What are detailed instructions for implementing some articles of the Law on Insurance Business in Vietnam?

What are detailed instructions for implementing some articles of the Law on Insurance Business in Vietnam?

On July 1, 2023, the Government issued Decree 46/2023/ND-CP detailing the implementation of some articles of the Law on Insurance Business.

According to this regulation, the subjects of application of Decree 46/2023/ND-CP include:

1. Non-life insurance enterprises, life insurance enterprises, health insurance enterprises (hereinafter referred to as insurers), reinsurance enterprises, insurance agents, insurance brokerage enterprises, organizations and individuals providing auxiliary insurance services, mutual organizations providing microinsurance.

2. Branches of foreign non-life insurance enterprises, branches of foreign reinsurance enterprises (hereinafter referred to as foreign branches in Vietnam); Representative offices of foreign insurance enterprises, foreign reinsurance enterprises, foreign insurance brokerage enterprises, foreign financial and insurance groups in Vietnam (hereinafter referred to as representative offices in Vietnam).

3. The insurance buyer, the insured, the beneficiary.

4. State management agency in charge of insurance business activities.

5. Organizations and individuals involved in insurance business activities.

What do types of insurance do life insurance, non-life insurance and health insurance in Vietnam comprise?

In Article 3, Article 4 and Article 5 of Decree 46/2023/ND-CP, the types of life insurance, non-life insurance and health insurance are prescribed as follows:

Article 3. Life insurance operations

Types of life insurance business include:

1. Lifetime insurance.

2. Term life insurance.

3. Term insurance.

4. Mixed insurance.

5. Periodic payment insurance.

6. Investment-linked insurance (including universal life insurance and unit-linked insurance) as prescribed in Chapter VII of this Decree.

7. Retirement insurance as prescribed in Chapter VII of this Decree.

Article 4. Non-life insurance operations

Types of non-life insurance operations include:

1. Property insurance.

2. Cargo insurance.

3. Aviation insurance.

4. Motor vehicle insurance.

5. Fire and explosion insurance.

6. Ship hull insurance and civil liability of ship owners.

7. Liability insurance.

8. Credit insurance and financial risk.

9. Agricultural insurance.

10. Guarantee insurance.

11. Other damage insurance.

Article 5. Health insurance operations

Types of health insurance operations include:

1. Health and body insurance.

2. Medical expenses insurance.

What information does the database on insurance business activities include in Vietnam?

In Article 7 of Decree 46/2023/ND-CP, information in the database on insurance business activities:

The database on insurance business activities includes the following information:

1. Group of information about insurance enterprises, reinsurance enterprises, foreign branches in Vietnam, insurance brokerage enterprises, mutual organizations providing microinsurance, foreign representative offices in Vietnam. Vietnam:

a) Information about the establishment and operation license, the license to set up a foreign representative office in Vietnam;

b ) Information on financial situation and professional activities in reports:

Financial statements, reports on professional activities, reports on separation of equity sources, sources of insurance premiums, reports on assessment of solvency and risk management, other reports of insurance enterprises, reinsurance enterprises, foreign branches in Vietnam according to the provisions of Article 106 of the Law on Insurance Business;

Financial statements, periodical reports on professional activities, ad hoc reports, provision of information and other data of the insurance brokerage enterprise as prescribed in Clause 5, Article 138 of the Law on Insurance Business;

Financial statements, business reports and other reports of a mutual organization that provides regulated microinsurance.

c) Information about: Managers, controllers of insurance enterprises, reinsurance enterprises, foreign branches in Vietnam; members of the Board of Directors, members of the Members' Council, the director or general director, the legal representative, the deputy director or deputy general director, the chief accountant, the head of the professional division of the environmental enterprise. insurance broker (hereinafter referred to as the manager of the insurance brokerage enterprise); Chairman of the Board of Directors, General Director or Director, Actuaries of the mutual organization providing microinsurance. Information includes: Date of appointment, date of dismissal or no longer holding position (if any); diplomas, certificates, working experience in the field of insurance, finance, banking or other relevant fieldswith each title specified in Article 80, Clause 1, Article 138 and Clause 3, Article 149 of the Law on Insurance Business.

2. Group of information about the insurance buyer, the insured, the insured subject to the insurance contract that takes effect and arises in the reporting period, including:

a) For life insurance: Information on the number of insured people (details according to the insured risks, age of insurance participation, insurance term, year of insurance policy when the risk occurs, gender, living habits affecting health), the probability that the insured person is still alive each year and other relevant information serving the construction of insurance risk ratios;

b) For health insurance: Information about the number of insurance policies, the number of insured people, the number of claims, the total amount of insurance payments (detailed by age, insurance benefits) and other relevant information for the construction of insurance risk ratios;

c) For non-life insurance: Information about the number of insurance policies, the total amount of insurance, the number of insurance claims, the total amount of insurance indemnities (details according to subject of insurance; type and purpose of use) and other relevant information for the construction of insurance risk ratios.

3. Group of information about insurance agents: Reports on the training and use of insurance agents of insurance enterprises, branches of foreign non-life insurance enterprises, mutual organizations providing insurance microinsurance under the provisions of point k, clause 2, Article 128 of the Law on Insurance Business.

4. Group of information on examination, issuance of insurance certificates, insurance auxiliary certificates, insurance brokerage certificates, including: Identification information of the certificate holder; certificate type name; the name of the training institution; exam code; decision to approve the test results.

5. Information group on management, supervision and sanctioning of administrative violations on insurance business activities: Name of sanctioned organization or individual, number of sanctioning decision, sanctioning date, violation act, form knowledge and level of sanction, remedial measures (if any).

6. The Minister of Finance shall detail the form of information specified at Point c , Clause 1 and Clause 2 of this Article.

Note: Decree 46/2023/ND-CP takes effect from the date of signing, except for Article 33, articles specified in Section 6, Chapter II, Articles 81, 82, 83, Clauses 1, 2, 3, 4, 5 and 6 Article 93 of Decree 46/2023/ND-CP takes effect from January 1, 2023.

Best regards!