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THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
74/CP
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Hanoi,
June 14, 1997
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DECREE
AMENDING
AND SUPPLEMENTING A NUMBER OF ARTICLES OF DECREE No. 100-CP OF DECEMBER 18,
1993 OF THE GOVERNMENT ON INSURANCE BUSINESS
THE GOVERNMENT
Pursuant to the Law on
Organization of the Government of September 30, 1992;
To adapt to the actual situation and enhance State management over insurance
business activities;
At the proposal of the Ministry of Finance,
DECREES:
Article 1.- To amend and
supplement a number of articles in Decree No. 100-CP of December 18, 1993 of
the Government on insurance business as follows:
1. Article 3 is amended as
follows:
"Article 3.- This
Decree shall apply to insurance enterprises, insurance brokerage organizations
and insurance agents, but not to the medical insurance system which was issued
together with Decree No. 299-HDBT of August 15, 1992 of the Council of
Ministers (now the Government) and the social insurance system issued together
with Decree No. 43-CP of June 22, 1993 of the Government".
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"Article 4.- The State
protects the legitimate rights and interests of the insured as well as the
lawful interests of insurance enterprises.
The State encourages the
expansion and development of insurance business activities; strictly forbids
insurance enterprises to force, through any organizations and individuals, the
purchase of insurance in any forms, which thus affects the legitimate interests
of the insured.
The Ministry of Finance shall
lay down principles of cooperation in the insurance service in order to ensure
a healthy development of the market".
3. Article 6 is amended as
follows:
"Article 6.- An insurance
enterprise may reinsure at other enterprises.
In case of reinsurance at
foreign insurance organizations, the insurance enterprise shall have to
reinsure part of its liabilities under such reinsurance contract at the Vietnam
National Reinsurance Company on the basis of ensuring the equity of interests
of both parties and the capability of the Vietnam National Reinsurance Company
according to specific guidances of the Ministry of Finance".
4. The following paragraph is
added to the end of Article 7:
"The Government shall
stipulate the different types of compulsory insurance".
5. Article 10 is amended as
follows:
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1. That its statutory capital is
not lower than the prescribed capital specified in Article 22 of this Decree
(Decree No. 100-CP of December 18, 1993 of the Government);
2. The financial requirements
shall comply with the concrete guidances of the Ministry of Finance so as to
fulfill its commitments to the insured".
6. Clause 1, Article 12 is
amended as follows:
"1. An insurance enterprise
shall be allowed to invest its capital and assets in various businesses in
different investment forms and ensure the safety and efficiency of the
investment, but it must meet regular payment requirements arising in the
process of paying compensation or insurances to the insured".
7. The following point 6 is
added to Article 14:
"6. Replacement of the
manager";
8. The following is added to
Article 18:
"Article 18a.- For the
compulsory insurance, an insurance enterprise shall have to abide by all the
rules, terms and premium index or bracket issued by the Ministry of Finance.
For the insurance related to
human beings, an insurance enterprise shall have to submit to the Ministry of
Finance for approval the insurance rules and terms, and register the insurance
premium index with the Ministry of Finance before the application thereof.
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9. Article 19 is amended as
follows:
"Article 19.- Activities
of an insurance agent must be based on an agent contract signed with an
insurance enterprise.
1. An individual who wishes to
undertake insurance agent activities must fill all the following conditions:
a/ Being a Vietnamese citizen
who has full capacity for civil acts and is legally residing in Vietnam;
b/ Possessing a certificate of
general or higher education .
c/ Having completed a training
course on insurance agency organized by the insurance enterprise or a competent
agency;
d/ Having signed an agent
contract with the insurance enterprise.
2. The following individuals
shall not be allowed to undertake insurance agent activities:
a/ Under examination for penal
liability or serving a court sentence.
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3. The insurance enterprise
shall be entitled to appoint agents to conduct unprohibited insurance business
activities and shall take responsibility for their agents operations.
Unless provided for in a
separate agreement with the insurance enterprise, an insurance agent shall not
be allowed to act concurrently as an insurance agent for another insurance
enterprise.
The payment of commissions for
insurance agents shall have to comply with the regulations of the Ministry of
Finance. Insurance enterprises are strictly forbidden to pay commissions to
insurance buyers or the insured.
The Ministry of Finance shall
issue a regulation on the operation of insurance agents".
10. Article 34 is amended as
follows:
"Article 34.-
1. Insurance enterprises,
insurance brokerage organizations and insurance agents that violate the
provisions in their certificates or the provisions in Decree No. 100-CP and the
Decree amending and supplementing a number of articles of Decree No. 100-CP,
thereby affecting the interests of the insured, shall, depending on the
seriousness of the violation, be subject to administrative sanctions; pay
compensation for damage or be examined for penal liability.
2. For violations that seriously
affect the interests of the insured, apart from sanctions provided for in
Clause 1 this Article, the Ministry of Finance may apply the following
measures:
a/ Compelling the offender to
increase its assets;
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c/ Requesting a competent State
agency to block the offenders assets;
d/ Requesting the insurance
organization to replace its manager and/or member(s) of the Managing
Board".
Article 2.-
This Decree takes effect 15 days after its signing. The earlier provisions
which are contrary to this Decree are now annulled.
Article 3.-
The Minister of Finance shall have to guide the implementation of this Decree.
Article 4.-
The Ministers, the Heads of the ministerial-level agencies, the Heads of the
agencies attached to the Government, the Presidents of the Peoples Committees
of the provinces and cities directly under the Central Government shall have to
implement this Decree.
ON
BEHALF OF THE GOVERNMENT
FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER
Phan Van Khai