Chương VIII Nghị định 73/2016/NĐ-CP hướng dẫn Luật kinh doanh bảo hiểm và Luật kinh doanh bảo hiểm sửa đổi: Quỹ bảo vệ người được bảo hiểm

Chapter VIII

THE FUND FOR PROTECTION OF THE INSURED

Article 103. Contribution to the Fund for protection of the insured

1. Insurance enterprises and foreign branches (except reinsurance enterprises) must contribute to the Fund for protection of the insured.

2. By the 30^th of April of each year, the Ministry of Finance shall announce the level of contribution to the Fund for protection of the insured in a fiscal year. The highest contribution shall not exceed 0.3% of total premiums from direct insurance contracts, which are retained by the insurance enterprise or foreign branch in the fiscal year immediately preceding the year that the contribution is given.

3. By the 30^th of June of each year, an insurance enterprise or foreign branch shall give 50% of the contribution to the fund for the fiscal year. By the 31^st of December of each year, an insurance enterprise or foreign branch shall fulfill its contribution to the fund for the fiscal year.

4. Contributions shall be made until the value of the Fund for protection of the insured is equal to 5% of the total worth of assets of non-life insurance enterprises, health insurance enterprises and foreign branches and to 3% of the total worth assets of life insurance enterprises.

Article 104. Management of the Fund for protection of the insured

1. The Fund for protection of the insured shall be centrally managed by the Ministry of Finance and recorded, administered and monitored by type of life insurance, non-life insurance and health insurance. The Fund for protection of the insured is given juridical personality, has its private account(s) and seal.

2. Ministry of Finance shall supervise contributions of insurance enterprises and foreign branches to the Found for protection of the insured. Moreover, the Ministry of Finance shall manage and employ the Fund for protection of the insured towards the security of finances and in accordance with the objectives defined in this Decree and other relevant regulations.

Article 105. Principles of the use of the Fund for protection of the insured

1. The fund for protection of the insured shall disburse finances in these events:

a) When an insurance enterprise or foreign branch becomes and remains insolvent despite its measures to restore solvency, it shall resort to the Found for protection of the insured according to decision(s) of the Ministry of Finance on termination of solvency restoration measures;

b) When an insurance enterprise goes bankrupt, the Fund for protection of the insured shall be available upon a judge's pronouncement on the bankruptcy of the insurance enterprise.

2. The fund for protection of the insured is exclusively reserved for life insurance, non-life insurance and health insurance.

3. The fund for protection of the insured shall cover payouts, surrender value, claim payments and premium refinances according to insurance contracts upon requests of an insolvent insurance enterprise or foreign branch or a bankrupt insurance enterprise. Finances shall be disbursed once for each application for coverage of payouts, surrender value, claim payments or premium refinances.

Article 106. Disbursement of finances of the Fund for protection of the insured

1. The fund for protection of the insured shall disburse finances to:

a) Cover payouts, surrender value, claim payments or premium refinances according to insurance contracts whose insurance enterprise or foreign branch is insolvent upon the Ministry of Finance’s decision(s) on termination of solvency restoration measures (in case of insolvency of the insurance enterprise or foreign branch) or upon a judge’s pronouncement of the bankruptcy of the insurance enterprise (in case of bankruptcy of the insurance enterprise);

b) Finance the management of the Fund for protection of the insured, including salary, allowances, purchases, repairs, services and other spending.

2. The fund for protection of the insured shall disburse finances in accordance with these principles:

a) The fund shall only cover direct insurance contracts and disburse finances once for each application for coverage of payouts, surrender value, claim payments or premium refinances;

b) If the insolvent insurance enterprise or foreign branch or the bankrupt insurance enterprise cedes insurance contracts to other insurance enterprises or foreign branches, the fund shall disburse finances as limited in Article 107 of the Decree directly to the accepting enterprises and foreign branches;

c) The fund shall only cover the difference between the sums that an insolvent insurance enterprise or foreign branch has to pay and the amounts that the insured receives from such insurance enterprise or foreign branch;

d) The fund shall only cover the difference between the sums that a bankrupt insurance enterprise has to pay and the amounts that the insured receives as per legal regulations on bankruptcy;

dd) If the insured owes debts to the insurance enterprise or foreign branch according to their insurance contracts and as per the law, the fund shall only cover the difference between the amounts that the insured receives as per Article 107 of this Decree and the sums that the insured owes to the insurance enterprise or foreign branch.

