This Circular amends and supplements certain articles in Circulars No. 105/2016/TT-BTC, No. 195/2014/TT-BTC, and No. 115/2014/TT-BTC on insurance companies' reports. It also repeals Circular No. 116/2014/TT-BTC and takes effect from December 26, 2020.
Scope of application
Insurance enterprises, Provincial People's Committees
Key points
- Amending the obligation to report on indirect foreign investment and enterprise classification assessment for insurance companies
- Repealing Circular No. 116/2014/TT-BTC on financial matters for insurance companies implementing insurance under Decree No. 67/2014/NĐ-CP from January 1, 2021
- Takes effect from December 26, 2020.
- Requesting detailed reporting on the situation of supporting fishing insurance premiums and implementing crew accident insurance, hull insurance, equipment insurance, and fishing gear insurance quarterly and annually.
- Deadline and method for submitting reports directly or through the email system or information reporting system of the Ministry of Finance when available.
- Amending the Model License for Establishment and Operation to replace Appendix No. 02 issued with Circular No. 50/2017/TT-BTC
🌐 Social impact of this document
- Enhancing transparency in the financial management of insurance companies
- Helping state management agencies promptly grasp the operations of insurance companies and take appropriate measures.
- Creating a fair and healthy competitive business environment for insurance companies.
❓ Frequently asked questions
What changes does this Circular make regarding insurance companies' reports?
This Circular amends the obligation to report on indirect foreign investment and enterprise classification assessment for insurance companies, and requests detailed reporting on the situation of supporting fishing insurance premiums and implementing crew accident insurance, hull insurance, equipment insurance, and fishing gear insurance quarterly and annually.
When does this Circular take effect?
This Circular takes effect from December 26, 2020.
Full text
CIRCULAR
Amending and supplementing some articles of Circular No. 50/2017/TT-BTC dated May 15, 2017 of the Ministry of Finance guiding the implementation of Decree No. 73/2016/NĐ-CP dated July 1, 2016 of the Government detailing the implementation of the Law on Insurance Business and the Law amending and supplementing certain provisions of the Law on Insurance Business and Circular No. 04/2021/TT-BTC dated January 15, 2021 of the Ministry of Finance detailing certain provisions of Decree No. 03/2021/NĐ-CP dated January 15, 2021 of the Government on mandatory civil liability insurance for motor vehicles
The Law on Insurance Business dated December 9, 2000;
7Decision No. 3/2016/NĐ-CP dated July 1, 2016 of the Government detailing the implementation of the Insurance Business Law
and the Law Amending and Supplementing Certain Provisions of the Insurance Business Lawinsurance and the Law amending and supplementingi, supplement some clauses
; Circular No. 105/2016/TT-BTC dated June 29, 2016 of the Ministry of Finance guiding indirect foreign investment activities of securities trading organizations, investment funds, securities investment companies, and insurance businesses;
Circular No. 195/2014/TT-BTC dated December 17, 2014 of the Ministry of Finance guiding the assessment and classification of insurance enterprises;
Circular No. 115/2014/TT-BTC dated August 20, 2014 of the Ministry of Finance guiding the implementation of insurance policies stipulated in Decree No. 67/2014/NĐ-CP of the Government on certain policies for developing fisheries;
Repealing Circular No. 116/2014/TT-BTC dated August 20, 2014
Circular of the Ministry of Finance guiding certain financial issues for insurance enterprises implementing insurance as prescribed in Decree No. 67/2014/NĐ-CP
at all levels pursuant to the Conclusion of the Government on certain policies for developing fisheries and Circular No. 43/2016/TT-BTC dated March 3, 2016 19/2018/TT-BGTVT) which has been amended and supplemented by Clause 7, Article 1 of Circular No. 08/2024/TT-BGTVT dated April 4, 2024, issued by the Minister of Transport, amending and supplementing certain articles of Circular No. 19/2018/TT-BGTVT
of the Ministry of Finance amending Article 5 of Circular No. 116/2014/TT-BTC dated August 20
, 2014 of the Ministry of Finance guiding certain financial issues for insurance enterprises implementing insurance as prescribed in Decree No. 62014/NĐ-
CP dated July 7, 2014 of the Government on certain policies for developing fisheries;
On the basis of the Insurance Business Law dated December 9, 2000; On the basis of the Law Amending and Supplementing Certain Provisions of the Insurance Business Law dated November 24, 2010;On the basis of the Law Amending and Supplementing Certain Provisions of the Insurance Business Law and the Intellectual Property Law dated June 14
