The Ministry of Finance directly manages Protection Fund for insured
Using Protection Fund to compensate insurants when enterprises are unable to pay. |
Accordingly, insurance companies, foreign subsidiaries (excluding reinsurance companies) are required to contribute to Protection Fund.
Before April 30 every year, the Ministry of Finance announces the Fund contribution rate for the year, which does not exceed 0.3% of total premium revenue retained by the original insurance contract in the previous fiscal year of the insurance companies, foreign branches.
Before June 30 every year, insurance companies, foreign branches have to pay 50% of the payable amount for the Fund in the fiscal year. Before December 31 every year, insurers, insurance companies, foreign branches have to complete obligation to contribute to the Fund in the fiscal year.
The payment is made to the total amount of the Fund reaching 5% for businesses of non-life insurance, health insurance businesses, foreign branches and 3% of total assets for companies of life insurance.
Protection Fund for insured is managed centrally at the Ministry of Finance and carried out accounting, management, monitoring for each type of life insurance, non-life insurance and health insurance. Protection Fund for insurants is used for this kind of life insurance, non-life insurance and health insurance.
This fund is used in the case of insurance companies, foreign branches in solvency crisis and insurance companies, foreign branches have carried out measures to restore solvency, but cannot fix, insurers. Then insurance companies, foreign branches are allowed to use the Protection Fund for insured according to the Ministry of Finance’s decision on the termination of the application of measures to restore solvency.
If an insurance company goes bankrupt, the Fund shall be used from the time of the Judges declaring the bankruptcy of insurance company.
The Protection Fund for insured is used to pay the insurance, refund; compensation insurance; insurance refund as provided in the insurance contract at the request of insurance companies, foreign branches in solvency crisis, bankrupt companies and once for each file at the request of insurance payment, refund value payment, insurance indemnity payment or fee insurance refund.
Idle money of the Fund is only implemented to invest in Vietnam to buy government bonds, corporate bonds, corporate bonds guaranteed by the Government and deposits at commercial banks.
Taking action to reach Financial strategic goals by 2020 VCN- The Ministry of Finance has officially launched the medium - term action plans for the next ... |
The Ministry of Finance on its own or entrusts the organization to invest based on the idle money of the Fund. In case of entrusted investment, entrusted investment organizations must be authorized by competent agencies to carry out activities of entrusted investment in the line with contents of receiving entrusted investment.
Related News
Enterprises accelerate production and business activities after Tet holiday
10:16 | 26/02/2024 Import-Export
Credit institutions can immediately redeem sold corporate bonds
13:55 | 04/01/2024 Finance
Foreign retailer giants look for Vietnamese suppliers
13:50 | 18/08/2023 Import-Export
Issuance of corporate bonds shows signs of recovery
09:35 | 12/08/2023 Finance
Latest News
Closely monitoring market fluctuations to consider appropriate time to adjust prices
09:30 | 26/04/2024 Finance
How does the Land Development Fund work effectively?
09:19 | 26/04/2024 Finance
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
Price stability from supply increase and transparency in trading in gold market
09:42 | 25/04/2024 Finance
More News
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT
10:35 | 24/04/2024 Finance
Corporate bond maturity in 2024 remains high: MoF
13:51 | 23/04/2024 Finance
Support clearance procedures for imported gold for bidding
09:33 | 23/04/2024 Finance
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low
09:32 | 23/04/2024 Finance
Majority of credit institutions forecast profit growth in 2024
15:16 | 22/04/2024 Finance
Central bank plans to auction gold bars on April 22
18:00 | 21/04/2024 Finance
Old loans must endure higher interest rates temporarily: central bank
15:44 | 19/04/2024 Finance
State-owned enterprises flourished
14:15 | 19/04/2024 Finance
Your care
Closely monitoring market fluctuations to consider appropriate time to adjust prices
09:30 | 26/04/2024 Finance
How does the Land Development Fund work effectively?
09:19 | 26/04/2024 Finance
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
Price stability from supply increase and transparency in trading in gold market
09:42 | 25/04/2024 Finance
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance