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Decree 41/2009/nd-Cp: About Sanctioning Administrative Violations In The Field Of Insurance Business

Original Language Title: Nghị định 41/2009/NĐ-CP: Về xử phạt vi phạm hành chính trong lĩnh vực kinh doanh bảo hiểm

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Pursuant to the law on organization of the Government of 25 December 2001;

Pursuant to the law on insurance business 9 December 2000;

Pursuant to the law on the Ombudsman of 15 June 2004;

Basing the Ordinance handling administrative violations on 02 July 2002 and Ordinance amendments and supplements to some articles of the Ordinance on handling administrative violations on 02 Apr 2008;

Considering the recommendation of the Minister of finance DECREE: chapter I GENERAL PROVISIONS article 1. Adjustable object and scope of application 1. Sanctioning administrative violations in the field of business insurance are applicable to individuals, agencies and organizations (hereinafter referred to as individuals, organizations) acts intentionally or unintentionally violating the provisions of the law on insurance business which is not a crime and under the provisions of the law must be sanctioned administratively.

2. This Decree shall apply to: a. individuals, there are institutions of administrative violations in the field of insurance business specified in chapter II of this Decree.

b. individuals, foreign organizations active on the territory of Vietnam have administrative violations in the field of insurance business specified in this Decree, except in the case of international treaties to which Vietnam signed or otherwise.

Article 2. Sanction guidelines 1. All administrative violations in the field of insurance business must be detected promptly and must be suspended immediately. The sanctioning of administrative violations in the field of insurance business must be conducted justly, promptly, thoroughly; any consequences due to administrative violations must be fixed in accordance with the provisions of the law.

2. The sanctioning administrative violations in the field of insurance business by people with the authority to follow the provisions of this Decree.

3. An administrative violations in the field of insurance business administration sanctioned only once. Individual organizations perform many administrative violations, the sanctioned about each violation.

4. The sanctioning administrative violations in the field of insurance business must be based on the nature and extent of the violation, violators of identity and the extenuating circumstances, aggravating the provisions of article 8 and article 9 of Ordinance on handling administrative violations to decide the form and appropriate disposal measures.

Article 3. Time sanctioning administrative violations 1. Time sanctioning administrative violations in the field of insurance business is two years from the date of the individual or organization with administrative violations in the field of insurance business. If the time is not sanctions but still apply remedial measures specified in point a and point VND account 3 article 12 of the Ordinance on handling administrative violations and paragraph 3 article 5 of this Decree.

2. for individuals be prosecuted, indicted or had decided to bring the case to trial under criminal proceedings, but later decided to suspend the investigation or the suspension of the case which have sign violations administrative violations, the Government sanctioned; time sanctioning administrative violations is 3 months from the date the competent sanctions get decided to suspend and records violations.

3. Within the time limit prescribed in clause 1 and clause 2 of this that individuals, organizations continue to administrative violations or willfully evading, obstructing the sanctions do not apply time sanction prescribed in clause 1 and clause 2 of this Thing; time sanctioning administrative violations were counted back from the time of implementation of new administrative violation or termination acts impedes evading sanctions.

Article 4. The time limit is considered to be not yet sanctioned personal administrative violations, the organization sanctioned administrative offense, if after one year from the date of enforcement of the decision or sanction is done from the most effective sanction decisions without re-offending is regarded as not yet sanctioned administrative offense.

Article 5. Sanctions and remedial measures for administrative violations in the field of insurance business 1. For each administrative violations in the field of personal insurance business, the Organization violating suffered sanctions is fine.

2. Depending on the nature and extent of the violation, individual, organization, administrative violations can be applied one or the additional sanctions: a. confiscated the entire proceeds from the realization of the administrative violations there;

b. the confiscated exhibits, the means used to administrative violations;

c. revoked or deprived of the right to use license and operates a part or the whole content, scope of activity of the insurer, the insurance brokerage business.

3. In addition to the fines prescribed in clause 1 and clause 2 of this, depending on the nature and extent of the violation, personal, held in violation can be applied one or remedial measures: a. Forced the right executive regulations of the law for the administrative violations;

b. Forced cancellation, dispute the false information, not true;

c. forced recovery of the monies spent, had compensation rules of law;

d. Forced suspension of the title was an insurer, the insurance brokerage business of appointment;

Sync Forced recall the title of administrator, operator, expert calculations have been approved by the Finance Ministry.

Chapter II the VIOLATION, FINES and SANCTIONS 1. VIOLATION of REGULATIONS on ESTABLISHMENT and ACTIVITIES article 6. Sanctions for violations of regulations on licensing records 1. Fine of 30,000,000 VND for organizations or individuals to perform acts of repair, deceptive or forged documents in the application for the license.

2. additional sanctions: a. the seized documents were corrected, cheating or tampering;

b. revoking or deprived of the right to use the license to establish and operate within a period from 90 days to 180 days for the content, the range of activities related to acts of cheating, forgery of documents to be licensed.

3. Apply remedial measures: a. Forced recall the title Executive Administrator, has been approved by the Ministry of finance;

b. additional documents Required in accordance with the provisions of the law.

