Procedures for the issuance of business permits and licenses for mutually providing microinsurance products in Vietnam

Procedures for the issuance of business permits and licenses for mutually providing microinsurance products in Vietnam (Internet image) 

On February 1, 2024, the Ministry of Finance issued Decision 217/QD-BTC introducing newly issued administrative procedures in the insurance field under the management function of the Ministry of Finance.

Procedures for the issuance of business permits and licenses for mutually providing microinsurance products in Vietnam

(1) The sequence of implementation

+ The founding members must submit the application for business permits and licenses for mutually providing microinsurance products;

+ Within 21 days from the date of receiving the application file for a license, if the dossier is incomplete and valid, the Ministry of Finance shall notify in writing the additional request and amendment of the dossier. The maximum duration of addition and modification of records is 06 months from the date of notice. In case organizations and individuals request a license to not supplement and amend the dossier in accordance with the prescribed time limit, the Ministry of Finance shall have a written refusal to consider granting the license;

+ Within 60 days from the date of receiving a complete and valid dossier, the Ministry of Finance granted a license for a mutual support organization to provide microinsurance in the form specified in Appendix 02, issued together with Decree 21/2023/ND-CP. In the event of refusing licensing, the Ministry of Finance shall clearly explain the reason;

+ The Ministry of Finance announced the contents of the establishment license and the operation of the mutual support organization to provide microinsurance on the electronic portal of the Ministry of Finance within 30 days from the date of granting the license.

(2) Submission methods: No specific provisions in the Decree, however, may be submitted directly or by post.

(3) Components and number of records:

- Profile composition:

+ An application for a license to establish and operate according to Form No. 01 specified in the Appendix issued together with Decree 21/2023/ND-CP;

+ Draft charter of a mutual support organization providing microinsurance;

+ Confirmation from a commercial bank authorized to operate in Vietnam regarding the amount of capital contribution (not lower than the capital requirement specified in Article 7 Clause 1 of Decree 21/2023/ND-CP) that has been sent to the sealed account opened at the bank and can only be released after the Ministry of Finance issues the License for Establishment and Operation to the microinsurance supporting organization or provides a written refusal to consider granting the License.

+ The plan to deploy microinsurance, which clearly states the implementation process, the deployment network; Estimated revenue, expenses, and results of micro-insurance activities in the first three years of implementation in accordance with the number of members and networks of the organization;

+ Resolution of the Conference to establish a mutual support organization to provide microinsurance on the establishment of mutuals providing microinsurance products with contents specified in Clause 2, Article 9 of Decree 21/2023/ND-CP (for founding members, individuals);

+ Documents of competent authorities according to the charter of the member representative organization on the establishment of mutuals providing microinsurance products (in case the founding member is a member representative organization);

+ The list of founding members and documents prove that the founding member meets the provisions of Point a, Clause 1, Article 149 of the Law on Insurance Business 2022 (in case the founding member is an individual);

+ Charter, copy of the establishment decision, business registration certificate, or other equivalent document of the member representative organization (in case the founding member is a member representative organization);

+ Curriculum vitae, judicial record card; Copy of citizen identity card or identity card or passport or other lawful personal authentication; Copy of diplomas, certificates, documents proving the capacity and professional qualifications of the expected person who is appointed as Chairman of the Board of Directors, General Director or Director, representative according to the law, experts calculate microinsurance of mutuals providing microinsurance products;

+ Explanation and commitment to build an information technology system to meet the conditions specified in Clause 6 of Article 149 of the Law on Insurance Business 2022.

- Number of documents: 01 set

(4) Settlement deadlines:

- Within 21 days from the date of receiving the application for a license, if the dossier is incomplete and valid, the Ministry of Finance shall notify in writing the additional request and amendment of the dossier.

- Within 60 days from the date of receiving a complete and valid dossier, the Ministry of Finance granted business permits and licenses for mutually providing microinsurance products. In the event of refusing licensing, the Ministry of Finance shall clearly explain the reason;

More details can be found in Decision 217/QD-BTC as of February 1, 2024.

Ho Quoc Tuan

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