Vietnam: What are conditions for insurance enterprises to be allowed to sell compulsory insurance for construction investment activities?

16:06, 18/11/2015

Recently, the Government of Vietnam has issued the Decree No. 119/2015/NĐ-CP providing for compulsory insurance for construction investment activities.

dieu kien DN bao hiem, bao hiem bat buoc dau tu xay dung, Nghi dinh 119/2015/NĐ-CP

According to Article 7 of Decree No. 119/2015/NĐ-CP of Vietnam’s Government, insurance enterprises and reinsurance enterprises shall be allowed to sell compulsory insurance for construction investment activities provided that they meet the following conditions:

- Hold permits for establishment and operation in which property and loss insurance, liability insurance (with respect to insurance enterprises), and non-life reinsurance (with respect to reinsurance enterprises), are licensed.

- Meet requirements as to financial capability and professional competence of staff members as prescribed by the Law on Insurance Business and other instructional documents.

Moreover, according to Decree No. 119/2015/NĐ-CP, as for outbound reinsurance activities, insurance enterprises and reinsurance enterprises must provide reinsurance for reinsurance assuming enterprises and foreign reinsurance assuming organizations that meet the following conditions:

- Legally operating within the territory of the country where these enterprises' main offices are located.

- Attain the minimum rank of “BBB” accredited by Standard & Poor’s or “B++” accredited by A.M.Best or the equivalent ranks accredited by other organizations that have competence and experience in rating in the financial year closest to the reinsurance assuming year.

View full text at Decree No. 119/2015/NĐ-CP of Vietnam’s Government, effective from February 10, 2016.

Thu Ba

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