The Ministry of Finance proposes to amend Insurance Business Law

The Insurance Business Law was adopted by the eighth session of the 10th National Assembly (NA) on the December 9, 2000 and took effect from April 1, 2001. Source: Internet

Insurance Business Law has effected positively to socio-economic

The Insurance Business Law was adopted by the eighth session of the 10th National Assembly (NA) on the December 9, 2000 and took effect from April 1, 2001 (amended and supplemented in 2010 with the Revised Law on amending and supplementing a number of articles of the Insurance Business Law passed by the the 8th session of 12^th National Assembly on November 24, 2010, took effective from July 1, 2011). According to the Ministry of Finance, in nearly 20 years of implementation, the Insurance Business Law has aided the socio-economic development of the country.

This law has created a favourable legal basis for the insurance market to develop, clearly demonstrating the role and position in the economy and society, contributing to the successful implementation of major solutions on direction, administering the implementation of socio-economic development plans according to the development strategy and the Government's resolutions on key tasks and solutions to direct the implementation of the social - economic development plan.

The Insurance Business Law has also contributed to establishing a legal basis, gradually diversifying insurance products, expanding distribution channels and scale and improving quality, to become an important capital channel for the economy, contributing to the development of a strong financial services market.

Moreover, this law also helps to establish a foundation to contribute to the implementation of macroeconomic stabilisation policies and financial protection for investors. At the same time, it is setting up a foundation to contribute to social security policies; implementing the target programmes and urgent tasks of the Government.

However, in the opinion of the Ministry of Finance, after nearly 18 years of validity, it is time to revise the Insurance Business Law to create a foundation for Vietnam to develop into a central financial market of Asia through innovation of management and monitoring model. At the same time, the new Law will promote the use of science and technology; improve the competitiveness of insurance businesses, drastically improve the insurance business environment and improve the market growth quality.

Administrative reform in insurance business

According to the Ministry of Finance, to renovate the growth model through renovating in service provision, business methods and State management methods, it is necessary to focus resources to amend and improve the Insurance Business Law synchronously, comprehensively, with a roadmap, ensuring feasibility, publicity, transparency, increasing the activeness and responsibility of insurance enterprises. In particular, the quality and safety of the market must be respected and it should be a priority to selectively acquire international experience to form a uniform and unified insurance market system in the overall financial market of the country.

In the proposal of developing a revised Insurance Business Law, the Ministry of Finance aims to drastically reform administrative procedures in insurance business activities in combination with comprehensive reforms in management and specialised inspection. The revised Insurance Business Law will ensure the effective implementation of State management and coordination between state management authorities in detecting promptly and strictly handling violations of law on insurance business, maintaining discipline and sustainability of the market; protecting legitimate rights and interests of investors, customers, the safety of the whole system, reducing social costs.

According to the Ministry of Finance, the revised Insurance Law will inherit, continue to develop and improve the legal regulations on insurance business, which are in line with reality and have a positive impact on the development of insurance market. At the same time, it is proactive in reviewing, amending and supplementing regulations that have generated limitations and obstacles in the implementation process, meeting the requirements of management and protection for the insurance market.

The revised Law will ensure the constitutionality, legality and consistency in the legal system, compatibility with relevant international commitments; clearly define the content and principles of applying the Insurance Business Law without overlap or contradiction between the Insurance Business Law and other relevant laws.