Article 7. Sanctions for violations of regulations on the open records Office of the insurer, the insurance broker business abroad 1. Fine of 30,000,000 VND for the insurer, the insurance broker business abroad make the repair behaviour, deceptive or forged documents in the application to open a representative office.

2. additional sanctions: a. the confiscated material repair, cheating or forgery.

b. revoking the license of latest representative office.

Article 8. Sanctions for violations of the regulations on the management, use and operation license, license latest representative office 1. Fine of 30,000,000 VND for business insurance, business insurance brokers perform one of the following violations: a. do not make post on 5 consecutive daily newspapers of Central and local newspapers where the businesses are located on one of the following :-name, address, headquarters, subsidiaries, representative offices of insurance business;

-The content, scope and duration of the activity;

-Capital Level and capital has contributed;

-They, the name of the legal representative of the enterprise;

-License number and date of grant of the license to establish and operate;

-The insurance business, the insurance brokerage business.

b. not published, no time announced or published untrue one active content and change has been the Finance Ministry approved the following:-company name;

-Charter capital;

-Open or to terminate the activities of a branch, Representative Office;

-Location based, branch, Representative Office;

-The content, scope and duration of the activity;

-Transfer of shares, the shares accounted for 10% of the capital;

-Chairman of the Board, General Director (Director);

-Split, split, merger, amalgamation, dissolution, transformation of enterprises.

c. do not publish the content specified in the license put representative offices;

d. do not operate after 12 months from the date of being granted a license to establish and operate, license latest representative office.

2. A fine of 50,000,000 Council for business insurance, business insurance brokers perform acts of repair and operation license or license latest representative office.

3. A fine of 70,000,000 Council for holding one of the following violations: a. business insurance, business insurance brokers, reinsurance business without license and operation;

b. continue to operate the business, when it has been revoked or deprived of the right to use license and operates a part or the whole content, scope of activity of the insurer, insurance broker or business has been revoked the license of latest Representative Office;

c. continue to operate as established and operating license or the licenses latest Representative Office has run out of time.

4. additional sanctions: a. confiscated the entire proceeds from the realization of the administrative violations there;

b. Duke the right to use the license to establish and operate within a period from 90 days to 180 days a content section, the range of operation for violations of the provisions in paragraph 2 of this Article;

c. revoke the license and operation, putting Representative Office license for violations specified in point d of paragraph 1, point b and point c of paragraph 3 of this article.

5. Apply remedial measures: Forcing the correct observance of the provisions of the law for violations of the provisions of paragraph 1, paragraph 2 and paragraph 3 of this article.

Article 9. Sanctions for violations of the provisions of Division, split, merge, merging, acquisition, transformation, dissolution of business 1. A fine bronze 70,000,000 for business insurance, business insurance brokers perform one of the following violations:


a. Divide, split, merge, merging, acquisition, transformation of the insurer, the insurance broker business is not in the correct sequence of procedures;

b. dissolution of the insurer, the insurance broker business is not in the correct order and procedures.

2. additional sanctions: deprived of the right to use the license to establish and operate within a period from 90 days to 180 days for a violation specified in point a paragraph 1 of this article.

3. Apply remedial measures: Forcing the correct observance of the provisions of the law for violations of the provisions of paragraph 1 of this article.

Section 2. BREACH of GOVERNANCE and OPERATION of article 10. Sanctions for violations of rules on management, administration, control 1. Fine of 30,000,000 VND for business insurance, business insurance brokers or Chairman of the Board (President of the Council members, the President of the company), the Director General and the person concerned of the insurer, the insurance broker business perform one of the following violations : a. appoint the Director-General (Executive Director), Vice President (VP) of the insurer, the insurance broker business work for business insurance, other insurance brokerage business activities in the same field;

b. Appointment Of Director (Director) of the insurer, the insurance brokerage business as a member of the Management Board, members of the Board member of the insurer, insurance broker, business activities in the same fields that are not enterprise;

c. appointment of members of the Management Board, members of the Board member of the insurer, the insurance brokerage business as a member of the Management Board, members of the Board member of the insurer, insurance broker, business activities in the same fields that are not enterprise;

d. General Manager (Director), Vice President (VP), Branch Manager, head of representative office, Chief Accountant, head of the Supervisory Board are appointed but does not reside in the current time in Vietnam.

2. A fine of 50,000,000 Council for business insurance, business insurance brokers or Chairman of the Board (President of the Council members, the President of the company), the Director General and the relevant person of the business insurance, business insurance brokers perform one of the following violations a. appointment of the Deputy Director (Deputy Director), Director of the branch, Head Office, head of controlling, head of the mining Department, insurance professional indemnity insurance, investments, a member of the Board, Board member does not meet the standards prescribed by law.

b. issued the check process, internal control of insurance business and the other processes as prescribed by law;

c. test procedures, internal control of the insurer does not meet the content prescribed by the law.

