Chương II Nghị định 58/2018/NĐ-CP: Các quy định về bảo hiểm nông nghiệp

Chapter II

REGULATIONS ON AGRICULTURAL INSURANCE

Section 1. SPECIFIC REGULATIONS ON AGRICULTURAL INSURANCE

Article 6. Agricultural insurance policy

1. In addition to the contents specified in the Law on Insurance Business, the policyholder and the insurer shall agree upon and specify the following contents in the agricultural insurance policy:

a) Name and address of the individual and affiliated entity of the insurer that is responsible for addressing the issues concerning execution of the agricultural insurance policy.

b) Methods for determining the sum insured.

c) Cases in which deductible and deduction of the indemnity (if any) are applied.

d) Loss survey; loss surveyor; loss survey costs.

dd) Determination of insured event, grounds for providing indemnity; cases in which indemnity is provided according to the notice or confirmation of disasters or diseases given by a competent authority; cases in which index-based insurance is provided/purchased, specific agreement on the indexes directly related to loss of the subject matter insured; the authority that determines the difference between the actual index and the index insured; methods for determining the indemnity.

e) Methods for providing indemnity; indemnity claim (specifying agreement on responsibility of the policyholder or the insured documents for providing necessary documents for the insurer); time limit for providing indemnity.

g) Responsibilities of parties for risk management and loss prevention and minimization, and prevention and fight against insurance fraud in accordance with regulations of this Decree.

h) Responsibilities of the insurer and the insured for complying with all technical procedures and standards in agricultural production (if any).

2. The insurance policy signed between the entity eligible for assistance in the agricultural insurance premium and the insurer shall be executed as prescribed in this Decree.

Article 7. Agricultural co-insurance

1. The insurer may sell agricultural insurance according to co-insurance method in order to allocate and share risks, ensure financial safety and maintain a healthy competitive environment.

2. Cases in which agricultural co-insurance policy is executed:

a) The agricultural insurance policy shall specify name and co-insurance ratio of each co-insurer; name of the insurer in charge of executing the insurance policy. Insurers shall take joint responsibility for the commitments specified in the agricultural insurance policy with the policyholder.

b) The insurer in charge shall complete procedures for signing the insurance policy, and coping with tasks related to execution of the agricultural insurance policy on behalf of the co-insurers.

Article 8. Agricultural reinsurance

1. In the case of domestic reinsurance, the reinsurer shall:

a) satisfy requirements for capital and solvency margin and comply with regulations on reinsurance prescribed in the Law on Insurance Business and its guiding documents.

b) run an agricultural reinsurance plan in a safe and effective manner and comply with regulations and law.

2. In the case of foreign reinsurance, the insurer shall comply with regulations of law on foreign reinsurance.

Article 9. Agricultural reinsurance indemnity

1. Upon occurrence of an insured event, the insurer shall provide indemnity under the agricultural insurance policy and regulations of law.

2. The indemnity paid by the insurer to the insured shall be determined according to the market value of the subject matter insured at the time and place where the loss is incurred and the degree of actual loss, unless otherwise provided in the insurance policy. In the case of index-based insurance, the insurer shall provide indemnity to the insured according to the change in the actual index compared to the index specified in the insurance policy and regulations of law.

3. The indemnity paid by the insurer to the insured must not exceed the sum insured, unless otherwise provided in the insurance policy.

Article 10. Dispute settlement

1. Any dispute that arises during execution of the agricultural insurance policy shall be initially settled under the insurance policy, regulations of the Law on Insurance Business and relevant regulations of law.

2. In case of failure to settle the dispute by negotiation, relevant parties may bring the case to a Vietnamese competent Court.

Article 11. Policy wording and premiums

1. The insurer shall, on its own initiative, establish policy wording and premiums in accordance with regulations of the Law on Insurance Business and relevant regulations of law and notify the Ministry of Finance in writing before establishment.

2. In the case of implementation of the agricultural insurance assistance policy, policy wording and premiums shall be approved by the Ministry of Finance in writing before implementation. The application and procedures for approving agricultural insurance products are provided in Article 33 of this Decree.

Article 12. Responsibilities of the insurer for signing and executing an agricultural insurance policy

1. Provide explanation and sufficient information about insurance policy, policy wording and premiums for the policyholder. Sign the agricultural insurance policy only if the policyholder has confirmed its/his/her clear understanding of information concerning the agricultural insurance policy, policy wording and premiums.

2. Sign the agricultural insurance policy by following the principles of voluntariness, free will and equality; ensure adherence to the law of large numbers and allocate and share risks through co-insurance and reinsurance.

3. On its own initiative, control risks, prevent and minimize losses, and prevent and fight insurance fraud as prescribed in Section 2 Chapter II of this Decree.

4. Upon occurrence of an insured event, promptly assign officials to reach the subject matter insured and instruct the insured to take measures to minimize losses (if any). Pay necessary and appropriate costs to minimize losses.

5. Organize loss surveys to determine causes and degree of the loss in a public and transparent manner under the agricultural insurance policy and regulations of law. In the case of index-based insurance, obtain and publish the competent authority’s confirmation of the insured event (if specified in the insurance policy); determine the difference between the actual index and the index specified in the insurance policy.

