, and premium schedules for agricultural insurance.
2. Entering into agricultural insurance contracts on the principle of voluntariness, autonomy, and self-responsibility; ensuring the principle of majority compensating minority and actively implementing risk diversification and sharing through co-insurance and agricultural reinsurance methods.
3. Proactively implementing risk control, prevention, and limitation of losses, and preventing and combating insurance fraud in accordance with Section 2, Chapter II of this Decree.
4. Promptly dispatching staff to approach the insured object and guide the insured person to take measures to limit losses (if applicable). Paying necessary and reasonable expenses to limit losses.
5. Organizing loss assessment work to determine the cause and extent of losses openly and transparently in accordance with the agreement in the agricultural insurance contract and legal provisions. In the case of index insurance, collecting public statements and confirmation from competent authorities about the insured event (if agreed in the insurance contract); organizing work to determine the extent of the difference between the actual index and the agreed-upon insured index in the insurance contract.
6. When determining that the loss falls within the scope of compensation responsibility, dispatching staff to guide the insured person on the necessary documents and materials to be provided for the compensation process.
7. Fully paying compensation to the insured person in accordance with the agreement in the agricultural insurance contract and legal provisions.
8. Fulfilling other responsibilities as agreed in the agricultural insurance contract and legal provisions.
Article 13. Responsibilities of the insurance buyer and the insured in the conclusion and performance of agricultural insurance contracts
1. Ensuring that they have insurable interests in the insured objects as prescribed by law.
2. Providing full and truthful information related to the insured objects (including cases where the insured objects suffer damage) to the insurance company.
3. Concluding agricultural insurance contracts after fully understanding all relevant information about the insurance contract, rules, terms, and premium rates provided and explained by the insurance company.
4. Proactively implementing risk control measures, prevention, limitation of losses, and fraud prevention in insurance as stipulated in Section 2 Chapter II of this Decree.
5. Creating conditions for the insurance company to inspect safety assurance conditions for the insured objects.
6. Promptly notifying the insurance company of the occurrence of insurance events; implementing measures according to the guidance of the insurance company to limit losses.
7. Closely coordinating with the insurance company in the loss assessment work to determine the cause and extent of losses, and to settle compensation.
8. Fulfilling other responsibilities as agreed in the agricultural insurance contract and legal provisions.
Section 2
RISK CONTROL, PREVENTION, LIMITATION OF LOSSES AND FRAUD PREVENTION IN INSURANCE
ARTICLE 14. Responsibilities in Risk Control, Prevention, Limitation of Losses and Fraud Prevention in Insurance
Article 14. Responsibilities in Risk Control, Prevention, Limitation of Losses and Fraud Prevention in Insurance
The insurance company, the insurance buyer, the insured, and related competent authorities shall be responsible for risk control, prevention, limitation of losses, and fraud prevention in insurance when implementing agricultural insurance and supporting policies for agricultural insurance as prescribed in Articles 15, 16, and 17 of this Decree.
Article 15. Risk Control
1. Risk control in agricultural insurance is the process of identifying, assessing, monitoring, and managing potential risks that may negatively impact the implementation of agricultural insurance and supporting policies for agricultural insurance.
2. The insurance company has the responsibility to:
a) Develop and organize the implementation of risk control measures and procedures, specifying the specific responsibilities of each individual and department in the risk control process.
b) Regularly review and evaluate annually to ensure the effectiveness and efficacy of risk control measures and procedures.
3. The insurance buyer and the insured proactively implement risk control measures and procedures for the insured objects in agricultural production activities, including fully complying with regulations on disease prevention and control, plant quarantine and protection, environmental protection, technical standards for agricultural production issued by competent authorities, and other relevant legal provisions to ensure the safety of the insured objects.
4. Related competent authorities organize the implementation, supervision, and guidance for organizations and individuals engaged in agricultural production to perform risk control work in agricultural production activities; organize information dissemination and propaganda on risk control work in agricultural production activities.
Article 16. Prevention and Mitigation of Losses
1. Prevention and mitigation of losses in agricultural insurance refers to the application of measures to avoid and limit potential losses to the insured objects.