3. A fine of 70,000,000 Council for business insurance, business insurance brokers perform one of the following violations: a. appoint the Chairman of the Board (President of the Council members, the President of the company), ceo (Director) do not meet the standards prescribed by law;

b. non-appointed Chairman of the Board (President of the Council members, the President of the company), General Manager (the Director) under the provisions of the law;

c. change of Chairman of the Board (President of the Council members, the President of the company), ceo (Director) without the written approval of the Ministry of finance.

4. Apply remedial measures: a. Forced recall the title Executive Administrator, has been approved by the Finance Ministry for violations of the provisions of paragraph 1 of this article;

b. Forced suspension of the titles has been appointed business for violations of the provisions of paragraph 1 and paragraph 2 point a this;

c. Forcing the correct observance of the provisions of the law for violations of the provisions of paragraph 1, paragraph 2 and paragraph 3 of this article;

Article 11. Sanctions for violations of the regulations on expert (Appointed Actuary) 1. A fine bronze 70,000,000 for the life insurance business is doing one of the following violations: a. not appointed experts calculate as prescribed by law;

b. non-compliance procedure change expert under the provisions of the law.

2. Fine fellow 70,000,000 for expert of the life insurance business is not done or made incomplete in one of the following duties: a. build rules, terms and calculate the premiums of insurance products;

b. establishment of the reserve for life insurance contracts;

c. separation of the Fund and divide the surplus fund's annual home insurance contracts;

d. periodic reports monthly, quarterly and annually, according to the regulations;

Sync Up reports on abnormal problems according to the regulations;

e. reviews reinsurance programmes, contracts of reinsurance and other tasks to ensure financial security for the insurer.

3. additional sanctions: deprived of the right to use the license to establish and operate a content section, the range of operation for violations of the provisions of paragraph 1 of this article until the appointed expert business computing standard.

4. Apply remedial measures: a. Forced mission expert titles have been approved by the Finance Ministry for violations of the provisions in paragraph 2 of this Article;

b. Executive forced to correct the provisions of law on expert calculations for violations of the provisions of paragraph 1 of this article.

Article 12. Sanctions for violations of rules on content changes of activity of the insurer, the insurance broker business 1. Fine of 30,000,000 VND for business insurance, business insurance brokers perform one of the following violations: a. repairs, deceptive or forged documents in the application for opening a branch, Representative Office;

b. change the name, headquarters location, branches, representative offices of the insurer, the insurance brokerage business that has not been approved by the Ministry of finance documents.

2. A fine of 70,000,000 Council for business insurance, business insurance brokers perform acts to change one of the following content that has not been approved by the Ministry of finance in writing: a. capital Level;

b. the content, scope and duration of the activity.

3. A fine of 70,000,000 Council for business insurance, business insurance brokers or Chairman of the Board (President of the Council members, the President of the company), General Manager (the Director) and the person concerned of the insurer, the insurance brokerage business made a change in the behavior of the following content that has not been approved by the Ministry of finance in writing a. open or to terminate the activities of a branch, Representative Office;

b. the transfer of shares, the shares accounted for 10% of the capital.

4. additional sanctions: a. the seized documents were corrected, cheating or tampering;

b. the seized the whole of the revenues from the implementation of the administrative violations there;

c. Duke the right to use the license to establish and operate within a period from 60 days to 90 days parts content, the range of operation for violations of the provisions in paragraph 2 and paragraph 3 of this article.

5. Apply remedial measures: a. Forced recall the title Executive Administrator, has been approved by the Finance Ministry for violations of the provisions of paragraph 3 of this article;

b. Executive forced to correct the provisions of law for violations in item 1, item 2 and item 3 of this article.

Article 13. Sanctions for violations of the provisions on reinsurance 1. A fine bronze 50,000,000 for the Chairman of the Board (President of the Council members, the President of the company), General Manager (the Director) and the person concerned of the insurer to perform one of the following violations: a. do not approve the program of re-insurance;

b. Not issued or issued internal guidelines, processes about reinsurance business activities does not meet the provisions of the law;

c. do not perform according to the reinsurance reinsurance programs and processes, internal guidance on reinsurance business operations.

2. Fine fellow 70,000,000 for the Director-General (Director) and the person concerned of the insurer to perform one of the following violations: a. improper reinsurance provisions of law;

b. retain liability every risk or on each individual losses exceeding 10% of the equity;

c. Getting reinsurance for risks have major reinsurance; entire liability insurance got in a contract of insurance for other insurance business;

d. reinsurance House is not in the list of expected business reinsurance;

Sync reinsurance for businesses getting reinsurance abroad were not rated minimum "BBB" by Standard Poor's, "B + + &" according to A.M. Best, "Baa" by Moody's or equivalent rating results in the most recent fiscal year compared with the time of reinsurance contracts.

3. additional sanctions: deprived of the right to use the license to establish and operate within a period from 60 days to 90 days parts content, the range of operation for violations of the provisions in paragraph 2 of this Article.

4. Apply remedial measures: a. Forced recall the title Executive Administrator, has been approved by the Finance Ministry for violations of the provisions in paragraph 2 of this Article;

b. Executive forced to correct the provisions of law regarding reinsurance for violations of the provisions of paragraph 1 and paragraph 2 of this Article.

