Regulations on the Board of Directors of a mutual insurance organization micro under Vietnamese law

What is the board of directors of a mutual organization providing micro insurance? How many times a year does the Board of Directors meet at least? What rights and duties do you exercise?

1. What is the Board of Directors of a mutual organization providing micro-insurance?

The Board of Directors of a mutual organization providing micro-insurance as explained in Clause 1, Article 23 of Decree 21/2023/ND-CP is the management agency of the mutual organization providing micro-insurance, with full authority on behalf of the mutual organization providing micro-insurance to decide on all issues related to the purpose purposes and interests of a mutual organization providing micro insurance, except for issues under the authority of the Members’ Congress or Member Representative Organization.

The Board of Directors is elected by the Members’ Congress (for mutual organizations providing micro insurance founded by members) or appointed by the member representative organization (for mutual organizations providing micro insurance founded by member representative organizations). established).

2. How often does the Board of Directors of a mutual organization providing micro insurance meet at least regularly during the year?

Pursuant to Clause 22, Article 4 of the Law on Insurance Business 2022, micro insurance is insurance aimed at low-income individuals and households to protect them against risks to life, health and property.

Accordingly, micro insurance Micro insurance is also a form of insurance, but its providers will mainly target low-income individuals and households.

And currently, micro insurance providers include:

– Non-life insurance enterprises, life insurance enterprises, health insurance enterprises (hereinafter referred to as insurance enterprises), branches of foreign non-life insurance enterprises established and operating in Vietnam;

– Mutual organization providing micro insurance established and operating in Vietnam.

And the board of directors of the mutual organization providing micro insurance meets at least periodically twice a year, exercising the rights and duties specified in Clause 2 Article 23 Decree 21/2023/ND-CP including:

– Decide on the development strategy of the mutual organization providing micro insurance;

– Propose the General Meeting of Members or the Member Representative Organization to decide on an increase or decrease in insurance premiums for members in the next fiscal year; decide or handle losses arising during operations;

– Decide on investment plans;

– Decide on solutions to develop operations and technology; through a contract with a value equal to or greater than 50% of the total value of assets recorded in the accounting books of the mutual organization providing micro insurance or another smaller percentage specified in the Charter of the mutual organization providing micro insurance;

– Appoint, dismiss, dismiss the General Director (Director) and other important managers of mutual organizations providing micro insurance; decide on the salary and other benefits of those managers;

– Decide on the organizational structure and internal management regulations of the mutual organization providing micro insurance;

– Submit annual financial settlement reports to the Members’ Congress and member representative organizations;

– Approve the agenda and content of documents for the General Meeting of Members, convene a General Meeting of Members or carry out consultation procedures for the General Meeting of Members to pass a decision;

– Other rights and duties as prescribed by law and the Charter of the mutual organization providing micro insurance.

3. How are the insurance sums and maximum premiums of micro-insurance products regulated?

The insurance amount and maximum premium of micro-insurance products are regulated according to Article 3 Decree 21/2023/ND-CP as follows:

– The insurance amount of each insurance contract of a micro-insurance product protecting life and health risks must not exceed 5 times the average annual income per capita of a near-poor household in urban areas according to the Government’s regulations at the time of product deployment.

– The insurance amount of each insurance contract of a micro insurance product protecting property risks does not exceed the market value of the insured property at the time of insurance participation and does not exceed 05 times the average annual income per capita of a near-poor household in urban areas according to the Government’s regulations at the time of product deployment.

– Annual insurance premium of each The insurance contract of the micro-insurance product must not exceed 5% of the annual per capita income of near-poor households in urban areas according to Government regulations at the time of product deployment. Insurance premium must correspond to insurance benefits.