Decree No. 48/2018 / ND-CP, amends decree 98/2013/ND-CP dated 28 August 2013 on Penalties for Administrative Offences in the Insurance and Lotteries Sectors.

According to the new decree, the subjects of administrative penalty in domains of insurance and lottery business include Vietnamese and foreign individuals, and organizations that commit administrative violations in domains of insurance and lottery business.

The decree lists the types of organizations subject to administrative penalty in domains of insurance and lottery business in accordance with the regulations: life insurers, non-life insurers, health insurers, re-insurers and insurance brokers, branches of foreign non-life insurers, representative offices of foreign insurers, representative offices of foreign reinsurers, representative offices of foreign insurance brokers, insurance agents as organizations, lottery business companies and lottery agents as organizations and other relevant organizations defined in this Decree.

The decree also sets out warnings for violations of regulations on the Licence for establishment and operation, and Licence for establishment of representative office of insurers.

Specific violations include: Failure to publish daily on 05 consecutive publications contents required for announcement in accordance with the law; Failure to publish one of the contents in the Licence for establishment and operation and Licence for establishment of representative office within the time limit prescribed by law; Failure to publish the amendments or supplements to the representative office permit according to the law.

Regarding the penalties for violations against regulations on administration and control, the decree stipulates fines for violations including:

1. Penalties for simultaneously holding multiple leading positions for insurers, re-insurers, insurance brokers, or professional divisions,
2. Penalties imposed for violations on designating actuaries of life insurers, health insurers and actuaries in charge of professional reserve and solvency of non-life insurers, re-insurers and foreign branches, who concurrently hold the position of General Director (Director) and chief accountant, and
3. Penalties for violations by the designated Deputy General Director (Deputy Director), calculation experts, branch directors, heads of representative offices, heads of control boards, heads of the internal audit boards, heads of the professional divisions, members of the Boards of Directors and the Members' Councils who fail to meet the standards prescribed by law.

In addition, fines of between VND 90 and 100 million shall be imposed for frauds on insurance business with an appropriated amount of less than VND 20,000,000 or a loss of under VND 50,000,000, under the level of criminal responsibility.

http://customsnews.vn/new-regulations-on-penalties-on-insurance-business-6416.html