Things you need to know about Statutory Insurance
Currently, many workers still do not understand the types of Statutory Insurance to ensure their rights. In the insurance regulations, there are types of insurance that are mandatory for the corresponding subjects to participate. This is also considered a preferential and welfare policy of the state. Most of these types of insurance play a very important and necessary role for individuals, groups, business households and businesses, etc. Therefore, participating in Statutory Insurance is a good thing and should be accumulated. Subjects included in the regulations who do not participate in mandatory insurance may be fined.
So what is compulsory insurance? What types of compulsory insurance are included? Where to buy insurance? Let’s learn about compulsory insurance with S4B Vietnam through the following article!
1. What is Statutory Insurance?
Statutory Insurance is a type of insurance prescribed by law. Individuals are subjects required by law to participate in insurance under the conditions, insurance premiums, and minimum insurance amount that the insurance buyer and insurance enterprise are obliged to implement to ensure legal. To limit risks and financial losses if an accident or unexpected incident occurs for the insured person. Normally, Statutory Insurance only applies to certain types of insurance for the purpose of social safety and protecting public interests.
2. Statutory Insurance features
- Being mandatory, employees and employers are forced to participate.
- The law specifically regulates the payment rates and methods of paying compulsory social insurance.
- Enjoy many benefits such as: Sickness; maternity; pension; death; labor accidents, occupational diseases.
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3. Types of Statutory Insurance today
Based on the 2014 Social Insurance Law, there are the following types of Statutory Insurance in businesses
3.1 Social insurance (social insurance)
Paying social insurance is similar to accumulating savings for yourself; This amount will compensate you when you encounter difficulties with reduced income or loss of income due to obstacles such as traffic accidents, loss of income, etc. Income from sickness, occupational disease, maternity sickness, work accident, end of working age or death on the basis of contributions to the social insurance fund.
3.2 Fire insurance
Fire and explosion insurance is a type of insurance that helps protect your home against the risks of fire and explosion. The insurance company is responsible for compensating property, injuries, and losses caused by fire and explosion. This type of insurance is very specific, covering not only the owner’s contents but also the costs of repairing and rebuilding the property listed in the insurance policy.
3.3 Health insurance:
Health insurance is a type of compulsory insurance issued by the Vietnamese government, organized and managed with the goal of mobilizing contributions from individuals, groups and the entire social community. Everyone who buys health insurance is entitled to health care, medical examination and treatment services.
3.4 Unemployment insurance (UI)
When participating in unemployment insurance, workers will receive unemployment benefits, counseling support, job placement support, vocational training support, and training support to improve skills to continue working with pay. according to the Employment Fund (Clause 4, Article 3 of the Employment Law 2013).
Statutory Health Insurance in Vietnam 2024
Depending on the needs of socio-economic development in each period, the Government will submit to the National Assembly Standing Committee to prescribe other types of compulsory insurance.
4. Subjects participating in Statutory Insurance
Based on Article 2, Law on Social Insurance 2014 and Articles 4,13,17,21 of Decision 595/QD-BHXH, subjects participating in compulsory insurance include:
- Vietnamese workers: have signed a labor contract of 1 month or more.
- Foreign workers: foreign citizens working in Vietnam, with a practicing certificate, work permit or practice permit issued by a competent Vietnamese agency. Another condition is to sign a Labor Contract of 3 months or more.
- Employer: has a Vietnamese employee who has signed a Labor Contract of 1 month or more or has a foreign employee who has signed a Labor Contract of 3 months or more and has the necessary documents. Required: work permit, license or practicing certificate.
5. How to pay for Statutory Insurance
How to pay Statutory Insurance and the time for paying insurance have also been prescribed so that participants can clearly understand. Regulations are as follows:
- Employees: paid monthly. For employees working abroad who sign a Labor Contract, they pay every 3, 6 or 12 months. Or according to Article 85 of the 2014 Law on Social Insurance, employees working abroad can also pay a lump sum according to the terms stated in the contract.
- Employer: paid monthly. Or according to Article 86 of the 2014 Law on Social Insurance, employers can pay monthly, every 3 or 6 months when paying employees according to contracts or products. This applies to companies operating in a number of fields such as agriculture – forestry – fishery – salt industry.
To protect people’s rights and bring a prosperous life, the State of Vietnam has provided a number of Statutory Insurance. Anyone can participate and will be informed about the conditions and requirements to enjoy the above insurance benefits, which is extremely simple.
Hopefully the above article can help you answer your questions about what Statutory Insurance is and some important notes. If you want to learn more about Statutory Insurance, contact our consultant team immediately for detailed answers.
S4B Vietnam
- Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
- Tel: + 84 24 3974 4181
- Email: service@s4b.com.vn
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