Insurers Must Have Legal Capital from VND300 Bln

 

According to Decree No. 73/2016/ND-CP of the Government on detailed provisions on the implementation of the Law on Insurance Business and the Law on amendments and supplements to some articles of the Law on Insurance Business, nonlife insurance and health insurance companies must have a legal capital of at least VND300 billion while nonlife insurance, health insurance aviation insurance or satellite insurance companies must have a legal capital of at least VND350 billion. Life insurance and health insurance companies must have a legal capital of VND600 billion. If they also have pension insurance, their legal capital will be VND800 billion.

 

Primary insurance brokerage companies or reinsurance brokerage companies will have a legal capital of VND4 billion. The legal capital will double to VND8 billion if they engage in both forms of brokerage.

 

This ruling prohibits acts of insurance brokerage, including inciting insurance buyers and the insured not to provide detailed insurance contracts; giving promotions in form of illegal interests to persuade them to sign insurance policies; inciting insurance holders to cancel existing insurance policies to buy new ones; and others.