Duties and powers of the Insurance Supervisory Authority in Vietnam

Duties and powers of the Insurance Supervisory Authority in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Position and functions of the Insurance Supervisory Authority in Vietnam

The Insurance Supervisory Authority is a unit under the Ministry of Finance, with the function of advising and assisting the Minister of Finance in implementing state management of the insurance business nationwide; It directs and supervises insurance business activities and service activities in the insurance business field according to the provisions of law.

The Insurance Supervisory Authority has its own legal status and seal and is allowed to open accounts at the State Treasury and banks according to the provisions of the law.

(Article 1 of Decision 1799/QD-BTC 2017)

2. Duties and powers of the Insurance Supervisory Authority in Vietnam

Duties and powers of the Insurance Supervisory Authority in Vietnam include:

- Submit to the Minister of Finance for promulgation according to authority, or submit to the Minister of Finance to submit to competent authorities to promulgate legal documents and policies on insurance business and insurance auxiliary services; strategies, planning, long-term, medium-term, and annual plans on insurance business and insurance auxiliary services.

- Organize and implement, propagate and disseminate, guide, and inspect the implementation of strategies, planning, plans and legal documents on insurance businesses and insurance auxiliary services.

- Receive and check documents to submit to the Minister of Finance to grant, extend, and revoke establishment and operation licenses of insurance enterprises and insurance brokerage enterprises (including cases of overseas investment and foreign-invested enterprises in Vietnam); branches of foreign non-life insurance enterprises; and licenses to set up representative offices of foreign insurance enterprises and insurance brokerage enterprises in Vietnam. Submit to the Minister of Finance for approval of changes made by the above organizations according to the provisions of the law.

- Inspect and supervise the operations of insurance enterprises, branches of foreign non-life insurance enterprises, insurance broker enterprises, and individuals and organizations providing insurance auxiliary services operating in Vietnam; activities of representative offices of foreign insurance enterprises and foreign insurance brokerage enterprises in Vietnam.

- Specialized inspection in the insurance field for organizations and individuals participating in insurance activities according to the provisions of law.

- Resolve complaints and denunciations and handle administrative violations in the field of insurance business according to the provisions of law.

- Carry out international cooperation in the field of insurance business according to the provisions of law.

- Carry out state management over the activities of associations and non-governmental organizations operating in the insurance business field.

- Permanently assist relevant Ministries and branches in directing and supervising the implementation of compulsory insurance for civil liability of motor vehicle owners (National Agency implementing the compulsory motor vehicle insurance program).

- Build a database on management information systems and supervision of insurance business activities; Collect, process, and provide data and information at the request of regulatory agencies or the needs of insurance businesses, other organizations, and individuals; Organize statistics, analysis, forecasting, summarizing, and evaluating the performance of the insurance market; Implement the statistical reporting regime on the insurance market according to the provisions of the law.

- Develop and propose to the Ministry of Finance the announcement of insurance premium rates corresponding to the basic insurance conditions and responsibilities of a number of insurance products according to the law.

- Organize scientific research or cooperate in scientific research with units inside and outside the industry.

- Organize training and fostering for organizations and individuals participating in insurance business activities; Organize the implementation of a number of tasks regarding examinations, issuance of insurance agency certificates, certificates of insurance support, and recognition of insurance support certificates according to the provisions of current law.

- Manage the Fund to protect the insured according to the provisions of law.

- Perform other tasks and powers assigned by the Minister of Finance.

(Article 2 of Decision 1799/QD-BTC of 2017, amended by Decision 98/QD-BTC of 2020)

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE