CIRCULAR

STIPULATING COMPULSORY PROFESSIONAL INSURANCE, CIVIL LIABILITY INSURANCE AND ENVIRONMENTAL DAMAGE COMPENSATION LIABILITY INSURANCE APPLICABLE TO ORGANIZATIONS AND INDIVIDUALS PERFORMING RADIATION JOBS

Pursuant to June 3, 2008 Law No. 18/2008/QH12 on Atomic Energy; Pursuant to December 9, 2000 Law No. 24/2000/QH10 on Insurance Business, and November 24, 2010 Law No. 61/2010/QH12 Amending and Supplementing a Number of Articles of the Law on Insurance Business;

Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Decree No. 07/2010/ND-CP of January 25, 2010, detailing and guiding the implementation of a number of articles of the Law on Atomic Energy;

The Ministry of Finance guides the implementation of compulsory professional insurance, civil liability insurance and environmental damage compensation liability insurance applicable to organizations and individuals performing radiation jobs, as follows:

Chapter I

GENERAL PROVISIONS

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This Circular provides compulsory professional insurance, civil liability insurance and environmental damage compensation liability insurance applicable to organizations and individuals performing radiation jobs.

Article 2. Subjects of application

1. Organizations and individuals performing radiation jobs.

2. Insurance enterprises, branches of foreign non-life insurance enterprises established, organized and operating in Vietnam and licensed to provide liability insurance under law.

3. Organizations providing cross-border insurance services under this Circular and the law on provision of cross-border insurance services.

4. Related organizations, individuals and agencies.

Article 3. Interpretation of terms

The terms referred to in this Circular are construed as follows:

1. Insurance enterprise means an insurance enterprise established, organized and operating under the Law on Insurance Business and the Law Amending and Supplementing the Law on Insurance Business and guiding documents, and licensed to provide liability insurance under law.

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3. Incident referred to in this Circular includes radiation incident and nuclear incident. Radiation incident is the state of radiation unsafety and insecurity of a radioactive source; nuclear incident is the state of nuclear unsafety and insecurity of nuclear material or equipment.

4. Radiation damage means the loss caused by a radiation incident to humans, property or the environment, including expenses for remedying its consequences.

5. Nuclear damage means the loss caused by a nuclear incident to humans, property or the environment, including expenses for remedying its consequences.

6. Occupational disease means a disease caused by hazardous working conditions of a radiation job to laborers.

7. Laborer means a person entering into a labor contract with an insurance buyer under law.

8. Labor accident means an accident occurring in the course of labor, associated with or caused by the performance of a radiation job and causing injury (including occupational disease) to any bodily part or function of a laborer or death to a laborer.

9. Third party means a person suffering economic or property damage or loss of life or injury to any part or function of his/her body due to a radiation or nuclear incident, except insurance buyer.

Article 4. Level of insurance liability

The level of insurance liability shall be agreed upon by the insurance buyer and insurance enterprise and written in the insurance contract.

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Insurance premium is an amount of money which the insurance buyer has to pay to the insurance enterprise when buying insurance. Insurance premium shall be agreed upon by the insurance buyer and insurance enterprise on the basis of assessment of the insured risk and related factors while ensuring the following principles:

1. To be calculated on the basis of statistical data. If statistical data are unavailable, it is possible to study, refer to and rely on international experiences and offers of foreign reinsurers.

2. To ensure solvency of insurance enterprises.

3. To be corresponding to insurance conditions and liability.

Article 6. Validity duration of insurance contract

1. The validity duration of an insurance contract shall be agreed upon by the insurance enterprise and insurance buyer and written in the insurance contract.

2. Insurance enterprises are not liable to pay compensations for claims stemming from causes which happen before the validity duration of insurance contracts.

Article 7. Termination of insurance contract

An insurance contract terminates in the following cases:

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The time of termination of the insurance contract is the time the insurance buyer has its radiation activity license invalidated or revoked under law.

In case the insurance buyer notifies in writing the insurance enterprise of the invalidation or revocation of its radiation activity license, within 5 working days from the date of receiving such notice, if no insured event has occurred, the insurance enterprise shall refund to the insurance buyer 70% of insurance premium for the remaining duration of the insurance contract. The time of notice shall be agreed upon in the insurance contract by the insurance enterprise and insurance buyer.

The insurance enterprise does not have to refund insurance premium in case it is not notified by the insurance buyer of the invalidation or revocation of its radiation activity license within the time limit agreed upon in the insurance contract.

2. The insurance buyer requests termination of the insurance contract.

In this case, the insurance buyer shall notify in writing the insurance enterprise 30 days before the expected time of termination of the insurance contract and shall show evidence that another similar insurance contract has been arranged.

In case no insured event has occurred, within 5 working days from the date of receiving the notice of termination, the insurance enterprise shall return to the insurance buyer 70% of insurance premium for the remaining duration of the insurance contract.

3. Other cases as provided by law.

Article 8. Loss assessment

1. When an event occurs, the insurance enterprise or a person authorized by the insurance enterprise shall assume the prime responsibility for, and closely coordinate with the insurance buyer, medical examination and treatment establishments, third parties or a lawful representative of related parties in, conducting assessment to identify the cause and level of the loss.

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3. If the conclusion of the independent assessor is different from that of the insurance enterprise, the insurance enterprise shall pay assessment expenses. If the conclusion of the independent assessor is similar to that of the insurance enterprise, the insurance buyer shall pay assessment expenses.

4. For special cases in which assessment is impossible, the insurance enterprise may base itself on the minutes and conclusions of competent authorities and relevant documents to identify causes and levels of losses.

Article 9. Time limit for compensation payment

1. The time limit for compensation payment is 15 days from the date of receiving a complete compensation dossier, unless otherwise agreed in writing.

2. If refusing to pay compensation, within 30 days from the date of receiving the compensation claim dossier, the insurance enterprise shall notify in writing the compensation claimer of the reason for its refusal.

Chapter II

SPECIFIC PROVISIONS

Section 1: PROFESSIONAL INSURANCE

Article 10. Insurance buyer

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1. Operating research nuclear reactors and nuclear power plants;

2. Operating irradiation devices including: accelerators, radiotherapy devices; irradiation devices for material disinfection and treatment, use of X-ray equipment in medical diagnosis (including integrated X-ray scanning and imaging device, X-ray image intensifier, dental X-ray device, breast X- ray device, mobile X-ray device, computed tomography (CT) scanner, bone density X-ray device, interventional and vascular radiography device, and veterinary X-ray device) and other radiation equipment;

3. Manufacturing and processing radioactive substances;

4. Storing and using radioactive substances;

5. Exploring, exploiting and processing radioactive ores;

6. Enriching uranium; manufacturing nuclear fuel;

7. Disposing of, storing and burying radioactive waste, spent radioactive source and spent nuclear fuel;

8. Building, changing the size and scope of operation and terminating the operation of radiation or nuclear facilities;

9. Using nuclear material outside the nuclear fuel cycle;

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11. Operating seagoing ships and other vessels that are nuclear-powered;

12. Other activities that generate nuclear waste.

Article 11. Object of insurance

The object of compulsory professional insurance for organizations and individuals performing radiation jobs is the responsibility of insurance buyers when laborers have labor accidents while performing radiation jobs.

Article 12. Insurance contract

Insurance contract is evidence of the agreement between the insurance enterprise and insurance buyer on professional insurance for laborers in the course of performing radiation jobs.

Article 13. Scope of compensation

The insurance enterprise shall pay compensation to the insurance buyer for losses of life or injuries to any bodily part and function (including occupational disease) of laborers directly caused by labor accidents falling under the insurance liability which the insurance buyer has to pay to laborers.

Article 14. Exclusion of insurance liability

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1. Liability for labor accidents not directly caused by the performance of radiation jobs and occurring within the duration and scope of insurance.

2. Liability for any accidents attributable to war, action of aggression or hostility of foreign countries, civil war, riot, terrorism or industrial strike.

3. Liability for labor accidents happening due to intentional acts of the insurance buyer or laborers.

4. Liability for labor accidents caused by violations of the insurance buyer or laborers while performing radiation jobs.

5. Liability for labor accidents caused by the insurance buyer’s failure to take all necessary safety measures or to strictly observe the laws on labor safety and prevention and control of occupational diseases for laborers.

6. Liability for accidents caused by the use and under the influence of alcohol, beer, narcotic and other stimulants.

7. Liability for human losses after 30 years from the date of occurrence of a nuclear incident.

8. Other cases as agreed upon in the insurance contract.

Article 15. Compensation principles

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2. Payment of compensation must adhere to the following principles:

a/ In case the insured incident causes damage to many laborers, the total amount of compensation paid to all laborers of the insurance buyer in each incident does not exceed the level of insurance liability agreed upon in the insurance contract;

b/ In case of availability of a court ruling, the compensation amount shall be based on the court ruling but must not exceed the level of insurance liability agreed upon in the insurance contract;

c/ In case the insurance enterprise has paid compensation up to the level of insurance liability under the insurance contract for any incident, its liability will terminate with respect to such insurance contract.

Article 16. Compensation dossier

A compensation dossier for professional insurance shall be compiled by an insurance enterprise, comprising the following documents:

1. Documents provided by the insurance buyer:

a/ The insurance buyer’s compensation claim stating the location, time and place of occurrence of the incident; initial cause of the incident and its nature and development possibility; casualties; jobs already performed in relation to the incident;

b/ Documents related to labor accident victims (photocopies certified by the insurance enterprise after comparing with their originals), including:

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- Injury certificates;

- Death certificates (in case victims are dead).

c/ Documents related to the insurance buyer (photocopies certified by the insurance enterprise after comparing with their originals), including:

- Radiation job license;

- Radiation worker certificates (for those who are required to have these certificates according to regulations);

- Insurance contract;

- Labor contracts of the victims.

2. Documents collected by the insurance enterprise:

a/ Competent agencies’ documents identifying the cause and level of the incident, made according to law.

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Section 2: CIVIL LIABILITY INSURANCE

Article 17. Insurance buyer

1. The insurance buyer is an organization or individual that has a license to perform the following radiation jobs:

a/ Operating research nuclear reactors and nuclear power plants;

b/ Operating irradiation devices, including: accelerators, radiotherapy devices; irradiation devices for material disinfection and treatment, use of X-ray equipment in medical diagnosis (including integrated X-ray scanning and imaging device, X-ray image intensifier, dental X-ray device, breast X- ray device, mobile X-ray device, computed tomography (CT) scanner, bone density X-ray device, interventional and vascular radiography device, and veterinary X-ray device) and other radiation equipment;

c/ Manufacturing and processing radioactive substances;

d/ Storing and using radioactive substances;

e/ Exploring, exploiting and processing radioactive ore;

f/ Enriching uranium; manufacturing nuclear fuel;

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h/ Building, changing the size and scope of operation and terminating the operation of radiation or nuclear facilities;

i/ Using nuclear material outside the nuclear fuel cycle;

j/ Importing and exporting radioactive substances, source nuclear material, nuclear material and nuclear equipment;

k/ Packaging and transporting radioactive material;

l/ Transporting radioactive material in transit through the Vietnamese territory;

m/ Operating seagoing ships and other vessels that are nuclear powered;

n/ Other activities that generate nuclear waste.

2. An individual working for an organization which has participated in this insurance is not required to buy similar insurance.

Article 18. Object of insurance

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Article 19. Insurance contract

Insurance contract is evidence of the agreement between the insurance enterprise and insurance buyer on civil liability insurance toward third parties in the course of performing radiation jobs.

Article 20. Scope of compensation

The insurance enterprise shall compensate the insurance buyer for expenses compensated by the insurance buyer to a third party in order to fulfill the insurance buyer’s civil liability for damages directly caused by the insurance buyer’s performance of radiation jobs.

Article 21. Exclusion of insurance liability

1. The insurance enterprise is not liable to pay compensation in the following cases:

a/ Damage which is direct consequences of:

- Illegal acts of the insurance buyer;

- War of aggression, terrorism, hostile acts (whether a war has occurred or not), civil war, riot, revolution, uprising or usurpation;

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- Earthquake, volcano eruption, flood, inundation, rainstorm, high tide, tsunami or any natural disaster beyond the safety limits of the design according to national technical regulations.

b/ Liability arising under a contract or an agreement of the insurance buyer with another person, except when the liability of the insurance buyer still arises despite of the existence of such contract or agreement or such contract or agreement is an insurance contract;

c/ The property is owned or managed or used by the insurance buyer;

d/ Other cases as agreed upon in the insurance contract.