Article 107. Limit of coverage of the Fund for protection of the insured

1. The fund shall cover at most 90% of the rate of liabilities that a life insurance enterprise incurs according to its life insurance contracts; however, it shall cover at most 200 million Vietnam dongs per person insured per contract. The rate of liabilities of a life insurance enterprise shall vary as follows:

a) The rate of liabilities that the insurance enterprise incurs shall be equivalent to insurance benefits defined in the insurance contract yet actualized despite the occurrence of the insured event(s).

b) The rate of liabilities that the insurance enterprise incurs shall be equivalent to the surrender value of the insurance contract as a saving instrument, which is in effect, upon the competent government authority's announcement of the insolvency or bankruptcy of the insurance enterprise;

c) The rate of liabilities that the insurance enterprise incurs shall be equivalent to premiums earned for the remaining term of the insurance contract as a protective instrument, which is in effect and does not have a surrender value;

d) The rate of liabilities that the insurance enterprise incurs shall be equivalent to the value of the customer’s account under the investment-linked insurance contract in effect upon the competent government authority's announcement of the insolvency or bankruptcy of the insurance enterprise;

dd) If many persons are insured under a life insurance contract, the maximum coverage of the Found as stated in Point a, Point b, Point c and Point d, Section 1 of this Article shall individually pertain to each person insured, unless otherwise stipulated by the persons insured and the insurance enterprise in the insurance contract.

2. For health insurance contracts:

a) The fund shall cover at most 90% of the rate of liabilities that an insurance enterprise or foreign branch incurs; however, it shall not cover more than 200 million Vietnam dongs per person insured per contract;

b) If many persons are insured under a health insurance contract, the maximum coverage of the Found as stated in Point a, Section 2 of this Article shall individually pertain to each person insured, unless otherwise stipulated by the persons insured and the insurance enterprise or foreign branch in the insurance contract.

3. For non-life reinsurance contracts:

a) For contracts on compulsory insurance against civil liabilities of motor vehicle owners, the fund shall cover the highest rate of liabilities that an insurance enterprise or foreign branch incurs according to the scope of insurance coverage defined in current laws.

b) For contracts on other insurance practices defined by the law, the fund shall cover at most 80% of the rate of liabilities that an insurance enterprise or foreign branch incurs; however, it shall not cover more than 100 million Vietnam dongs per contract.

Article 108. Procedure for disbursement of finances of the Fund for protection of the insured

1. An insurance enterprise or foreign branch shall be held accountable for submitting 01 set of the following documents to the Ministry of Finance:

a) A filled-in form of application for resorting to the fund, as prescribed by the Ministry of Finance;

b) The written endorsement by competent authorities of the fulfillment of the (bankrupt) insurance enterprise’s scheme for classification of assets by value;

c) The summary list of persons insured and applications for payouts, surrender value, claim payments or premium refinances according to insurance contracts that the insurance enterprise or foreign branch fails to cover; documents on the collection of reinsurance claim payments; documents on the collection of third parties’ reimbursements upon the Ministry of Finance’s decision(s) on termination of solvency restoration measures (if the insurance enterprise or foreign branch goes insolvent) or upon the completion of the scheme for classification of corporate assets (if the insurance enterprise goes bankrupt).

2. In 30 days upon receiving all documents defined in Section 1 of this Article, the Ministry of Finance shall be held responsible for:

a) Examining the application by the insurance enterprise or foreign branch for coverage of payouts, surrender value, claim payments or premium refinances in order to specify the sums payable;

b) Formulating the scheme for settlement of payouts, surrender value or claim payments;

c) Disclose the fulfillment of payments to the insured in daily newspapers (at least in one central or local newspaper circulating at the sites of the headquarter, branches and transaction offices of the insurance enterprise or foreign branch) in the language of Vietnam in 03 consecutive issues; as well as the list of entities having received payments at the sites of its headquarter, branches and transaction offices and on the websites of the Ministry of Finance and the insurance enterprise or foreign branch. Such disclosure must specify the location, time and method of payments that the fund makes;

d) Disbursing finances from the fund.

3. Entities receiving payouts, surrender value, claim payments or premium refinances from the fund must meet these requirements:

a) Be named in the summary list enclosed to the disbursement applications that the Ministry of Finance has approved;

b) Have these written evidences of the legitimacy of their interests in the fund’s payments: Citizen identity card, ID card, passport or other valid personal identification papers; insurance contract(s); letter(s) of authorization to collect money (if any).

Article 109. Investment of the Fund for protection of the insured

1. Idle finances of the Fund shall only be invested in purchasing government bonds and government-guaranteed corporate bonds and depositing money in commercial banks in Vietnam.

2. Ministry of Finance shall invest or entrust an organization to invest the idle finances of the fund. Investment trustees must be licensed by competent authorities to make investments in conformity to the trust.