April 04, 2020 02:47

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How to control when regulations on conditions for licensing insurance subsidy service have not been issued?

19:20 | 15/01/2020

VCN- On January 13, the Ministry of Finance held a press conference to publicize the law amending and supplementing some articles of the Law on Insurance Business and the Law on Intellectual Property.  

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how to control when regulations on conditions for licensing insurance subsidy service have not been issued
Mr. Huyen answered questions from the press.

According to the Ministry of Finance, the law amending and supplementing some articles of the Law on Insurance Business is issued to implement Resolution No.72/2018/QH14 and Decision 121/QD-TTg, amending and supplementing some articles of the Insurance Business Law on insurance subsidy service to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).


Accordingly, the law puts international commitments on insurance subsidy service in CPTTP into Vietnamese law, including consultancy, risk assessment, calculation, loss verification and insurance settlement support. It meets practical requirements of the domestic market, completes market elements, including businesses, intermediaries and insurance subsidy services.

The law helpsorganizations and individuals to participate in the provision of insurance subsidy services and encourages the development ofinsurance subsidy market. Accordingly, the right of organizations and individualsproviding insurance subsidy services is not limited. Specifically, organizations with legal status meeting requirements are permitted to provideinsurance subsidy services.

It does not limit investment and business rights of individuals for the fourremaining insurance subsidy services, which may be performed in the form of investors or capital contributors. In addition, the law also does not specify regulations on conditions for registering and licensing establishment and operation licenses of enterprises, it only provides conditions to serve as a basis for state management agencies to conduct post-inspection andthere is no distinction between foreign and domestic investors.

Some reporters asked how the State will manage when regulations on conditions for licensing insurance subsidy service have not been issued.

Nguyen Quang Huyen, Deputy Director of Insurance Management and Supervision Department under the Ministry of Finance said the policy of the Party, State and Government is to create an open business environment and not issue regulations to restrict individuals from participating in the market and help businesses operate more efficiently and protect the rights of customers.

If individuals and organizations meet the conditions, they will be allowed to participate in the market. Remaining cases will be managed by the State in the form of post-inspection through reporting, inspection and supervision mechanism.

"Regulations for management and supervision of the provision of insurance subsidy services are specified in Clause 10, Article 1 of Law No. 42/2019/QH14 whichdoes not stipulate licensing but only performing post-inspection,"Huyen said.

Notably, there is no distinction between foreign and domestic investors for subsidy insurance services in the law. This will create an equal and stable legal environment for operation of foreign investors, thereby improving the quality of services, meeting the national treatment principle in the CPTPP.

By Hong Van/ Ngoc Loan