Decree on GOVERNMENT insurance business pursuant to the law on Government Organization, 30 September 1992;
To promote business activities in insurance and to strengthen governance for insurance business activities to promote socio-economic development of society;
According to the recommendation of the Minister of finance;
 
DECREE: chapter I GENERAL PROVISIONS article 1. -Operate the insurance business as the insurer to accept risks on the basis of the insured person closes a sum called premiums to the insurer indemnity or pay insurance when going on in case of liability insurance.
Insurance business operations including operations and reinsurance intermediary insurance activities.
Article 2. -In this Decree, the following concepts are understood as follows: 1. The insurer include State-owned enterprises, joint-stock companies, insurance companies, insurance companies, branches of foreign insurance institutions, the insurance company 100% foreign-owned operations on the territory of Vietnam : 1.1. Mutual insurance company is the company running the insurance business for its members under the principle of reciprocity, not intended to profit.
1.2 the company insurance is the insurance company was formed on the basis of which Party's Vietnam and foreign Parties.
1.3 branches of foreign insurance organizations parts operations in Vietnam by foreign insurance institutions.
1.4 the company 100% foreign insurance is insurance companies by foreign insurance organizations 100% capital investment, established in Vietnam.
2. National reinsurance company in Vietnam's State-owned enterprises, has legal personality, the function operates reinsurance business.
3. insurance broker organizations include State-owned enterprises, joint-stock companies, limited liability companies, private enterprises, joint venture insurance broker, subsidiary of organized foreign insurance broker, insurance broker company 100% foreign capital: 3.1 joint venture insurance broker insurance brokerage company is formed on the basis of capital contribution Vietnam-party and foreign Parties.
3.2 branch of the company to foreign insurance broker is active in parts of Vietnam held foreign insurance broker.
3.3 the company insurance brokers 100% foreign-owned insurance brokerage companies is due to held foreign insurance brokers 100% capital investment, established in Vietnam.
4. Insurance agents are qualified individuals are stipulated in article 19 of this Decree the insurance agent activity.
Article 3. -This Decree shall apply to the insurer, the insurance broker organizations and insurance agents, does not apply to health insurance attached to Decree No. 299-dated 15-8-1992 of the Council of Ministers (Government) and social insurance attached to Government Decree No. 43-CP on 22-6-1993.
The insurer must bear the responsibility for the operation of his insurance agent.
Article 4. -State protection of the legitimate rights and interests of the insured.
Article 5. -The insurer and insurance broker organizations want to conduct insurance business activities, must be the Ministry of finance certification qualifies and conditions insurance business activities.
Article 6. -The insurer may re-insurance for other insurance businesses.
In case of re-insurance for insurance organizations abroad, the insurer must re-insurance part of responsibilities under a contract of reinsurance for reinsurance company under the Vietnam country specific instructions of the Ministry of finance.
Charter of organization and operation of national reinsurance company in Vietnam due to the Ministry of finance regulations.
 
CHAPTER II the CONTENT and SCOPE of the BUSINESS ACTIVITIES of INSURANCE article 7. -The insurance profession again allowed the business to this Decree: 1. Life insurance 2. Voluntary medical insurance and personal accident insurance.
3. Property insurance and insurance losses.
4. insurance of road transport, sea, River, rail and air.
5. ship hull insurance and civil liability to the boat owner.
6. General liability insurance 7. Aviation insurance 8. Motor vehicle insurance.
9. Fire insurance.
10. Credit insurance and financial risks.
11. damage insurance business.
12. agricultural insurance.
13. The other insurance business by the Ministry of Finance regulates the types of insurance business from point 2 to point 13 above are referred to as non-life insurance.
Article 8.
1. In addition to the types of insurance business specified in article 7 of this Decree, the insurer is also permitted to conduct the assessment, investigation, calculate the loss distribution, review and inspection agency compensation.
2. The insurer is only permitted professional trading according to the method and conditions stated in the certificate and standard conditions of business activities covered by the Ministry of finance.
Article 9. -The insurer must deposit at the Bank allowed business on the territory of Vietnam.
Businesses are entitled to interest on the amount deposited.
The Ministry of Finance regulates the levels of deposit and use of funds.

Article 10. -The insurer in the course of the activity must always ensure the solvency and must establish the reserves enough business to make the commitment to the insured.
Article 11. -The insurer and insurance broker organizations to extract 5% net annual interest rates to establish the mandatory reserve fund to the extent of 10% of capital stock, particularly for a branch of the Organization of insurance foreign insurance broker and then by 10% the level of capital specified in article 22 of the Decree.
Article 12.
1. The insurer and the insurance broker organizations are allowed to use idle capital to invest according to the provisions of the law 2. Private reserves business prescribed in article 10 of this Decree are only investing in Vietnam and for the following areas: 2.1 Buy bonds, State Treasury bills.
2.2 real estate business.
2.3 purchase of securities (stocks, bonds, etc.);
2.4 venture capital contribution.
2.5 loans according to the Ordinance on banks, credit cooperatives and financial company, on May 23, 1990;
2.6 deposited at banks, credit institutions or the State Treasury to collect the interest.
The Ministry of Finance regulates the rate of capital allowed investments in each of the above areas in order to ensure that insurers always maintain liquidity.
Article 13. -Joint venture company, insurance broker, insurance branch of the Organization of insurance, insurance brokerage, insurance company 100% foreign-owned insurance brokerage companies and 100% foreign capital was the right move abroad: 1. Of the profit remaining after extracting the reserve funds and reserves required or voluntarily inscribed in the Charter company and make the financial obligations for the State of Vietnam under the law.
2. Account number left after liquidation.
Article 14,-during operation, the insurer and the insurance broker organizations want to change the content below the Finance Ministry must be accepted in writing: 1. The name, Charter;
2. increase of capital reduction;
3. Change the head office or branch;
4. open, closed branch;
5. Change the content specified in the certificate qualifies the operation conditions and the insurance business.
 
