DECREE

AGRICULTURAL INSURANCE

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to the Law on Insurance Business dated December 09, 2000 and the Law on amendments to some articles of the Law on Insurance Business dated November 24, 2010;

Pursuant to the Resolution No. 32/2016/QH14 dated November 23, 2016 of the National Assembly on further raising effect and the effectiveness of implementation of the national target program on building a new countryside associated with agricultural restructuring;

At the request of the Minister of Finance;

The Government hereby promulgates a Decree on agricultural insurance.

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GENERAL PROVISIONS

Article 1. Scope

This Decree provides for agricultural insurance and agricultural insurance assistance policy aimed at encouraging insurance enterprises to sell agricultural insurance and enable producers of agricultural, forest and aquatic products to take remedial actions and indemnify for financial losses caused by risks during the production process.

Article 2. Regulated entities

This Decree applies to:

1. Organizations and individuals that produce agricultural, forest and aquatic products (hereinafter referred to as “agricultural producers”).

2. Non-life insurance enterprises, branches of foreign non-life insurance enterprises hereinafter referred to as “insurer”), reinsurers that are established, organized and operate in accordance with regulations of the Law on Insurance Business and relevant regulations of law.

3. Organizations and individuals related to sale and purchase of agricultural insurance and implementation of agricultural insurance assistance policy.

Article 3. Definitions

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1. “agricultural insurance policyholder” means an organization/individual signing an agricultural insurance policy with an insurer and paying insurance premiums. The agricultural insurance policyholder may also be the insured.

2. “the insured” mans an organization/individual whose agricultural, forest and aquatic products are insured under the agricultural insurance policy.

3. “agricultural insurance” means a type of insurance which insures agricultural producers, whereby the policyholder pays premiums and insurer indemnifies the insured in the case of an insured event.

4. “agricultural co-insurance” means two or multiple insurers signing an agricultural insurance policy with the policyholder in order to insure an insured agricultural product according to the same policy wording and premiums.

5. “agricultural reinsurance” means an insurer or reinsurer receiving an amount of agricultural insurance premiums of another insurer to commit to indemnify admitted liabilities to provide insurance.

Article 4. Types of agricultural insurance

1. Insurance against identified risks, whereby, upon occurrence of an insured event, the insurer indemnifies for the actual loss caused by the risks specified in the agricultural insurance policy.

2. All-risk insurance, whereby, upon occurrence of an insured event, the insurer indemnifies for the actual loss caused by all risks, except for the insurance exclusions specified in the agricultural insurance policy.

3. Business income insurance, whereby, upon occurrence of an insured event, the insurer indemnifies for agricultural production costs to compensate the loss caused by the insured risks specified in the agricultural insurance policy.

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5. Weather index-based insurance, whereby, upon occurrence of an insured event, the insurer provides indemnity according to changes in weather index (rain, wind, droughts, floods, cold, hail, frost, earthquake, tsunami, etc.) under the agricultural insurance policy without regard to the actual loss of the subject matter insured.

6. Remote sensing index -based insurance, whereby, upon occurrence of an insured event, the insurer provides indemnity according to changes in remote sensing index under the agricultural insurance policy without regard to the actual loss of the subject matter insured.

7. Other types of agricultural insurance under the agricultural insurance policy.

Article 5. Rules for signing agricultural insurance policy and implementation of agricultural insurance assistance policy

1. An agricultural insurance policy is signed according to the voluntary agreement rule without restricting the number of insurance participants, subject matters insured and insured risks, and coverage.

2. The agricultural insurance assistance policy shall be implemented within the budget in each period by providing assistance in agricultural insurance premiums for some agricultural producers, subject matters insured, insured risks and within a certain area in order to implement social security policy and agricultural production development program of the Government.

Chapter II

REGULATIONS ON AGRICULTURAL INSURANCE

Section 1. SPECIFIC REGULATIONS ON AGRICULTURAL INSURANCE

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1. In addition to the contents specified in the Law on Insurance Business, the policyholder and the insurer shall agree upon and specify the following contents in the agricultural insurance policy:

a) Name and address of the individual and affiliated entity of the insurer that is responsible for addressing the issues concerning execution of the agricultural insurance policy.

b) Methods for determining the sum insured.

c) Cases in which deductible and deduction of the indemnity (if any) are applied.

d) Loss survey; loss surveyor; loss survey costs.

dd) Determination of insured event, grounds for providing indemnity; cases in which indemnity is provided according to the notice or confirmation of disasters or diseases given by a competent authority; cases in which index-based insurance is provided/purchased, specific agreement on the indexes directly related to loss of the subject matter insured; the authority that determines the difference between the actual index and the index insured; methods for determining the indemnity.

e) Methods for providing indemnity; indemnity claim (specifying agreement on responsibility of the policyholder or the insured documents for providing necessary documents for the insurer); time limit for providing indemnity.

g) Responsibilities of parties for risk management and loss prevention and minimization, and prevention and fight against insurance fraud in accordance with regulations of this Decree.

h) Responsibilities of the insurer and the insured for complying with all technical procedures and standards in agricultural production (if any).

