The Decree stipulates that the insurance amount of each insurance contract of a micro-insurance product protecting against life and health risks shall not exceed 5 times the average annual income per capita of a near-poor household in an urban area as prescribed by the Government at the time of product implementation.
The insurance amount of each insurance contract of a micro-insurance product that protects against property risks shall not exceed the market value of the insured property at the time of insurance participation and shall not exceed 5 times the average annual per capita income of a near-poor household in an urban area as prescribed by the Government at the time of product implementation.
The annual premium of each insurance contract of a micro-insurance product shall not exceed 5% of the average annual per capita income of a near-poor household in an urban area as prescribed by the Government at the time of product implementation. The premium must correspond to the insurance benefits.
The Decree also clearly stipulates microinsurance products deployed by insurance enterprises, branches of foreign non-life insurance enterprises and microinsurance products deployed by mutual organizations providing microinsurance.
Microinsurance products protect health risks with a term of no more than 5 years
The Decree stipulates that insurance enterprises and branches of foreign non-life insurance enterprises implementing micro-insurance products must comply with the provisions of the Law on Insurance Business and documents guiding the implementation of the Law on Insurance Business; Articles 3, 4 and 6 of this Decree.
Life insurance companies are provided with micro-insurance products to protect against life and health risks with a term of no more than 5 years.
Non-life insurance enterprises and branches of foreign non-life insurance enterprises are allowed to provide: Micro-insurance products protecting against life and health risks with a term of 1 year or less; micro-insurance products protecting against property risks with a term of no more than 5 years.
Health insurance companies are provided with: Microinsurance products that protect against life risks with a term of 1 year or less; microinsurance products that protect against health risks with a term of no more than 5 years.
The Decree clearly states that the name of a micro-insurance product deployed by an insurance enterprise or a branch of a foreign non-life insurance enterprise must include the element "Micro-insurance product" to distinguish it from other insurance products of the insurance enterprise or a branch of a foreign non-life insurance enterprise.
For microinsurance products deployed by microinsurance mutual organizations, the Decree stipulates that microinsurance mutual organizations may only deploy microinsurance products with a term of 1 year or less to meet the needs of members.
The insurance product includes one or several specific benefits including: Health care benefits: Support part or all of the costs of hospitalization and surgery for the insured when the insured is hospitalized or has surgery within the scope of insurance; Accident insurance benefits: Pay the insurance amount corresponding to the rate of disability due to the accident of the insured as agreed in the micro-insurance contract when the insured is disabled due to an accident within the scope of insurance; Death or total permanent disability insurance benefits: Pay the beneficiary the insurance amount as agreed in the micro-insurance contract when the insured dies or is completely permanently disabled within the scope of insurance.
In addition, there is the Funeral Benefit: Pay an additional funeral support amount as agreed in the micro-insurance contract when the death insurance benefit is paid; Property Insurance Benefit: Pay insurance compensation as agreed in the micro-insurance contract when the insured property is damaged due to causes within the scope of insurance.
Microinsurance is a form of insurance for low-income people that is expanding in poor and developing countries, in which low-income people pay fees to insurance providers to receive financial support when risks occur. With the characteristics of low insurance premiums, small insurance amounts, simple participation procedures as well as benefit payment requirements, microinsurance is providing insurance products to protect low-income poor people in society from risks of injury, death and property.
Source: VNA/Tin Tuc Newspaper
Source link
Comment (0)