Inter-ministerial Working Group

INTRODUCTION

Ministry of Economy and Finance established a working group on 25^th July, 2006, H.E Chea Peng Chheang, Secretary of State of Ministry of Economy and Finance and is the Chairperson of the working group, and Mr. Mey Vann, Director of Department of Financial Industry, and is the deputy of the working group. It consists of Representative of Ministry of Interior, Ministry of Public Works and Transport, Ministry of Tourist, Ministry of Land Management Urban Planning and Construction under supervision of Ministry of Economy and Finance. To follow up and implement Inter-ministerial Prakas on Compulsory insurance higher effectively, Department of Financial Industry is in charge of Ministry of Economy and Finance to cooperates with the working group to solve the problems involving the compulsory insurance. Furthermore, Department of Financial Industry has urgently arranged the meetings with the working group and insurance companies. The working group provided statistics and report of relevance document to Ministry of Economy and Finance in order to control and update information of insurance market in Cambodia whether how it is growing and to put it into the annual insurance report to advertise the insurance market to the public in Cambodia.

PURPOSE OF ESTABLISHMENT OF WORKING GROUP

          To strengthen and implement Inter-ministerial Prakas on Compulsory Insurance effectively and efficiently to develop the insurance industry in Cambodia.

ROLES AND DUTIES OF INTER MINISTERIAL WORKING GROUP on INTER MINISTERIAL PRAKAS

-          Ministry of Economy and Finance shall be responsible for supervising and pushing the insurance companies to settle the complaints of victims who have completed the compulsory insurance in a prompt and fair manner.

-          Ministry of Public Works and Transport shall be charge of issuing technical inspection certificates and transport business operating licenses to all types of vehicles aimed at keeping order and traffic safety on the public roads.

-          Ministry of Tourism shall conduct regular inspections of the document of owners or operators of tourist vehicles for the required insurance and shall be in charge of issuing tourism licenses and for educating the tourism industry about the compulsory insurance requirements and shall ensure that travel agents use only the vehicles that have compulsory insurance. The failure on the part of the owners or operators of transport vehicles in providing documents of compulsory insurance shall be used as a basis for fine as stated in Article 52 of the Law on Insurance and for suspension or cancellation of tourism license.

-          Ministry of Interior shall be responsible for checking on a regular basis, all motor vehicles for technical inspection certificates and transport licenses and stickers of the compulsory passenger transport insurance issued by the Ministry of Public Works and Transport in order to urge vehicle owners to fulfill the compulsory third party liability insurance in the Kingdom of Cambodia.

-          Ministry of Land Management Urban Planning and Construction shall have the duty to conduct on-site inspection of the construction and demand an insurance certificate. In case of absence of an insurance certificate, the inspection team shall temporarily suspend  the construction work, and require the purchase of insurance coverage. Persistent noncompliance shall be grounds for a fine as provided in Article 52 of the Insurance Law. When applying for opening of a construction site, the construction owner shall present insurance documents that confirm an insurance contract with a licensed insurance company in the Kingdom of Cambodia. If the application does not include an insurance cover note or an insurance certificate, the Ministry of Land Management Urban Planning and Construction and the Provincial-Municipal Department of Land Management Urban Planning and Construction and Cadastre shall not issue any permit for the opening of the construction site.

ACTIVITY OF MEETINGS

After the meeting on 26 October 2007, the working group agreed on Province-City seminar proposals and this was also approved by H.E Keat Chhon, Minister of Ministry of Economy and Finance. Seeing that the Insurance market in Cambodia has been growing from day to day, Ministry of Economy and Finance granted a permission to Department of Financial Industry to arrange seminars at Provinces-Cities. Insurance Division, Department of Financial Industry, is responsible for arranging the seminars and will be arranging in 2008.