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Article 7. Agricultural co-insurance

1. The insurer may sell agricultural insurance according to co-insurance method in order to allocate and share risks, ensure financial safety and maintain a healthy competitive environment.

2. Cases in which agricultural co-insurance policy is executed:

a) The agricultural insurance policy shall specify name and co-insurance ratio of each co-insurer; name of the insurer in charge of executing the insurance policy. Insurers shall take joint responsibility for the commitments specified in the agricultural insurance policy with the policyholder.

b) The insurer in charge shall complete procedures for signing the insurance policy, and coping with tasks related to execution of the agricultural insurance policy on behalf of the co-insurers.

Article 8. Agricultural reinsurance

1. In the case of domestic reinsurance, the reinsurer shall:

a) satisfy requirements for capital and solvency margin and comply with regulations on reinsurance prescribed in the Law on Insurance Business and its guiding documents.

b) run an agricultural reinsurance plan in a safe and effective manner and comply with regulations and law.

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Article 9. Agricultural reinsurance indemnity

1. Upon occurrence of an insured event, the insurer shall provide indemnity under the agricultural insurance policy and regulations of law.

2. The indemnity paid by the insurer to the insured shall be determined according to the market value of the subject matter insured at the time and place where the loss is incurred and the degree of actual loss, unless otherwise provided in the insurance policy. In the case of index-based insurance, the insurer shall provide indemnity to the insured according to the change in the actual index compared to the index specified in the insurance policy and regulations of law.

3. The indemnity paid by the insurer to the insured must not exceed the sum insured, unless otherwise provided in the insurance policy.

Article 10. Dispute settlement

1. Any dispute that arises during execution of the agricultural insurance policy shall be initially settled under the insurance policy, regulations of the Law on Insurance Business and relevant regulations of law.

2. In case of failure to settle the dispute by negotiation, relevant parties may bring the case to a Vietnamese competent Court.

Article 11. Policy wording and premiums

1. The insurer shall, on its own initiative, establish policy wording and premiums in accordance with regulations of the Law on Insurance Business and relevant regulations of law and notify the Ministry of Finance in writing before establishment.

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Article 12. Responsibilities of the insurer for signing and executing an agricultural insurance policy

1. Provide explanation and sufficient information about insurance policy, policy wording and premiums for the policyholder. Sign the agricultural insurance policy only if the policyholder has confirmed its/his/her clear understanding of information concerning the agricultural insurance policy, policy wording and premiums.

2. Sign the agricultural insurance policy by following the principles of voluntariness, free will and equality; ensure adherence to the law of large numbers and allocate and share risks through co-insurance and reinsurance.

3. On its own initiative, control risks, prevent and minimize losses, and prevent and fight insurance fraud as prescribed in Section 2 Chapter II of this Decree.

4. Upon occurrence of an insured event, promptly assign officials to reach the subject matter insured and instruct the insured to take measures to minimize losses (if any). Pay necessary and appropriate costs to minimize losses.

5. Organize loss surveys to determine causes and degree of the loss in a public and transparent manner under the agricultural insurance policy and regulations of law. In the case of index-based insurance, obtain and publish the competent authority’s confirmation of the insured event (if specified in the insurance policy); determine the difference between the actual index and the index specified in the insurance policy.

6. In the case of determination of loss subject to the indemnity, assign officials to instruct the insured to provide the documents necessary for indemnity.

7. Provide sufficient indemnity to the insured under the agricultural insurance policy and regulations of law.

8. Bear other responsibilities specified in the agricultural insurance policy and regulations of law.

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1. Protect the insurable interest of the subject matter insured as prescribed by law.

2. Sufficiently and truthfully provide information concerning the subject matter insured (including the case in which the subject matter insured suffers loss) for the insurer.

3. Sign the agricultural insurance policy after having a clear understanding of information about the agricultural insurance policy, policy wording and premiums that is explained and provided by the insurer.