, 2019;On the basis of Decision No. 73/2016/NĐ-CP dated July 1, 2016 of the Government detailing the implementation of the Insurance Business Law and the Law Amending and Supplementing Certain Provisions of the Insurance Business Law;
Decision No. 80/2019/NĐ-CP dated November 1, 2019 of the Government amending and supplementing certain provisionsof Decision No. 73/2016/NĐ-CP dated July 1, 2016 of the Government detailing the implementation of the Insurance Business Law and the Law Amending and Supplementing Certain Provisions of the Insurance Business Law;7/Decision No. 98/2013/NĐ-CP dated August 28, 2013 of the Government on administrative penalties in the field of insurance business and lottery business which has been amended and supplemented with certain provisions according to Decision No. 48/2018/NĐ-CP dated March 21, 2018 of the Government;
The Minister of Finance promulgates this Circular
amending and supplementing certain provisions of Circular No. 50/2017/TT-BTC dated May 15, 2017 of the Ministry of Finance guiding the implementation of Decision No. 73/2016/NĐ-CP dated July 1, 2016 of the Government detailing the implementation of the Insurance Business Law and the Law Amending and Supplementing Certain Provisions of the Insurance Business Law, Circular No. 105/2016/TT-BTC dated June 29, 2016 of the Ministry of Finance guiding indirect foreign investment activities of securities trading organizations, investment funds, securities investment companies, and insurance businesses, Circular No. 195/2014/TT-BTC dated December 17, 2014 of the Ministry of Finance guiding the assessment and classification of insurance enterprises, Circular No. 115/2014/TT-BTC dated August 20
, 2014 of the Ministry of Finance guiding the implementation of insurance policies stipulated in Decision No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on certain policies for developing fisheries, repealing Circular No. 116/2014/TT-BTC dated August 20, 2014
of the Ministry of Finance guiding certain financial issues for insurance enterprises implementing insurance as prescribed in Decision No. 6
2014/NĐ-CP dated July 7, 2014 of the Government on certain policies for developing fisheries and Circular No. 43/2016/TT-BTC dated March 3, 2016of the Ministry of Finance amending Article 5 of Circular No. 116/2014/TT-BTC dated August 20
, 2014 of the Ministry of Finance guiding certain financial issues for insurance enterprises implementing insurance as prescribed in Decision No. 67/2014/NĐ-CPdated July 7, 2014 of the Government on certain policies for developing fisheries.
policies for developing fisheries
Pursuant to the Insurance Business Law dated December 9, 2000;
Pursuant to the Law on amendmentand supplementation of certain articles of the Insurance Business Law dated November 24, 2010;
Pursuant to the Law on amendment and supplementation of certain articles of the Insurance Business Law and the Intellectual Property Law dated June 14,2019;
Pursuant to Decree No. 73/2016/ND-CP dated July 1, 2016 of the Government detailing the implementation of the Insurance Business Law and the Law amending and supplementing certain articles of the Insurance Business Law;Decree No. 80/2019/ND-CP dated November 1, 2019 of the Government amending and supplementing certain articles
Pursuant toof Decree No. 73/2016/ND-CP dated July 1, 2016 of the Government detailing the implementation of the Insurance Business Law and the Law amending and supplementing certain articles of the Insurance Business Law; Law Decree No. 98/2013/ND-CP dated August 28, 2013 of the Government on administrative penalties in the field of insurance business, lottery business which has been amended and supplemented certain articles according to Decree No. 48/2018/ND-CP dated March 21, 2018 of the Government;The Minister of Finance issues this Circular amending and supplementing certain articles of Circular No. 50/2017/TT-BTC dated May 15, 2017 of the Ministry of Finance guiding the implementation of Decree No. 73/2016/ND-CP dated July 1, 2016 of the Government detailing the implementation of the Insurance BusinessLaw and the Law amending and supplementing
Pursuant to Decree No. 09/2019/NĐ-CP dated January 24, 2019 of the Government stipulating the reporting system of administrative agencies;
Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
At the proposal of the Director of the Department of Management and Supervision of Insurance;