Article 14. Sanctions for violations of regulations on the transfer of insurance contract


1. Fine fellow 70,000,000 for the insurer to perform one of the following violations: a. conduct the transfer of insurance contract does not meet the conditions of transfer as stipulated in Article 75 of the law on insurance business;

b. conduct the transfer of insurance contracts do not meet fully the transfer procedure according to the provisions of article 76 of the law on insurance business.

2. additional sanctions: a. confiscated the entire proceeds from the realization of the administrative violations there;

b. Duke the right to use the license to establish and operate within a period from 90 days to 180 days a content section, the range of operation for violations of the provisions of paragraph 1 of this article.

3. Apply remedial measures: Forcing the correct observance of the provisions of the law for violations of the provisions of paragraph 1 of this article.

Article 15. Sanctions for violations of the regulations on compensation insurance, pay the insurance 1. Fine of 30,000,000 VND for insurers or General Manager (the Director), who was responsible and who are related by the insurer made compensation acts for clients slow in comparison with the time limit prescribed by the law.

2. A fine fellow to fellow 70,000,000 60,000,000 for insurers or General Manager (the Director), who was responsible and relevant people of the insurer performing one of the following violations: a. ask the beneficiary to pay insurance benefits, remuneration or other material benefits against the law in the process of compensation , pay insurance;

b. with the beneficiary for insurance benefits compensation insurance, pay for insurance against the law;

3. A fine of 70,000,000 Council for organizations, individuals have received compensation, pay a premium due to the acts of cheating, forgery of documents in the record of the claim, the insurance paid.

4. Apply remedial measures: a. Forced recall the title Executive Administrator, has been approved by the Finance Ministry for violations of the provisions of paragraph 1 and paragraph 2 of this Article;

b. Forced suspension of the titles has been appointed business violated the provisions in clause 1 and clause 2 of this Thing;

c. Forced recovery of the entire compensation amount for violations of the provisions in paragraph 2 and paragraph 3 of this article.

Category 3. BREACH of PREMIUM MINING article 16. Sanctions for violations of the rules on competition 1. A fine bronze 50,000,000 for the insurer to perform one of the following violations: a. information, false advertising about the content, scope of activities, the insurance conditions;

b. promotion to unfair competition as defined by the law;

c. information affecting the rights and legitimate interests of other insurance business.

2. Fine fellow 70,000,000 for insurers or General Manager (Director) and the person concerned of the insurer to perform one of the following violations: a. an agreement restricting competition to harm the interests of the buyer of insurance;

b. customer scramble under the form prevents, entice, bribe, threaten employees or clients of the insurer, insurance agent, insurance broker business.

3. additional sanctions: deprived of the right to use the license to establish and operate within a period from 60 days to 90 days parts content, the range of operation for violations of the provisions in paragraph 2 of this Article.

4. Apply remedial measures: a. Forced recall the title Executive Administrator, has been approved by the Finance Ministry for violations of the provisions in paragraph 2 of this Article;

b. Forced suspension of the titles has been appointed business for violations of the provisions in paragraph 2 of this Article;

c. Forcing the correct observance of the provisions of the law for violations of the provisions of paragraph 1 and paragraph 2 of this Article.

Article 17. Sanctions for violations of regulations on casualty insurance exploitation 1. A fine bronze 50,000,000 for non-life insurance business made one of the following violations: a. No publicity and transparency in sales makes customer misconceptions about the product, the service provided by enterprises;

b. discrimination regarding conditions and insurance premiums between the insurance object have the same risk level.

2. Fine fellow 70,000,000 for insurers or General Manager (Director) and the person concerned of the non-life insurance business made one of the following violations: a. Not made tender the purchase, sell insurance between an insurer and investor have Fund from 20% or more of the main insurance business or contract insurance with the insurer;

b enlist the prestige, the influence of the governing body, the owner to provide insurance services, affect the legitimate rights and interests of the insured party.

3. Fine fellow 70,000,000 for individual organizations, governing body, owner carry one of the following violations: a. the unlawful intervention to the right choice of the insurer, the insurance brokerage business of the buyer of insurance;

b. Used his influence to demand, prevent or force the subdivisions or who are related to the insured in the insurance business in any form.

4. Apply remedial measures: a. Forced recall the title Executive Administrator, has been approved by the Finance Ministry for violations of the provisions in paragraph 2 of this Article;

b. Executive forced to correct the provisions of the law on insurance mining for violations of the provisions of paragraph 1 and paragraph 2 of this Article.

Article 18. Sanctions for violations of regulations on the exploitation of life insurance 1. A fine bronze 50,000,000 for the life insurance business is doing one of the following violations: a. document the product introduction, the service side of the business is unclear, confusing and contain misleading information;

b. sales illustrations document does not clear, complete and accurate in order to help customers make choices accordingly;

c. the documentation of business sales illustrations do not distinguish clearly between the rights are guaranteed and non-guaranteed benefits; do not inform the customers know the total benefits received under the contract of insurance does not guarantee may vary;

d. non-annual review of the assumptions used in the sales illustration; do not edit the sales illustrations if assumed no longer fit with reality;

sync the document introducing the products, service, sales illustrations document contain information about insurance benefits contrary to rules, insurance terms were approved by Ministry of finance.