4. On its/his/her own initiative, control risks, prevent and minimize losses, and prevent and fight insurance fraud as prescribed in Section 2 Chapter II of this Decree.

5. Enable the insurer to inspect fulfillment of requirements for assurance of safety of the subject matter insured.

6. Promptly notify the insurer of the insured event; take measures for loss minimization under the guidance of the insurer.

7. Closely cooperate with the insurer in surveying losses to determine causes and degree of the loss and provide indemnity.

8. Bear other responsibilities specified in the agricultural insurance policy and regulations of law.

Section 2. RISK CONTROL, LOSS PREVENTION AND MINIMIZATION AND PREVENTION AND FIGHT AGAINST INSURANCE FRAUD

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The insurer, policyholder, the insured and competent authorities shall control risks, prevent and minimize losses, and prevent and fight insurance fraud upon sale/purchase of agricultural insurance and implementation of agricultural insurance assistance policy in accordance with Articles 15, 16 and 17 of this Decree.

Article 15. Risk control

1. Control of risks during the policy period means a process of identifying, assessing, monitoring and managing inherent risks that may potentially exert negative effect on sale of agricultural insurance and implementation of the agricultural insurance assistance policy.

2. The insurer shall:

a) Formulate and take risk control measures and establish and follow risk control procedures specifying specific responsibilities of each individual and division for completion of the risk control procedures.

b) Annually review and re-inspect risk control measures and risk control procedures to ensure their effectiveness and validity.

3. The policyholder and the insured shall, on their own initiative, take risk control measures and follow risk control procedures with respect to the subject matter insured during agricultural production, including complying with regulations on prevention and fight against animal diseases, plant quarantine and protection and environmental protection, technical standards in agricultural production issued by the competent authority and other relevant regulations of law on order to ensure safety of the subject matter insured.

4. Relevant authorities shall control, supervise and instruct agricultural producers to control risks during agricultural production; disseminate information concerning control of risks during agricultural production.

Article 16. Loss prevention and minimization

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2. Loss prevention and minimization serves as a responsibility of the policyholder and the insured. The policy holder and the insured shall, on their own initiative, prevent and respond to disasters and provide disaster relief, and prevent, fight and take remedial actions against diseases as prescribed by law, immediately notify the insurer of the insured event, and take measures for prevention and minimization of losses (if any) under the guidance of the insurer.

3. The insurer shall prevent and minimize losses during the policy period according to following regulations:

a) Measures for loss prevention and minimization include:

- Provide training and carry out dissemination activities; assist local governments in providing training in and disseminating agricultural insurance assistance policy;

- Provide and assist with equipment and facility to prevent and minimize losses;

- Assist in building works aimed at preventing and mitigating losses incurred on the subject matters insured;

- Hire other organizations and individuals to carry out supervision, prevent and minimize losses.

b) The insurer shall use up to 10% of revenue from agricultural insurance premiums to take loss prevention and minimization measures prescribed in Point a of this Clause.

4. Relevant authorities shall provide guidelines for measures for preventing and minimizing losses during agricultural production, including carrying out supervision to early detect and notify animal diseases, issue forecast and warning about animal diseases; provide guidelines for measures for preventing and fighting animal diseases; fight diseases and take measures for protecting production upon occurrence of plant pests; direct implementation of remedial measures to quickly control and eradicate diseases and pests; respond to disasters and provide disaster relief; disseminate information concerning prevention and minimization of losses during agricultural production.

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1. Prevention and fight against agricultural insurance fraud mean the adoption of measures for preventing and reducing the fraud during signing and execution of the agricultural insurance policy with the aim of appropriating a sum of money from the insurer.

2. The insurer shall, on its own initiative, formulate and take measures for preventing, detecting and reducing insurance fraud, and disseminate information about prevention and fight against insurance fraud.

3. The policyholder and the insured shall, on their own initiative, participate in prevention and fight against insurance fraud. In case any act of insurance fraud is found, it is required to promptly notify the insurer and competent authority.

4. Relevant competent authorities shall cooperate with the insurer, the policyholder and the insured in preventing and fighting insurance fraud within their area in a manner that maintains social order during execution of the agricultural insurance policy and implementation of the agricultural insurance assistance policy.

Chapter III

AGRICULTURAL INSURANCE ASSISTANCE POLICY

Article 18. Insured subject matters eligible for assistance

1. Plants: Rice, rubber trees, peppers, cashew trees, coffee trees, fruit trees, vegetables.

2. Domesticated animals: Buffaloes, cows, pigs, poultry.

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Article 19. Assistance

1. An individual that produces agricultural products and is a member of a poor household or near poverty household is eligible for an assistance of not greater than 90% of agricultural insurance premiums.

