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light-check 2022 Law on Insurance Business

Law No. 08/2022/QH15 dated June 16th, 2022 of the National Assembly on Insurance Business
Posted: 1/7/2022 10:25:55 AM | Latest updated: 4/8/2022 1:42:38 PM (GMT+7) | LuatVietnam: 5487
VietlawOnline

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/QH10status3 (amended and supplemented according to Law No. 61/2010/QH12status3 and Law No. 42/2019/QH14status2 ) 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/QH10status3 that have been amended and supplemented according to Law No. 61/2010/QH12status3 and Law No. 42/2019/QH14status2 shall be abolished by end of December 31st, 2027.

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Information

Effective date 1-Jan-2023
Expired date Unknown

Files attachment

enflag pdficon LL08-16062022QH15[EN].pdf

Timeline

Insurance Business

light-check 2022 Law on Insurance Business
blue-check Agricultural insurance assistance policies from June 24th, 2022
blue-check It is allowable delaying payment of motor vehicle insurance premiums due to impact of Covid-19
blue-check Amendments to regulations on compulsory fire and explosion insurance
blue-check Rate of commendation and financial aid for agents of health insurance enterprises is increased
blue-check Banks are not allowed to force clients to buy insurance upon providing credit
blue-check From 2020: Insurance enterprises shall pay 0.03% management charges
blue-check Conditions for operation of insurance agents with regard to banks
blue-check Conditions for provision of auxiliary insurance services
blue-check Regarding VAT on insurance service for exported goods
blue-check Regulations on grant of certificates of eligibility for insurance auxiliary service
red-check Amendments to the Law on insurance business and Law on intellectual property
blue-check Regarding operation of insurance brokerage activities
blue-check Regarding registration for engaging in “risk and damage assessment’’ business line
blue-check Amendments to basis for setting aside reserves for non-life insurance
blue-check Guidelines on tests for insurance agent certificates
blue-check Regulations on agricultural insurance
red-check New table of compulsory fire and explosion insurance premiums
red-check New guidelines on insurance business
blue-check “Reinsurance operation” shall be exempt from VAT payment