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THE GOVERNMENT
OF VIETNAM
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THE SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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No.: 21/2023/ND-CP
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Hanoi, May 05,
2023
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DECREE
ON MICROINSURANCE
Pursuant to the Law on Government Organization
dated June 19, 2015; the Law on Amendments to the Law on Government
Organization and the Law on Local Government Organization dated November 22,
2019;
Pursuant to the Law on Enterprises dated June
17, 2020;
Pursuant to the Law on Investment dated June 17,
2020;
Pursuant to the Law on Insurance Business dated
June 16, 2022;
At the request of the Minister of Finance of
Vietnam;
The Government promulgates a Decree introducing
regulations on microinsurance.
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GENERAL PROVISIONS
Article 1. Scope
This Decree provides detailed regulations on
implementation of Clause 2 Article 88 regarding microinsurance, Clause 3
Article 144, Clause 3 Article 145, Clause 2 Article 146, Clause 3 Article 148,
Clause 2, Clause 3 and Clause 5 Article 149, Clause 5 Article 150 of the Law on
Insurance Business.
Article 2. Regulated entities
1. Entities providing microinsurance products,
including:
a) Non-life insurers, life insurers, health
insurers (hereinafter referred to as “insurers”), and branches of foreign
non-life insurers established and operating in Vietnam;
b) Mutual microinsurance organizations established
and operating in Vietnam.
2. State regulatory authorities in charge of
insurance business affairs.
3. Organizations and individuals involved in
microinsurance business, including:
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b) Institutional representatives of members;
c) Other relevant organizations and individuals.
Chapter II
MICROINSURANCE PRODUCTS
Article 3. Maximum sums insured and premiums of
microinsurance products
1. The sum insured under a microinsurance contract
for protection against life and health risks shall not exceed 05 times the
annual per capita income for near poverty households in urban areas announced
by the Government at the time of launching the microinsurance product.
2. The sum insured under a microinsurance contract
for protection against property risks shall exceed neither the market price of
the insured property at the time of conclusion of the contract nor 05 times the
annual per capita income for near poverty households in urban areas announced
by the Government at the time of launching the microinsurance product.
3. The annual insurance premiums of a
microinsurance contract shall not exceed 5% of the annual per capita income for
near poverty households in urban areas announced by the Government at the time
of launching the microinsurance product. Insurance premiums must be appropriate
for insurance benefits.
Article 4. Microinsurance products provided by
insurers and branches of foreign non-life insurers
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2. Life insurers may provide microinsurance
products for protection against life and health risks with a maximum insurance
term of 05 years.
3. Non-life insurers and branches of foreign
non-life insurers may provide:
a) Microinsurance products for protection against
life and health risks with a maximum insurance term of 01 year;
b) Microinsurance products for protection against
property risks with a maximum insurance term of 05 years.
4. Health insurers may provide:
a) Microinsurance products for protection against
life risks with a maximum insurance term of 01 year;
b) Microinsurance products for protection against
health risks with a maximum insurance term of 05 years.
5. Names of microinsurance products provided by
insurers and branches of foreign non-life insurers must contain the phrase “Sản
phẩm bảo hiểm vi mô” (“microinsurance product”) for distinguishing between
their microinsurance products and other insurance products.
Article 5. Microinsurance products provided by
mutual microinsurance organizations
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1. Health care benefit: partial or entire costs of
inpatient treatment and surgery will be covered when the insured is
hospitalized or undergoes surgery within the scope of insurance cover.
2. Accident insurance benefit: an amount will be
paid in proportion to the severity level of injuries incurred by the insured as
agreed upon in the microinsurance contract when the insured suffers injuries in
an accident within the scope of insurance cover.
3. Death or total permanent disability (TPD)
insurance benefit: the beneficiary will receive a payout under terms and
conditions of the microinsurance contract when the insured passes away or
suffers TPD within the scope of insurance cover.
4. Funeral expense benefit: an amount of funeral
allowance will be paid under terms and conditions of the microinsurance
contract upon payment of death benefit.
5. Property insurance benefit: the insurance
indemnity will be paid under terms and conditions of the microinsurance
contract when the insured property damage occurs due to the causes within the
scope of insurance cover.
Article 6. Application and procedures for
registration of premium calculation methods and bases of microinsurance
products
1. Providers of microinsurance products are
required to register premium calculation methods and bases of their
microinsurance products before they are launched.
2. An application for registration of premium
calculation methods and bases which includes the following documents shall be
submitted to the Ministry of Finance of Vietnam:
a) An application form made using Form No. 06 in
the Appendix enclosed herewith;
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c) Formulas, methods and bases for calculation of
net premium, gross premium and documentary explanations about premium
calculation bases of the microinsurance product to be provided; principles for
increasing/decreasing premiums (if any). These documents must bear
certification given by actuaries of microinsurance products.
3. Within 14 days from the receipt of an adequate
and valid application, the Ministry of Finance of Vietnam shall give a written
approval of premium calculation methods and bases to the applicant. If an
application is refused, the Ministry of Finance of Vietnam shall specify
reasons in writing.
4. If there are any changes in premium calculation
methods and bases of its microinsurance product, the microinsurance product
provider shall submit an application for approval of such changes to the
Ministry of Finance of Vietnam. Such an application includes:
a) An application form made using Form No. 06 in
the Appendix enclosed herewith;
b) Documents indicating explanations about such
changes which must bear certification given by actuaries of microinsurance
products.
5. Within 14 days from the receipt of an adequate
and valid application, the Ministry of Finance of Vietnam shall give a written
approval of changes in premium calculation methods and bases to the applicant.
If an application is refused, the Ministry of Finance of Vietnam shall specify
reasons in writing.
Chapter III
ESTABLISHMENT, ORGANIZATION AND OPERATION OF MUTUAL
MICROINSURANCE ORGANIZATIONS
Section 1. ISSUANCE, RE-ISSUANCE, MODIFICATION
AND REVOCATION OF LICENSE FOR ESTABLISHMENT AND OPERATION, SUSPENSION OF
BUSINESS OF MUTUAL MICROINSURANCE ORGANIZATIONS
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A mutual microinsurance organization must meet the
conditions laid down in Article 149 of the Law on Insurance Business of which
Clauses 2, 3 and 5 are elaborated as follows:
1. The amount of establishment capital in VND shall
not be less than VND 10 billion. Sources of establishment capital of a mutual
microinsurance organization:
a) Capital contributed by individuals that are founding
members. Founding members shall not be allowed to contribute borrowed funds or
assets held in trust for other entities for capital contribution purposes;
b) Financial support given by the institutional
representative of members;
c) Donations or grants of sponsors, international
organizations, programs/projects;
d) Other lawful sources of capital as prescribed by
law.