2. An individual that produces agricultural products and is not a member of a poor household or near poverty household is eligible for an assistance of not greater than 20% of agricultural insurance premiums.

3. An organization that produces agricultural products by using large-scale and concentrated cooperation model that applies advanced technologies and production process towards green, hi-tech and environmentally friendly agriculture is eligible for an assistance of not greater than 20% of agricultural insurance premiums.

Article 20. Insured risks eligible for assistance

1. Disaster risks, including:

Storm, tropical depressions, lightning, cyclones, heavy rain, floods, flash floods, inundations, landslides and land subsidence due to floods or water currents, water level rise, seawater intrusion, extremely hot weather, droughts, damaging cold, hail, hoarfrost, earthquakes, tsunamis. Disasters shall be announced or confirmed by a competent authority.

2. Disease risks, including:

a) Animal diseases:

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- Aquatic animal diseases: Aquatic animal diseases included in the List of animal diseases subject to outbreak declaration of Vietnam promulgated by a competent authority in accordance with regulations of the law on veterinary medicine.

b) Plant pests: Harmful organisms that may potentially spread on a large scale and cause severe damage to plants in accordance with regulations of the law on plant protection and quarantine.

Diseases and pests shall be announced or confirmed by a competent authority.

Article 21. Areas eligible for assistance

1. A province or central-affiliated city that is within the major area where agricultural products are produced according to agriculture restructuring orientations and agriculture development plan shall be provided with assistance in agricultural insurance premiums. The Prime Minister shall decide on the list of provinces and central-affiliated cities provided with assistance in agricultural insurance premiums as prescribed in Clause 1 Article 22 of this Decree.

2. Each province or central-affiliated city may implement the agricultural insurance assistance policy within its total area or some district and commune. According to the Prime Minister’s decision on eligible entities, types of plants and domesticated animals, aquaculture, types of insured risks eligible for assistance, the People's Committee of the province or central-affiliated city within the area eligible for assistance shall select and announce the areas eligible for assistance in agricultural insurance premiums through the local mass media and notify them in writing to the Ministry of Finance and the Ministry of Agriculture and Rural Development.

Article 22. Implementation of agricultural insurance assistance policy in each period

1. According to Articles 18, 19 and 20 and Clause 1 Article 21 of this Decree and capacity of budget in each period, the Prime Minister shall issue a decision on agricultural producers, types of plants and domesticated animals, aquaculture and types of insured risks eligible for assistance, assistance, time for providing assistance, areas eligible for assistance, funding allocated by the central government budget to the local government budget for provision of assistance in agricultural insurance premiums.

2. Agricultural producers will receive assistance in agricultural insurance premiums if they are the ones eligible for assistance in agricultural insurance premiums who have subject matters insured and provide insurance for the insured risks according to the Prime Minister’s decision prescribed in Clause 1 of this Article and who are within the areas eligible for assistance included in announcement by People's Committees of provinces and central-affiliated cities prescribed in Clause 2 Article 21 of this Decree.

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1. Funding for providing assistance is covered by the central and local government budget and included in the annual state budget estimate.

2. The funding allocated by the central government budget to the local government budget to provide assistance in agricultural insurance premiums shall adhere to the rules for provision of dedicated funding allocated from the central government budget to the local government budget to implement social security policies.

Article 24. Applications and procedures for approving entities eligible for assistance

1. An application for approval for entities eligible for assistance includes:

a) An application form (Form No. 01 in the Appendix hereof).

b) A list of plants, domesticated animals and aquatic animals (Form No. 02 in the Appendix hereof).

c) Documentary evidences for eligibility for assistance in agricultural insurance premiums regarding the entity eligible for assistance that is an organization that produces agricultural products.

2. Procedures for approving entities eligible for assistance

a) According to the Prime Minister’s decision and announcement of areas eligible for assistance of the People’s Committee of the province prescribed in Clause 2 Article 21 of this Decree, the agricultural producer shall prepare and submit an application for approval prescribed in Clause 1 of this Article, directly or by post, to the People’s Committee of the commune where such agricultural producer produces agricultural products.