2. Fine fellow 70,000,000 for the life insurance business is doing one of the following violations: a. do not provide adequate information relating to the insurance contract, does not explain the conditions, terms of coverage for insured parties when concluding the insurance contract;

b. do not make notice to the buyer of insurance about the status of their contracts as a rule;

c. contracts required supplementary coverage accompanied the main insurance is mandatory to maintain the validity of the insurance contract main;

d. violation of the regulations on implementing the product business in the insurance-linked investments.

3. additional sanctions: deprived of the right to use the license to establish and operate within a period from 60 days to 90 days parts content, the range of operation for violations of the provisions in paragraph 2 of this Article.

4. Apply remedial measures: a. Forced recall the title Executive Administrator, has been approved by the Finance Ministry for violations of the provisions in paragraph 2 of this Article.

b. Executive forced to correct the provisions of the law for violations of the provisions of paragraph 1 and paragraph 2 of this Article.

Article 19. Sanctions for violations of the regulations on insurance products, insurance commissions 1. Fine of 30,000,000 VND for casualty insurance business not to report or not report correctly defined the list of new products are deployed in adjacent months ahead.

2. Fine fellow 70,000,000 for the life insurance business is doing one of the following violations: a. do not comply with the rules, terms, fees have been approved by the Ministry of finance;

b. modify, additional rules, terms, fees without the consent in writing of the Ministry of finance.

3. Fine fellow 70,000,000 for insurers charged higher insurance Commission rate, charged the incorrect Insurance Commission or business objects under the provisions of the law.

4. additional sanctions: deprived of the right to use the license to establish and operate within a period from 60 days to 90 days parts content, the range of operation for violations of the provisions in paragraph 2 and paragraph 3 of this article.

5. Apply remedial measures: a. Forced recovery of improper Commission payments regulations;

b. Executive forced to correct the provisions of the law for violations of the provisions of paragraph 1, paragraph 2 and paragraph 3 of this article;

Article 20. Sanctions for violations of the regulations on compulsory insurance of the casualty insurance business 1. A fine bronze 50,000,000 for non-life insurance business made one violation of the following: a. the casualty insurance business insurance business are required to refuse selling compulsory insurance for individuals, organizations;

b. the casualty insurance business are compulsory insurance business did not comply with the rules, terms and fees by the Ministry of Finance issued;

c. casualty insurance business insurance business are required to not separate the part fire insurance, compulsory insurance contract according to the regulations.

2. additional sanctions:


Deprived of the right to use the license to establish and operate within a period from 60 days to 90 days a part or the entire active businesses for violations of the provisions of paragraph 1 of this article.

3. Apply remedial measures: forcing the executive regulations of the law for violations of the provisions of paragraph 1 of this article.

ITEM 4. VIOLATING BROKER ACTIVITY, DEALER and INSURANCE OFFICES article 21. Sanctions for violations of the regulations on compulsory insurance of business insurance brokers 1. Fine of 30,000,000 VND for business insurance broker does not fulfill the obligation to purchase professional liability insurance for insurance brokers in the insurance business operations in Vietnam.

2. Apply remedial measures: forcing the executive regulations of the law for violations of the provisions of paragraph 1 of this article.

Article 22. Sanctions for violations of the regulations on insurance brokers 1. A fine bronze 50,000,000 for business insurance broker or General Manager (the Director) and the person concerned of the business insurance brokers perform one of the following violations: a. prevents the buyer insurance provides the information related to the insurance contract or the insured party instigated does not declare the details related to the contract of insurance;

b. customer promotion in the form of promises to provide illegal benefits to customer instigating contracts of insurance;

c. instigated the buyer cancel the insurance contract the insurance we have to buy new insurance contracts;

d. advise clients to buy insurance in an insurance business with the conditions, terms less competitive than other insurance businesses in order to acquire a higher brokerage commissions;

Sync consulting, introduced for the buyer of insurance rules, terms in the life insurance business has not yet been approved by the Ministry of finance; rules, terms of service in the compulsory insurance rules are not followed by the terms of the Ministry of Finance issued or the rules of the terms is inconsistent with paragraph 4 article 20, Decree 45/2007/ND-CP dated 27 March 2007 detailing the implementation of some articles of the law on insurance business.

2. Fine fellow 70,000,000 for the Director-General (Director) and the relevant business insurance broker's use of collaborators or any other form on behalf of the insurance brokerage business perform one or all of the stages of the process of the original insurance brokerage or reinsurance brokers.

3. additional sanctions: deprived of the right to use the license to establish and operate within a period from 60 days to 90 days a part or the whole content, operating range for violations of the provisions of paragraph 1 and paragraph 2 of this Article.

4. Apply remedial measures: a. Forced recall the title Executive Administrator, has been approved by the Finance Ministry for violations of the provisions of paragraph 3 of this article;

b. Executive forced to correct the provisions of law for violations in item 1 and item 2 of this Article.