2. Any candidate for the position of Chairperson of
the Management Board, General Director (or Director), legal representative or
actuary of microinsurance products must meet the conditions and standards laid
down in Article 24 and Article 25 of this Decree.
3. The draft charter must be in line with business
objectives of the mutual microinsurance organization and conform to the provisions
of Article 8 of this Decree.
Article 8. Charter of mutual microinsurance
organizations
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a) Name and planned location of the head office of the
mutual microinsurance organization;
b) Business objectives of the mutual microinsurance
organization;
c) Contents, scope, areas and duration of
operation;
d) Procedures for recognition or termination of
membership, rights and obligations of members. Members of the mutual
microinsurance organization must be Vietnamese citizens aged 18 or older, and
having full legal capacity; be members of the same organization and meet the
conditions laid down in the charter of the mutual microinsurance organization;
dd) Names, addresses, rights, obligations and
quantity of founding members (at least 07 members) of the mutual microinsurance
organization (if its founding members are individuals); name, address, rights
and obligations of the institutional representative of members (if its founding
member is institutional representative of members);
e) Organizational structure, functions, tasks,
powers, term of office and working method of the General Meeting of Members
(GMM) (if founding members are individuals), Management Board, Board of
Directors, Board of Controllers; procedures for election, dismissal of members
or Chairperson of Management Board or Board of Controllers;
g) Cases in which extraordinary GMM is convened (if
founding members are individuals);
h) Procedures for convening GMM and ratifying
resolutions at GMM; standards and procedures for election of delegates to
general meeting of delegates of members (if founding members are individuals);
i) Establishment capital of the mutual
microinsurance organization; methods of capital contribution; methods and
principles for returning amounts of financial support to the institutional
representative of members (if any);
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l) Rules for settlement of internal disputes;
m) Rules and order of distribution of assets in
case the mutual microinsurance organization is dissolved;
2. Any revisions to the charter of the mutual
microinsurance organization shall be subject to decision of the GMM (if
founding members are individuals) or the institutional representative of
members (if the founding member is the institutional representative of
members).
Article 9. Conference on establishment of mutual
microinsurance organizations
1. Participants in the conference on establishment
of a mutual microinsurance organization of which founding members are
individuals include:
a) Founding members;
b) Other members that are of the same organization
with founding members and wish to purchase microinsurance products.
2. The resolution to be ratified at the conference
has the following contents:
a) Authorization to one of founding members to
submit application for license for establishment and operation for the mutual
microinsurance organization;
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c) Plan for provision of microinsurance products as
prescribed in Point d Clause 2 Article 10 of this Decree;
d) Candidates for the positions of Chairperson of
the Management Board, General Director or Director, legal representative and
actuary of microinsurance products;
dd) Other contents concerning the establishment,
organization and operation of the mutual microinsurance organization.
3. The resolution of the conference on
establishment of a mutual microinsurance organization specified in Clause 2 of
this Article will be ratified if it is voted for by at least 51% of
participants.
Article 10. Application and procedures for issuance
of license for establishment and operation
1. Application for the license for establishment
and operation of a mutual microinsurance organization shall be submitted
according to the following provisions:
a) If founding members are individuals as prescribed
in Point a Clause 1 Article 149 of the Law on Insurance Business: founding
members shall hold a conference on establishment of the mutual microinsurance
organization as prescribed in Article 9 of this Decree. The authorized founding
member shall submit application for license for establishment and operation for
the mutual microinsurance organization;
b) If the founding member is the institutional
representative of members as prescribed in Point b Clause 1 Article 149 of the
Law on Insurance Business: the person authorized by the institutional
representative of members shall submit application for license for
establishment and operation for the mutual microinsurance organization.
2. An application for the license for establishment
and operation of a mutual microinsurance organization includes:
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b) The draft charter of the mutual microinsurance
organization;
c) A written certification, given by a licensed
commercial bank operating in Vietnam, of establishment capital (which shall not
be smaller than the one prescribed in Clause 1 Article 7 of this Decree) which
has been sent to the escrow account opened at this bank and shall be released
only after the Ministry of Finance of Vietnam has issued the license for
establishment and operation or written notice of its refusal to issue the
license;
d) The plan for provision of microinsurance
products which must indicate processes and network for providing microinsurance
products; estimated revenues, expenses and incomes from the provision of
microinsurance products in the first 03 years in conformity with the number of
members and business network of the mutual microinsurance organization;
dd) The resolution of the conference on establishment
of the mutual microinsurance organization which has adequate contents as
prescribed in Clause 2 Article 9 of this Decree (if founding members are
individuals);
e) The written approval of establishment of the
mutual microinsurance organization given by a competent authority defined in
the charter of the institutional representative of members (if the founding
member is the institutional representative of members);
g) The list of founding members and documents
proving their satisfaction of the conditions laid down in Point a Clause 1
Article 149 of the Law on Insurance Business (if founding members are
individuals);
h) The charter, copy of the establishment decision
or business registration certificate or another document of equivalent validity
of the institutional representative of members (if the founding member is the
institutional representative of members);
i) Curriculum Vitae (CVs), criminal records; copies
of citizen identity cards or ID cards or passports or other valid personal identification
papers; copies of diplomas, degrees, certificates and/or documents proving
capacity and professional competency of candidates for the positions of
Chairperson of the Management Board, General Director or Director, legal
representative and actuary of microinsurance products of the mutual
microinsurance organization;
k) Explanations and commitment to build an
information technology system meeting the requirements laid down in Clause 6
Article 149 of the Law on Insurance Business.
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4. Within 60 days from the receipt of an adequate
and valid application, the Ministry of Finance of Vietnam shall issue the
license using Form No. 02 in the Appendix enclosed herewith to the applicant.
If an application is refused, the Ministry of Finance of Vietnam shall specify
reasons in writing.
5. The Ministry of Finance of Vietnam shall publish
contents of the license for establishment and operation of the mutual
microinsurance organization on its web portal within 30 days from the licensing
date.
Article 11. Application and procedures for
re-issuance of license for establishment and operation
1. In case its license for establishment and
operation is lost, damaged or otherwise destroyed, the mutual microinsurance
organization shall submit an application for re-issuance of the license as
prescribed in Clause 2 of this Article to the Ministry of Finance of Vietnam.
2. An application for re-issuance of license for
establishment and operation includes:
a) The application form made using Form No. 03 in
the Appendix enclosed herewith;
b) The declaration made by the mutual microinsurance
organization of the damage to or the loss or destruction of the license and
documentary evidences (if any).