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c) Within 15 days from the date on which the list sent by the People’s Committee of the commune is received, according to the Prime Minister’s decision, announcement of areas eligible for assistance of the People’s Committee of the province prescribed in Clause 2 Article 21 of this Decree, the application for approval sent by the People’s Committee of the commune and the list sent by the People’s Committee of the commune, the People’s Committee of the district shall approve, consolidate and send the list of agricultural producers eligible for assistance the Department of Agriculture and Rural Development.

d) Within 05 working days from the date on which the list of agricultural producers eligible for assistance sent by the People’s Committee of the district is received, according to the Prime Minister’s decision and the list of agricultural producers eligible for assistance sent by the People’s Committee of the district, the Department of Agriculture and Rural Development shall consolidate and submit the list to the People’s Committee of the province for issuance of the decision on approval for the list of agricultural producers eligible for assistance in agricultural insurance premiums (Form No. 03 in the Appendix hereof). Such decision shall be sent to the Department of Finance, Department of Agriculture and Rural Development and People’s Committee of the relevant district and commune.

dd) Within 05 working days from the date on which the People’s Committee of the province issues the decision, the People’s Committee of the commune shall openly post the list of agricultural producers eligible for assistance in agricultural insurance premiums at the People’s Committee, announce it through its local mass media and send a copy of the decision to the agricultural producer at their request.

3. On a quarterly basis, the People’s Committee of the province shall direct the Department of Agriculture and Rural Development and relevant People’s Committees at all levels to approve the list of agricultural producers eligible for assistance at the request of the agricultural producers according to the procedures specified in Clause 2 of this Article, and shall review and adjust the approved list of agricultural producers eligible for assistance in the cases specified in Clause 4 of this Article.

4. The agricultural producer included in the decision on approval for the list of agricultural producers eligible for assistance shall carry out review. In the cases where such agricultural producer is no longer eligible for assistance or according to the results of annual investigation and review carried out by the competent authority, a poor or near poverty household is re-classified, resulting in a change in the assistance in agricultural insurance premiums, within 05 working days from the date on which the agricultural producer is no longer eligible for assistance or from the effective date of the decision on recognition of a poor or near poverty household, the agricultural producer shall send a written notice made using the Form No. 04 in the Appendix hereof to the People’s Committee of the commune.

Within 10 days from the end of the month, the People’s Committee of the commune shall consolidate and send the approved list of agricultural producers eligible for assistance to the People’s Committee of the district, which will consolidate and send it to the Department of Agriculture and Rural Development for review and adjustment to the list according to Clause 3 of this Article and approve the application for provision of assistance in agricultural insurance premiums as prescribed in Point b Clause 2 Article 26 of this Decree.

Article 25. Methods for provision of assistance in agricultural insurance premiums

The assistance in insurance premiums shall be provided through the insurer according the procedures specified in Article 26 of this Decree after the insurance policy is signed and the insured liability has arisen.

Article 26. Applications and procedures for provision of assistance in agricultural insurance premiums covered by the state budget

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a) An application form (Form No. 05 in the Appendix hereof).

b) A list (enclosed with a copy) of the agricultural insurance policy signed with the agricultural producer (Form No. 06 in the Appendix hereof).

2. Procedures for provision of assistance in agricultural insurance premiums covered by the state budget

a) Within 10 days from the end of the month, the insurer shall prepare an application for provision of assistance in agricultural insurance premiums covered by the state budget prescribed in Clause 1 of this Article, directly or by post, to the Department of Agriculture and Rural of the province or central-affiliated city.

b) Within 10 days from the date on which the satisfactory application is received, according to the Prime Minister’s decision and decision on approval for the list of agricultural producers eligible for assistance of the People’s Committee of the province prescribed in Article 24 of this Decree, the Department of Agriculture and Rural Development shall take charge and cooperate with the Department of Finance in completing the approval and requesting the People’s Committee of the province to issue the decision on provision of assistance in agricultural insurance premiums covered by the central and local government budget. In the case of rejection, the Department of Agriculture and Rural Development shall provide written explanation for the insurer.

c) Within 10 days from the date on which the People's Committee of the province issues the decision on provision of assistance, the Department of Finance shall, according to the decision on provision of assistance, make payment to the insurer through the State Treasury of the province, which will transfer cash to the insurer's account opened at a commercial bank.

d) In case the payment is yet to be made to the insurer as prescribed in Point c Clause 2 of this Article, the People's Committee of the province shall direct the Department of Agriculture and Rural Development to provide written explanation for the insurer.

Article 27. Stop receiving assistance in agricultural insurance premiums

1. In the cases where changes in the policy results in changes in eligibility requirements for assistance in agricultural insurance premiums, entities eligible for assistance and assistance in agricultural insurance premiums, the agricultural producers shall continue to receive assistance in agricultural insurance premiums under the signed agricultural insurance policy until the expiry of the policy.