2. Prevention and mitigation of losses primarily fall under the responsibility of the policyholder and the insured. The policyholder and the insured shall proactively implement preventive measures, respond to, and mitigate the consequences of natural disasters; prevent and control diseases and mitigate losses following disease outbreaks in accordance with the law; immediately notify the insurance company about the occurrence of an insured event; and implement loss prevention and mitigation measures as guided by the insurance company (if applicable).
3. Insurance companies shall implement prevention and mitigation of losses in agricultural insurance as follows:
a) Measures for prevention and mitigation of losses include:
- Organizing training, propaganda, and education; supporting the organization of training and propaganda on agricultural insurance support policies by local authorities;
- Financing and supporting equipment and materials to prevent and mitigate risks;
- Supporting the construction of facilities aimed at preventing and reducing the level of risk for insured objects;
- Hiring other organizations and individuals to monitor, prevent, and mitigate losses.
b) Insurance companies may allocate up to 10% of the premium income from agricultural insurance to fund the measures for prevention and mitigation of losses specified in point a of this clause.
4. Relevant functional agencies shall guide the implementation of measures for prevention and mitigation of losses in agricultural production, including early detection and reporting of animal disease situations, forecasting and warning of animal diseases; guiding measures to prevent and control animal diseases; organizing disease control and implementing protective measures when plant pests occur; directing the rapid containment and eradication of diseases; organizing disaster response activities and post-disaster recovery operations; and promoting work on prevention and mitigation of losses in agricultural production activities.
Article 17. Prevention and Combating Fraud in Insurance
1. Prevention and combating fraud in agricultural insurance involves implementing measures to prevent and limit fraudulent acts during the conclusion and execution of agricultural insurance contracts with the aim of defrauding money from insurance companies.
2. Insurance companies have the responsibility to proactively develop and implement measures to prevent, detect, and reduce fraudulent insurance acts; organize propaganda work to prevent and combat insurance fraud.
3. The policyholder and the insured shall actively participate in the prevention and combating of insurance fraud. In case of discovering fraudulent acts, they must promptly report them to the insurance company and relevant competent authorities.
4. Relevant functional agencies shall coordinate with insurance companies, policyholders, and insured parties to organize the prevention and combating of insurance fraud in their respective areas, ensuring social order stability during the implementation of agricultural insurance and agricultural insurance support policies.
Chapter III
POLICY ON SUPPORT FOR AGRICULTURAL INSURANCE
Article 18. Subjects eligible for insurance support
1. Crops: Rice, rubber, black pepper, cashew, coffee, fruit trees, vegetables.
2. Livestock: Buffalo, cattle, pigs, poultry.
3. Aquaculture: Black tiger shrimp, whiteleg shrimp, tra fish.
Article 19. Level of Support
1. Individuals engaged in agricultural production belonging to poor or near-poor households: Maximum support of 90% of agricultural insurance premium.
2. Individuals engaged in agricultural production not belonging to poor or near-poor households: Maximum support of 20% of agricultural insurance premium.
3. Organizations engaged in agricultural production under cooperative, linked, concentrated, large-scale models applying science and technology and advanced production processes towards clean agriculture, high-tech agriculture, environmentally friendly: Maximum support of 20% of agricultural insurance premium.
Article 20. Insured Risks Eligible for Support
1. Natural disasters, including:
Typhoons, tropical depressions, whirlwinds, lightning, heavy rain, floods, flash floods, flooding, landslides caused by floods or water flow, land subsidence caused by floods or water flow, water rise, saltwater intrusion, heatwaves, droughts, cold snaps, hailstorms, frost, earthquakes, tsunamis. Natural disasters must be announced or confirmed by competent state authorities.
2. Disease risks, including:
a) Animal diseases:
- Diseases of terrestrial animals: Infectious diseases of terrestrial animals listed in the animal disease list requiring declaration of epidemic (including dangerous infectious diseases causing significant economic and social losses and dangerous infectious diseases between humans and animals) issued by competent authorities in accordance with veterinary laws.
- Diseases of aquatic animals: Diseases of aquatic animals listed in the disease list requiring declaration of epidemic issued by competent authorities in accordance with veterinary laws.
b) Plant pests: Plant pests that pose a rapid spread risk over a wide area and cause serious damage to plants as stipulated by plant protection and quarantine laws.
