Answer:
Mr. Phung Dac Loc, former Secretary General of the Vietnam Insurance Association, said that current law stipulates many effective measures. effectively to protect the interests of insurance buyers in case the insurance enterprise becomes insolvent or bankrupt.
During the process of insurance business, insurance enterprises Must always maintain solvency such as fully setting aside professional reserve fund, insurance buyer protection fund, and reinsurance to ensure payment and refund to insurance buyers.
The Insured Person Protection Fund is managed by the Insurance Association. In case an insurance enterprise goes bankrupt, the Insured Person Protection Fund is used by the Insurance Association to pay insurance premiums and surrender value; pay insurance compensation; Refund the insurance premium to the insurance buyer according to the provisions of the insurance contract.
Accordingly, the Insured Person Protection Fund is amended by law to supplement a number of articles of the Law on Insurance Business regulations since 2010 and on August 20, 2013, the Ministry of Finance issued Circular 101 guiding the collection, appropriation, use, settlement and settlement of the Fund for the Protection of the Insured.
Insurance businesses must annually pay 03% of insurance premium revenue to the Insured Person Protection Fund (Illustration).
Specifically, insurance businesses must annually pay into the fund a maximum of 03% of insurance premium revenue. This amount is used to pay customers when the insurance business becomes insolvent or bankrupt Including:
1. Refund of paid insurance premiums when the insurance contract is not transferred to another insurance company; 2. Payment of insurance benefits to customers goods when the insured event or risk occurs before the date the insurance enterprise becomes insolvent.
For cases where the insurance enterprise is at risk of insolvency payment The Ministry of Finance has the right to request insurance enterprises to restore their solvency, including measures such as supplementing equity capital; strengthening the organization and changing the administrator Enterprises; request to transfer insurance contracts…
In case the insurance enterprise cannot restore its solvency as requested by the Ministry of Finance, the insurance enterprise will be placed under control. Check your ability to pay. The Ministry of Finance decided to establish a Solvency Control Board to apply measures to restore solvency according to the provisions of the Law on Insurance Business, the Law on Bankruptcy and related guiding documents.
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