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3. In the cases where the agricultural insurance policy expires before the specified period, the agricultural producer shall return the agricultural insurance premiums covered by the state budget to the state budget corresponding to the remaining period of the insurance policy according to Clause 4 of this Article.

4. The agricultural insurance policy shall stop receiving assistance in agricultural insurance premiums and return the agricultural insurance premiums covered by the state budget to the state budget corresponding to the remaining period of the insurance policy from the date on which:

a) the agricultural producer no longer satisfies all eligibility requirements for receipt of assistance in agricultural insurance premiums prescribed in Clause 2 Article 22 of this Article (except for the case specified in Clause 1 of this Article).

b) the agricultural insurance policy is terminated before the specified period.

The agricultural producer shall return the agricultural insurance premiums covered by the state budget through the insurer according to the procedures specified in Clause 5 of this Article.

5. In the event the agricultural producer no longer satisfies all eligibility requirements for receipt of assistance in agricultural insurance premiums according to Point a Clause 4 of this Article, the agricultural producer and the insurer shall comply with the following regulations:

a) Within 05 working days from the date on which the agricultural producer is no longer eligible for assistance in agricultural insurance premiums, the agricultural producer shall notify the People’s Committee of the commune to follow the procedures specified in Clause 4 Article 24 of this Decree and the insurer to return the insurance premiums covered by the state budget. The notification shall specify the date on which the agricultural producer is no longer eligible for assistance in agricultural insurance premiums.

b) The insurer shall take remedial actions against legal consequences concerning the insurance premiums covered by the state budget according to Clause 6 of this Article.

6. Procedures for returning the agricultural insurance premiums covered by the state budget

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b) Within 10 days from the date on which the consolidated notice sent by the insurer is received, the Department of Agriculture and Rural shall take charge and cooperate with the Department of Finance and the insurer in approving:

- The premiums returned to the state budget by the agricultural producer corresponding to the remaining period of the insurance policy after deducting reasonable costs related to the insurance policy (in the cases where the state budget has sufficiently allocated assistance in agricultural insurance premiums to the agricultural producer). Reasonable costs are specified in the insurance policy.

- The premiums returned by the state budget to the agricultural producer corresponding to the period over which insurance has covered by the time of terminating the insurance policy (in the cases where the state budget has not yet sufficiently allocated assistance in agricultural insurance premiums to the agricultural producer).

Regarding the case specified in Point a Clause 4 of this Article, the remaining period of the insurance policy begins from the date on which the agricultural producer no longer satisfies all eligibility requirements for receipt of assistance in agricultural insurance premiums.

Regarding the case specified in Point b Clause 4 of this Article, the remaining period of the insurance policy begins from the date of terminating the insurance policy before the specified period.

The approval results shall be made in writing and retained at the Department of Agriculture and Rural Development.

c) According to the approval results, within 10 days, the Department of Agriculture and Rural Development shall prepare and submit a report to the People’s Committee of the province, which will consider issuing a decision on return of agricultural insurance premiums covered by the state budget to the insurer or request the insurer to return the agricultural insurance premiums covered by the state budget to the state budget as prescribed in Point b of this Clause.

Such decision shall be sent to relevant authorities: Department of Agriculture and Rural Development, Department of Finance, State Treasury of the province of the area where the entities eligible for assistance are available and relevant insurers.

d) According to the decision of the People’s Committee of the province, within 10 days from the date on which the People's Committee of the province issues the decision, the Department of Finance shall make payment to the insurer through the State Treasury of the province, which will transfer cash to the insurer's account opened at a commercial bank or the insurer shall follow procedures for return directly at the State Treasury.

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Together with making annual budget estimate, according to the number of agricultural producers eligible for assistance specified in the Prime Minister’s decision and demand for participation in agricultural insurance, the Department of Agriculture and Rural Development shall estimate the funding for provision of assistance in agricultural insurance premiums and submit the estimate to the Department of Finance, which will clearly determine the local government budget that needs to be balanced and the central government budget used for provision of assistance as prescribed and submit a report enclosed with the local government budget expenditure estimate prescribed by the Law on State Budget to the Ministry of Finance, which will include it in the annual state budget estimate as prescribed.

