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To establish a legal framework in insurance business, the Insurance Business Law has been in place since 2000 and was amended in 2010. Up to now, to ensure compliance with the reality, the Insurance Business Law 2022 has been passed at the 3rd session of the 15th National Assembly.
Content, new points of the Insurance Business Law by the National Assembly, Law number 08/2022/QH15
1. Overview of insurance business law.
2. New points in the 2022 insurance business law.
* Download the latest insurance business law HERE
1. Overview of insurance business law
* 2022 Insurance Business Law
The latest upcoming insurance business law set to be effective is the 2022 Insurance Business Law. It consists of 7 Chapters with 157 Articles.
Contents of each chapter are as follows:
- Chapter I: General provisions (from Article 1 - Article 14)
- Chapter II: Insurance contracts (from Article 15 - Article 61)
- Chapter III: Insurance enterprises, reinsurance enterprises, foreign branches in Vietnam (from Article 62 - Article 123)
- Chapter IV: Insurance agents, insurance brokers, organizations, individuals providing insurance auxiliary services (from Article 124 - Article 143)
- Chapter V: Macro insurance (from Article 144 - Article 150)
- Chapter VI: State management of insurance business activities (from Article 151 - Article 154)
- Chapter VII: Enforcement provisions (from Article 155 - Article 157)
* Effectiveness of the Law:
- The law shall come into effect from January 1, 2023, except for certain provisions: Clause 3 Article 86, clauses 4 and 5 Article 94, Article 95, clauses 3 and 4 Article 99, Articles 109, 110, 111, 112, 113, 114, and 116 shall come into effect from January 1, 2028.
- The old law shall cease to be effective from the date the 2022 Insurance Business Law comes into effect, except in the following cases:
+ Clause 1 of Article 157 of the new Law;
+ Articles 77, 78, 79, 80, 81, 83, 94, and 98 of the old Law shall remain in effect until December 31, 2027.
* Reasons for issuing the new Insurance Business Law
The Insurance Business Law of 2000, amended in 2010 and 2019, has played a role in regulating insurance business activities, creating a healthy competitive environment for enterprises,... However, the law also reveals some limitations, failing to meet practical requirements such as:
- Some regulations are not consistent with documents such as the 2015 Civil Code; not in line with international regulations. This causes difficulties in applying legal provisions.
- The insurance market is diverse, with many existing issues that the law has not addressed, such as: The potential of the large insurance market, the increasing demand for insurance while the market size remains small, failing to meet the demand. Insurance quality has not been truly emphasized. Insurance agent, broker activities are not professional,...
Along with that, there are directives, policies to amend laws from the Central Executive Committee of the Party, the Prime Minister to promote the development of digital technology platforms, new services, ecosystems in insurance, finance, banking,...
=> Therefore, issuing the 2022 Insurance Business Law is necessary to address existing limitations and create a more robust legal framework.
Content and New Points of the Insurance Business Law
2. New Points in the 2022 Insurance Business Law
- Regarding the scope of application:
Article 2 of the 2022 Insurance Business Law specifies the application of 05 groups:
(1) Insurance enterprises, insurance brokers, reinsurance, agents, individuals, organizations providing insurance auxiliary services, macro-insurance supporting organizations.
(2) Foreign insurance branches in Vietnam.
(3) Foreign representative offices in Vietnam.
(4) Insurance buyers.
(5) State management agencies on insurance business activities and other relevant individuals and organizations.
=> Accordingly, for certain insurance business entities, it is necessary to establish enterprises according to the provisions of the Enterprise Law and other conditions (if any).
In the operations of insurance business enterprises, competition for development is natural. This content is regulated and adjusted by the Competition Law.
- Regarding prohibited behaviors: Specified in Article 9 to ensure transparency in the implementation of insurance business activities.
- Regarding social-professional organizations in insurance business activities:
As observed in the 2022 Insurance Business Law => enhancing the role, promoting coordination among state agencies in disseminating and popularizing laws on insurance business.
- Application of information technology in insurance business activities:
This marks a significant milestone in amending, supplementing, and issuing the 2022 Insurance Business Law. Such provisions will enhance applicability, improve quality and efficiency in management and business operations. Especially relevant to the current era of technological development.
+ The law has supplemented provisions regarding the establishment of branches of foreign reinsurance enterprises in Vietnam.
+ Added provisions affirming that foreign investors are allowed to own shares, contribute capital up to 100% of the charter capital of insurance enterprises, reinsurance enterprises
- Regarding the principles of insurance contract formation, dispute resolution methods, insurable interests under property insurance contracts... are also new provisions, clearly and tightly regulated.
Additionally, the Law also supplements provisions on financial safety, investment, products, micro-insurance providers to create a legal framework for micro-insurance development.
- Regarding insurance contracts:
+ The insurance business law has recognized 05 types of contracts (Life insurance, Property insurance, Asset insurance, Liability insurance, Health insurance) instead of 03 types as before (Human insurance, Property insurance, Civil liability insurance).
+ Addition regarding the operation of foreign branches in Vietnam, organizational structure, management, activities of insurance enterprises, reinsurance, setting criteria, conditions for managers, supervisors of insurance enterprises, foreign branches in Vietnam... => aiming to enhance the quality of insurance business activities domestically and internationally.
- About the responsibility for implementing state management of insurance business activities: The Ministry of Finance is responsible to the government, carrying out market statistics, forecasting insurance market, supervising and inspecting insurance enterprises, reinsurance enterprises, foreign branches in Vietnam.
Through Mytour's sharing, it can be seen that amending, supplementing, and promulgating the Insurance Business Law 2022 is a fundamental step to ensure safe, efficient insurance business activities and a step towards international market expansion.
In addition, if you're interested in investment law, you can also directly refer to it here to get a better understanding.
