Statute of limitations for administrative sanctions in the field of insurance business in Vietnam from February 15, 2025

Statute of limitations for administrative sanctions in the field of insurance business in Vietnam from February 15, 2025​ (Image from the Internet)

On December 30, 2024, the Government of Vietnam issued Decree 174/2024/ND-CP stipulating administrative penalties in the field of insurance business.

Statute of limitations for administrative sanctions in the field of insurance business in Vietnam from February 15, 2025

Article 4 of Decree 174/2024/ND-CP stipulates the statute of limitations for administrative sanctions in the field of insurance business in Vietnam from February 15, 2025, as follows:

(1) The statute of limitations for administrative sanctions in the field of insurance business is implemented according to the provisions in Article 6 of the Law on Administrative Sanctions.

(2) The point from which the statute of limitations for administrative sanctions in the field of insurance business is calculated, is stipulated as follows:

- For ongoing administrative violations in the field of insurance business, the statute of limitations is calculated from the day the competent officer discovers the violation;

- For concluded administrative violations, the statute of limitations is calculated from the day the act ends.

(3) The point of concluding the violation to calculate the statute of limitations for sanctions in the field of insurance business is the day the legal regulations are correctly implemented, except for cases specified in (4).

If the day of correctly implementing the legal regulations cannot be determined, the point of concluding the violation to calculate the statute of limitations for administrative sanctions in the insurance business field is the day the violation is discovered.

(4) The point of concluding the violation to calculate the statute of limitations for sanctions for certain violations in Chapter II of Decree 174/2024/ND-CP is stipulated as follows:

- For fraudulent acts concerning documents for a dossier that has been granted a License of Establishment and Operation in Article 6 of Decree 174/2024/ND-CP, the conclusion of the violation is the day the fraudulent dossier is discovered;

- For not issuing procedures, regulations, not approving reinsurance programs, ceding reinsurance, not developing risk management policies, internal risk management regulations specified in point b clause 1 Article 9, point a clause 1 Article 13, point b clause 1 Article 33 of Decree 174/2024/ND-CP, the conclusion of the violation is the day the procedures, regulations, reinsurance programs, risk management policies, internal risk management processes are issued and approved in accordance with legal regulations;

- For violations of reporting policy regulations as specified in point b clause 2 Article 8, clause 1 Article 12, point b clause 1 Article 20, point b clause 2 Article 32, point d clause 1 Article 33, point b clause 1 Article 34, point c clause 1 Article 35, point d clause 1 Article 36, Article 37, and Article 39 of Decree 174/2024/ND-CP, the conclusion of the violation is the day the report is correctly made in accordance with legal regulations;

- For violations of information disclosure regulations as specified in Article 39 of Decree 174/2024/ND-CP, the conclusion of the violation is the day the correct content and form of disclosure are carried out as per regulation.

Decree 174/2024/ND-CP specifies administrative violations, concluded administrative violations, and ongoing administrative violations; forms of sanctions, levels of penalties, remediation measures for each violation; entities subject to sanction; sanction authority, specific fine levels according to each title, and authority to make records of administrative violations in the field of insurance business.

Acts of administrative violations in other fields related to the field of insurance business not specified in Decree 174/2024/ND-CP will be sanctioned according to the regulations in those documents.

More details can be found in Decree 174/2024/ND-CP effective from February 15, 2025.

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