Article 29. Estimate allocation and funding management and settlement

1. Estimate allocation

a) Annually, according to the estimate given by the Prime Minister, the Ministry of Finance shall provide dedicated additional funding from the central government budget to the local government budget to implement the agricultural insurance assistance policy as prescribed in this Decree.

b) According to the estimate given by the Prime Minister and the…………………., the Department of Finance shall take charge and cooperate with the Department of Agriculture and Rural Development in preparing and submitting a funding estimate allocation plan to the People’s Committee of the province, which will submit it to the People's Council at the same level for decision on allocation of funding for implementation of the agricultural insurance assistance policy that is included in the approved expenditure estimate.

2. Funding management and settlement

a) The People’s Committee of the province shall manage, use and settle funding for right purposes and in accordance with the Law on State Budget. At the end of the year, the remaining assistance in agricultural insurance premiums (if any) shall be managed as prescribed by the Law on State Budget. In case of lack of funding during the year, local governments shall, on their own initiative, advance funding to make payment to the insurer and request the Ministry of Finance and the Ministry of Agriculture and Rural Development in writing to consider providing additional funding from the central government budget (regarding the areas provided with funding from the central government budget). After the end of the agricultural insurance assistance policy, the remaining funding provided by the central government budget (if any) shall be returned to the central government budget.

b) Funding for providing assistance in agricultural insurance premiums shall be aggregated with the annual state budget expenditure estimate as prescribed by the Law on State Budget, legal documents elaborating laws and applicable list of state budget entries.

Article 30. Conditions to be satisfied by the insurer in charge of implementing agricultural insurance assistance policy

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1. The insurer shall be entitled to sell agricultural insurance according to the establishment and operation license, satisfy requirements for capital and solvency as prescribed, have procedures for agricultural insurance business, survey and indemnity, internal control and internal audit procedures prescribed by law, and have an agricultural reinsurance program that shall be executed in a safe and effective manner and in accordance with regulations of law.

2. The major insurer or insurer delegated to be in charge of executing the insurance policy shall have its headquarters or branch located in the province or central-affiliated city where the agricultural insurance assistance policy is implemented.

Article 31. Methods for implementing agricultural insurance assistance policy

The insurer shall implement the agricultural insurance assistance policy using co-insurance method with respect to all insurance policies.

Article 32. Insurance policy executed upon implementation of agricultural insurance assistance policy

When signing an agricultural insurance policy, the agricultural producer eligible for assistance and the insurer shall comply with the following regulations:

1. The agricultural insurance policy contains all contents prescribed in Clause 1 Article 6 of this Decree.

2. The agricultural policy shall be signed when the agricultural producer has satisfied all eligibility requirements for receipt of assistance in agricultural insurance premiums prescribed in Clause 2 Article 22 of this Article and the People’s Committee of the province has approved of the agricultural producer being eligible for assistance in agricultural insurance premiums as prescribed in Article 24 of this Decree.

3. The agricultural insurance policy shall be signed separately from others.

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5. Time limit and method for paying premiums shall be agreed upon in accordance with regulations of law. Payment of the premiums covered by the state budget shall be made as prescribed in Article 26 of this Decree.

6. The effective period of the agricultural insurance policy shall be agreed upon but not exceed 01 year.

Article 33. Applications and procedures for approving/changing agricultural insurance products are

1. The agricultural insurance products provided by the insured for the agricultural producer eligible for assistance in agricultural insurance premiums shall be approved by the Ministry of Finance.

2. The insurer shall submit an application for approval, directly or by post, to the Ministry of Finance. The application includes:

a) An application form (Form No. 07 in the Appendix hereof);

b) Policy wording and premiums of the insurance product expected to be provided;

c) Formula, methods and explanation for technical specifications for determination of premiums and reserves of the insurance product expected to be provided with the reserving actuary's endorsement showing that the premiums are established according to statistics, guarantee solvency of the insurer and corresponds to insurance conditions and responsibilities;

d) Insurance request form, insurance policy, brochures, sales materials and other forms that must be provided and signed by the policyholder upon purchase of insurance.

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a) Within 10 days from date on which the satisfactory application prescribed in Clause 2 of this Article is received, the Ministry of Finance shall send an enquiry about the insurer's request for approval for the agricultural insurance product to the Ministry of Agriculture and Rural Development.

b) Within 10 days from date on which the enquiry is received, the Ministry of Agriculture and Rural Development shall provide written opinions about the insurer's request for approval for the agricultural insurance product.

c) Within 10 days from date on which the written opinions are received, the Ministry of Finance shall, according to the application for approval, consider granting a written approval. In case of rejection of the application, the Ministry of Finance shall provide written explanation.

4. The insurer shall adhere to the approved policy wording and premiums. In case of any change, it is required to obtain approval from the Ministry of Finance.