Diseases must be announced or confirmed by competent state authorities.
Article 21. Areas Eligible for Support
1. Provinces and centrally governed cities eligible for agricultural insurance premium support belong to key production areas according to the restructuring direction of the agricultural sector and the development planning of the agricultural sector. The Prime Minister decides on the list of supported subjects, types of crops, livestock, aquaculture, and insured risks eligible for support. Provincial People's Committees and centrally governed city People's Committees in eligible areas organize the selection and announcement of areas eligible for agricultural insurance premium support through local mass media and notify in writing to the Ministry of Finance and the Ministry of Agriculture and Rural Development.
2. Each province or centrally governed city may implement across the entire area or in certain district or commune-level areas. Based on the Prime Minister's decision regarding supported subjects, types of crops, livestock, aquaculture, and insured risks eligible for support, provincial People's Committees and centrally governed city People's Committees in eligible areas organize the selection and announcement of areas eligible for agricultural insurance premium support through local mass media and notify in writing to the Ministry of Finance and the Ministry of Agriculture and Rural Development.
Article 22. Implementation of agricultural insurance support policies during each period
1. Based on the provisions of Articles 18, 19, 20, and Clause 1 of Article 21 of this Decree and the budget balancing capacity during each period, the Prime Minister shall issue a specific Decision regarding the organizations and individuals engaged in agricultural production eligible for support; types of crops, livestock, and aquaculture eligible for support; types of risks covered by insurance eligible for support; level of support; time frame for implementing support; areas eligible for support; level of support from the central budget to local budgets for implementing agricultural insurance premium support.
2. Organizations and individuals engaged in agricultural production are eligible for agricultural insurance premium support when they meet all conditions: They belong to the category of organizations and individuals eligible for agricultural insurance premium support with insured objects and participating in insurance for risks covered according to the Prime Minister's Decision stipulated in Clause 1 of this Article and are within the supported area as announced by the provincial People's Committee as stipulated in Clause 2 of Article 21 of this Decree.
Article 23. Sources of funding for support
1. Funding for agricultural insurance premium support is guaranteed from the central government budget, local government budget, and allocated in the annual state budget estimate.
2. The level of support from the central budget to local budgets for implementing agricultural insurance premium support is carried out according to the regulations on the principle of targeted support from the central budget to local budgets for implementing social welfare policies.
Article 24. Documentation, procedures, and processes for approving eligible recipients of support
1. The application for approval of eligible recipients of support includes the following documents:
a) Application form for considering and approving eligible recipients of support according to Form No. 01 prescribed in the Appendix issued together with this Decree.
b) Declaration form on crops, livestock, and aquaculture according to Form No. 02 prescribed in the Appendix issued together with this Decree.
c) Documents proving eligibility for agricultural insurance premium support for cases where the eligible recipient is an agricultural production organization.
2. Procedures and processes for approving eligible recipients of support
a) Based on the Prime Minister's Decision and the announcement of the provincial People's Committee on the supported areas as stipulated in Clause 2 of Article 21 of this Decree, organizations and individuals engaged in agricultural production prepare the application for approval of eligible recipients of support as stipulated in Clause 1 of this Article and submit it (directly or via postal service) to the People's Committee of the commune where the organization or individual carries out agricultural production.
b) Within fifteen days from the date of receiving complete and valid applications as stipulated in Clause 1 of this Article, based on the Prime Minister's Decision and the announcement of the provincial People's Committee on the supported areas as stipulated in Clause 2 of Article 21 of this Decree, the People's Committee of the commune reviews and compiles a list of organizations and individuals engaged in agricultural production applying for approval of eligible recipients of support and reports it to the People's Committee of the district.
c) Within fifteen days from the date of receiving the report from the People's Committee of the commune, based on the Prime Minister's Decision and the announcement of the provincial People's Committee on the supported areas as stipulated in Clause 2 of Article 21 of this Decree, the application for approval of eligible recipients of support sent by the People's Committee of the commune and the report from the People's Committee of the commune, the People's Committee of the district conducts verification and compiles a list of organizations and individuals engaged in agricultural production eligible for support and sends it to the Department of Agriculture and Rural Development.
d) Within five working days from the date of receiving the verification report from the People's Committee of the district, based on the Prime Minister's Decision and the verification report from the People's Committee of the district, the Department of Agriculture and Rural Development compiles and reports to the provincial People's Committee to issue a decision approving the list of eligible recipients of agricultural insurance premium support according to Form No. 03 prescribed in the Appendix issued together with this Decree. This decision is sent to the Department of Finance, the Department of Agriculture and Rural Development, the People's Committee of the district, and relevant communes.
