Fire and explosion in surance business must pay for fire prevention and fighting activities

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In accordance with the Joint Circular No.  214/2013/TTLT-BTC-BCA dated December 31, 2013 of the Ministry of Finance and the Ministry of Public Security detailing the implementation of some articles of the Decree No. 130/2006/ND-CP dated November 08, 2006 of the Government providing for the compulsory fire and explosion insurance regime.

In particular, within 30 days from 30 of June and 31 of  Decemberevery year, insurance enterprises shall transfer the amounts contributed to fire prevention and fighting activities into the Police Department for fire prevention and fighting and rescue and salvage’s custody account opened at the Central State Treasury, make reports on the compulsory fire and explosion insurance business result and report on deducted amounts from fire and explosion insurance premiums.

Within 90 days after the end of a fiscal year, insurance enterprises shall make reports on finalization of funds to be contributed to fire prevention and fighting activities. Insurance enterprises shall compare the data on funds already contributed with those on funds to be contributed in the finalization report; if the contributed fund is larger than the fund to be contributed, the surplus shall be included in the fund to be contributed in the subsequent year; if the former is smaller than the latter, the enterprises shall pay the deficit within 05 working days.

This Joint Circular takes effect on 13/02/2014 and replaces the Joint Circular No. 41/2007/TTLT-BTC-BCA dated 24/4/2007