certain articles of the Insurance Business Law, Circular No. 105/2016/TT-BTC dated June 29, 2016 of the Ministry of Finance guiding the activities of indirect investment abroad ofsecurities trading organizations, investment funds, securities investment companies and insurance businesses, Circular No. 195/2014/TT-BTC dated December 17, 2014 of the Ministry of Finance guiding the evaluation and classification of insurance businesses, Circular No. 115/2014/TT-BTC dated August 20,2014 of the Ministry of Finance guiding the implementation of insurance policies prescribed in Decree No. 67/ 2014/ND-CP dated July 7, 2014 of the Government on certain policies for developing fisheries, abolishing Circular No. 116/2014/TT-BTC dated August 20,2014 of the Ministry of Finance guiding certain financial issues for insurance businesses implementing insurance as prescribed in Decree No. 62014/ND-CP dated July 7, 2014 of the Government on certain policies for developing fisheries and Circular No. 43/2016/TT-BTC dated March 3, 2016 of the Ministry of Finance amending Article 5 of Circular No. 116/2014/TT-BTC dated August20, 2014 of the Ministry of Finance guiding certain financial issues for insurance businesses implementing insurance as prescribed in Decree No. 67/2014/ND-CP dated July 7, 2014 of the Government on certain policies for developing fisheries.Circular No. 116/2014/TT-BTC dated August 20, 2014, of the Ministry of Finance guiding certain financial issues for insurance enterprises implementing insurance in accordance with Decree No. 67/2014/NĐ-CP dated July 7, 2014, of the Government on certain policies to develop fisheries and Circular No. 43/2016/TT-BTC dated March 3, 2016, of the Ministry of Finance amending Article 5 of Circular No. 116/2014/TT-BTC dated August 20, 2014, of the Ministry of Finance guiding certain financial issues for insurance enterprises implementing insurance in accordance withthe provisions of Decree No. 67/2014/NĐ-CP dated July 7, 2014, of the Government on certain policies to develop fisheries7/and Circular No. 43/2016/TT-BTC dated March 3, 2016, of the Ministry of Finance amending Article 5 of Circular No. 116/2014/TT-BTC dated August 20, 2014, of the Ministry of Finance guiding certain financial issues for insurance enterprises implementing insurance in accordance with the provisions of Decree No. 67/2014/NĐ-CP dated July 7, 2014, of the Government on certain policies to develop fisheries as prescribed in the Decree No. 67/2014/NĐ-CP dated July 7, 2014, of the Government on certain policies to develop fisheriesand Circular No. 43/2016/TT-BTC dated March 3, 2016, of the Ministry of Finance amending Article 5 of Circular No. 116/2014/TT-BTC dated August 20, 2014, of the Ministry of Finance guiding certain financial issues for insurance enterprises implementing insurance in accordance with the provisions of Decree No. 67/2014/NĐ-CP dated July 7, 2014, of the Government on certain policies to develop fisheries.
1. Economic organizations conducting foreign exchange trading agency activities; economic organizations conducting foreign currency receipt and payment service provision activities; economic organizations conducting border country currency exchange agency activities.
"Article 1. Scope of Regulation
This Circular guides the implementation of Decree No. 73/2016/NĐ-CP dated July 1, 2016 of the Government detailing the implementation of the Law on Insurance Business and the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business (hereinafter referred to as Decree No. 73/2016/NĐ-CP) and Decree No. 80/2019/NĐ-CP dated November 1, 2019 of the Government amending and supplementing certain provisions of Decree No. 73/2016/NĐ-CP dated July 1, 2016 of the Government detailing the implementation of the Law on Insurance Business and the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business, Decree No. 98/2013/NĐ-CP dated August 28, 2013 of the Government stipulating administrative penalties for violations in the field of insurance business and lottery business which have been amended and supplemented by Decree No. 48/2018/NĐ-CP dated March 21, 2018 of the Government, including the activities of insurance companies, branches of non-life insurance companies from foreign countries, insurance brokerage companies; financial systems of insurance companies, branches of non-life insurance companies from foreign countries, insurance brokerage companies; insurance agents and training of insurance agents; reporting and information disclosure systems of insurance companies, branches of non-life insurance companies from foreign countries, insurance brokerage companies, organizations and individuals providing auxiliary insurance services, representative offices and various forms; establishment and operation of the Solvency Monitoring Committee.
4. State Bank Branch in Border Province is the State Bank Branch in provinces sharing borders with China, Laos, and Cambodia.
"Article 2. Scope of Application
This Circular applies to life insurance companies, non-life insurance companies, health insurance companies, reinsurance companies (hereinafter collectively referred to as insurance companies), branches of non-life insurance companies from foreign countries in Vietnam (hereinafter collectively referred to as foreign branches), insurance brokerage companies, representative offices of insurance companies, foreign insurance brokerage companies, organizations and individuals providing auxiliary insurance services, and other organizations and individuals related to insurance business operations.