CHAPTER III ADMINISTRATION of INSURANCE BUSINESS ACTIVITIES article 15. -The content of State management of business activities covered include: 1. building and the State Agency has the authority to enact the policy, legislation on the insurance business activities.
2. develop and promulgate regulations, conditions, standard terms of insurance business activities.
3. Grant and revoke the certificate qualifies the operation conditions and the insurance business.
4. check, inspect the observance of the regime, terms of insurance business activities.
5. resolution of disputes, complaint of individual organizations on the insurance business activities.
6. Processed in violation of law on the insurance business activities.
7. International cooperation in the field of insurance business.
Article 16. -Unity Government to manage state on the insurance business activities. The Ministry of finance is the Government agency implementing State management function of insurance business operations and the specific duties provided for in this Decree.
Article 17. -Conditions for the Ministry of finance review the certification standards and conditions of insurance business operations (hereinafter referred to as the certificate): 1. for the Vietnam economic organization: 1.1 objectives and scope of the business clearly;
1.2 Have chartered capital of at least equal to the level of capital specified in article 22 of this Decree;
1.3 there are forms of business organization consistent with defined in article 2 of this Decree;
1.4 based business suit;
1.5 executives have capacity management, professional expertise on insurance;
1.6 national economy really in need of the type of insurance business that the economic approval organization business.
2. for insurance companies and joint venture insurance broker, in addition to the conditions stipulated in paragraph 1 of this article, the parties to the joint venture must be the economic organizations are operating legally and are in normal financial condition.
3. for branches of foreign insurance institutions, branches of organized foreign insurance broker, insurance company 100% foreign-owned insurance brokerage companies and 100% foreign-owned operations in Vietnam, in addition to the conditions specified in paragraph 1 of this article, insurance organizations and foreign insurance broker to be held are legitimate activities in the raw origin and are in normal financial condition.
Article 18. -Application for certificate include the following: 1. for the Vietnam economic organization: 1.1. Application for a certificate, which stated the commercial name, Head Office and address of the branch, the capital, the way in which the scope and duration of scheduled activities, the purpose of the activity and the type of expected business conduct;
1.2. Rules, terms, insurance terms, fees and commissions for this type of insurance is expected to conduct business;
1.3. the business plan in time for at least 5 years initially, have stated the rate fee, Commission rate for each Professional category, the estimated compensation, expected to grow the scale of activity, how to charge and insurance reserves profession;
1.4. The Charter organization and operation;

1.5. The profile and qualifications demonstrate the capacity of the members of the Board, moderator;
1.6. other documents which the Finance Ministry asking to clarify a number of issues related to the above text.
2. for insurance companies and joint venture insurance broker, in addition to the provisions in clause 1 of this article, did not have the text was confirmed the following: 2.1 legal statute of foreign parties involved in joint venture;
2.2 license to operate in the raw of the foreign party join venture;
2.3 joint venture agreement;
2.4 property table, spreadsheet hole interest and annual report on the situation of the parties to the joint venture activities in 3 years.
3. With regard to the Organization's branch of insurance, insurance brokers, insurance companies and insurance brokers 100% foreign capital, in addition to the provisions in clause 1 of this article, have to have additional text was confirmed the following: 3.1 legal license to operate in the resources of the Organization's insurance and insurance brokers;
3.2 the authoritative Paper for executives in Vietnam;
table 3.3 asset, interest rate losses spreadsheet and annual reports of foreign insurance organizations, organizations of foreign insurance broker in 3 years for raw.
Article 19. -Activities of insurance agents are based on dealer contracts concluded with insurers. Active individual insurance agents must have the following conditions: 1. Vietnam, citizens are resident in Vietnam;
2. Have a high school diploma;
3. Not in a State of suffering prejudice criminal liability, are enforcing the criminal or insane.
Article 20. -The Charter of organization and activity of the insurer and insurance broker organizations include the following: 1. The name, Head Office and address of the branch;
2. content and scope of activities 3. The duration of operation 4. Capital and capital contribution method;
5. Organization and management;
6. The representative for the insurer and insurance broker organizations.
7. The principle about finance, accounting methods;
8. The conditions and procedures for dissolution;
9. Procedure of amending the Charter;
Article 21.
1. Within a period of 90 days from the date of receipt of the full application for certification, the Ministry of finance decision to grant or refuse to grant. The case of denial, to notify clearly the reasons for litigants and for the competent State agencies decided to set up an insurance business and insurance broker organizations, the Agency has the authority to license investment (for foreign businesses) know.
2. The insurer and insurance broker organizations must submit the certification fee by 0.2% capital prescribed in article 22 of this Protocol, but not less than 10 million Vietnam.
The amounts on the filed work twice: 50% when applying for certification and 50% upon receipt of the certificate. If the certification or insurance organizations, insurance brokers please withdraw the application, the amount already paid for the first non-refundable.
3. After the Ministry of Finance issued a certificate, the insurer and the insurance broker organizations must do the procedures established businesses and business registration, licensing of investment (if the foreign business) under the provisions of the law.
Article 22. -The level of capital of the insurer and insurance broker organizations are defined as follows: 1. Vietnam insurance business, insurance companies: 20 billion dong Vietnam or 2 million u.s. dollars.
2. Branches of foreign insurance institutions, the insurance company 100% foreign capital: 5 million u.s. dollars.
3. Vietnam insurance broker organizations, venture companies insurance brokers: 1 billion Vietnam or 100 thousand us dollars.
4. the Organization's branches of foreign insurance broker, insurance broker company 100% foreign capital: 300 thousand us dollars.
Article 23-before business, insurers and insurance brokers organization must post notice under the provisions of the law.
Article 24-the insurer and insurance broker organizations may be the Ministry of finance to revoke the certificate in the following cases: 1. After 12 months from the date of being granted a certificate that does not fulfill the conditions specified in the certificate or not functioning.
2. No longer met the conditions of operation.
3. Not enough financial capacity to make commitments with regard to the insured.
4. In addition to the above cases, the certificates were granted to branches of insurance organizations and foreign insurance broker in Vietnam is revoked when insurance organizations or foreign insurance broker was revoked the license to operate in raw.
 
CHAPTER IV SUPERVISION of INSURANCE BUSINESS ACTIVITIES article 25. -The financial year of an insurer and insurance broker organizations beginning on January 1 and ending on December 31 of the calendar year. The case of the financial year other than this regulation, must be approved by the Finance Ministry.
Article 26. -The insurer conducted simultaneous operations life insurance and casualty, must separate accounting for each type of insurance.
Article 27.
1. The insurer and the insurance broker organizations must make accounting under Vietnam's account system. The case applied the system account, must be approved by the Finance Ministry.

2. the property table, table of profit of the insurer and insurance broker organization must be competent fiscal authority or an audit organization is allowed to operate in Vietnam confirm new legal value.
3. The insurer and the insurance broker organizations must make the financial obligations for the State under the provisions of the law.
Article 28. -Within a period of 90 days after the end of the financial year, the insurer and the insurance broker organizations must submit to the Ministry of finance the following documents: 1. operational situation report;
2. The Board of the property;
3. the interest rate calculation Sheet the hole;
4. Other documents clarify the aforementioned documents upon the request of the Ministry of finance.
In addition to the above documents, insurance company, joint venture insurance broker, subsidiary of the insurance organizations and insurance brokers, insurance companies and insurance brokers 100% foreign capital have to submit additional reports on the situation in the property table, and the table of interest the Organization's hole, in raw.
Article 29. – The Ministry of finance may request the insurer and insurance broker organizations reported activities or conduct the test at any time.
The test comes on not affecting the normal operation of the business of insurance and the insurance broker organizations.
Article 30. -The case of the financial situation of the insurance business trend bad happenings, the risk of insufficient liquidity for the insured, the Ministry of finance may request the insurer must rectify business and adopt measures to restore the situation to normal. If found unable to rectify the situation, the Ministry of Finance on the revocation of the certificate of organization.
Article 31.-the case of the dissolution or termination of the activity, the insurer and the insurance broker organizations must proceed to liquidate immediately.
Article 32. -The case of dissolution, cessation of work, liquidation, merger, splitting the insurer and insurance broker organizations must report and be subject to the supervision of the Ministry of finance.
Article 33. -The insurer and insurance broker organizations is subject to the supervision and inspection of the Ministry of finance. The inspection is performed according to the regulations of the Ombudsman Ordinance and other provisions of the law.
 
Chapter V HANDLE VIOLATION of Article 34.
1. The insurer, the insurance broker organizations and insurance agents in violation of the provisions of the certificate or the violation of the provisions of this Decree, depending on the extent to which violations dealt with by administrative sanctions or remedies being prejudice to criminal responsibility.
2. in case the violation serious effects to the interests of the insured, in addition to handling measures mentioned in clause 1 of this article, the Finance Ministry may adopt the following measures: 2.1 Required property has increased;
2.2 limitations of scope and field of activity;
2.3 asks the competent State Agency blocked the assets;
2.4 organizational requirements change insurance executives, members of the Board.
CHAPTER VI FINAL PROVISIONS Article 35. – this Decree has effect from January 1, 1994. The previous provisions contrary to this Decree are repealed.
Article 36. -The Minister of finance is responsible for guiding the implementation of this Decree.
Article 37-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.