What are the documentations for transfer of portfolios of insurance policies of insurers in Vietnam?
- What are the documentations for transfer of portfolios of insurance policies of insurers in Vietnam?
- What are the procedures for transfer of portfolios of insurance policies of insurers in Vietnam?
- Vietnam: After the transfer plan is approved, what does the transferring enterprise transfer to the receiving enterprise?
What are the documentations for transfer of portfolios of insurance policies of insurers in Vietnam?
Pursuant to the provisions of Clause 1, Article 34 of Decree 46/2023/ND-CP stipulating documentation for transfer of portfolios of insurance policies of insurers in Vietnam include:
- An application form for transfer specified in Appendix VIII to this Decree;
- A transfer plan, at least containing:
+ Name and address of the insurer, branch of foreign non-life insurer that receives the transfer (hereinafter referred to as the receiving enterprise);
+ type of insurance and number of insurance policies to be transferred;
+ the method of transferring the technical reserves and insurance liabilities related to the transferred policies;
+ estimated time of the transfer; detailed explanation of the receiving enterprise on how it meets financial requirements after the transfer.
- A transfer contract, at least containing:
+ Subject matter of transfer;
+ rights and obligations of the parties to the transfer;
+ estimated time of the transfer;
+ settlement of disputes.
- Commitments of the receiving enterprise to safeguard the interests of the insurance policyholders under the transferred insurance policy once the transfer is complete.
- Documents proving the fulfillment of requirements specified in Clause 1, Article 92 of the Law on Insurance Business in 2022.
What are the documentations for transfer of portfolios of insurance policies of insurers in Vietnam?
What are the procedures for transfer of portfolios of insurance policies of insurers in Vietnam?
Pursuant to the provisions of Article 34 of Decree 46/2023/ND-CP stipulating procedures for transferring the list of insurance contracts as follows:
Step 1: Insurers and branches of foreign non-life insurers that transfer the entire portfolios of insurance policies of one or several types of insurance must submit to the Ministry of Finance one set of documentation.
Step 2: Within 30 working days of receiving a complete and valid application, the Ministry of Finance shall issue a written approval. If the application is rejected, the Ministry of Finance shall provide an explanation in writing.
Step 3: Within 30 days from the date the Ministry of Finance approves the transfer of the portfolios of insurance policies, the transferring enterprise must announce the transfer as follows:
- Publish on the enterprise's website about the transfer as follows:
+ Name and address of the transferring enterprise and receiving enterprise;
+ type of insurance and number of insurance policies to be transferred;
+ estimated time of the transfer;
+ contact information to deal with claims and questions from insurance policyholders related to the transfer.
- Send a notice together with a summary of the transfer plan to each insurance policyholder. The notice sent to the insurance policyholder must clearly state that within 15 days from the date of receipt of the notice, the insurance policyholder is allowed to terminate the insurance policy if he/she does not agree with the transfer plan and the effective date of the transfer plan.
- Send an agreement to the insurance policyholder and the insured of any reduction in the sum insured or insurance benefits, and other obligations under the insurance policy if the portfolios of insurance policies are transferred as required by the Ministry of Finance as prescribed in Clause 1, Article 91 of the Law on Insurance Business in 2022, but the asset value is lower than the technical reserve of the transferred insurance policies.
Note: After signing the contract for transferring the portfolios of insurance policies, the transferring enterprise may not issue any new insurance policies related to the transferred type of insurance.
Vietnam: After the transfer plan is approved, what does the transferring enterprise transfer to the receiving enterprise?
Pursuant to the provisions of Clause 5, Article 34 of Decree 46/2023/ND-CP, the transferring enterprise transfers to the receiving enterprise as follows:
Within 60 days from the date the Ministry of Finance approves the transfer plan, the transferring enterprise shall transfer to the receiving enterprise:
- All valid insurance policies under the transfer plan approved by the Ministry of Finance;
- Unsettled insurance claims related to the transferred type of insurance;
- All assets, funds, and technical reserves related to transferred insurance policies.
Note: From the date of receipt of the transfer, the receiving enterprise is responsible for performing the obligations of the transferred insurance policies in accordance with the terms and conditions signed between the transferring enterprise and the insurance policyholders, including Incurred-but-Not-Reported (IBNR) claims. The receiving enterprise has the right to receive assets related to the funds and technical reserves of the transferred insurance policies and use such property to perform obligations under the transferred insurance policies
The receiving enterprise is responsible for coordinating with the transferring enterprise in formulating the transfer plan, determining the value of assets related to the funds and technical reserves of the transferred insurance policies and agree on the effective date of the transfer plan.
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