Circular 14/2022/TT-BTC on amending Circular 50/2017/TT-BTC and Circular 04/2021/TT-BTC

CIRCULAR

On amending and supplementing a number of articles of the Ministry of Finance’s Circular No. 50/2017/TT-BTC dated May 15, 2017 guiding the implementation of the Government’s Decree No. 73/2016/ND-CP dated July 01, 2016 on detailing the implementation of the Law on Insurance Business and the Law on Amending and Supplementing a Number of Articles of the Law on Insurance Business and the Ministry of Finance’s Circular No. 04/2021/TT-BTC dated January 15, 2021 detailing a number of articles of the Government’s Decree No. 03/2021/ND-CP dated January 15, 2021 on compulsory insurance for motor vehicle owner’s civil liability

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Pursuant to the Law on Insurance Business dated December 09, 2000; Law on Amending and Supplementing a Number of Articles of the Law on Insurance Business dated November 24, 2010;

Pursuant to the Law on Amending and Supplementing a Number of Articles of the Law on Insurance Business and the Law on Intellectual Property dated June 14, 2019;

Pursuant to the Resolution No. 30/2021/QH15 dated July 28, 2021 of the National Assembly on the implementation of urgent COVID-19 pandemic prevention and control measures;

Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Decree No. 73/2016/ND-CP dated July 01, 2016 on detailing the implementation of the Law on Insurance Business and the Law on Amending and Supplementing a Number of Articles of the Law on Insurance Business;

Pursuant to the Government’s Decree No. 03/2021/ND-CP dated January 15, 2021 on compulsory insurance for motor vehicle owner’s civil liability;

At the proposal of the Director of the Insurance Supervisory Authority;

The Minister of Finance promulgates the Circular on amending and supplementing a number of articles of the Ministry of Finance’s Circular No. 50/2017/TT-BTC dated May 15, 2017 guiding the implementation of the Government’s Decree No. 73/2016/ND-CP dated July 01, 2016 on detailing the implementation of the Law on Insurance Business and the Law on Amending and Supplementing a Number of Articles of the Law on Insurance Business and the Ministry of Finance’s Circular No. 04/2021/TT-BTC dated January 15, 2021 detailing a number of articles of the Government’s Decree No. 03/2021/ND-CP dated January 15, 2021 on compulsory insurance for motor vehicle owner’s civil liability.

Article 1. To amend and supplement a number of articles of the Ministry of Finance’s Circular No. 50/2017/TT-BTC dated May 15, 2017 guiding the implementation of the Government’s Decree No. 73/2016/ND-CP dated July 01, 2016 on detailing the implementation of the Law on Insurance Business and the Law on Amending and Supplementing a Number of Articles of the Law on Insurance Business

To add Item e after Item dd, Point 1.1, Clause 1, Article 21 as follows:

“e. Insurance buyers and insurance enterprises may reach agreements on change of the time limit for insurance premium payment or on the insurance premium debt without collateral or guarantee of insurance premium payment if the following conditions are satisfied:

- Insurance buyers or insurance enterprises (including head offices, branches, representative offices, business locations) are in localities placed under the measure of social distancing prescribed in the Directive No. 15/CT-TTg dated March 27, 2020 of the Prime Minister on drastically implementing the prevention and control of the COVID-19 outbreak, the Directive No. 16/CT-TTg dated March 31, 2020 of the Prime Minister on implementing urgent measures to prevent and control the COVID-19 pandemic or in blockade areas for COVID-19 control according to the competent authority’s document or in localities with the COVID-19 pandemic at the very high-risk or high-risk level in accordance with the Government’s Resolution No. 128/NQ-CP dated October 11, 2021 promulgating the Interim Regulation on “safe and flexible adaptation and effective control over the COVID-19 pandemic”

- The obligation of insurance premium payment arises in the period from January 01, 2021 until the Prime Minister announces the end of the COVID-19 pandemic.  In all cases, the time limit of premium payment does not exceed the insurance period under the insurance contract”.

Article 2. To amend and supplement a number of articles of the Ministry of Finance’s Circular No. 04/2021/TT-BTC dated January 15, 2021 detailing a number of articles of the Government’s Decree No. 03/2021/ND-CP dated January 15, 2021 on compulsory insurance for motor vehicle owner’s civil liability

1. To amend and supplement Article 3 as follows:

“Article 3. Insurance premiums

1. Insurance premiums applicable to types of motor vehicles are specified in Appendix I to Circular No. 04/2021/TT-BTC.

2. Motor vehicle owners and insurance enterprises may reach agreements on the extension of the insurance period corresponding to the duration during which the motor vehicles are not in traffic or do not operate due to the application of COVID-19 prevention and control measures, ensuring the compliance with the insurance business law, civil law and relevant laws if the following conditions are satisfied:

Motor vehicle owners are in localities placed under the measure of social distancing prescribed in the Directive No. 15/CT-TTg, Directive No. 16/CT-TTg or in blockade areas for COVID-19 control according to the competent authority’s document or in localities with the COVID-19 pandemic at the very high-risk or high-risk level in accordance with the Resolution No. 128/NQ-CP in the period from January 01, 2021 until the Prime Minister announces the end of the COVID-19 pandemic”.

2. To add Clause 9 after Clause 8, Article 5 as follows:

“9. During the period from March 01, 2021 until the Prime Minister announces the end of the COVID-19 pandemic, the Management Council of the Fund may propose the Insurance Association of Vietnam to report the Ministry of Finance for considering and allowing the use of the Fund’s balance of previous years for the expenditure contents specified in Clauses 4, 5, 6, 7 and 8 of this Article; the spending level for each of these items must not exceed the respective rate specified in Clause 4, 5, 6, 7 or 8 of this Article, corresponding to the maximum deduction of 1% prescribed in Clause 1, Article 26 of Decree No. 03/2021/ND-CP”.

Article 3. Responsibility of implementation organization

Non-life insurance enterprises, Vietnam-based branches of foreign non-life insurance enterprises and other relevant organizations and individuals shall be responsible for the implementation of this Circular.

Article 4. Implementation provisions

This Circular takes effect on the signing date./.

           For the Minister

           The Deputy Minister

          Nguyen Duc Chi