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Official Gazette

Monday, March 27, 2023

Mutual micro-insurance organizations to be placed under stricter management

Updated: 16:09’ - 22/10/2022
Mutual micro-insurance organizations would be required to have an amount of charter capital not lower than VND 10 billion (USD 421,400) upon registration for establishment and maintain at least 1,000 members after six months of operation.

These requirements are proposed in a draft decree on micro-insurance recently released by the Ministry of Finance.
Under the draft, mutual micro-insurance organizations would be permitted to provide their members with micro-insurance products with a maximum term of one year.

Members of mutual micro-insurance organizations could enjoy such benefits as health benefits, accident insurance benefits, death or total and permanent disability insurance benefits, funeral allowance and machinery and equipment insurance benefits.

For micro-insurance products concerning life and health risks, the amount of insurance benefits would not exceed five times the annual per-capita income of near-poverty households in urban areas prescribed by the Government at the time the products are provided.

In addition to the abovementioned cap, for micro-insurance products related to property risks, the sum of insurance benefits, in all cases, must not exceed the market value of the insured property at the time of signing insurance policies. 
Annual premiums of micro-insurance products would be set corresponding to insurance benefits provided that they do not exceed 5 percent of the annual per-capita income of near-poverty households in urban areas.- (VLLF) 

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