3. Within 14 days from the receipt of an adequate
and valid application, the Ministry of Finance of Vietnam shall re-issue the
license. If an application is refused, the Ministry of Finance of Vietnam shall
specify reasons in writing.
Article 12. Application and procedures for
modification of license for establishment and operation
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a) Renaming or relocation of its head office;
b) Changes in contents, scope and duration of
operation.
2. An application for approval of renaming or
relocation of head office includes:
a) The application form made using Form No. 04 in
the Appendix enclosed herewith;
b) A written approval of renaming or relocation of
the head office of the mutual microinsurance organization given by a competent
authority defined in its charter;
c) Documents proving the right to use the new
location (in case of relocation of the head office).
3. An application for approval of changes in
contents, scope and duration of operation includes:
a) The application form made using Form No. 04 in
the Appendix enclosed herewith;
b) A written approval of changes in contents, scope
and duration of operation of the mutual microinsurance organization given by a
competent authority defined in its charter;
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4. Within 14 days (in case of changes in contents,
scope and duration of operation) or within 07 days (in case of renaming or
relocation of head office) from the receipt of an adequate and valid
application, the Ministry of Finance of Vietnam shall issued a modified license
using Form No. 05 in the Appendix enclosed herewith. If an application is
refused, the Ministry of Finance of Vietnam shall specify reasons in writing.
Article 13. Procedures for suspension of
business of mutual microinsurance organizations
1. Within 15 days from the end of the time limit
specified in Clause 4 Article 36 of this Decree, the Ministry of Finance of
Vietnam shall issue a decision to suspend business of the mutual microinsurance
organization. Depending on the nature and severity of the violation, the
suspension period varies from 01 to 06 months.
2. During the suspension period, the mutual
microinsurance organization shall:
a) not enter into new microinsurance contracts or
extend the signed ones;
b) fully set aside technical reserves, as
prescribed by law, for microinsurance contracts which have been signed before
the suspension decision is issued; continue paying debts and fulfilling obligations
under the signed contracts toward members participating in microinsurance and
employees as prescribed by laws;
c) Implement measures for remedying the violation.
3. Within 15 days from the end of the suspension
period, the mutual microinsurance organization shall submit a report on results
of remedial measures to the Ministry of Finance of Vietnam.
a) If the violation has been successfully remedied,
the mutual microinsurance organization shall be allowed to resume its business;
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Article 14. Revocation of license for
establishment and operation
1. The license for establishment and operation of a
mutual microinsurance organization shall be revoked in the following cases:
a) The application for the license contains
fraudulent information provided with the aim of satisfying licensing
conditions;
b) It operates against the contents of the issued
license for establishment and operation;
c) It fails to remedy the violation as prescribed
in Point b Clause 3 Article 13 of this Decree;
d) It fails to increase the number of its members
according to the plan submitted to the Ministry of Finance of Vietnam as
prescribed in Clause 3 Article 32 of this Decree;
dd) The organization is dissolved of its own accord;
2. Procedures for revocation of a license for
establishment and operation in the case specified in Point a or b Clause 1 of
this Article shall comply with Article 15 of this Decree.
3. Procedures for revocation of a license for
establishment and operation in the case specified in Point c or d Clause 1 of
this Article shall comply with Article 16 of this Decree.
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5. The mutual microinsurance organization shall
cease to operate from the day on which the Ministry of Finance of Vietnam
issues a decision to revoke its license for establishment and operation.
Article 15. Procedures for revocation of license
for establishment and operation in case of license fraud or operation against
the license
1. From the day on which the record of the
violation in Point a or b Clause 1 Article 14 of this Decree is signed, the
mutual microinsurance organization shall:
a) not enter into new microinsurance contracts or
extend the signed ones;
b) notify all of members participating in
microinsurance, and relevant organizations and individuals of its distribution
of assets before the license for establishment and operation is revoked;
c) establish a dissolution council that shall take
charge of distributing assets in the order of priority specified in Clause 2 of
this Article.
2. Assets shall be distributed in the following
order of priority:
a) Insurance indemnities or coverage in insurance
claims within the scope of insurance cover;
b) Insurance premium refunds for days left to the
expiry date of microinsurance contract;
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d) Financial obligations to the Government;
unsecured debts that need to be repaid to creditors on the list of creditors;
secured debts that are not repaid yet due to the imbalance between the value of
collateral and the amount of debts payable;
dd) Capital refunds to founding members.
If the value of assets is not enough to pay, the
payees in the same group of priority may receive payments in percent in
proportion to the amount of debts owed. After all payments have been made, the
remainder of assets of the mutual microinsurance organization shall be
distributed to its founding members and members participating in
microinsurance.
3. Within 12 months from the day on which the
record of violation is signed, the mutual microinsurance organization must
fulfill the obligations in Clauses 1 and 2 of this Article, and submit a report
thereon and relevant supporting documents, to the Ministry of Finance of
Vietnam.
4. Within 30 days from the receipt of the report
specified in Clause 3 of this Article, the Ministry of Finance of Vietnam shall
issue a decision to revoke the license for establishment and operation of the
mutual microinsurance organization and publish this decision on its web portal.
Article 16. Procedures for revocation of license
for establishment and operation in case of a mutual microinsurance
organization’s failure to remedy its violations
1. Upon the end of the suspension period prescribed
in Clause 1 Article 13 of this Decree, if the mutual microinsurance
organization fails to remedy its violation, or after the mutual microinsurance
organization has notified the Ministry of Finance of Vietnam of its failure to
increase the number of its members as prescribed in Clause 3 Article 32 of this
Decree, it shall:
a) notify all of members participating in
microinsurance, and relevant organizations and individuals of its distribution
of assets before the license for establishment and operation is revoked;
b) establish a dissolution council that shall take
charge of distributing assets according to the order of priority specified in
Clause 2 Article 15 of this Decree.
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3. Within 30 days from the receipt of the report
specified in Clause 2 of this Article, the Ministry of Finance of Vietnam shall
issue a decision to revoke the license for establishment and operation of the
mutual microinsurance organization and publish this decision on its web portal.
Article 17. Procedures for revocation of license
for establishment and operation in case of voluntary dissolution
1. A mutual microinsurance organization may be
dissolved after it has fulfilled all obligations towards and is not involved in
any disputes with members participating in microinsurance, its employees, the
Government and other relevant organizations and individuals.
