On September 9^th 2014, at the Ministry of Finance, Policyholder protection fund was officially launched  and put into operations.

The purpose of establishment of Policyholder protection fund is to strengthen financial safety, enhance corporate governance quality, and meet business operation standards. Policyholder protection fund is used to pay insurance, recovery amount; pay claims, return premium to policyholder according to insurance contract in case insurer, foreign branch become insolvent, insurer go bankrupt.

The fund is established based on annual contribution of insurers with the rate of 0.1% on net written premium of primary insurance contracts. The fund is accounted and monitored separately for life and non-life insurance to ensure policyholder’s interests for each type of insurance. The management and use of the Fund ensure efficiency, economy, openness and transparency principles.

(According to Association of Vietnamese Insurers)