On July 09, 2014, the Government issued the Decree No. 68/2014/ND-CP amending, supplementing a number of articles of the Decree No. 45/2007/ND-Cp dated March 27, 2007 of the Government detailing the implementation of a number of articles of the Insurance Business Law.
Guarantee insurance is business insurance activity that insurance enterprise and branches of foreign non-life insurance accept the risks of persons being guaranteed if the guaranteed parties pay insurance fee for insurance enterprise, branches of foreign non-life insurance to fulfill obligations on behalf of guaranteed parties if the guaranteed parties fail to fulfill its obligations.
The guaranteed parties receive debt and return to insurance enterprise, branches of foreign non-life insurance as agreed in the contract. Parties may negotiate on the fact that insurance enterprise and branches of foreign non-life insurance only perform their obligations only when the guaranteed parties are impossible to fulfill its obligations.
This Decision takes effect on August 25, 2014.
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