New regulations on penalties on insurance business

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Many penalty levels for administrative violations in the domain of insurance business are revised. Photo: Internet

According to the new decree, the subjects of administrative penalty in domains of insurance and lottery business include Vietnamese and foreign individuals, and organizations that commit administrative violations in domains of insurance and lottery business.

Second, the organizations subject to administrative penalty in domains of insurance and lottery business in accordance with regulations are: life insurers, non-life insurers, health insurers, re-insurers and insurance brokers, branches of foreign non-life insurers, representative offices of foreign insurers, representative offices of foreign reinsurers, representative offices of foreign insurance brokers, insurance agents as organizations, lottery business companies and lottery agents as organizations and other relevant organizations defined in this Decree.

Decree No. 48/2018 / ND-CP stipulates warnings for violations of regulations on the Licence for establishment and operation, and Licence for establishment of representative office of insurers.

Specific violations are: Failure to publish daily on 05 consecutive publications contents required for announcement in accordance with the law; Failure to publish one of the contents in the Licence for establishment and operation and Licence for establishment of representative office within the time limit prescribed by law; Failure to publish the amendments or supplements to the representative office permit according to the law

The Decree also stipulates that the acts of correction to Licence for establishment and operation and Licence for establishment of representative office shall be fined from VND 20-30 million and will have material evidences confiscated.

Regarding the penalties for violations against regulations on administration and control, a fine of between VND 20-30 million shall be imposed for violations by: the designated General Director (Director), Deputy General Director (Deputy Director), Director of Branches, Head of Representative offices of the insurers, re-insurers, insurance brokers, who simultaneously hold leading positions for another insurers, re-insurers, insurance brokers, or professional divisions. Designating the Director and Deputy Director of foreign branches as holding the leading position for more than one professional division.

At the same time, a fine of between VND 20,000,000 and VND30,000,000 shall be imposed for violations on designating actuaries of life insurers, health insurers and actuaries in charge of professional reserve and solvency of non-life insurers, re-insurers and foreign branches, who concurrently hold the position of General Director (Director) and chief accountant.

A fine of between VND 40 and 50 million shall be imposed for violations on: the designated Deputy General Director (Deputy Director), calculation experts, branch directors, heads of representative offices, heads of control boards, heads of the internal audit boards, heads of the professional divisions, members of the Boards of Directors and the Members' Councils who fail to meet the standards prescribed by law.

A fine of between VND 90 and 100 million shall be imposed for one of the frauds on insurance business with an appropriated amount of less than VND 20,000,000 or a loss of under VND 50,000,000, under the level of criminal responsibility.

The Ministry of Finance directly manages Protection Fund for insured VCN- The Government has issued Decree No. 73/2016 / ND-CP regulating details of the implementation of the ...

Details as follows: Collaborating with insurance beneficiaries to settle insurance indemnities and insurance money payment in contravention of law by; Forging documents or falsifying information intentionally to refuse insurance indemnities or insurance money payment upon the occurrence of insurance events; Forging documents in dossiers requesting compensation and insurance money and self-damage to property or health for the insurance benefits.