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In cases of insurance enterprises are bankrupted, benefits of customers are still guaranteed

Wed, 13 Sep 2017 16:13:21 PM GMT + 7    Print   Email   Share:

(Chinhphu.vn) - Insurance enterprises must deduct to the funds for the protection of the insured insurers to protect the insured insurers's benefits in cases where the insurance enterprises go bankrupt or lose their payment capability according to regulations.

According to Ms. Nguyen Thi Thuy Van (in Ha Tinh Province), many people in Ky Anh Town, Ha Tinh Province are participating in life insurance in Ha Tinh Branch. AIA Vietnam Life Insurance Co.,Ltd (Address: 2nd Floor, Ly Ngan Trade Center, Song Tri Ward, Ky Anh Town).

Ms. Van contacted the representative office (phone: 08.318.22.777) to learn about the benefits of insurance, a staff of AIA Vietnam Life Insurance Co Ltd said, AIA Vietnam Life Insurance Co Ltd operates under the management of Ministry of Finance, deposit into state budget before operation. In the event of bankruptcy, insolvency or elimination, the State will pay out the benefits of the insured insurers.

Ms. Van would like to ask, is the staff of AIA Vietnam Life Insurance Company advice as above right?

Regarding this issue, The Insurance Management and Supervision Department, Ministry of Finance responds as follows:

AIA Life Insurance (Vietnam) Co., Ltd has been licensed by the Ministry of Finance to operate in Vietnam since 1999. The company is headquartered at 15-16 Royal Center Building, 235 Nguyen Van Cu, District 1 , Ho Chi Minh City.

 According to audited financial statements dated December 31, 2015, AIA Life Insurance Co., Ltd (Vietnam) has a chartered capital of 1,264.3 billion dong, total assets of 8,306 billion dong.

Legal regulations on the operation of insurance business

Insurance enterprises shall have to comply with the provisions of the Insurance Business Law, guiding documents and relevant laws throughout the course of operation as follows:

- Insurance enterprises must always maintain their solvency under Article 77 of the Insurance Business Law, ensuring that the contributed charter capital is not lower than the legal capital level prescribed in Article 94, must be partially used of Charter capital for collateral at a commercial bank operating in Vietnam under the provisions of Article 95 of the Law on Insurance Business, must set up operational reserves as prescribed in Article 96 of the Law on Insurance Enterprises.

- For customers, insurance enterprises shall be obliged to explain to the insurance buyers the insurance conditions and terms as well as the rights and obligations of the insurance buyers, to pay insurance sums promptly upon the occurrence of such insurance events. as stipulated in Article 17 of the Law on Insurance Business.

- Insurance enterprises must deduct money for the protection of the insured persons to protect the benefits of insured's persons in cases where the insurance enterprise goes bankrupt or becomes insolvent according to the provisions of Article 97 of the Law on Insurance Business and Clause 11, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Insurance Business. Maximum coverage limit of the Insured Fund is 90% of the life insurance company's liability, but not exceeding 200 million VND / insured person / contract, depending on each case prescribed in Article 107 of Decree No. 73/2016 / ND-CP of the Government.

Ms. Van can refer to the system of legal documents on insurance business on the website of the Ministry of Finance (www.mof.gov.vn) for more details.

  • By : Online Newspaper of the Government / Translator: HaiYen-Bizic

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