đ) Within five working days from the date the provincial People's Committee issues the decision approving the list of eligible recipients of support, the People's Committee of the commune implements public posting of the list of organizations and individuals engaged in agricultural production eligible for agricultural insurance premium support at the People's Committee of the commune office, announces it on the village information and communication system, and sends copies to the organizations and individuals engaged in agricultural production upon their request.
3. Quarterly, the provincial People's Committee is responsible for directing the Department of Agriculture and Rural Development and relevant levels of People's Committees to organize the implementation of the process of approving eligible recipients of support in cases of new applications for approval from organizations and individuals engaged in agricultural production according to the procedures and processes stipulated in Clause 2 of this Article; at the same time, they conduct reviews and adjustments to the approved list of eligible recipients of support in cases of notifications as stipulated in Clause 4 of this Article.
4. Organizations and individuals engaged in agricultural production listed in the decision approving the list of eligible recipients of support have the responsibility to review; if they no longer qualify as eligible recipients of support or if there is a change in poverty status or near-poverty status according to the annual investigation results of competent authorities leading to a change in the level of agricultural insurance premium support, within five working days from the date they no longer qualify as eligible recipients of support or the effective date of the decision recognizing them as poor or near-poor households, organizations and individuals engaged in agricultural production must notify in writing according to Form No. 04 prescribed in the Appendix issued together with this Decree to the People's Committee of the commune.
Within ten days from the end of each month, the People's Committee of the commune shall aggregate and report to the People's Committee of the district for the latter to aggregate and submit to the Department of Agriculture and Rural Development as the basis for reviewing and adjusting the list of beneficiaries approved in accordance with Clause 3 of this Article and for verifying the application documents for payment of subsidized agricultural insurance premiums in accordance with Point b, Clause 2, Article 26 of this Decree.
Article 25. Methods of Subsidizing Agricultural Insurance Premiums
The subsidy for insurance premiums shall be implemented through insurance companies in accordance with the procedures and formalities stipulated in Article 26 of this Decree after the conclusion of insurance contracts and the occurrence of insurance liabilities under such contracts.
Article 26. Documents, Procedures, and Formalities for Payment of Subsidized Agricultural Insurance Premiums from the State Budget
1. Application documents for payment of subsidized agricultural insurance premiums from the state budget shall be prepared by the insurance company and shall include the following documents:
a) An application form for payment of subsidized agricultural insurance premiums from the state budget in accordance with Form No. 05 prescribed in the Appendix attached to this Decree.
b) A schedule (accompanied by a copy) of agricultural insurance contracts that the insurance company has concluded with organizations and individuals engaged in agricultural production in accordance with Form No. 06 prescribed in the Appendix attached to this Decree.
2. Procedures and formalities for payment of subsidized agricultural insurance premiums from the state budget
a) Within ten days from the end of each month, the insurance company shall prepare the application documents for payment of subsidized agricultural insurance premiums from the state budget as prescribed in Clause 1 of this Article and send them (either directly or via postal service) to the Department of Agriculture and Rural Development of the province or centrally-administered city.
b) Within ten days from the date of receipt of complete and valid application documents as prescribed in Clause 1 of this Article, based on the Prime Minister’s Decision and the Decision approving the list of beneficiaries issued by the provincial People's Committee in accordance with Article 24 of this Decree, the Department of Agriculture and Rural Development shall take the lead and coordinate with the Department of Finance to complete the verification process and issue a Decision on payment of subsidized agricultural insurance premiums from the central and local budgets. In case of refusal to pay, the Department of Agriculture and Rural Development shall notify the insurance company in writing and specify the reasons.
c) Within ten days from the date of issuance of the Decision on payment by the provincial People's Committee, the Department of Finance shall base on the Decision on payment of the provincial People's Committee to issue an order to transfer funds to the insurance company through the Provincial Treasury; the Provincial Treasury shall then transfer the funds to the account of the insurance company opened at commercial banks.
d) In case the payment to the insurance company has not been completed as prescribed in Point c, Clause 2 of this Article, the provincial People's Committee shall instruct the Department of Finance to notify the insurance company in writing and specify the reasons.