2. The mutual microinsurance organization shall
submit an application for approval of voluntary dissolution to the Ministry of
Finance of Vietnam. Such an application includes:
a) The application form;
b) The meeting minutes, resolution of the GMM (if
founding members are individuals) or a document given by a competent authority
defined in the charter of the institutional representative of members (if the
founding member is the institutional representative of members) on approval of
dissolution, and dissolution plan;
c) The plan to fulfill obligations towards members
participating in microinsurance, the Government, its employees and other
relevant organizations and individuals.
d) The plan to distribute assets acquired from
microinsurance activities to members participating in microinsurance.
3. Within 14 days from the receipt of an adequate
application from the mutual microinsurance organization, the Ministry of
Finance of Vietnam shall give a written in-principle approval of the dissolution
of the mutual microinsurance organization. If an application is refused, the
Ministry of Finance of Vietnam shall specify reasons in writing.
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a) not enter into new microinsurance contracts or
extend the signed ones;
b) publish its voluntary dissolution in at least 05
consecutive issues of a daily newspaper;
c) notify all members participating in
microinsurance, and relevant organizations and individuals of its voluntary
dissolution;
d) establish a dissolution council that shall take
charge of distributing assets according to the plan submitted to the Ministry
of Finance of Vietnam.
5. Within 12 months from the day on which the
Ministry of Finance of Vietnam issues its in-principle approval of the
dissolution, the mutual microinsurance organization must fulfill its
obligations towards members participating in microinsurance, the Government,
its employees and other relevant organizations and individuals, and complete
the distribution of assets according to the plan submitted to the Ministry of
Finance of Vietnam.
6. After having fulfilled its obligations towards
members participating in microinsurance, the Government, its employees and
other relevant organizations and individuals, the mutual microinsurance
organization shall submit a report thereon and relevant supporting documents to
the Ministry of Finance of Vietnam.
7. Within 07 days from the receipt of the report
from the mutual microinsurance organization, the Ministry of Finance of Vietnam
shall issue a decision to revoke the license for establishment and operation of
the Ministry of Finance of Vietnam and publish this decision on its web portal.
Article 18. General provisions on applications and
documents
1. The applications and required documents
specified in Clause 2 Article 10, Clause 2 Article 11, Clauses 2 and 3 Article
12, Clause 2 Article 17 must comply with the following provisions:
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b) If a copy of document is submitted, it must be a
copy extracted from its master register or a certified copy;
c) Any documents in foreign language must be
accompanied with their Vietnamese translations certified by competent
authorities;
d) Criminal records must have been issued using the
prescribed form by competent authorities within no more than 12 months before
the date of submission of the application, and include adequate information
about criminal records and prohibition from holding certain positions,
incorporation and management of enterprises and cooperatives;
dd) CVs must be made within no more than 06 months
before the date of submission of the application;
e) The submitted application must include a list of
documents.
2. Organizations and individuals that participate
in the preparation of applications/documents shall be held legally responsible
for the accuracy, truthfulness and adequacy of these applications/documents. If
an entity is found to have intentionally submitted forged or fraudulent
documents with the aim of satisfying licensing conditions, within 05 years from
the date of detection of this violation, the Ministry of Finance of Vietnam is
entitled to refuse all applications for license for establishment and operation
regarding microinsurance business submitted by this entity.
3. When documents on legal status, identity and
residence of citizens which are required documents to be included in the
applications prescribed in this Decree are integrated into the national
population database/the citizen identity card database, the Ministry of Finance
of Vietnam shall access and use the information available in these national
population database/the citizen identity card database by means of information
exchange and sharing between state regulatory authorities.
Section 2. ORGANIZATIONAL STRUCTURE, OPERATION AND
RISK MANAGEMENT
Article 19. Operations of mutual microinsurance
organizations
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1. Provision of microinsurance products.
2. Use of working capital, compulsory reserve funds
and idle capital derived from technical reserves for making investments.
Article 20. Organizational structure of mutual
microinsurance organizations
1. The organizational structure of a mutual
microinsurance organization of which founding members are individuals as
prescribed in Point a Clause 1 Article 149 of the Law on Insurance Business is
composed of:
a) General meeting of members (GMM);
b) Management Board;
c) General Director (Director);
d) Board of Controllers or Controllers.
2. The organizational structure of a mutual
microinsurance organization of which the founding member is the institutional
representative of members as prescribed in Point b Clause 1 Article 149 of the
Law on Insurance Business is composed of:
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b) Management Board;
c) General Director (Director);
d) Board of Controllers or Controllers.
Article 21. General Meeting of Members (GMM)
1. The GMM of a mutual microinsurance organization
of which founding members are individuals shall be its supreme governing body.
GMMs include annual GMM and extraordinary GMM. The GMM shall be held in the
form of a plenary meeting.
2. The annual GMM shall be convened by the
Management Board within 03 months from the end of the fiscal year to decide the
following contents:
a) Ratification of annual income statements of the
mutual microinsurance organization; reports on performance of the Management
Board, Board of Directors and Board of Controllers or Controller;
b) Approval of business and financial plans in the
next year of the mutual microinsurance organization;
c) Establishment of funds as prescribed by law;
reduction of insurance premiums to be paid by its members in the next fiscal
year at the request of the Management Board;
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dd) Election and dismissal of members of the
Management Board and the Board of Controllers;
e) Dissolution of the mutual microinsurance
organization;
g) Revisions to Charter of the mutual
microinsurance organization;
i) Other matters as requested in writing by the
Management Board or at least 1/3 of total members of the mutual microinsurance
organization.
The meeting of the GMM shall be conducted when it
is participated in by at least 75% of its total members. If the required number
of participants is not sufficient, the meeting shall be postponed. The second
meeting of the GMM shall be conducted after 30 days from the intended date of
the first meeting if it is participated in by at least 50% of its total
members. In case the conditions for conducting the second meeting are not fulfilled,
the third meeting shall be conducted regardless of the number of participants
within 20 days from the intended date of the second meeting.
3. An extraordinary meeting of the GMM shall be
convened by the Management Board, Board of Controllers or Controller or member
representing at least one third of total members of the mutual microinsurance
organization in the following cases:
a) Settlement of matters beyond the jurisdiction of
the Management Board;
b) The Management Board’s failure to conduct the
meeting of GMM after the second request has been submitted;
c) At the request of the Board of Controllers or
Controller;
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Within 15 days from the receipt of the request of
the Board of Controllers or Controller or at least one third of its total
members, the Management Board shall convene the extraordinary meeting of the
GMM. If Management Board fails to convene the extraordinary meeting of the GMM
within 15 days as prescribed, it may be convened by the Board of Controllers or
Controller.
If the Board of Controllers or Controller fails to
convene the extraordinary meeting of the GMM within 15 days as prescribed in
Clause 3 of this Article, the member representing at least one third of its
total members shall be entitled to convene the meeting.
