What are obligations of insurance companies in Vietnam?

What are obligations of insurance companies in Vietnam?

Pursuant to Clause 2, Article 128 of the Law on Insurance Business in 2022 (takes effect from 01/01/2023) stipulating obligations of insurance companies in Vietnam as follows:

a) Bear responsibility for organization, management and engagement of insurance agents;

b) Organize training and knowledge updating sessions to be provided for insurance agents under law;

c) Fully and accurately provide guidance, necessary information and documents related to the insurance agent business;

d) Perform responsibilities arising in insurance agent agreements that have been entered into;

dd) Settle and pay the amount of insurance agent commissions, rewards and grants for insurance agents and other interests specified in insurance agent agreements provided that such amount is not greater than the limit regulated by the Minister of Finance;

e) Return security deposit or collateral to insurance agents under contractual terms and conditions;

g) Bear responsibility to perform obligations agreed upon in insurance contracts that insurance agents or staff members of entities rendering insurance agent services arrange to conclude. Where any insurance agent or staff member of an entity rendering insurance agent services is in breach of an insurance contract, causing any loss or damage to legitimate rights and interests of an insured persons and policyholder, the insurance company, branch of the foreign non-life insurance company or mutual providing microinsurance products, as the principal, must bear responsibility for discharging obligations agreed upon in the insurance contract that such insurance agent arranges to conclude;

h) Have their insurance agent business put under the inspection and supervision of competent regulatory authorities;

i) Protect and avoid encumbering legitimate rights and interests of insurance agents under contractual terms and conditions and in accordance with law;

k) Report on the training and employment of insurance agents under the regulations adopted by the Minister of Finance;

l) Register and update biodata about persons rendering insurance agent services and staff members of entities rendering insurance agent services that are directly involved in insurance agent services in the database of insurance agent services according to Article 11 herein;

m) Assume other obligations prescribed by law.

What are rights of insurance companies in Vietnam?

Pursuant to Clause 1, Article 128 of the Law on Insurance Business in 2022 (takes effect from 01/01/2023) stipulating rights of insurance companies in Vietnam as follows:

a) Organize insurance agent systems designed for implementation of business strategies;

b) Recruit insurance agents and enter into insurance agent agreements;

c) Decide the amount of insurance agent commissions, rewards and grants for insurance agents and other interests specified in insurance agent agreements provided that such amount is not greater than the limit regulated by the Minister of Finance;

d) Receive and have custody of security deposit or collateral provided by insurance agents if agreed upon in insurance agent agreements;

dd) Request insurance agents to remit collections under terms and conditions of insurance agent agreements;

e) Check and supervise execution of insurance agent agreements; measure the performance in insurance product consulting and offering activities of insurance agents and staff members of entities rendering insurance agent services;

g) Enjoy other legitimate rights and benefits arising from rendering insurance agent services;

h) Have other rights stipulated by law.

Best regards!