Article 23. Sanctions for violations of the regulations on insurance agents 1. Fine of 30,000,000 VND for insurance agents perform one of the following violations: a. at the same time as agent for the other insurance business but have yet to be agreed in writing by the insurer doing the agents;

b. information, ad content, the scope of activity of the insurer, the insurance terms and conditions untrue harming the rights, legitimate interests of insured parties;

c. prevents the buyer insurance provides the information related to the insurance contract or the insured party instigated does not declare the details related to the contract of insurance;

d. customer scramble under the form prevents, entice, bribe, intimidate clients of the insurer, insurance agent, insurance broker business;

Sync promises reduced premiums, insurance refunds or other benefits that insurers are not committed with the customer;

e. instigated the buyer cancel the insurance contract the insurance we have to buy new insurance contracts.

2. Fine fellow 40,000,000 for agent training organization implement one of the following violations: a. insurance agent training to practising certificate without the consent in writing of the Ministry of finance;

b. do not comply with the minimum amount of time, the content of the training program agent was approved by Ministry of finance;

c. Not make Ministry of finance report on the number of training courses were held, the number of insurance agents trained, number of certification was granted in the year according to the form prescribed by the Ministry of finance;

d. Not make Ministry of finance report and notify the Vietnam Insurance Association list of the insurance agents are active and list the agents violated regulations or agent practice law violations has been terminated the contract of business agents.

3. Fine fellow 70,000,000 for insurers to use the Organization, individuals conducting insurance agents which do not guarantee the conditions specified in article 84 and article 86 of the insurance business law.

4. additional sanctions: a. confiscated the entire proceeds from the realization of the administrative violations there;

b. seizure certificate of insurance agents for violations of the provisions of paragraph 1 of this article.

5. Apply remedial measures: Forcing the correct observance of the rule of law for violations in item 1, item 2 and item 3 of this article.

Article 24. Sanctions for violation of the business office insurance, business insurance brokers abroad 1. Fine of 30,000,000 VND for representative offices of insurance business, the insurance brokerage business abroad did not submit periodic reports as prescribed.

2. A fine of 50,000,000 Council for representative offices of insurance business, the insurance brokerage business abroad perform one of the following violations: a. change the name, the nationality, the address of the insurer, the insurance broker business or the name of a representative office is not in accordance with the provisions of the law;

b. change the location based offices; Chief Representative; increase, decrease the number of people who work in offices but not notified in writing to the Ministry of finance.

3. A fine of 70,000,000 Council for representative offices of insurance business, the insurance brokerage business abroad change the content activities of representative offices have yet to be approved by the Ministry of finance.

4. additional sanction measures: withdrawal or deprived of the right to use the license to put a representative office within the time limit from 90 to 180 days for a violation in paragraph 2 and paragraph 3 of this article.

5. Apply remedial measures: Forcing the correct observance of the legal provisions for breach of clause 1, item 2 and item 3 of this article.

Section 5. VIOLATION on MANAGEMENT, USE of CAPITAL and ASSETS article 25. Sanctions for violations of the regulations on Charter capital 1. A fine bronze 70,000,000 for business insurance, business insurance brokers perform one of the following violations: a. do not maintain capital levels have minimum contribution by the levels of capital as defined in article 4 of Decree 46/2007/ND-CP dated 27 March 2007 the Government's fiscal regime for insurers and businesses insurance brokers (here written as Decree No. 46/2007/ND-CP);

b. do not guarantee capital has contributed to the content, scope and areas of operation;

c. An individual shareholder owns in excess of 10% of the capital;

d. An institutional shareholders owning in excess of 20% of the Charter capital;

preferred shareholders and relevant persons that their shareholders owning in excess of 20% of the Charter capital.

e. The founders owned under 50% within 3 years from the date of business license to establish and operate.

2. additional sanctions: recall or deprived of the right to use the license to establish and operate within a period from 90 days to 180 days a content section, the range of operation for violations of the provisions of paragraph 1 of this article.

3. Apply remedial measures: a. Forced recall the title administrator, operator of the enterprise has been approved by the Finance Ministry for a violation specified in point a and b of paragraph 1 of this article.

b. Executive forced to correct the provisions of the law for violations of the provisions of paragraph 1 of this article.

Article 26. Sanctions for violations of the regulations on deposit 1. Fine of 10,000,000 VND for the insurer is not filed or the use of funds is contrary to the provisions in paragraph 3 article 6 of Decree 46/2007/ND-CP.

2. Apply remedial measures: Forcing the correct observance of the provisions of the law for violations of the provisions of paragraph 1 of this article.

Article 27. Sanctions for violations of the provisions of CITES, management and use of reserve and reserve 1. A fine bronze 50,000,000 for the insurer or the Chairman of the Board (President of the Council members, the President of the company), ceo (Director), Chief Accountant and the person concerned of the insurer to perform one of the following violations: a. do not register extract method established professional backup with the Ministry of finance;

b. do not cite or quote establishment insufficient reserve requirement, reserve funds used not properly regulated.