Article 27. Termination of Subsidies for Agricultural Insurance Premiums
1. In cases where policy changes lead to alterations in the conditions for receiving subsidies for agricultural insurance premiums, the beneficiaries, and the level of premium subsidies, organizations and individuals engaged in agricultural production shall continue to enjoy subsidies for agricultural insurance premiums according to their existing agricultural insurance contracts until the expiration of the insurance period.
2. In cases where poverty and near-poverty status changes annually as determined by competent authorities result in changes to the level of premium subsidies, individual agricultural producers shall continue to enjoy the original level of premium subsidies according to their existing agricultural insurance contracts until the expiration of the insurance period.
3. In cases where agricultural insurance contracts terminate prematurely before the agreed term, organizations and individuals engaged in agricultural production shall return to the state budget the amount of subsidized agricultural insurance premiums corresponding to the remaining duration of the insurance contract as prescribed in Clause 4 of this Article.
4. Organizations and individuals engaged in agricultural production shall cease to enjoy subsidies for agricultural insurance premiums and return to the state budget the amount of subsidized agricultural insurance premiums corresponding to the remaining duration of the insurance contract from the following points in time:
a) When organizations and individuals engaged in agricultural production no longer meet the conditions for receiving subsidies for agricultural insurance premiums as prescribed in Clause 2, Article 22 of this Decree (except in the case prescribed in Clause 1 of this Article).
b) Premature termination of agricultural insurance contracts.
Organizations and individuals engaged in agricultural production shall return the amount of subsidized agricultural insurance premiums through the insurance company in accordance with the procedures and formalities prescribed in Clause 5 of this Article.
5. In cases where they no longer meet the conditions for receiving subsidies for agricultural insurance premiums as prescribed in Point a, Clause 4 of this Article, organizations and individuals engaged in agricultural production and insurance companies shall follow the provisions below:
a) Within five working days from the point in time when they no longer qualify as beneficiaries of subsidized agricultural insurance premiums, organizations and individuals engaged in agricultural production shall have the responsibility to inform the People's Committee of the commune to carry out the procedures as prescribed in Clause 4, Article 24 of this Decree and the insurance company to carry out the procedures for returning the subsidized agricultural insurance premiums. The notification shall clearly indicate the point in time when organizations and individuals engaged in agricultural production no longer qualify as beneficiaries of subsidized agricultural insurance premiums.
b) The insurance company shall handle the legal consequences related to the subsidized agricultural insurance premiums as prescribed in Clause 6 of this Article.
6. Procedures and Formalities for Returning Subsidized Agricultural Insurance Premiums
a) Within ten days from the end of the month, the insurance company shall compile the cases stipulated in Clause 4 of this Article and send a notification letter (either directly or through postal service) to the Department of Agriculture and Rural Development where the application for agricultural insurance premium payment was received.
b) Within ten days from receiving the notification letter from the insurance company, the Department of Agriculture and Rural Development shall take the lead and coordinate with the Department of Finance and the insurance company to complete the review:
- The amount of insurance premium that organizations and individuals engaged in agricultural production are responsible for returning to the state budget corresponding to the remaining period of the insurance contract, after deducting reasonable costs related to the insurance contract (in case the state budget has fully transferred the agricultural insurance premium support to organizations and individuals engaged in agricultural production). Reasonable costs shall be carried out according to the agreement in the insurance contract.
- The amount of insurance premium that the state budget is responsible for transferring to the insurance company corresponding to the insured period up to the date of termination of the insurance contract (in case the state budget has not fully transferred the agricultural insurance premium support to organizations and individuals engaged in agricultural production).