Article 22. Institutional representative of
members
Regarding a mutual microinsurance organization of
which the founding member is the institutional representative of members, this
institutional representative of members shall be its supreme governing body and
entitled to decide the following contents:
1. Ratification of annual income statements of the
mutual microinsurance organization; reports on performance of the Management
Board, Board of Directors and Board of Controllers or Controller.
2. Approval of business and financial plans in the
next year of the mutual microinsurance organization.
3. Return of amounts of financial support to the
institutional representative of members when it reports a positive income and
maintains a balance on its established compulsory reserve fund of not less than
VND 50 billion as prescribed in Clause 2 Article 42 of this Decree.
4. Establishment of funds as prescribed by law;
reduction of insurance premiums to be paid by its members in the next fiscal
year at the request of the Management Board.
5. Decision on mobilization of additional capital.
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7. Dissolution of the mutual microinsurance
organization.
8. Revisions to Charter of the mutual
microinsurance organization.
9. Remunerations paid to members of the Management
Board, Board of Directors, Board of Controllers or Board of Controller and
other title holders (if any) of the mutual microinsurance organization.
10. Other matters as requested in writing by the
Management Board or at least 1/3 of total members of the mutual microinsurance
organization.
Article 23. Management Board
1. The Management Board is the managerial body of a
mutual microinsurance organization and has the right to make decisions on
behalf of the mutual microinsurance organization on all matters concerning the
objectives, rights and interests of the mutual microinsurance organization,
except those under the jurisdiction of the GMM or the institutional
representative of members. Members of the Management Board of the mutual
microinsurance organization shall be elected by the GMM (if its founding
members are individuals) or appointed by the institutional representative of
members (if its founding member is institutional representative of members).
2. The Management Board shall meet at least twice a
year, and perform the following rights and obligations:
a) Decide development strategies of the mutual
microinsurance organization;
b) Request the GMM or institutional representative
of members to decide increase/decrease in insurance premiums to be paid by its
members in the next fiscal year; decide or settle losses incurred during its
operation;
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d) Decide technological and business development
solutions; approve contracts worth at least 50% of the total assets written in
the accounting book of the mutual microinsurance organization or another
smaller ratio as specified in its charter;
dd) Appoint, dismiss or discharge the General
Director (or Director) and holders of other key managerial positions of the
mutual microinsurance organization; decide their salaries and other benefits;
e) Decide the organizational structure and internal
management rules and regulations of the mutual microinsurance organization;
g) Submit annual financial statements to the GMM or
institutional representative of members;
h) Approve the agenda and documents of the GMM;
convene the GMM or carry out surveys for the GMM to ratify its decisions;
i) Perform other rights and obligations prescribed
by law and the charter of the mutual microinsurance organization.
Article 24. Chairperson of Management Board,
General Director or Director
1. The legal representative of a mutual
microinsurance organization shall be Chairperson of its Management Board or its
General Director or Director. The legal representative of a mutual
microinsurance organization shall be its General Director or Director, unless
otherwise specified in its charter.
2. General Director or Director of mutual
microinsurance organization is the person who manages its daily business
operations and assumes responsibility before the Management Board for his/her
performance of assigned tasks.
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a) is not facing criminal prosecution or has been
convicted but has had his/her criminal records expunged as prescribed;
b) has a bachelor’s degree or higher in insurance,
finance or banking. The person who has a bachelor’s degree or higher in another
major shall be required to obtain a certificate of completion of training
course in insurance issued by an insurance training institution duly
established and operating in Vietnam or a foreign country;
c) In addition to the standards specified in Point
a and Point b of this Clause, the General Director or Director of a mutual
microinsurance organization must also have at least 03 years of working
experience in insurance sector,
Article 25. Standards and requirements to be
satisfied by Actuaries
1. In order to act as an Actuary of microinsurance
products, a person must meet the following standards and requirements:
a) He/she is not facing criminal prosecution or has
been convicted but has had his/her criminal records expunged as prescribed;
b) He/she is an associate of an actuarial
association that is currently an official member of an international actuarial
association or has at least 05 years of working experience in insurance sector
and has evidence that he/she has passed at least 02 exams held by the actuarial
association or society of UK, America, Australia or Canada, or has passed all
subjects of a training program/course in actuarial science which has been
recognized by one of the said actuarial associations or societies to have
equivalent validity with their 02 exams.
After 05 years from the effective date of this
Decree, an Actuary must become an associate of an actuarial association that is
currently an official member of an international actuarial association.
2. A mutual microinsurance organization may employ
Actuaries of microinsurance products in the following forms:
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b) Enter into an outsourcing contract with another
entity to perform tasks of an Actuary of microinsurance products as prescribed
in Clause 3 of this Article. In this case, the mutual microinsurance
organization shall still assume the sole and ultimate responsibility towards
members participating in microinsurance.
3. A mutual microinsurance organization shall
employ Actuary(ies) that meet the standards and requirements set forth in
Clause 1 of this Article to perform the following tasks:
a) Calculate insurance premiums; carry out annual
assessment of difference between assumed premiums and actually received
premiums of each microinsurance product, calculate and adjust premiums to be
collected in the next year, and income distribution plan;
b) Calculate amounts contributed to technical
reserves as prescribed by laws;
c) Submit quarterly and annual reports to the
Management Board and General Director (Director) on current financial,
investment and business status of the mutual microinsurance organization,
indicating risks arising from and proposals of investment assets, investment
term of each asset which must be in line with the responsibilities undertaken
under an insurance contract;
d) Promptly submit written reports to the General
Director (Director), the Management Board on any irregular issues that may
adversely affect the financial health of the mutual microinsurance organization
and propose appropriate remedial measures.
d) Assess reinsurance programs and contracts (if
any) before they are submitted to the General Director (Director), the Management
Board for approval;
e) Submit annual reports to the Ministry of Finance
of Vietnam on his/her performance of tasks (using Form No. 11 in the Appendix
enclosed herewith) within a maximum duration of 90 days from the end of the
fiscal year;
g) Perform other tasks with the aim of ensuring
financial safety of the mutual microinsurance organization.
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1. Each mutual microinsurance organization shall
have a Board of Controllers or appoint Controller(s) as prescribed in Article
27 of this Decree.
2. Mutual microinsurance organizations shall
develop and implement their own internal regulations on assignment of
responsibilities; procedures for research and development, and offer of
products, assessment, indemnity, reinsurance and other business processes.
3. Mutual microinsurance organizations shall
frequently inspect and supervise the compliance with laws, and their business
processes and internal regulations and rules. Inspection and supervision tasks
must be performed independently from insurance operations, and in a manner
ensuring that all risks which may adversely affect the operational efficiency
and objectives of the mutual microinsurance organization shall be punctually
detected, assessed and reported to its competent authority for adopting
appropriate preventive measures.