2. Fine fellow 70,000,000 for the insurer or the Chairman of the Board (President of the Council members, the President of the company), ceo (Director), Chief Accountant, expert and the person concerned of the insurer to perform one of the following violations : a. do not cite or quote created enough not prescribed solvency projections;

b. do not comply with the method and basis of extract formed reserve services are registered with the Ministry of finance;

c. use the reserve fund is not the correct business rules.

3. additional sanctions:


Deprived of the right to use the license to establish and operate within a period from 90 days to 180 days a part or the whole content, operating range for violations of the provisions in paragraph 2 of this Article.

4. Apply remedial measures: a. Forced recall the title of administrator, operator, experts calculate the approval of Ministry of finance were for violations of the provisions in paragraph 2 of this Article.

b. Forced suspension of the titles has been appointed business for violations of the provisions in paragraph 2 of this Article;

c. Forcing the correct observance of the provisions of the law for violations of the provisions of paragraph 1 and paragraph 2 of this Article.

Article 28. Sanctions for violations of the regulations on capital investment 1. Fine of 30,000,000 VND for the insurer or the Director-General (Executive Director), Chief Accountant and the person concerned of the insurer to perform acts not separate accounting of capital investments from the capital investment from the owner and the professional backup.

2. Fine fellow 70,000,000 for the insurer or the Chairman of the Board (President of the Council members, the President of the company), General Manager (the Director) and the person concerned of the insurer, the insurance broker business perform one of the following violations: a. investment outside the capital are allowed to invest according to the provisions of article 11 of Decree 46/2007/ND-CP;

b. use the corresponding equity sources with varying legal capital of the insurer, the insurance brokerage business to invest as the loans, investment return for shareholders or related persons;

c. use equity source corresponding to the minimum solvency margins of insurers to invest as the loans, investment return for shareholders or related persons;

d. idle capital investment from business backup exceeds the rate is allowed to invest in the areas as defined in article 14 of Decree 46/2007/ND-CP.

sync using capital business to invest abroad;

e. investment abroad is not done under the name of the business and not yet the Finance Ministry approved in writing.

3. additional sanctions: a. confiscated the entire proceeds from the realization of the administrative violations there;

b. revoking or deprived of the right to use the license to establish and operate within a period from 90 days to 180 days a part or the whole content, operating range for violations of the provisions in paragraph 2 of this Article.

4. Apply remedial measures: a. Forced recall the title Executive Administrator, has been approved by the Finance Ministry for violations of the provisions in paragraph 2 of this Article.

b. Forced suspension of the titles has been appointed business for violations of the provisions in paragraph 2 of this Article.

c. Forcing the correct observance of the provisions of the law for violations of the provisions of paragraph 1 and paragraph 2 of this Article.

ITEM 6. BREACH of the SOLVENCY and ACCOUNTING Article 29. Sanctions for violations of safety regulations in the financial activities of the insurer 1. A fine bronze 50,000,000 for the insurer or the Chairman of the Board (President of the Council members, the President of the company), ceo (Director), expert, Chief Accountant and the person concerned of the insurer to perform one of the following violations: a. do not implement measures to restore solvency when businesses risk losing the ability to pay;

b. Not timely reporting to the Ministry of Finance on the financial situation, the causes leading to the risk of losing the ability to pay;

2. A fine of 70,000,000 Council for business or the Chairman of the Board (President of the Council members, the President of the company), ceo (Director), expert, Chief Accountant and the person concerned of the insurer to perform one of the following violations: a. do not comply with the requirements of the Ministry of Finance on solvency restoration;

b. do not make the right option to restore solvency, strengthen the Organization and operation of the business has been approved by the Finance Ministry.

3. additional sanctions: recall or deprived of the right to use the license to establish and operate within a period from 90 days to 180 days a part or the whole content, operating range for violations of the provisions of paragraph 1 and paragraph 2 of this Article.

4. Apply remedial measures: a. Forced Miami service administrators, executives, expert calculations have been approved by the Finance Ministry for violations of the provisions in paragraph 2 of this Article.

b. Forced suspension of the titles has been appointed business for violations of the provisions in paragraph 2 of this Article.

c. the Executive Force of the provisions of the law on restoring liquidity for violations of the provisions of paragraph 1 and paragraph 2 of this Article.

Article 30. Sanctions for violations of the regulations of the Fund, divided Cup interest in life insurance 1. Fine of 30,000,000 VND for the Director-General (Executive Director), Chief Accountant and the person concerned of the non-life insurance business reported split short Fund regulations.

2. Fine fellow 70,000,000 for the life insurance business or Chairman of the Board (President of the Council members, the President of the company), ceo (Director), expert, Chief Accountant and the person concerned of the life insurance business is doing one of the following violations : a. does not make separation of Fund owners and contract holder Funds according to provisions;

b. do not comply with the method of dividing the interest has been the Finance Ministry approved the split method or change the interest rate without the written approval of the Ministry of finance.

3. additional sanctions: deprived of the right to use the license to establish and operate within a period from 90 days to 180 days a part or the whole content, operating range for violations of the provisions in paragraph 2 of this Article.