For the case stipulated in point a of Clause 4 of this Article, the remaining period of the insurance contract shall be calculated from the time when organizations and individuals engaged in agricultural production no longer meet the conditions to receive agricultural insurance premium support.
For the case stipulated in point b of Clause 4 of this Article, the remaining period of the insurance contract shall be calculated from the time the insurance coverage terminates before the due date.
The review results must be documented and kept at the Department of Agriculture and Rural Development.
c) Based on the review results, within ten days, the Department of Agriculture and Rural Development shall prepare a report for the People's Committee of the province to consider and decide on transferring the insurance premium to the insurance company or requesting the insurance company to return the insurance premium to the state budget according to the provisions of point b of this Clause.
This decision shall be sent to relevant agencies: the Department of Agriculture and Rural Development, the Department of Finance, the State Treasury of the province, the People's Committee of the district where the supported object is located, and the related insurance company.
d) Based on the decision of the People's Committee of the province, within ten days from the date the People's Committee of the province issues the Decision, the Department of Finance shall issue an order to pay money to the insurance company through the State Treasury of the province; the State Treasury of the province shall carry out the transfer of funds to the account of the insurance company opened at commercial banks or vice versa, the insurance company shall come directly to the State Treasury of the province to complete the procedures for returning funds to the state budget.
Article 28. Budget Estimation
Along with the annual budget estimation process, based on the number of organizations and individuals engaged in agricultural production eligible for support under the Prime Minister's Decision and the demand for participation in agricultural insurance, the Department of Agriculture and Rural Development shall estimate the funding required for supporting agricultural insurance premiums and submit it to the Department of Finance for consolidation, clearly identifying the local government budget portion to be balanced and the central government support portion as prescribed, reporting to the People's Committee of the province together with the local government budget expenditure plan according to the State Budget Law to be submitted to the Ministry of Finance for consolidation into the annual state budget plan as prescribed.
Article 29. Budget Allocation, Management, and Settlement of Expenditure
1. Allocation of Budget Estimates
a) Annually, based on the budget assigned by the Prime Minister, the Ministry of Finance shall implement targeted supplementary funding from the central government's budget to local budgets for the implementation of agricultural insurance support policies as stipulated in this Decree.
b) Based on the budget assigned by the Prime Minister and the portion of the local budget that is self-assured, the Department of Finance shall take the lead and coordinate with the Department of Agriculture and Rural Development to develop a plan for allocating the budget expenditure, report to the People's Council at the provincial level for consideration and decision-making on the allocation of funds for implementing agricultural insurance support policies within the approved budget.
2. Regarding management and settlement of expenditure
a) The People's Committee at the provincial level is responsible for managing and using, and settling expenditures in accordance with the purpose and regulations of the State Budget Law. In case there is remaining unspent agricultural insurance premium support funding at the end of the year, it shall be handled according to the provisions of the State Budget Law. If there is insufficient funding during the year, localities shall proactively advance funds to pay insurers; simultaneously, they shall submit documents to the Ministry of Finance and the Ministry of Agriculture and Rural Development for consideration of additional funding from the central budget (for localities receiving central budget support). At the conclusion of the implementation period of the agricultural insurance support policy, any surplus central government support funding (if any) shall be requested to be returned to the central budget.
b) Agricultural insurance premium support funding shall be consolidated into the annual settlement of state budget expenditures at each level of budget according to the provisions of the State Budget Law, guiding documents of the Law, and the current state budget classification.
Article 30. Conditions for Insurance Companies to Implement Agricultural Insurance Support Policies
Insurance companies implementing agricultural insurance support policies must ensure the following requirements:
1. Engaging in agricultural insurance business activities in accordance with the License for Establishment and Operation, meeting the capital and solvency requirements as prescribed, having internal procedures of the insurance company for exploitation, appraisal, and compensation of agricultural insurance, internal control and audit procedures in compliance with the law; having a reinsurance program for agricultural insurance ensuring safety, effectiveness, and compliance with legal regulations.
2. The leading insurance company or the designated insurance company as the main party to execute insurance contracts must have its headquarters or branch located in the province or centrally-administered city where the agricultural insurance support policy is implemented.