4. Inspection and supervision results shall be
documented and retained by the mutual microinsurance organization.
Article 27. Board of Controllers and Controllers
1. The Board of Controllers or Controller(s) of a
mutual microinsurance organization shall be elected by its GMM (if its founding
members are individuals) or appointed by the institutional representative of
members (if its founding member is the institutional representative of
members).
2. The Board of Controllers or Controller(s) shall
perform their tasks independently, assume responsibility before the GMM or the
institutional representative of members, and have the following rights and
obligations:
a) Inspect the rationality and legitimacy in
business administration and preparation of accounting books and financial
statements of the mutual microinsurance organization;
b) Validate annual financial statements of the
mutual microinsurance organization;
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d) Propose changes or improvements to the
organizational structure and administration of the mutual microinsurance
organization;
dd) Perform other rights and obligations prescribed
by the charter of the mutual microinsurance organization.
Performance of tasks in Point a and Point b of this
Clause must not obstruct normal operation of the Management Board or interrupt
daily business administration of the mutual microinsurance organization.
3. A member of the Board of Controllers or
Controller must not concurrently hold the position of a member of the
Management Board, General Director (Director), Chief Accountant, or cashier,
and must not be a biological or adoptive parent, spouse, biological or adopted
child, or biological sibling of any member of the Management Board or of the
Board of Controllers (if the Board of Controllers is established).
Section 3. INSURANCE OPERATIONS
Article 28. Distribution of microinsurance
products
1. A mutual microinsurance organization may
distribute its microinsurance products via the following entities:
a) Members participating in microinsurance;
b) Insurance agents.
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3. In order to offer microinsurance products, an
insurance agent must have one of the following certificates:
a) Basic life insurance agent practicing
certificate;
b) Health insurance agent practicing certificate;
c) Basic non-life insurance agent practicing
certificate (only applicable to insurance agents that provide microinsurance
products covering property insurance benefit).
Article 29. Contents of microinsurance contracts
A microinsurance contract shall, inter alia, have
the following contents:
1. The member participating in microinsurance, the
beneficiary (if any).
2. Subject matter insured.
3. Sum insured or value of property insured.
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5. Insurance policy period, date of entry into
force of the insurance contract.
6. Insurance premium, payment method and frequency.
7. Insurance coverage and payment option.
8. Rights and obligations of the mutual
microinsurance organization as prescribed by law.
9. Rights and obligations of the member
participating in microinsurance as prescribed by law.
Article 30. Rights and obligations of mutual
microinsurance organizations
1. A mutual microinsurance organization shall have
the following rights:
a) Collect insurance premiums under terms and
conditions of microinsurance contracts;
b) Request members participating in microinsurance
to provide adequate and truthful information to serve the conclusion and
performance of microinsurance contracts;
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d) Refuse to pay insurance to beneficiaries or to
pay indemnities to the insured if insurance claims fall outside the scope of
insurance cover or all within the scope of application of the disclaimer clause
under terms and conditions of a microinsurance contract;
dd) Exercise other rights as prescribed by law,
terms and conditions of signed microinsurance contracts and charter of the
mutual microinsurance organization.
2. A mutual microinsurance organization shall have
the following obligations:
a) Provide information, and clear and full
explanations about rules, terms and conditions of microinsurance products for
members participating in microinsurance, and their rights and obligations;
b) Pay insurance to beneficiaries or indemnities to
the insured in a timely manner when an insured event occurs;
c) Check, collate and verify information with
members participating in microinsurance about microinsurance products in which
they participate, premiums paid and payment frequency, and insurance payouts;
d) Notify members participating in microinsurance
of annual income from offer of microinsurance products, and income distribution
plan.
dd) Perform other obligations as prescribed by law,
terms and conditions of signed microinsurance contracts and charter of the
mutual microinsurance organization.
Article 31. Rights and obligations of members
participating in microinsurance
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a) Enjoy benefits under the microinsurance contract
signed by and between the member with the mutual microinsurance organization;
b) Receive incomes distributed by the mutual
microinsurance organization according to its charter;
c) Be granted equal voting rights, regardless of
their premiums paid, in respect of decisions on organizational structure,
administration and operation of the mutual microinsurance organization; be
provided with adequate, timely and accurate information on business operations,
distribution of incomes (in case of positive income) and other matters of the
mutual microinsurance organization as prescribed in its charter;
d) Participate or authorize others to participate in
the GMM of the mutual microinsurance organization;
d) Receive part of the remaining assets in
proportion to the member’s premiums paid when the mutual microinsurance
organization is dissolved;
e) Exercise other rights as prescribed by law,
terms and conditions of signed microinsurance contracts and charter of the
mutual microinsurance organization.
2. Members participating in microinsurance shall
have the following obligations:
a) Pay premiums in full according to payment method
and frequency as agreed upon in the signed microinsurance contract;
b) Comply with the charter, internal business rules
and regulations of the mutual microinsurance organization, and resolutions
ratified by the GMM;
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d) Perform other obligations as prescribed by law,
terms and conditions of signed microinsurance contracts and charter of the
mutual microinsurance organization.
Article 32. Number of members participating in
microinsurance
1. After 06 months from the issue date of its
license for establishment and operation, the mutual microinsurance organization
must maintain a network of at least 1.000 members participating in
microinsurance.
2. If the number of members of a mutual
microinsurance organization is smaller than the minimum number required in
Clause 1 of this Article within a period of 06 consecutive months, the mutual
microinsurance organization shall promptly submit a report to the Ministry of
Finance of Vietnam on its actual status, causes, correction plan and period for
implementation of such plan.
3. After 06 months from the submission of the
report specified in Clause 2 of this Article, if the mutual microinsurance
organization still fails to increase its number of members according to the
plan submitted to the Ministry of Finance of Vietnam, the Ministry of Finance
of Vietnam shall consider revoking its license for establishment and operation.
The revocation of the license for establishment and operation in this case
shall comply with the provisions of Article 14 and Article 16 of this Decree.
Article 33. Termination of membership of mutual
microinsurance organizations
1. Membership of a mutual microinsurance
organization shall be terminated in the following cases:
a) The insurance contract signed between the member
and the mutual microinsurance organization is terminated or transferred in
accordance with regulations of law;
b) Member of the mutual microinsurance organization
that is an individual is dead;
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d) In other cases specified in the Charter of the
mutual microinsurance organization.
2. Unless otherwise prescribed by the Charter of
the mutual microinsurance organization or the signed microinsurance contract, a
founding member shall not be allowed to unilaterally terminate its membership
within 03 years from the issue date of its license for establishment and
operation.
