Are saving deposits insured in Vietnam? What is premium payment in Vietnam?

Are saving deposits insured in Vietnam? What is premium payment in Vietnam?

Pursuant to Article 18 of the Law on Deposit Insurance 2012, regulations on insured deposits are as follows:

Deposit insured is the deposit in Vietnam Dong of individuals deposited at the deposit insurance participating organization in the form of term deposit, non-term deposit, saving deposit, certificates of deposit, promissory notes, bills and other forms of deposit under the provisions of the Law on credit organizations, other than the deposits regulated in Article 19 of this Law.

Thus, savings deposits are insured deposits in Vietnam.

According to Article 3 Decision 32/2021/QD-TTg regulates insurance payment limits:

The maximum amount paid by a deposit insurance organization for all insured deposits according to the provisions of the Deposit Insurance Law (including principal and interest) of a person at an organization participating in deposit insurance when the obligation to pay insurance money arises is 125,000,000 VND (one hundred twenty-five million VND).

And based on Article 27 of the Law on Deposit Insurance 2012, it stipulates treating the deposit exceeding the limit of premium payment:

The deposit of the insured persons of deposits including the principal and interest exceeding the limit of premium payment shall be settled in the process of assets treating of the deposit insurance participating organization as prescribed by the law.

Thus, the maximum amount you will receive back from deposit insurance is 125,000,000 VND. If your deposit exceeds this amount, the remaining amount will be resolved during the asset handling process.

Are saving deposits insured in Vietnam? What is premium payment in Vietnam? (Image from the Internet)

What are procedures for premium payment in Vietnam?

Article 26 of the Law on Deposit Insurance 2012 regulates procedures for premium payment:

1. Within 10 working days from the arising time of the premium payment obligation, the deposit insurance participating organization must send the dossier to request the payment of premium to the deposit insurance organization.

The dossier to request the payment of premium includes the written request of the premium payment, the list of insured persons of deposit, the deposit of each insured person and the premium to request the deposit insurance to make payment.

2. Within 05 working days after receiving complete dossiers as prescribed in Clause 1 of this Article, the deposit insurance organization shall verify the documents and books to determine the amount to be paid.

3. Within 10 working days after the end day of inspection specified in clause 2 of this Article, the deposit insurance organization must have a plan to pay a premium to the insured persons of deposit; publicly announce the location, time, mode of payment of premium on three consecutive issues of a central newspaper, a local newspaper where located the head office and the branches of the deposit insurance participating organization and on website of a Vietnamese newspaper; listing the list of insurance payees at the announced locations.

4. Upon receipt of premium, the insured persons of deposit must produce the evidencing papers of the legal ownership with respect to the insured deposits at the deposit insurance participating organization.

5. The deposit insurance organization shall directly make payment of premium to the insured persons of deposit or authorize another deposit insurance participating organization to make payment.

6. After a period of 10 years from the date the deposit insurance organization has announced the first time the payment of premium, the unclaimed premium shall be established the state ownership and added to the operating capital of the deposit insurance organization. The person who has the ownership of the insured deposit shall not have the right to request the deposit insurance organization to return that premium.

Best regards!