2. For nuclear incidents, the insurance enterprise is not liable to pay compensation for:

a/ Any claims for property damage after 10 years from the date of occurrence of a nuclear incident or liability for casualties after 30 years from the date of occurrence of a nuclear incident;

b/ Any expenses incurred by the insurance buyer in mitigating losses or preventing the spread of losses.

3. For radiation incidents, the insurance enterprise is not liable to pay compensation for:

a/ Liability for damage stemming from water or gas (including cigarette smoke), leaks from insured means in the course of normal operation of such means;

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Article 22. Compensation principles

1. The insurance enterprise shall compensate the insurance buyer for the sum of money the latter has to pay to a third party on the basis of the third party’s claim against the insurance buyer when an incident occurs within the insurance liability level stated in the insurance contract.

2. In case the insurance buyer dies or has its radiation activity license or his/her radiation worker certificate invalidated or revoked, the insurance enterprise shall directly pay compensation to the damaged third party.

3. In case the insured incident causes damage to many subjects, the total amount of insurance compensation paid to all subjects in each incident does not exceed the insurance liability level agreed upon in the insurance contract;

4. In case of availability of a court ruling, the compensation amount shall be based on the court ruling but does not exceed the level of insurance liability agreed upon in the insurance contract;

5. In case the insurance enterprise has paid compensation up to the insurance liability level under the insurance contract for any incident, its liability will terminate with respect to such insurance contract.

Article 23. Compensation dossier

A compensation dossier for civil liability insurance shall be compiled by an insurance enterprise, including the following documents:

1. Documents provided by the insurance buyer:

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b/ The third party’s or his/her lawful representative claim against the insurance buyer;

c/ Documents related to the third party (photocopies certified by the insurance enterprise after comparing with their originals), including:

- People’s identity cards or personal identification papers of the accident victims;

- Injury certificates;

- Death certificates (in case victims are dead).

d/ Documents related to the insurance buyer (photocopies certified by the insurance enterprise after comparing with their originals), including:

- Radiation job licenses;

- Radiation worker certificates (for those who are required to have these certificates according to regulations);

- Insurance contract;

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- Documents confirming the damage of the property;

- Valid invoices and documents on the repair or replacement of the damaged property caused by the incident which has been done by the property owner or the insurance buyer at an establishment designated or approved in advance by the insurance enterprise;

- Papers proving necessary and reasonable expenses already paid by the insurance buyer to mitigate losses or follow the instructions of the insurance enterprise (except nuclear incidents).

2. Documents collected by the insurance enterprise:

a/ Competent agencies’ documents identifying the cause of the incident and its level, made according to law;

b/ Other documents proving casualties and property damage related to the incident as agreed upon in the insurance contract.

Section 3: ENVIRONMENTAL DAMAGE COMPENSATION LIABILITY INSURANCE

Article 24. Insurance buyer

1. The insurance buyer is an organization or individual that has a license to perform the following radiation jobs:

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b/ Manufacturing and processing radioactive substances;

c/ Exploiting and processing radioactive ore;

d/ Disposing of radioactive waste and spent radioactive source and spent nuclear fuel.

2. An individual working for an organization which has participated in this insurance is not required to buy similar insurance.

Article 25. Object of insurance

The object of compulsory environmental damage compensation liability insurance for organizations and individuals performing radiation jobs is the liability of the insurance buyer for arising expenses for performing the

liability to compensate for environmental damage caused by pollution or degradation in the following cases (including also expenses for identifying damage and carrying out the procedures for claiming compensation for environmental damage):

1. Water environment serving conservation, residence, entertainment, production and other purposes, which is polluted, seriously polluted or extremely polluted.

2. Soil environment serving conservation, production and other purposes, which is polluted, seriously polluted or extremely polluted.

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4. A species prioritized for protection which dies or is wounded.

Article 26. Insurance contract

Insurance contract is evidence of the agreement between the insurance enterprise and insurance buyer on environmental damage compensation liability insurance in the course of performing radiation jobs.