3. Benefits and obligations of the member in any of
the cases specified in Clause 1 of this Article shall comply with the Charter
of the mutual microinsurance organization, the signed microinsurance contract
and relevant law regulations.
Article 34. Reporting on insurance operations
1. Within 30 days from the end of a quarter and
within 90 days from the end of a fiscal year, the mutual microinsurance
organization shall prepare quarterly and annual reports on insurance
operations, using Form No. 07 and Form No. 10 in the Appendix enclosed
herewith, and send them to the Ministry of Finance of Vietnam.
2. The reports prescribed in Clause 1 of this
Article shall be sent directly or by post or online according to the Ministry
of Finance of Vietnam’s guidelines.
3. In addition to the reports specified in Clause 1
of this Article, the Ministry of Finance of Vietnam may request mutual
microinsurance organizations to submit additional reports on their business and
financial status to serve its performance of supervision, statistical and
market analysis tasks.
Article 35. Reinsurance
1. A mutual microinsurance organization may
transfer part of liabilities that it has assumed under a microinsurance
contract to one or some other domestic and foreign insurers and/or reinsurers.
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a) It is lawfully operating and meets all of the
solvency requirements laid down in laws;
b) When receiving transfer of at least 10% of
insured liabilities under a microinsurance contract, a foreign reinsurer or
insurer must be rated “BBB” by Standard & Poor’s or Fitch, “B++” by
A.M.Best, “Baal” by Moody’s or equivalent grade by another competent and
experienced rating body in the fiscal year prior to the time of conclusion of
the reinsurance contract.
3. The mutual microinsurance organization shall
assume the sole responsibility towards its members participating in
microinsurance under the signed microinsurance contracts, even in case of
reinsuring insured liabilities. The mutual microinsurance organization shall
not be allowed to refuse or delay their assumption of responsibility towards
its members participating in microinsurance, even when the reinsurer defaults
on their reinsurance payment obligations for liabilities reinsured.
Section 4. PROVISIONS ON FINANCIAL AND
ACCOUNTING REGIME, DISCLOSURE OF INFORMATION AND FINANCIAL STATEMENTS
Article 36. Management of working capital of
mutual microinsurance organizations
1. Working capital of a mutual microinsurance
organization includes:
a) Establishment capital;
b) Compulsory reserve fund;
c) Undistributed income.
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3. The mutual microinsurance organization must
carry out periodical revaluation of its working capital. If its working capital
is found not to meet the requirement in Clause 2 of this Article, a report on
plan and schedule for increase of its establishment capital must be promptly
submitted to the Ministry of Finance of Vietnam. Increase of establishment
capital must comply with the following rules:
a) Increased amount of establishment capital must
be in VND;
b) Borrowed funds or assets held in trust for other
entities must not be used for increasing the establishment capital;
c) The establishment capital shall be increased
from funding sources prescribed in Clause 1 Article 7 of this Decree.
4. After 6 months from the submission of the report
specified in Clause 3 of this Article, if the mutual microinsurance
organization still fails to increase its establishment capital according to the
plan submitted to the Ministry of Finance of Vietnam, the Ministry of Finance
of Vietnam shall consider suspending business of the mutual microinsurance
organization as prescribed in Article 13 of this Decree.
5. Mutual microinsurance organizations shall make investments
using their establishment capital and/or compulsory reserve funds in accordance
with the provisions of Article 39 of this Decree.
Article 37. Compulsory deposit
1. A mutual microinsurance organization shall
deposit part of its establishment capital to a commercial bank operating in
Vietnam (except those placed under special control).
2. The deposited amount shall make up at least 10%
of the minimum establishment capital specified in Clause 1 Article 7 of this
Decree. This deposited amount shall be maintained during operation of the
mutual microinsurance organization.
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4. When distributing its assets according to
procedures for revocation of its license for establishment and operation laid
down in Article 15, Article 16 and Article 17 of this Decree, the mutual
microinsurance organization shall be allowed to withdraw all of its deposited
amount according to a decision issued by the dissolution council.
Article 38. Technical reserves
Each mutual microinsurance organization needs to
set aside technical reserves to serve the purposes of paying for insured
liabilities that have been pre-determined and may arise from signed
microinsurance contracts.
The mutual microinsurance organization shall carry
out monthly revaluation and set aside technical reserves according to the
following instructions:
1. Unearned premium reserve: this reserve shall be
used for paying insurance or indemnifying for liabilities that arise during the
remaining validity period of microinsurance contracts. The mutual
microinsurance organization shall take initiative in adopting one of the
following methods for setting aside its unearned premium reserve:
a) Fixed percentage method: the unearned premium
reserve equals 50% of total premiums of microinsurance contracts concluded in
the fiscal year and remaining valid at the time of establishment of the
unearned premium reserve.
b) 1/8th method (in case of annual
premium payment): this method is based on assumed premiums under microinsurance
contracts which are issued by the mutual microinsurance organization in a
quarter, take effect at the middle of that quarter and remain valid at the time
of establishment of the unearned premium reserve. The unearned premium reserve
is computed using the following formula:
Unearned premium
reserve
=
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x
Rate of unearned
premiums
E.g.: The unearned premium reserve as of 31/12/X
for microinsurance contracts which have 01-year term and still remain valid at
31/12/X:
Time of expiry
of microinsurance contracts
Rate of
unearned premiums
Year
Quarter
X + 1
I
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II
3/8
III
5/8
IV
7/8
c) 1/24th method (in case of annual
premium payment): this method is based on assumed premiums under microinsurance
contracts which are issued by the mutual microinsurance organization in a
month, take effect at the middle of that month and remain valid at the time of
establishment of the unearned premium reserve. The unearned premium reserve is
computed using the following formula:
Unearned premium
reserve
=
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x
Rate of unearned
premiums
E.g.: The unearned premium reserve as of 31/12/X
for microinsurance contracts which have 01-year term and still remain valid at
31/12/X:
Time of expiry
of microinsurance contracts
Rate of
unearned premiums
Year
Months
X + 1
1
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2
3/24
3
5/24
4
7/24
5
9/24
6
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7
13/24
8
15/24
9
17/24
10
19/24
11
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12
23/24
d) Daily pro-rata method: this method may be
employed for calculating the unearned premium reserve for microinsurance contracts
of different terms according to the following formula:
Unearned premium
reserve
=
Premiums
x
Number of
remaining days of microinsurance contracts
Total insured days
under microinsurance contracts
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2. Claims reserve:
a) Reported but not settled (RBNS) claims reserve: equals
the sum of payouts to be paid for each file reported or payout request or
indemnity claim submitted by the end of the period in which this RBNS claims
reserve is set aside.
b) Incurred but not reported (IBNR) claims reserve:
equals 3% of premiums collected in the fiscal year.
