Organizational structure for management and operation of the Motor Vehicle Insurance Fund Under latest regulations in Vietnam

Organizational structure for management and operation of the Motor Vehicle Insurance Fund Under latest regulations in Vietnam​ (Image from the Internet)

1. Principles for management and use of Motor Vehicle Insurance Fund in Vietnam

According to Article 14 of Decree 67/2023/ND-CP, the principles for management and use of Motor Vehicle Insurance Fund in Vietnam include:

- The Motor Vehicle Insurance Fund is established to conduct activities supporting humanitarian aid; prevention work, limiting losses and road traffic accidents; propagating, educating about road traffic safety, compulsory civil liability insurance of motor vehicle owners, and related activities to contribute to protecting public interests and ensuring social safety.

- The Motor Vehicle Insurance Fund is contributed by insurers deploying compulsory civil liability insurance of motor vehicle owners, centrally managed by the Vietnam Insurance Association, has a separate account at a commercial bank operating in Vietnam, and uses the seal of the Vietnam Insurance Association.

- The Motor Vehicle Insurance Fund is managed and used transparently, efficiently, and purposefully according to the provisions of Decree 67/2023/ND-CP.

2. Organizational structure for management and operation of the Motor Vehicle Insurance Fund Under latest regulations in Vietnam

Article 19 of Decree 67/2023/ND-CP stipulates the organizational structure for management and operation of the Motor Vehicle Insurance Fund Under latest regulations in Vietnam as follows:

- The Management Board of the Motor Vehicle Insurance Fund includes:

+ Chairman of the Management Board of the Motor Vehicle Insurance Fund: Chairman of the Vietnam Insurance Association.

+ Members:

Representative of the Ministry of Finance.

Representative of the Ministry of Public Security.

General Secretary of the Vietnam Insurance Association.

General Director or Deputy General Director of at least three insurers authorized to deploy compulsory civil liability insurance of motor vehicle owners, with the largest market share in compulsory civil liability insurance of motor vehicle owners.

- The Executive Board of the Motor Vehicle Insurance Fund includes:

+ Head of the Executive Board of the Motor Vehicle Insurance Fund: General Secretary of the Vietnam Insurance Association.

+ Members: Representatives of at least three insurers authorized to deploy compulsory civil liability insurance of motor vehicle owners, with the largest market share in compulsory civil liability insurance of motor vehicle owners.

- The Supervisory Board of the Motor Vehicle Insurance Fund includes:

+ At least three members representing three insurers authorized to deploy compulsory civil liability insurance of motor vehicle owners.

+ Head of the Supervisory Board of the Motor Vehicle Insurance Fund appointed by the Chairman of the Management Board of the Motor Vehicle Insurance Fund from the members of the Supervisory Board.

+ Insurers with members participating in the Supervisory Board of the Motor Vehicle Insurance Fund must be independent from insurers with members participating in the Executive Board of the Motor Vehicle Insurance Fund to ensure prompt evaluation and identification of risks potentially affecting the efficiency and MVIF management and use principles.

3. Tasks and powers of the organizational structure of the Motor Vehicle Insurance Fund in Vietnam

According to Article 20 of Decree 67/2023/ND-CP, the tasks and powers of the organizational structure of the Motor Vehicle Insurance Fund are stipulated as follows:

* Tasks and powers of the Management Board of the Motor Vehicle Insurance Fund:

+ Responsible before the law, before the Minister of Finance for managing and operating the Motor Vehicle Insurance Fund.

+ Issue the working regulations of the Management Board of the Motor Vehicle Insurance Fund, the Executive Board of the Motor Vehicle Insurance Fund, the Supervisory Board of the Motor Vehicle Insurance Fund.

+ Issue specific regulations on managing and using the Motor Vehicle Insurance Fund; approve the estimates and final accounts of the Motor Vehicle Insurance Fund.

+ Decide the contribution rate to the Motor Vehicle Insurance Fund, notify insurers and the Ministry of Finance.

+ Oversee, manage, operate, exploit, develop, and maintain the operation of the database on compulsory civil liability insurance of motor vehicle owners.

+ Develop and implement management policies, delegation of authority, management, data updating, exploitation, use, and information security of the database on compulsory civil liability insurance of motor vehicle owners.

+ Coordinate with insurers to consolidate proposals for upgrading, improving the database on compulsory civil liability insurance of motor vehicle owners; adjust, perfect system configurations and deploy projects connecting, upgrading the database on compulsory civil liability insurance of motor vehicle owners.

+ Regularly check, monitor, and urge the updating of information, periodic data of insurers; receive, consolidate difficulties, obstacles, insurers' recommendations, and resolve them according to regulations.

+ Lead and guide insurers in implementing the construction of the database on compulsory civil liability insurance of motor vehicle owners.

+ Issue procedures, documents, and files for humanitarian aid, refund insured money that insurers have advanced for compensation.

+ Decide on the establishment of the Executive Board of the Motor Vehicle Insurance Fund and the Supervisory Board of the Motor Vehicle Insurance Fund.

+ Report to the Ministry of Finance on the estimates and final accounts of the Motor Vehicle Insurance Fund that have been approved.

* Tasks and powers of the Executive Board of the Motor Vehicle Insurance Fund:

+ Responsible before the law, before the Management Board of the Motor Vehicle Insurance Fund for managing, using, paying, and settling the Motor Vehicle Insurance Fund.

+ Comply with regulations on managing, using the Motor Vehicle Insurance Fund according to the plan approved by the Management Board of the Motor Vehicle Insurance Fund, conformable to this Decree, not using the Motor Vehicle Insurance Fund for activities outside its purposes.

+ Responsible for urging or recovering from insurers who do not contribute on time, in full amount according to the specified rate.

* Tasks and powers of the Supervisory Board of the Motor Vehicle Insurance Fund:

+ Monitor the operation of the Motor Vehicle Insurance Fund to ensure compliance with the conformity of the law and regulations of this Decree.

+ Compile assessments, recommend to the Management Board of the Motor Vehicle Insurance Fund on the financial situation of the Motor Vehicle Insurance Fund quarterly, annually.

+ Conduct inspections upon the management and use of the Motor Vehicle Insurance Fund as requested by the Management Board of the Motor Vehicle Insurance Fund.

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