Article 34. Keep records of revenues and costs

The insurer shall keep separate records of revenues of revenues from, costs and results of sale of agricultural insurance, and revenues from, cost and results of implementation of the agricultural insurance assistance policy.

Chapter IV

IMPLEMENTATION

Article 35. Responsibilities of the Ministry of Finance

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2. Take charge and cooperate with the Ministry of Agriculture and Rural Development in establishing Prime Minister's decision prescribed in Clause 1 Article 22 of this Decree.

3. Take charge and cooperate with the Ministry of Agriculture and Rural Development in approving/changing agricultural insurance products as prescribed in Article 33 of this Decree.

4. Provide budget for implementation of the agricultural insurance assistance policy.

5. Take charge and cooperate with the Ministry of Agriculture and Rural Development in submitting reports on implementation of this Decree at the request of the Government and Prime Minister.

Article 36. Responsibilities of the Ministry of Agriculture and Rural Development

1. Disseminate regulations on agricultural insurance in accordance with this Decree.

2. Cooperate with the Ministry of Finance in establishing Prime Minister's decision prescribed in Clause 1 Article 22 of this Decree.

3. Cooperate with the Ministry of Finance in approving/changing agricultural insurance products as prescribed in Article 33 of this Decree.

4. Promulgate documents providing guidelines for procedures for announcement of disasters and procedures for confirmation of disasters and diseases prescribed in Article 20 of this Decree.

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6. Promulgate technical procedures, regulations and standards in agricultural production to facilitate execution of the agricultural insurance policy and implementation of the agricultural insurance assistance policy.

Article 37. Responsibilities of the People’s Committees of provinces and central-affiliated cities

1. Disseminate regulations on and encourage agricultural producers to purchase agricultural insurance in accordance with this Decree.

2. Organize execution of agricultural insurance policy and implementation of the agricultural insurance assistance policy in accordance with this Decree. Direct Departments, sectors and local governments within their area to execute agricultural insurance policy and implement the agricultural insurance assistance policy in accordance with this Decree.

3. Approve the entities eligible for assistance as prescribed in Article 24 of this Decree.

4. According to the budget estimate approved by the competent authority, allocate the local government budget for provision of assistance in agricultural insurance premiums and provide assistance in agricultural insurance premiums in accordance with this Decree.

5. Direct relevant authorities in organizing risk control, loss prevention and minimization and prevention and fight against insurance fraud as prescribed in Section 2 Chapter II of this Decree.

6. Comply with the following reporting regulations:

a) Prepare and submit quarterly and annual detailed reports on funding for provision of assistance in agricultural insurance premiums using the Form No. 08 in the Appendix hereof to the Ministry of Finance; submit reports on provision of plant, domesticated animal and aquaculture insurance using the Form No. 09 in the Appendix hereof to the Ministry of Agriculture and Rural Development.

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- Quarterly reports shall be submitted at least 30 days before the end of the quarter.

- Annual report shall be submitted at least 60 days before the end of the fiscal year.

Article 38. Responsibilities of Vietnam Farmers' Union

1. Cooperate with local governments in providing agricultural insurance as prescribed in this Decree.

2. Instruct and encourage its members to comply with regulations of law on agricultural insurance and relevant regulations of law on cultivation, husbandry, forestry and aquaculture.

3. Disseminate regulations on agricultural insurance in accordance with this Decree.

Article 39. Responsibilities of insurers

1. Organize sale of agricultural insurance and implementation of the agricultural insurance assistance policy in accordance with this Decree.

2. Insurers in charge of implementing the agricultural insurance assistance policy shall:

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b) Reporting period

- Monthly reports shall be submitted at least 15 days before the end of the month.

- Quarterly reports shall be submitted at least 30 days before the end of the quarter.

- Annual report shall be submitted at least 90 days before the end of the fiscal year.

c) In addition to the professional reports prescribed in Point a of this Clause, the Ministry of Finance may request insurers to submit additional reports on their operation and financial situation for the purposes of statistics and assessing provision of agricultural insurance.

d) Insurers shall be responsible for the accuracy and truthfulness of their reports.

Chapter V

IMPLEMENTATION CLAUSE

Article 40. Effect

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2. Ministers, heads of ministerial agencies, heads of Governmental agencies and Presidents of People's Committees of provinces and central-affiliated cities and regulated entities of the Decree are responsible for the implementation of this Decree./.

ON BEHALF OF THE GOVERNMENT
THE PRIME MINISTER




Nguyen Xuan Phuc