3. Equalization reserve: a reserve equaling 1% of
pre-tax income (if any) which shall be set aside annually until its balance
equals 5% of premiums collected in the fiscal year of the mutual microinsurance
organization.
Article 39. Financial investment
1. Use of establishment capital and compulsory
reserve funds prescribed in Points a and b Clause 1 Article 36 of this Decree;
idle capital derived from technical reserves prescribed in Clause 2 of this
Article for making investment must ensure safety and efficiency, and meet
regular payment requests for commitments under microinsurance contracts.
2. Idle capital derived from technical reserves
a) Each mutual microinsurance organization shall
maintain an amount of money which shall be used for making regular payments of
insurance or indemnities in a period and shall not be smaller than 25% of total
technical reserves on its deposit accounts of 01-year term or shorter opened at
commercial banks operating in Vietnam (except those placed under special
control);
b) The idle capital derived from technical reserves
is the sum of technical reserves minus amounts of money used for making regular
payments of insurance or indemnities in a period as prescribed in Point a of
this Clause.
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a) Purchase government bonds of less than 05-year
term;
b) Make deposits to commercial banks operating in
Vietnam (except those placed under special control).
4. Mutual microinsurance organizations shall
promulgate, implement and inspect the implementation of investment regulations
and procedures.
Article 40. Revenues earned by mutual
microinsurance organizations
Revenues of a mutual microinsurance organization
are amounts receivable in a period, including:
1. Revenue from offer of microinsurance products:
amounts receivable in a period minus amounts payable for reducing incomes in
that period. To be specific:
a) Amounts receivable in a period include: original
insurance premiums; ceding commissions (if any); amounts received under
requests for third parties’ reimbursements.
b) Amounts payable for reducing incomes in a period
include: Refund of insurance premiums; reinsurance premiums; reinsurance
commissions; reduction of reinsurance commissions.
2. Revenue from investment activities.
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Article 41. Expenses of mutual microinsurance
organizations
Expenses of a mutual microinsurance organization
are amounts payable or contributed in a period, including:
1. Costs of offer of microinsurance products:
amounts payable or contributed in a period minus amounts receivable for
reducing expenses in that period. To be specific:
a) Amounts payable or contributed in a period
include: payment of original indemnities or payouts; amounts contributed to
technical reserves; payment of insurance commission; costs of distribution of
microinsurance products; costs of loss assessment; risk and loss prevention and
mitigation expenses; costs of evaluation of the insured’s risks; costs of
actuarial services; costs of research, design and development of products;
costs of formulation and development of information technology system used for
managing microinsurance contracts, financial - accounting records in connection
with microinsurance activities; costs of training and disseminating information
on microinsurance products; payment of salaries, business trip expenses, social
insurance, unemployment insurance and health insurance premiums, and other
allowances of members of the management board and employees in charge of
microinsurance activities; office rents (if any); costs of purchase and repair
of office supplies and assets used for conducting microinsurance business, and
outsourcing services fees.
b) Amounts receivable for reducing expenses in a
period include: collection of ceded reinsurance indemnities.
2. Investment expenses.
3. Other lawful expenses (if any).
Article 42. Income
Income of a mutual microinsurance organization
means the difference between total revenues minus total expenses in a fiscal
year (including financial liabilities to the State) as prescribed by law.
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1. Contribute 10% of after-tax income (if any) to
its compulsory reserve fund. The maximum balance on compulsory reserve fund is
VND 50 billion;
2. After setting aside compulsory reserve fund, use
the remaining income for:
a) increasing its working capital;
b) returning financial support amounts received
upon establishment from the institutional representative of members without
paying interests thereon. Financial support amounts shall be returned when the
balance on the compulsory reserve fund maintained by the mutual microinsurance
organization is not smaller than VND 50 billion;
c) using as the basis for reducing premiums or
increasing the sums insured or expanding insurance benefits of its members participating
in microinsurance in the following fiscal year;
d) serving other purposes as prescribed by the
charter of the mutual microinsurance organization.
Article 43. Accounting regime and fiscal year
1. The Ministry of Finance of Vietnam shall provide
guidelines on accounting regime of mutual microinsurance organizations.
2. The fiscal year of a mutual microinsurance
organization starts on January 01 and ends on December 31 of the same calendar
year.
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4. Within 90 days from the end of a fiscal year,
mutual microinsurance organizations shall perform financial finalization tasks,
prepare and submit financial statements which have been audited by independent
audit organizations to the Ministry of Finance of Vietnam as prescribed by
laws.
Article 44. Disclosure of information
1. Mutual microinsurance organizations shall
disclose information prescribed in Article 45 of this Decree to all of their
members participating in microinsurance.
2. Mutual microinsurance organizations shall
publish information to be disclosed on their websites or send it directly to
their members participating in microinsurance. Information must be disclosed in
an accurate, timely, adequate and easy-to-follow manner.
3. Time limits for information disclosure:
a) Information in Clause 1 and Clause 2 Article 45
of this Decree must be disclosed within 07 working days from the occurrence of
any of the events related to information to be disclosed;
b) Information in Clause 3 Article 45 of this
Decree must be disclosed within 07 working days from the final deadline for
submission of reports prescribed in Clause 4 Article 43 of this Decree;
c) Information in Clause 4 Article 45 of this
Decree must be disclosed within 03 working days from the occurrence of any of
the events related to information to be disclosed.
Article 45. Information to be disclosed
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a) Information in its license for establishment and
operation; or modified license;
b) Information on appointment or replacement of
Chairperson of the Management Board, General Director (Director), legal
representative and actuary of microinsurance products;
c) Head office’s address;
c) Hotline.
2. Information on microinsurance operations,
including:
a) Rules, terms and conditions, schedule of
premiums of each of microinsurance products offered by the mutual
microinsurance organization;
b) Procedures, required documents and time limits
for settling claims and making payouts;
c) Investment management objectives and policies.
3. Audited annual financial statements.
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a) Suspension of business, revocation of license
for establishment and operation of a mutual microinsurance organization;
b) Decisions to impose penalties for administrative
violations committed during provision of microinsurance products.
Chapter IV
IMPLEMENTATION
Article 46. Effect
1. This Decree comes into force from May 05, 2023.
2. Ministers, Heads of ministerial agencies, Heads of Governmental
agencies, Chairpersons of provincial People’s Committees, and regulated
entities of this Decree are responsible for the implementation of this
Decree./.
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