Article 27. Exclusion of insurance liability

The insurance enterprise is not liable to pay compensation for damages caused by or being consequences of:

1. Force majeure cases and cases of emergency in which requests of competent state management agencies must be complied with.

2. Pollution is caused or attributable to the insurance buyer’s deliberate non-compliance with the provisions of law and requests of competent state management agencies.

3. Pollution exists before the date the insurance contract becomes effective and the insurance buyer is already aware about this pollution but does not declare it in the insurance request or any previous insurance contract if the insurance contract is a renewed one.

4. Change in the course of operating radiation equipment at the insured site throughout the insurance duration has significantly augmented the insured risk compared to the concluded insurance contract, resulting in increased treatment of the pollution compared to the treatment standards applied at the insured site without prior agreement of the insurance enterprise and prior written consent of the insurance enterprise.

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6. Any claims or losses filed or incurred by the insurance buyer or any other beneficiary under the insurance contract that is a citizen or special envoy of a government or a state which the Vietnamese laws or international regulations impose embargo or another economic sanction to prohibit the insurance enterprise from providing insurance services, conducting commercial transactions or providing economic benefits to the insurance buyer or any other beneficiary under the insurance contract.

7. Natural disaster beyond the safety limit of the design according to national technical regulations.

8. Other cases as agreed upon in the insurance contract.

Article 28. Compensation principles

1. The insurance enterprise shall pay to the insurance buyer on the basis of a claim filed by an agency responsible for claiming compensation from the insurance buyer the sum of money which the insurance buyer has to compensate for environmental damage caused by the insurance buyer within the insurance liability level stated in the insurance contract.

2. Agencies responsible for claiming damage compensation include:

a/ Commune-level People’s Committees, for environmental damage caused by pollution or degradation in the localities under their management;

b/ District-level People’s Committees, for environmental damage caused by pollution or degradation in two or more communes, wards, townships or townlets;

c/ Provincial-level People’s Committees, for environmental damage caused by pollution or degradation in two or more districts, towns and provincial cities;

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3. In case the insurance buyer dies or has its radiation activity license or his/her radiation worker certificate invalidated or revoked, the insurance enterprise shall directly pay compensations to the agency responsible for claiming damage compensation specified in Clause 2 of this Article.

4. The insurance compensation complies with the principles specified in Clauses 2, 3 and 4, 5, Article 22 of this Circular.

Article 29. Compensation dossier

A compensation dossier for environmental damage compensation liability insurance shall be compiled by an insurance enterprise under Clause 1, Article 7 of the Government’s Decree No. 113/2010/ND-CP of December

3, 2010, stipulating the determination of environmental damage (Decree No. 113/2010/ND-CP), including the following documents:

1. The agency claming damage compensation’s claim stating the location, time and place of occurrence of the incident; initial cause of the incident and its nature and development possibility; environment damage caused by pollution or degradation in the cases specified in Article 25 of this Circular; jobs already performed in relation to the incident;

2. Data and evidence collected and appraised under Clause 3, Article 3 and Clause 1, Article 6 of Decree No. 113/2010/ND-CP.

3. Conclusion document of the data and evidence appraisal council.

4. Results of calculation of environmental damage and conclusion of a competent agency on the environmental damage compensation liability.

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Section 4: RIGHTS AND OBLIGATIONS OF THE INSURANCE BUYER AND INSURANCE ENTERPRISE

Article 30. Rights of the insurance buyer

1. To select insurance enterprises for participating in professional insurance, civil liability insurance and environmental damage compensation liability insurance.

2. To request the insurance enterprise to explain and provide information relating to the insurance contract.

3. In case of change in factors used as bases for calculating insurance premium resulting in fewer insured risks, to request the insurance enterprise to reduce insurance premium rates suitable to the remaining duration of the insurance contract.

4. To request the insurance enterprise to pay compensation in a quick, adequate and timely manner according to the insurance contract.

5. Other rights as provided by law.

Article 31. Obligations of the insurance buyer

1. To participate in professional insurance, civil liability insurance and environmental damage compensation liability insurance in accordance with this Circular.

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3. To provide full and truthful information relating to the insurance contract at the request of the insurance enterprise.