Article 31. Method of Implementing Agricultural Insurance Support Policies
Insurance companies implement agricultural insurance support policies through a co-insurance method on all insurance contracts.
Article 32. Insurance Contracts Implementing Agricultural Insurance Support Policies
When concluding agricultural insurance contracts, agricultural production organizations and individuals eligible for agricultural insurance premium support and insurance companies must comply with the following provisions:
1. The insurance contract must include all contents prescribed in Clause 1, Article 6 of this Decree.
2. Conclude the insurance contract when agricultural production organizations and individuals meet all conditions for agricultural insurance premium support as stipulated in Clause 2, Article 22 of this Decree and have been approved by the provincial People's Committee as eligible for agricultural insurance premium support in accordance with Article 24 of this Decree.
3. Conclude independently from other agricultural insurance contracts.
4. Clearly separate the insurance premium that agricultural production organizations and individuals receive support from the state budget and the insurance premium that agricultural production organizations and individuals are responsible for paying themselves (not supported by the state budget).
5. Agree specifically on the payment period and method of insurance premiums in compliance with legal regulations. For the insurance premium that agricultural production organizations and individuals receive support from the state budget, the payment of insurance premiums shall be carried out in accordance with Article 26 of this Decree.
6. Agree on the validity period of the insurance not exceeding one year.
Article 33. Documents, Procedures, and Formalities for Approving/Amending Agricultural Insurance Products
1. Insurance enterprises implementing agricultural insurance products for organizations and individuals engaged in agricultural production eligible for subsidized agricultural insurance premiums must be approved by the Ministry of Finance before implementation.
2. Insurance enterprises shall submit (directly or via postal service) one set of documents to request the Ministry of Finance's approval, including the following:
a) An application form for approving agricultural insurance products according to Model No. 07 stipulated in the Appendix issued together with this Decree;
b) Rules, terms, and premium schedules of the proposed agricultural insurance product;
c) Formulas, methods, and technical explanations used to calculate premiums and business reserves of the proposed agricultural insurance product, confirmed by experts in reserve calculation and solvency, ensuring that the insurance premium is based on statistical data, guaranteeing the insurer’s solvency, and corresponding to the conditions and liabilities of the insurance;
d) Sample insurance application forms, insurance contracts, product introduction materials, sales illustration materials, and other forms that the policyholder must fill out and sign when purchasing insurance.
3. Procedures and formalities for approving agricultural insurance products
a) Within ten days from the date of receiving complete and valid documents as prescribed in Clause 2 of this Article, the Ministry of Finance will compile and seek opinions from the Ministry of Agriculture and Rural Development regarding the insurance enterprise's request to approve agricultural insurance products.
b) Within ten days from the date of receiving the Ministry of Finance's request document, the Ministry of Agriculture and Rural Development will provide comments on the insurance enterprise's request to approve agricultural insurance products.
c) Within ten days from the date of receiving the Ministry of Agriculture and Rural Development's comment document, based on the insurance enterprise's request for approval of agricultural insurance products, the Ministry of Finance will review and issue a document to approve. In case of refusal to approve, the Ministry of Finance will issue a document explaining the reasons.
4. Insurance enterprises are responsible for strictly adhering to the approved rules, terms, and premium schedules. Any changes must be approved by the Ministry of Finance before implementation.
Article 34. Monitoring Revenue and Expenses
Insurance enterprises shall separately monitor revenue, expenses, and the results of implementing agricultural insurance and revenue, expenses, and the results of implementing the agricultural insurance support policy.
Chapter IV
IMPLEMENTATION
Article 35. Responsibilities of the Ministry of Finance
1. Organize publicity on agricultural insurance as prescribed in this Decree.
2. Take the lead and coordinate with the Ministry of Agriculture and Rural Development to develop the Prime Minister's Decision as stipulated in Clause 1 of Article 22 of this Decree.
3. Take the lead and coordinate with the Ministry of Agriculture and Rural Development to approve/amend agricultural insurance products as prescribed in Article 33 of this Decree.
4. Allocate budget to implement the agricultural insurance support policy.
5. Take the lead and coordinate with the Ministry of Agriculture and Rural Development to report to the Government and the Prime Minister on the results of implementing this Decree as required by the Government and the Prime Minister.