3. The first bullet point under sub-item a of Point 3.1 Clause 3 Article 18 shall be amended and supplemented as follows:
"- Method of provision:
+ For insurance contracts with terms up to five years: Pure premium method.
+ For insurance contracts with terms over five years:
• For term insurance, whole life insurance, hybrid insurance, and periodic payment insurance: Pure premium method adjusted by the Zillmer factor at 3% of the sum insured. The adjusted pure premium shall not exceed 100% of the actual premiums received.
• For endowment insurance: Pure premium method adjusted by the FPT 12-month factor."
4. Clause 4 shall be added after Clause 3 of Article 21 as follows:
"4. Revenue from providing auxiliary insurance services: Insurance companies and foreign branches recognize revenue when completing the provision of services or completing part of the service provision, regardless of whether the money has been collected or not."
5. Clause 3 of Article 22 shall be amended and supplemented as follows:
"3. Non-life insurance companies and foreign branches may not exceed 50% of the commission from insurance contracts exploited in the fiscal year for agent bonuses and agent support costs. For health insurance business specifically, agent bonuses and agent support costs may not exceed 100% of the commission from health insurance contracts exploited in the fiscal year."
6. Clause 1 of Article 23 shall be amended and supplemented as follows:
"1. Revenue from insurance brokerage activities:
Commission income from insurance brokerage: Insurance brokerage companies recognize insurance brokerage commissions as revenue corresponding to the premium amount and the time of revenue recognition by insurance companies and foreign branches as stipulated in Points 1.1, 1.2, and 1.3 of Clause 1 of this Circular.
For expenses to reduce revenue such as reducing insurance brokerage commissions and refunding insurance brokerage commissions: Recognize as reduced income immediately upon occurrence of economic activities, with evidence of approval from all parties, regardless of whether the money has been paid or not."
7. Clause 1a shall be added after Clause 1 of Article 23 as follows:
"1a. Revenue from providing auxiliary insurance services: Insurance brokerage companies recognize revenue when completing the provision of services or completing part of the service provision, regardless of whether the money has been collected or not."
8. Article 31 shall be amended and supplemented as follows:
"Article 31. Responsibility for preparing and submitting reports
1. Insurance companies, foreign branches, and insurance brokerage companies are responsible for preparing and submitting financial reports, statistical reports, operational reports, and periodic and extraordinary reports on the use of auxiliary insurance services; organizations providing auxiliary insurance services are responsible for preparing and submitting periodic and extraordinary reports on auxiliary insurance services provided according to Articles 80 and 94 of Decree No. 73/2016/NĐ-CP and Articles 32 and 33 of this Circular.
2. Insurance companies, foreign branches, insurance brokerage companies, and organizations providing auxiliary insurance services are responsible for the accuracy and truthfulness of their financial reports, statistical reports, operational reports, reports on the use of auxiliary insurance services, and reports on auxiliary insurance services provided."
9. Clauses 3a and 3b shall be added after Clause 3 of Article 32 as follows:
"3a. Organizations providing auxiliary insurance services shall prepare and submit to the Ministry of Finance annual reports on auxiliary insurance services along with electronic versions, specifically as follows:
- Annual report on the situation of auxiliary insurance services provided: Form No. 1-PTBH issued together with this Circular;
- Annual list of individuals directly engaged in auxiliary insurance activities: Form No. 2-PTBH issued together with this Circular;
||| Report on Participation in Cross-border Insurance Ancillary Services Activities for the Year: Form No. 3-PTBH issued together with this Circular.
||| 3b. Insurance enterprises, foreign branches, insurance brokerage enterprises using insurance ancillary services shall prepare and submit to the Ministry of Finance reports on the use of insurance ancillary services annually, along with specific electronic versions as follows:
||| Report on the Situation of Using Insurance Ancillary Services for the Year: Form No. 4-PTBH issued together with this Circular.”
||| 10. Issued together with this Circular is Appendix No. 01 regarding the model License for Establishment and Operation, replacing Appendix No. 02 issued together with Circular No. 50/2017/TT-BTC.
