This Law provides for new regulations on requirements for establishment of insurance companies; branches of insurance companies, insurance agents; scope of insurance business, types of insurance contracts, rights and obligations of insurers, etc.
One of the new noticeable points of this Law is to allow foreign investors to have the ownership of contributed capital that makes up as high as 100% of the charter capital of an insurance company or reinsurance company.
However, a foreign enterprise that wishes to contribute capital to establish an insurance company in Vietnam must own the minimum total asset of USD 02 billion in the year immediately preceding the year of submission of application.
With regard to domestic enterprise that wishes to contribute capital to establish an insurance company, it must have the minimum total asset of VND 2,000 billion in the year immediately before the year of application for the business license or permit.
Under new regulations, insurance ancillary services, including consultation, insurance risk assessment, etc. are added to conditional business lines.
This Law comes into force as from January 1st. Particularly, clause 3 of Article 86; clauses 4 and 5 of Article 94; Article 95; clauses 3 and 4 of Article 99; Article 109, 110, 111, 112, 113, 114 and 116 of this Law shall take effect as of January 1st, 2028.
The Law on Insurance Business No. 24/2000/QH10 (amended and supplemented according to Law No. 61/2010/QH12 and Law No. 42/2019/QH14 ) shall be expired after the entry into force of this Law, except in the following cases:
a) Clause 1 of Article 157 of this Law.
b) Articles 77, 78, 79, 80, 81, 83, 94 and 98 of the Law on Insurance Business No. 24/2000/QH10 that have been amended and supplemented according to Law No. 61/2010/QH12 and Law No. 42/2019/QH14 shall be abolished by end of December 31st, 2027.