Chương 4 Nghị định 43/2001/NĐ-CP: Doanh thu và chi phí

Chapter IV

TURNOVER AND EXPENSES

Section 1. TURNOVER AND EXPENSES OF INSURANCE ENTERPRISES

Article 19.- Turnover of insurance enterprises

Turnover of an insurance enterprise is the collectible amount of money arising in a period and includes:

1. Turnover from insurance business activities, which is the collectible amount arising in a period after subtracting payable amounts for reducing revenues arising in a period.

a/ The collectible amounts arising in a period include:

- Original insurance premium;

- Re-insurance undertaking charge;

- Re-insurance ceding commission;

- Charges for agency services, including: damage assessment, consideration for indemnity payment, request for the third party’s compensation, handling of cargo eligible for 100% indemnity;

- Damage assessment charge, excluding free-of-charge assessment among internal cost-accounting member units of the same independent cost-accounting insurance enterprise.

b/ Payable amounts for reducing revenues arising in a period include:

- Refunded insurance premium;

- Reduced insurance premium;

- Re-insurance assignment charge;

- Refunded re-insurance undertaking charge;

- Reduced re-insurance undertaking charge;

- Refunded re-insurance ceding commission;

- Reduced re-insurance ceding commission.

2. Turnover from financial activities:

a/ Revenue from investment activities as defined in Section 3, Chapter II of this Decree;

b/ Revenue from securities purchasing and selling activities;

c/ Revenue being interest on deposits;

d/ Revenue from asset leasing;

e/ Re-entried balance of securities price decrease reserve;

f/ Other revenues as prescribed by law.

3. Revenues from other activities:

a/ Proceeds from the assignment, sale and/or liquidation of fixed assets;

b/ Bad debts, which have been written off but are now recovered;

c/ Fines for contract breaches;

d/ Other revenues as prescribed by law.

Article 20.- Expenses of insurance enterprises

Expenses of an insurance enterprise are payable and deductible amounts arising in a period, including:

1. Insurance business expenses, which are payable and/or deductible amounts arising in a period, after subtracting collectible amounts for purpose of reducing expenses arising in such period.

a/ Payable and deductible amounts arising in a period include:

- Original insurance indemnities for non-life insurance, or insurance sums for life insurance;

- Re-insurance indemnities;

- Deductions for setting up operation reserves;

- Insurance commission;

- Damage assessment expense;

- Charges for agency services, including damage assessment, consideration for payment of indemnities, claim for compensations by the third party;

- Expense for handling of cargo subject to 100% indemnity;

- Expense for management of insurance agents;

- Expense for risk and damage prevention and minimization;

- Expense for assessment of risks of the insured;

- Wage, remuneration, bonus, severance and amounts of wage and remuneration character as provided for by law for each type of enterprises;

- Payable social insurance and medical insurance premiums as prescribed by law;

- Other expenses as prescribed by law for each type of enterprise.

b/ Amounts, which must be collected to reduce expenses arising in a period, including:

- Re-insurance ceding indemnity;

- Compensations from the third party under claims;

- Proceeds from the handling of cargo subject to 100% indemnity.

2. Expenses for financial activities:

a/ Expenses for investment activities according to the provisions of Section 3, Chapter II of this Decree;

b/ Interests to be paid to life insurance policy holders;

c/ Asset leasing expenses;

d/ Banking fees, loan interests;

e/ Deductions for setting up securities price decrease reserve;

f/ Other expenses as prescribed by law.

3. Expenses for other activities:

a/ Expenses for assignment, sale and/or liquidation of fixed assets;

b/ Expenses for recovery of bad debts, which have been written off but are now recovered;

c/ Expenses paid as fines for contract breaches;

d/ Other expenses as prescribed by law.

Article 21.- Excluded expenses

Insurance enterprises shall not be allowed to account into their expenses the following:

1. Fines that must be paid by collectives or individuals for their law violations;

2. Expenses for capital construction investment, fixed asset procurement, hard-life allowances for laborers and financial support for organizations and individuals as prescribed by law for each type of enterprise;

3. Public-service expenses, rewards, welfare allowances, regular and irregular hard-life allowances and other expenses covered by other funding sources;

4. Other unreasonable expenses as prescribed by law.

Section 2. TURNOVER AND EXPENSES OF INSURANCE BROKERAGE ENTERPRISES

Article 22.- Turnover of insurance brokerage enterprises

Turnover of an insurance enterprise is the collectible amount of money arising in a period and includes:

1. Turnover from insurance brokerage activities:

a/ Insurance brokerage commissions, after subtracting reimbursed or reduced insurance brokerage commission amounts;

b/ Other revenues as prescribed by law.

2. Turnover from financial activities:

a/ Turnover from securities purchasing and selling activities;

b/ Interests on deposits, interests on loans;

c/ Asset rental;

d/ Re-entried balance of securities price decrease reserve;

e/ Other revenues as specified by law.

3. Income from other activities:

a/ Proceeds from the assignment, sale and/or liquidation of fixed assets;

b/ Bad debts, which have been written off but are now recovered;

c/ Fines for contract breaches;

d/ Other revenues as prescribed by law.

Article 23.- Expenses of insurance brokerage enterprises

Expenses of an insurance brokerage enterprise are payable amounts arising in a period, including:

1. Expenses for insurance brokerage activities:

a/ Expense for insurance brokerage activities;

b/ Expense for purchase of occupational liability insurance;

c/ Wage, remuneration, bonus, severance and amounts of wage and remuneration character as provided for by law for each type of enterprise;

d/ Payable social insurance and medical insurance premiums as prescribed by law;

e/ Other expenses as prescribed by law for each type of enterprise.

2. Expenses for financial activities:

a/ Asset leasing expenses;

b/ Banking fees, loan interests;

c/ Deductions for setting up securities price decrease reserve;

d/ Other expenses as prescribed by law.

3. Expenses for other activities:

a/ Expenses for assignment, sale and/or liquidation of fixed assets;

b/ Expenses for recovery of bad debts, which have been written off but are now recovered;

c/ Expenses paid as fines for contract breaches;

d/ Other expenses as prescribed by law.

Article 24.- Excluded expenses

Insurance brokerage enterprises shall not be allowed to account into their business operation expenses those specified in Article 21 of this Decree.