Latest procedures for settling payment from the Fund for Protection of the Insured in Vietnam

Latest procedures for settling payment from the Fund for Protection of the Insured in Vietnam (Internet image)

On February 1, 2024, the Ministry of Finance issued Decision 220/QD-BTC on the announcement of the newly issued and replaced administrative procedures in the insurance field under the management function of the Ministry of Finance.

Procedures for settling payment from the Fund for Protection of the Insured in Vietnam 

- The order of execution:

+ Step 1: Insurance enterprises and branches of foreign non-life insurance enterprises submit documents to the Ministry of Finance

+ Step 2: The Ministry of Finance establishes the Council for consideration

+ Step 3: The Ministry of Finance settles insurance payment

- Submission methods:

+ Submit directly at the headquarters of the Ministry of Finance;

+ Or send through the postal system.

+ Or through the online public service system if eligible.

- Components and number of dossiers: 01 set

+ Written request to use the fund according to the form specified in Appendix XVIII of Decree 46/2023/ND-CP;

+ A written certification of the competent authority on the plan to divide the value of the assets of insurance enterprises has been completed (in case the insurance enterprise is bankrupt);

+ Table of list of insured people and applications required to pay insurance and refund values; pay insurance compensation; Refund of insurance according to the agreement in the insurance contract that insurance enterprises and branches of foreign non-life insurance enterprises are unable to pay; The receivables of reinsurance compensation; Collecting bad debts for the third person at the time the Ministry of Finance decided to terminate the application of solvency restoration measures (in case the insurance enterprise, the branch of foreign non-life insurance enterprises loses solvency) or at the time of completing the plan of division of assets of the enterprise (in case the insurance enterprise is bankrupt);

+ Statistical documentation on Contingency Reserves, Corresponding Contingency Reserved Assets of the Expected Transfer Portfolio of Insurance Companies, Branches of Non-Life Foreign Insurance Companies that bezome unione to Pay or go bankrupt, The AmovenT of Defensite s and insurance liabilities, as well As the deficit in Corresponding Contingency Reserves for the Designated Recipient Insurance Companies Receiving the Transfer of Insurance Contract Portfolios from Bankrupt or Insolvent Insurance Companies.

- Settlement deadline:

+ Within 14 days from the date of receiving the dossier, the Ministry of Finance set up the Council to consider paying insurance;

+ Within 150 days from the date of receipt of the complete dossier, the Council shall check if the dossier is complete and valid and develop a payment plan.

+ Within 05 days from the date of the payment plan approved by the Ministry of Finance, the Council shall pay insurance.

- Subjects of administrative procedures:

+ Foreign insurance enterprises, foreign financial institutions, foreign insurance, foreign reinsurance enterprises, and foreign insurance brokers

- Results of the implementation of administrative procedures:

Settling payment from the Fund for Protection of the Insured

- Fee, charges: no

- Name of application form, declaration form: Appendix XVIII of Decree 46/2023/ND-CP;

- Requirements and conditions for implementing administrative procedures:

+ Insurance enterprises, branches of foreign non-life insurance enterprises, are bankrupt or insolvent.

+ Subjects paid by the fund pay insurance, refund values; pay insurance compensation for insurance premiums to meet the following conditions:

++ Have the name in the list of lists attached to the dossier approved by the Ministry of Finance;

More details can be found in Decision 220/QD-BTC, taking effect on February 1, 2024. To abolish 39 administrative procedures number 01, 02, 03, 04, 05, 06, 07, 08, 09, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 40, 41 in the list of standardized administrative procedures in the field of insurance issued together with Decision 2044/QD-BTC dated September 23, 2016

Ho Quoc Tuan

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