4. Apply remedial measures: a. Forced recall the title of administrator, operator, experts calculate the approval of Ministry of finance were for violations of the provisions of paragraph 1 of this article.

b. Forced suspension of the titles has been appointed business for violations of the provisions in paragraph 2 of this Article.

c. Forcing the correct observance of the provisions of the law on the separation of the Fund, divided by the interest rates for violations of the provisions of paragraph 1 and paragraph 2 of this Article.

Article 31. Sanctions for violations of the regulations in the field of accounting of insurers, insurance brokers and reinsurance of the violation and the handling of administrative violations in the field of accounting related to the insurance business are made according to the provisions on sanctioning administrative violations in the field of accounting.

Section 7. BREACH of REPORTING, INSPECTION, CHECKING the Article 32. Sanctions for violations of the provisions on statistical reporting, reporting services, additional reports on the situation of operation 1. Fine of 30,000,000 VND for business insurance, business insurance brokers and reinsurance carry one of the following violations: a. filing reports statistics, business reporting, reporting incorrect supplements prescribed time limit;

b. information in statistical reports, business reports, additional reports are incomplete, not exactly;

2. Apply remedial measures: Forcing the correct observance of the provisions of the law regarding the reporting regime for violations of the provisions of paragraph 1 of this article.

Article 33. Sanctions for violations of the regulations on the inspection, audit and supervision of the competent State bodies 1. Fine of 30,000,000 VND for the Chairman of the Board (President of the Council members, the President of the company), ceo (Director), Chief Accountant, expert and the person concerned of the insurer, the insurance brokerage business performed acts of delaying, evading, or does not provide the documentation data, at the request of the inspection agency, the delegation inspected, the competent State organs in the course of the inspection, testing, monitoring; or have the tricks to deal with inspectors, officials of the competent State authorities are conducting their duties.

2. Fine fellow 70,000,000 for individuals or organizations make one of the following violations: a. the Executive decided not to handle the Agency's inspectors, inspection agencies;

b. interference in the handling of the Agency inspection, inspection agencies;

c. repair, secret documents, books or change exhibits while being inspected, checked;

d. arbitrarily removed, move or other behavior changes the current State seal: warehouse, funds, accounts, accounting, insurance records or the exhibits are being sealed, the custody.

Chapter III the AUTHORITY SANCTIONING ADMINISTRATIVE VIOLATIONS in the FIELD of BUSINESS INSURANCE Article 34. Inspector of insurance business activities 1. Management Agency, insurance supervision duties, specialist Inspector powers insurance business within the governance of the Ministry of finance under insurance business law.

2. Minister of finance specific provisions about the Organization, the specialized inspection activities covered.

Article 35. The authority sanctioning administrative violations in the field of insurance business 1. Chairman of the provincial people's Committee in the scope of their authority defined in Ordinance on handling administrative violations have the right sanctioning administrative violations in the field of insurance business under the provisions of this Decree.

2. The Chief Justice Inspector of insurance industry professionals in the Department of management, the insurance supervision, the Ministry of Finance has the right to: a. a fine to the highest level prescribed in this Decree;

b. apply additional sanctions and remedial measures prescribed in this Decree;

3. The competent authorities responsible for sanctions check, supervise the observance of the decisions sanctioning administrative violations by themselves.

Chapter IV PROCEDURE Of SANCTION, SANCTION DECISIONS ENFORCEMENT And COMPLAINTS


Article 36. Procedure for sanctioning of administrative violations in the field of insurance business procedure for sanctioning of administrative violations in the field of insurance business is conducted under the provisions of Chapter VI of the Ordinance on handling administrative violations on 02 July 2002 and article 1 amending Ordinance , the addition of some articles of the Ordinance on handling administrative violations on April 2, 2008.

Article 37. Coercive enforcement of the decision sanctioning administrative violations in the field of insurance business The coercive enforcement of the decision sanctioning administrative violations in the field of insurance business are made according to the provisions of article 66 of the Ordinance on handling administrative violations on July 2, 2002.

Article 38. The information publicly sanctioned the decision sanctioning administrative violations in the field of insurance business are publicized on the Website of the Ministry of finance, Vietnam Insurance Association information and the annual report of the insurance market in Vietnam.

Article 39. Time limits enforced decision sanctioning decision sanctioning administrative violations in the field of insurance business ceases effective after 1 year from the date of the decision; in the case of individuals, the organization sanctioned deliberately evade, delay did not apply time limits prescribed in this article.

Article 40. Complaints and denunciations, accusations and complaints complaints, accusations against the decision sanctioning administrative violations in the field of insurance business is done in accordance with the law on complaints and denunciation.

Chapter V PROVISIONS Enacted 41. Implementation the Minister of finance is responsible for guiding, inspecting and supervising the enforcement of this Decree.

Article 42. Terms of implementation 1. The Decree has effect from the date of 22 June 2009 and replacing Decree No. 118/2003/ND-CP of August 13, 2003 the Government of sanctioning administrative violations in the field of insurance business.

2. Ministers, heads of ministerial agencies, heads of government agencies, the Chairman of the provincial people's Committee, the central cities is responsible for the implementation of this Decree.