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License to Operate Non-Life Insurance Company (Temporarily Suspended)
财产保险公司经营许可证（暂缓办理）
ໃບອະນຸຍາດດຳເນີນທຸລະກິດປະກັນໄພທົ່ວໄປ (ໂຈະຊົ່ວຄາວ)
Any individual or legal entity intending to establish or operate Non-life insurance business including insurance of property and civil responsibility for a third party and other insurance that is not life insurance (i.e. health insurance, accident insurance, transportation insurance, vehicle insurance, fire insurance, financial insurance or business insurance, etc.). Apply at Department of State-Owned Enterprise and Insurance Management.
Who needs this
Any individual or legal entity intending to establish or operate Non-life insurance business including insurance of property and civil responsibility for a third party and other insurance that is not life insurance (i.e. health insurance, accident insurance, transportation insurance, vehicle insurance, fire insurance, financial insurance or business insurance, etc.).
Requirements
- The enterprise shall get the investment license from the Ministry of Planning and Investment
- The founder shall have a good record of business operation, and never been convicted of a deliberate offense in a deliberate offensive economy, not on the list of terrorists and transnational crimes
- Having a suitable office location or headquarter for operating the insurance business
- Having a minimum registered capital of 16 billion LAK throughout the business period
- Having a secure fund of 1/3 of the registered capital in the stable commercial bank operating in Lao PDR and notify the Ministry of Finance of such deposit; provided that the investor shall follow the following conditions: (a) for the open, withdrawal, or closure of the deposit account, it shall be jointly signed between the insurance company and the Department of State-Owned Enterprise and Insurance Management as defined in Article 94 of the Insurance Law; (b) that commercial bank shall be informed that the authority from the Department shall be authorized to monitor the total balance in the bank account anytime; and (c) the transaction or use of the secure fund shall be approved by the Ministry of Finance.
- Having a list and a record of the executive board, and having staff or personnel that have knowledge, competence, expertise, and certificates in the insurance fields
- Having a clear business operation plan for the short (up to 1 year), medium (2-5 years), and long term (5 years or over)
- Never being revoked of the License to Operate Life Insurance Business in the past 5 years; and
- In the case of the foreign investor, the investors shall: (a) having the insurance experience for at least 5 years; (b) having the license for the Establishment of the Representative Office of the foreign insurance company; and (c) having the permit to establish and operate insurance business from the origin country of such investor.
Documents — first application
| Document | Note |
|---|---|
| Copy of ID card or Family book of Managing Director | |
| Article of Association | |
| Curriculum vitae of Managing Director | |
| Resolution of Shareholders | |
| Joint Venture Agreement / Partnership Agreement / Incorporation Agreement | for the insurance company |
| Power of Attorney (in case the applicant appoints the attorney to proceed with the application) | |
| Location Confirmation of Enterprise | |
| Business Plan | of the first 5 years |
| Copy of Passport of the Managing Director | for foreigner |
| Photograph of the Managing Director | 6 photos (taken within 3 months) |
| Certificate for Enterprise Registration of Company Limited | |
| Evidence for the placement of required guarantee | 1/3 of the registered capital |
Legal framework
- Law on Insurance (Revised)
- Instruction on the Issuance of the Insurance Operating Licenses
- Notice on the Suspension of the Approval of Newly-established Insurance Investment
- Instruction Implementing Law on Insurance
- Notice on the Management of Insurance Business in the Lao PDR
- Decision on Regulations on Management and Operation of Insurance Business
How to submit
- Means of presentation
- At the Authority Offices
- Address of authority
- Department of State-Owned Enterprise and Insurance Management, Ministry of Finance
- Processing time
- 15
Validity and renewal
- Has an expiry date
- YES
- Validity
- 12 months
- Renewal process
- The license shall be valid for 1 year, starting from 1 January to 31 December, and the enterprise shall renew and pay the renewal fee within the first 3 months of the following year (within 30 March of every year).
Additional comment
1. Firstly, the temporary license will be issued for the period of 1 year for the purpose of monitoring and supervision and after it is proven to be in full compliance with all the requirements and conditions, the permanent license will be issued. 2. Currently, the Government issued a Notice to suspend the issuance of this license for a newly-established business.