4. To create favorable conditions for the insurance enterprise to check the insured site, practicing equipment and other factors related to the performance of radiation jobs before signing the insurance contract.

5. To promptly notify any change in the factors used as grounds for calculating insurance premiums to the insurance enterprise for applying suitable premium rates for the remaining duration of the insurance contract.

6. To comply with regulations on assurance of practicing conditions and safety in radiation activities.

7. When the radiation activity license or radiation worker certificate is invalidated or revoked, to notify such in writing to the insurance enterprise within 3 working days after receiving the invalidation or revocation decision.

8. Within 3 working days from the date of receiving a claim from a laborer (in case of professional insurance), from a third party (in case of civil liability insurance) or from an agency responsible for claiming compensation (for environmental damage compensation liability insurance), the insurance buyer or his/her representative (in case the insurance buyer dies) shall notify in writing the claim to the insurance enterprise for coordinated settlement.

9. When an incident occurs, to comply with the provisions of Clause 1, Article 84 of the Law on Atomic Energy and relevant laws.

10. To provide documents in the compensation dossier as stipulated in this Circular.

11. Other obligations as provided by law.

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1. To collect insurance premiums as agreed upon in the insurance contract.

In case of change in factors used as bases for calculating insurance premium resulting in more insured risks, to request the insurance buyer to pay more insurance premiums for the remaining duration of the insurance contract.

2. To request the insurance buyer to fully provide truthful information relating to the objects of insurance already stipulated in the insurance contract; to check the insured site and safety equipment before signing the insurance contract.

3. To request related agencies to provide copies of documents related to the cases according to regulations.

4. To refuse to pay compensation for cases falling outside the insurance liability.

5. To set up mutual assistance funds among Vietnam-based insurance enterprises participating in providing products of professional insurance, civil liability insurance and environmental damage compensation liability insurance for organizations and individuals performing radiation jobs.

6. Other rights as provided by law.

Article 33. Obligations of the insurance enterprise

1. To sell insurance liability under this Circular and relevant laws.

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3. To clearly explain insurance rules, terms and premium tariffs in the insurance contract to the insurance buyer and the insured.

4. In case the insurance enterprise receives a notice of an insurance buyer

of change in factors used as bases for calculating insurance premium resulting in fewer insured risks, to reduce insurance premium rates for the remaining duration of the insurance contract and refund the difference to the insurance buyer.

5. To pay compensations quickly and accurately under this Circular.

6. To send to the Ministry of Finance reports on the implementation of insurance in radiation activities, enclosed with set forms, on a quarterly and annual basis or upon request. Quarterly reports must be sent within 30 days from the end of a quarter and annual reports, within 90 days from the end of a year (both soft and hard copies).

7. To submit to the examination and supervision by competent state agencies in providing insurance.

8. Other obligations as provided by law.

Chapter III

RESPONSIBILITIES OF PEOPLE’S COMMITTEES AT ALL LEVELS AND RELATED MINISTRIES AND SECTORS

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The People’s Committees of provinces and centrally run cities and district- level People’s Committees shall provide insurance enterprises with data and evidences for determining environmental damage according to their competence defined in Article 3 of Decree No. 113/2010/ND-CP as grounds for settlement of insurance compensation.

Article 35. Responsibilities of the Ministry of Science and Technology

1. To announce on its website the lists of organizations and individuals performing radiation jobs and having to buy professional insurance, civil liability insurance and environmental damage compensation liability insurance.

2. To provide insurance buyers and agencies responsible for claiming damage compensation defined in Clause 2, Article 28 of this Circular with documents determining the causes and levels of incidents stated at Point d, Clause 4, Article 84 of the Law on Atomic Energy as grounds for insurance compensation claim.

Article 36. Responsibilities of the Ministry of Natural Resources and Environment

To provide insurance enterprises with data and evidences for determining environmental damage according to its competence defined in Article 3 of Decree No. 113/2010/ND-CP as grounds for settlement of insurance compensation.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 37. Effect

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Article 38. Organization of implementation

Any problems arising in the course of implementation should be promptly reported to the Ministry of Finance for consideration and settlement.-

FOR THE MINISTER OF FINANCE
DEPUTY MINISTER




Tran Xuan Ha