6. In the case of determination of loss subject to the indemnity, assign officials to instruct the insured to provide the documents necessary for indemnity.

7. Provide sufficient indemnity to the insured under the agricultural insurance policy and regulations of law.

8. Bear other responsibilities specified in the agricultural insurance policy and regulations of law.

Article 13. Responsibilities of the policyholder and the insured for signing and executing an agricultural insurance policy

1. Protect the insurable interest of the subject matter insured as prescribed by law.

2. Sufficiently and truthfully provide information concerning the subject matter insured (including the case in which the subject matter insured suffers loss) for the insurer.

3. Sign the agricultural insurance policy after having a clear understanding of information about the agricultural insurance policy, policy wording and premiums that is explained and provided by the insurer.

4. On its/his/her own initiative, control risks, prevent and minimize losses, and prevent and fight insurance fraud as prescribed in Section 2 Chapter II of this Decree.

5. Enable the insurer to inspect fulfillment of requirements for assurance of safety of the subject matter insured.

6. Promptly notify the insurer of the insured event; take measures for loss minimization under the guidance of the insurer.

7. Closely cooperate with the insurer in surveying losses to determine causes and degree of the loss and provide indemnity.

8. Bear other responsibilities specified in the agricultural insurance policy and regulations of law.

Section 2. RISK CONTROL, LOSS PREVENTION AND MINIMIZATION AND PREVENTION AND FIGHT AGAINST INSURANCE FRAUD

Article 14. Responsibility for risk control, loss prevention and minimization and prevention and fight against insurance fraud

The insurer, policyholder, the insured and competent authorities shall control risks, prevent and minimize losses, and prevent and fight insurance fraud upon sale/purchase of agricultural insurance and implementation of agricultural insurance assistance policy in accordance with Articles 15, 16 and 17 of this Decree.

Article 15. Risk control

1. Control of risks during the policy period means a process of identifying, assessing, monitoring and managing inherent risks that may potentially exert negative effect on sale of agricultural insurance and implementation of the agricultural insurance assistance policy.

2. The insurer shall:

a) Formulate and take risk control measures and establish and follow risk control procedures specifying specific responsibilities of each individual and division for completion of the risk control procedures.

b) Annually review and re-inspect risk control measures and risk control procedures to ensure their effectiveness and validity.

3. The policyholder and the insured shall, on their own initiative, take risk control measures and follow risk control procedures with respect to the subject matter insured during agricultural production, including complying with regulations on prevention and fight against animal diseases, plant quarantine and protection and environmental protection, technical standards in agricultural production issued by the competent authority and other relevant regulations of law on order to ensure safety of the subject matter insured.

4. Relevant authorities shall control, supervise and instruct agricultural producers to control risks during agricultural production; disseminate information concerning control of risks during agricultural production.

Article 16. Loss prevention and minimization

1. Prevention and minimization of losses incurred during the policy period means the adoption of measures for avoiding and minimizing losses that may be incurred on the subject matter insured.

2. Loss prevention and minimization serves as a responsibility of the policyholder and the insured. The policy holder and the insured shall, on their own initiative, prevent and respond to disasters and provide disaster relief, and prevent, fight and take remedial actions against diseases as prescribed by law, immediately notify the insurer of the insured event, and take measures for prevention and minimization of losses (if any) under the guidance of the insurer.

3. The insurer shall prevent and minimize losses during the policy period according to following regulations:

a) Measures for loss prevention and minimization include:

- Provide training and carry out dissemination activities; assist local governments in providing training in and disseminating agricultural insurance assistance policy;

- Provide and assist with equipment and facility to prevent and minimize losses;

- Assist in building works aimed at preventing and mitigating losses incurred on the subject matters insured;

- Hire other organizations and individuals to carry out supervision, prevent and minimize losses.

b) The insurer shall use up to 10% of revenue from agricultural insurance premiums to take loss prevention and minimization measures prescribed in Point a of this Clause.

4. Relevant authorities shall provide guidelines for measures for preventing and minimizing losses during agricultural production, including carrying out supervision to early detect and notify animal diseases, issue forecast and warning about animal diseases; provide guidelines for measures for preventing and fighting animal diseases; fight diseases and take measures for protecting production upon occurrence of plant pests; direct implementation of remedial measures to quickly control and eradicate diseases and pests; respond to disasters and provide disaster relief; disseminate information concerning prevention and minimization of losses during agricultural production.

Article 17. Prevention and fight against insurance fraud

1. Prevention and fight against agricultural insurance fraud mean the adoption of measures for preventing and reducing the fraud during signing and execution of the agricultural insurance policy with the aim of appropriating a sum of money from the insurer.

2. The insurer shall, on its own initiative, formulate and take measures for preventing, detecting and reducing insurance fraud, and disseminate information about prevention and fight against insurance fraud.

3. The policyholder and the insured shall, on their own initiative, participate in prevention and fight against insurance fraud. In case any act of insurance fraud is found, it is required to promptly notify the insurer and competent authority.

4. Relevant competent authorities shall cooperate with the insurer, the policyholder and the insured in preventing and fighting insurance fraud within their area in a manner that maintains social order during execution of the agricultural insurance policy and implementation of the agricultural insurance assistance policy.