||| Article 2. Amend and supplement Clause 4 of Article 19 of Circular No. 105/2016/TT-BTC dated June 29, 2016, guiding the indirect investment abroad activities of securities trading organizations, securities investment funds, securities investment companies, and insurance businesses as follows:
||| “4. Reporting obligations for insurance businesses:
a) Within three (03) working days from the date the State Bank of Vietnam confirms the registration of the self-operation limit for indirect investment abroad, the insurance business shall report to the Ministry of Finance about the self-operation limit for indirect investment abroad, accompanied by a copy of the registration confirmation document issued by the State Bank of Vietnam.
b) Insurance businesses shall report to the Ministry of Finance quarterly on the situation of self-operation for indirect investment abroad according to the form prescribed in Appendix No. 14 issued together with this Circular, specifically:
- The data closing period runs from the first day of the first month of the quarter to the last day of the last month of the quarter within the reporting period;
- The deadline for submitting the report is thirty (30) days from the end of the quarter.
c) Method of submitting the report: direct submission or submission via the email system or submission through the information reporting system of the Ministry of Finance (when the information reporting system of the Ministry of Finance is operational)”.
||| Article 3. Amend and supplement Clause 1 of Article 7 of Circular No. 195/2014/TT-BTC dated December 17, 2014, guiding the evaluation and classification of insurance businesses as follows:
||| “1. Based on the situation, results of operations, corporate governance, risk management, financial statements of the immediately preceding fiscal year confirmed by an independent auditing organization, insurance businesses have the responsibility to report to the Ministry of Finance the results of evaluation and classification and the implementation of measures stipulated in Article 6 of this Circular, specifically:
- Deadline for submission of the report: no later than ninety (90) days from the end of the year;
- Method of submitting the report: direct submission or submission via the email system or submission through the information reporting system of the Ministry of Finance (when the information reporting system of the Ministry of Finance is operational)”.
||| Article 4. Amend and supplement some articles of Circular No. 115/2014/TT-BTC dated August 20, 2014, guiding the implementation of insurance policies stipulated in Decree No. 67/2014/NĐ-CP dated July 7, 2014, of the Government on certain policies for developing fisheries:
||| 1. Clause 8 of Article 13 is amended and supplemented as follows:
||| “8. Quarterly and annually, provincial People's Committees are responsible for preparing detailed reports on the situation of supporting fishing vessel insurance premiums according to the forms prescribed in Appendices 6 and 7 issued together with this Circular and sending them to the Ministry of Finance and the Ministry of Agriculture and Rural Development, specifically:
- Quarterly report: The data closing period runs from the first day of the first month of the quarter to the last day of the last month of the quarter within the reporting period. The deadline for submitting the report is no later than thirty (30) days from the end of the quarter;
- Annual report: The data closing period runs from January 1 to December 31 of the reporting year. The deadline for submitting the report is no later than sixty (60) days from the end of the year;
- Method of submitting the report: direct submission or submission via the email system or submission through the information reporting system of the Ministry of Finance (when the information reporting system of the Ministry of Finance is operational).”
||| 2. Point a of Clause 8 of Article 14 is amended and supplemented as follows:
||| “a) Periodically monthly and annually, insurance enterprises must prepare and submit to the Ministry of Finance reports on the implementation of seafarer accident insurance according to the form prescribed in Appendix 8, and reports on the implementation of vessel hull, equipment, and fishing gear insurance according to the form prescribed in Appendix 9 issued together with this Circular, specifically:
- Monthly report: The data closing period runs from January 1 to the end of the reporting month. The deadline for submitting the report is no later than fifteen (15) days from the end of the month;
- Annual report: The data closing period runs from January 1 to December 31 of the reporting year. The deadline for submitting the report is no later than ninety (90) days from the end of the year;
- Method of submitting the report: direct submission or submission via the email system or submission through the information reporting system of the Ministry of Finance (when the information reporting system of the Ministry of Finance is operational).”
Article 5. Repeal Circular No. 116/2014/TT-BTC dated August 20, 2014 of the Ministry of Finance guiding certain financial issues for insurance enterprises implementing insurance as prescribed in Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on certain policies for developing fisheries, and Circular No. 43/2016/TT-BTC dated March 3, 2016 of the Ministry of Finance amending Article 5 of Circular No. 116/2014/TT-BTC dated August 20, 2014 of the Ministry of Finance guiding certain financial issues for insurance enterprises implementing insurance as prescribed in Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on certain policies for developing fisheries, from January 1, 2021.
Article 6. Effectiveness
1. This Circular takes effect from December 26, 2020.
2. During implementation, if there are difficulties or obstacles, they are requested to be promptly reported to the Ministry of Finance for consideration and resolution./.
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