Decree 174/2024/ND-CP on the regulations for sanctioning administrative violations in the field of insurance business in Vietnam
Has the Decree 174/2024/ND-CP on the regulations for sanctioning administrative violations in the field of insurance business in Vietnam been issued yet?
On December 30, 2024, the Government of Vietnam issued Decree 174/2024/ND-CP stipulating administrative violations, completed administrative violations, and ongoing administrative violations; forms of penalties, penalty levels, and remedial measures for each administrative violation; subjects to be sanctioned; sanctioning authority, specific fines according to each title, and the authority to make records of administrative violations in the field of insurance business.
Administrative violations in other fields related to the insurance business not specified in Decree 174/2024/ND-CP are to be handled according to the provisions of those documents.
Decree 174/2024/ND-CP shall come into effect from February 15, 2025.
Decree 174/2024/ND-CP on the regulations for sanctioning administrative violations in the field of insurance business in Vietnam (Image from the Internet)
What are the forms of penalties and remedial measures in the field of insurance business in Vietnam?
Based on Article 3 of Decree 174/2024/ND-CP stipulating forms of penalties and remedial measures:
Article 3. Forms of Penalties and Remedial Measures
- For each administrative violation in the field of insurance business, organizations and individuals are subjected to the principal form of penalty, which is a fine.
- A warning applies to individuals aged between 14 and under 16 who commit violations as specified in this Decree.
- Monetary fines for individuals and organizations:
a) The level of monetary fines for administrative violations outlined in this Decree is the level for individuals, except for cases specified in Article 9, Article 10, Clause 2 of Article 11, Article 12, Article 14, Clause 2 of Article 15, Article 16, Clause 2 of Article 18, Article 20, Article 21, Clause 2 of Article 22, Article 24, Article 25, point b, point c Clause 1 and point c Clause 2 of Article 27, Article 28, Article 33, Clause 1 Article 38, Article 40 of this Decree which only apply to organizations;
[...]
The principal form of penalty for each administrative violation in the field of insurance business is a fine.
A warning applies to individuals aged between 14 and under 16 who commit administrative violations in the field of insurance business. Additional form of penalty: Temporary suspension of operation.
Additionally, the following remedial measures are enforced:
- Required to restore the original condition.
- Required to publish or publish conformably or notify or required to correct information;
- Required actuaries to perform their duties fully in accordance with the law; required insurers, reinsurance enterprises, foreign branches in Vietnam, and mutual organizations providing microinsurance to use actuaries to perform duties fully in accordance with the law;
- Required to provide policyholders with documents during the conclusion of insurance contracts that have not expired at the time the violation is detected;
- Required to clearly and fully explain to policyholders about insurance benefits, exclusion clauses, rights, and obligations of policyholders of insurance contracts that have not expired at the time the violation is detected;
- Required to provide policyholders with proof of conclusion of insurance contracts that have not expired at the time the violation is detected;
- Required to notify the Ministry of Finance about the provision of services and insurance products in the online environment;
- Required to conform with the law;
- Required to cease using individuals directly performing insurance brokerage activities, insurance agents;
- Required to submit the License for establishment and operation or License for establishing foreign representative offices in Vietnam;
- Required to return the appropriated money.
What are the prohibited acts in insurance business in Vietnam?
Based on Article 9 of Insurance Business Law 2022, prohibited acts in insurance business include:
- Conducting insurance business, reinsurance business, reinsurance cession, and insurance brokerage without an establishment and operation license.
- Conducting insurance business, reinsurance business, reinsurance cession, and insurance brokerage activities that are beyond the scope of the granted license.
- Insurance agency activities, ancillary insurance service activities that do not meet the operational conditions as stipulated by law.
- Engaging in fraudulent acts including:
+ Colluding with beneficiaries to settle claims and pay insurance money unlawfully;
+ Forging documents, deliberately falsifying information in claim dossiers and insurance payment requests;
+ Forging documents, deliberately falsifying information to deny claims and insurance payments when an insurance event has occurred;
+ Intentionally causing harm to one's own property and health to receive insurance benefits.
- Threatening, coercing to enter into insurance contracts.
