Lesson 2: Continuing to pilot agricultural insurance

(Baonghean) - With the increasingly improved legal framework, the Vietnamese insurance market is currently supplemented with many new products and services, increasing the competitiveness of market participants, in accordance with international practices.

Notably, the Ministry of Finance will continue to accelerate the implementation of the insurance policy under Decree 67/2014/ND-CP to help fishermen go offshore and protect the sovereignty of the sea and islands of the Fatherland. The implementation of this insurance policy is being carried out in 21/28 provinces. To date, 30,428 crew members and 2,555 ships have been insured with a total insured value of 6,309 billion VND.

Participating in agricultural insurance, farmers can feel secure in production. Photo: PH

To resolve difficulties and obstacles, the Ministry of Finance issued Circular No. 97/2015/TT-BTC dated June 23, 2015, amending Appendix 3 issued with Circular No. 115/2014/TT-BTC of the Ministry of Finance, in the direction of removing the content of ship value confirmation and ship value confirmation form of the People's Committee at the commune level; closely following the implementation situation in each locality to have appropriate and timely solutions, ensuring the implementation of this insurance policy brings high efficiency - Deputy Director of the Department of Insurance Management and Supervision Nguyen Quang Huyen said.

In addition, implementing the Government's policy on continuing to implement the agricultural insurance program according to Decision 315/QD-TTg after 3 years has been implemented in 20 provinces and cities (65 districts, 748 communes) with 304,017 households participating in insurance, the value of crop, livestock and aquatic product insurance is 7,748 billion VND, the compensation amount is 713 billion VND, contributing to the implementation of Resolution No. 26-NQ/TW of the 10th Party Central Committee on agriculture, farmers and rural areas. Implementing the Prime Minister's direction on continuing to implement agricultural insurance and expanding livestock insurance in Ha Giang, based on the opinion of the Ministry of Agriculture and Rural Development, the Ministry of Finance is drafting a Decision to continue piloting agricultural insurance (with expanding livestock insurance in Ha Giang).

Promote the implementation of compulsory insurance types

Among the types of insurance, there are two forms of insurance that are required by the Government to be implemented: civil liability insurance (TNDS) of motor vehicle owners and fire and explosion insurance. In early 2015, the Department of Insurance Management and Supervision - Ministry of Finance and the Department of Fire Prevention, Fighting and Rescue Police - Ministry of Public Security signed a coordination program to promote the implementation of the compulsory fire and explosion insurance regime between the Department of Insurance Management and Supervision and the Department of Fire Prevention, Fighting and Rescue Police. This coordination program aims to raise awareness among people and society that compulsory fire and explosion insurance is very important, at the same time, strengthen coordination in implementation, share information and provide policy training, and remove difficulties and obstacles in legal procedures in implementing compulsory fire and explosion insurance so that the implementation of this regime will be more effective - said Deputy Director Nguyen Quang Huyen.

In addition, the management agency has also increased the rights of traffic participants in implementing the compulsory civil liability insurance regime of motor vehicle owners. It can be said that compulsory civil liability insurance of motor vehicle owners has made certain contributions to the implementation of social security policies. Accordingly, all traffic participants who unfortunately have accidents are supported and compensated by insurance through compulsory civil liability insurance of motor vehicle owners according to the provisions of Decree 103/2008/ND-CP of the Government. Currently, the level of liability for personal injury is 70 million VND/person/accident; the level of liability for property damage is 40 million VND/accident caused by motorbikes and 70 million VND/person/accident caused by cars.

In the context of rising prices and costs, this level of responsibility is not enough for accident victims (or their families) to ensure financial security, stabilize their lives and production and business when they unfortunately encounter risks, so it is necessary to study and increase the level of insurance responsibility. The Department of Insurance Management has coordinated with the Department of Traffic Police, the Vietnam Transport Association and transport cooperatives, the Vietnam Insurance Association, and insurance companies to organize a workshop to exchange, discuss, and specifically evaluate the proposed contents of amendments and supplements to current policies, in the direction of increasing the level of responsibility for human damage to 100 million VND. At the same time, strengthen administrative procedure reform, create favorable conditions for insurance companies to collect accident records from police agencies, medical records from hospitals to quickly compensate vehicle owners and victims - General Director of Bao Viet Insurance Nguyen Kim Bang commented.

Continue to issue social insurance policy mechanisms

In addition to strict and transparent management and supervision to facilitate the development of insurance types, the insurance management agency is currently researching to bring to the market new types of products such as insurance in construction investment activities, retirement insurance, micro insurance, natural disaster insurance, nuclear energy insurance, tax policies, etc. In the registration and approval of new insurance products, there are currently 27 new life insurance products, 7 products have been amended and supplemented; in the field of non-life insurance, the registration of adjustment of rules, terms, and premiums for motor vehicle physical insurance of 25/25 enterprises has been approved; health insurance products of 7 enterprises have been approved, etc.

In addition, the Ministry of Finance continues to promote the restructuring of insurance enterprises according to Decision 1826/QD-TTg of the Prime Minister. Based on the criteria specified in this Decision and the audited financial statements of insurance enterprises, the Ministry of Finance has classified insurance enterprises in 2014. By the end of May 2015, 46/47 insurance enterprises met the requirements of financial safety and solvency, only 1 insurance enterprise is restructuring (to meet the requirements of charter capital) to meet the regulations and achieve business results according to plan. The Ministry of Finance regularly monitors and urges insurance companies to implement self-assessment and classification according to Circular 195/2014/TT-BTC guiding the assessment and classification of insurance companies for timely handling or synthesis, reporting to competent authorities, and at the same time continue to improve system safety, operational efficiency and competitiveness (consolidating, reorganizing the apparatus, expanding operations, improving financial and business capacity, enhancing the application of information technology, etc.), promoting insurance business activities (developing products, distribution channels, etc.), strengthening corporate governance (divestment, strengthening management, supervision, operation, etc.).

At the same time, the relationship and cooperation between the Ministry of Finance and ministries and branches such as the Government Office, the National Assembly Office, the Ministry of Justice, the Ministry of Public Security, the Ministry of Agriculture and Rural Development and localities, especially international cooperation with IAIS, ASEAN, WB, ADB, FSA, FSS are increasingly becoming more substantial in the fields of staff training, technology transfer, management, supervision, information, propaganda, promotion, funding, and support for targeted insurance programs such as agricultural insurance, natural disaster insurance, nuclear energy insurance, and export credit insurance; Building policy mechanisms/legal frameworks... Information, propaganda, dissemination of laws, raising awareness of public agencies about the meaning and necessity of insurance in socio-economic life are carried out promptly, in many forms and for many different subjects (information for the Government, relevant ministries and branches, for insurance companies and for people - Director of the Department of Insurance Management and Supervision Phung Ngoc Khanh affirmed.

Red River