Article 36. Responsibilities of the Ministry of Agriculture and Rural Development
1. Organize propaganda to implement agricultural insurance as prescribed in this Decree.
2. Coordinate with the Ministry of Finance to develop the Prime Minister's Decision as prescribed in Clause 1, Article 22 of this Decree.
3. Coordinate with the Ministry of Finance to approve/change agricultural insurance products as prescribed in Article 33 of this Decree.
4. Issue guiding documents on disaster announcement procedures; disaster and disease confirmation procedures as prescribed in Article 20 of this Decree.
5. Coordinate with the Ministry of Finance to report to the Government and the Prime Minister on the implementation results of this Decree as required by the Government and the Prime Minister.
6. Issue technical procedures, standards, and criteria in agricultural production to facilitate the implementation of agricultural insurance and agricultural insurance support policies.
Article 37. Responsibilities of the People's Committees of Provinces and Central Cities
1. Organize propaganda and mobilization for organizations and individuals engaged in agricultural production to implement agricultural insurance as prescribed in this Decree.
2. Implement agricultural insurance and agricultural insurance support policies as prescribed in this Decree. Direct departments, sectors, and localities under their jurisdiction to coordinate in implementing agricultural insurance and agricultural insurance support policies as prescribed in this Decree.
3. Organize the approval of beneficiaries as prescribed in Article 24 of this Decree.
4. Based on the approved budget estimate, allocate local budget funds to implement agricultural insurance premium support and issue financial support for agricultural insurance premiums as prescribed in this Decree.
5. Direct relevant agencies to organize risk control, prevention, limitation of losses, and fraud prevention in agricultural insurance as prescribed in Section 2 Chapter II of this Decree.
6. Implement reporting procedures as follows:
a) Quarterly and annually, provincial-level People's Committees are responsible for preparing detailed reports on agricultural insurance premium support funding according to Model 08 prescribed in the Appendix issued together with this Decree and send them to the Ministry of Finance; report on the implementation results of agricultural insurance for crops, livestock, and aquaculture according to Model 09 prescribed in the Appendix issued together with this Decree and send them to the Ministry of Agriculture and Rural Development.
b) Reporting deadlines
- Quarterly report: No later than 30 days from the end of the quarter.
- Annual report: No later than 60 days from the end of the fiscal year.
Article 38. Responsibilities of the Vietnam Farmers' Union
1. Coordinate with local authorities to organize the implementation of agricultural insurance as prescribed in this Decree.
2. Guide and mobilize members to comply with laws on the implementation of agricultural insurance and related laws on crop cultivation, animal husbandry, forestry, and aquaculture.
3. Proactively promote the implementation of agricultural insurance as prescribed in this Decree.
Article 39. Responsibilities of Insurance Companies
1. Implement agricultural insurance and agricultural insurance support policies as prescribed in this Decree.
2. Insurance companies implementing agricultural insurance support policies shall be responsible for:
a) Prepare and submit business reports monthly, quarterly, and annually to the Ministry of Finance according to Models 10 and 11 prescribed in the Appendix issued together with this Decree and report on business operation results quarterly and annually according to Models 12 and 13 prescribed in the Appendix issued together with this Decree.
b) Reporting deadlines
- Monthly report: No later than 15 days from the end of the month.
- Quarterly report: No later than 30 days from the end of the quarter.
- Annual report: No later than 90 days from the end of the fiscal year.
c) In addition to the business reports prescribed in point a of this Clause, the Ministry of Finance may request insurance companies to submit additional reports on their operational and financial situations to serve statistical work and assess the implementation of agricultural insurance.
d) Insurance companies are responsible for the accuracy and honesty of their reports.
Chapter V
IMPLEMENTING PROVISIONS
Article 40. Effective Date
1. This Decree takes effect from June 5, 2018. The period for implementing agricultural insurance premium support is specified in the Prime Minister's Decision according to Clause 1, Article 22 of this Decree during each period.
2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of provincial-level People's Committees, and entities subject to this Decree are responsible for its implementation./.
| PRIME MINISTER PRIME MINISTER |
|
| (Signed) | |
| Nguyen Xuan Phuc |
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