| THE GOVERNMENT ----- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ------- |
| No: 42/2001/ND-CP | Hanoi, August 01, 2001 |
DECREE
DETAILING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE LAW ON INSURANCE BUSINESS
THE GOVERNMENT
Pursuant to the September 30, 1992 Law on Organization of the Government;
Pursuant to the December 9, 2000 Law on Insurance Business;
At the proposal of the Finance Minister,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- Scope of application
1. This Decree details the implementation of a number of articles of the Law on Insurance Business.
2. This Law applies to insurance business, reinsurance business, insurance brokerage and insurance agency activities conducted by insurance enterprises, insurance brokerage enterprises and insurance agents.
3. This Decree does not apply to social insurance, health insurance, deposit insurance and other types of insurance which are provided by the State and bear a non-commercial nature.
Article 2.- The State’s policies towards the insurance program in service of the objectives of agricultural, forestry and fishery development
1. The State shall adopt mechanisms and polices on financial support for organizations and individuals participating in insurance.
2. The State shall give technical support for insurance enterprises in researching into and developing insurance products; create conditions for insurance enterprises to be established, broaden the contents, scopes and geographical areas of their operation.
3. The State shall adopt other preferential treatment policies according to law provisions.
Article 3.- The State’s policies towards State-run insurance enterprises
1. The State shall guarantee the provision of adequate charter capital for the enterprises’ operation.
2. The State shall invest various resources for the performance of insurance operations in service of the target programs on socio-economic development.
3. The State shall adopt other preferential treatment policies according to law provisions.
Article 4.- Principles for participation in insurance
1. Organizations and individuals that have insurance needs may only participate in insurance at insurance enterprises operating in Vietnam.
2. Organizations and individuals that have insurance needs may participate at insurance enterprises that have no head-offices in Vietnam in the following cases:
a/ Insurance enterprises which are operating in Vietnam have not yet provided those types of insurance products that organizations and individuals wish to participate in insurance;
b/ It is so provided for by international agreements which the Vietnamese Government has signed or acceded to.
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