Insurance Law amended and supplemented

Laws - The Government recently issued Decree No.123/2011/NÐ-CP guiding the detailed implementation of the revised Insurance Law and amending and supplementing an earlier Decree No. 45/2007/NÐ-CP of March 27, 2007 on the implementation of the original Insurance Law.

The Decree includes three chapters and 47 articles specifying the overseas provision and use of insurance services, the operations of foreign non-life insurers, investment and competitiveness in insurance business, as well as reinsurance and brokerage activities; in addition to amending and supplementing Article 11 of Decree No. 45/2007/ NÐ-CP.

Accordingly, reinsurance enterprises providing non-life reinsurance, health reinsurance or both must have legal capital of VND400 billion (US$19.2 million); reinsurers offering life reinsurance or both types of life and health reinsurance, VND700 billion (US$33.6 million); and businesses providing three types of life, non-life, and health reinsurance, VND1.1 trillion (US$52.8 million).

The Decree will take effect on February 15.