: Upon an occurrence of an accident pertaining to passengers who are getting on, travelling on or getting off the transport means, the driver or owner of the transport means shall immediately inform his/her insurance company. Furthermore, he/she shall seek all means to save the victim.

All insurance companies shall not be allowed to operate the insurance business in the Kingdom of Cambodia if such companies:

1- have not been licensed by:

a- The Royal Government at the request of the Ministry of Economy and
Finance if the insurance company is owned by the State or a joint
venture between the state and private holding at least fifty one (51)
percent being the State shares.
b- The Ministry of Economy and Finance for the private insurance
company.
2- have not been registered in any classes of insurance as provided in Article 46 of the insurance law.

Every insurance company shall submit its application form to the Ministry of Economy and Finance to obtain a license to operate the insurance business in the Kingdom of Cambodia.

When submitting the application form, the applicant shall provide the following documents:

1. Application form in writing indicating the business class, registered capital, and business scope of the insurance company to be established;

2. Statute of the insurance company to be operated;

3. Estimated financial statements of first three accounting periods;

4. List of shareholders' names and table of each shareholder's share;

5. Curriculum vitae of key officers and managers to be appointed and
non-criminal records of such officers and managers;

6. Principles and operation project;

7. Information of locations determined by the company to do the business;

8. Samples of the insurance policy, endorsement, and printed letters used for distribution to the general public or for advertisement relating to each operation; and

9. Other necessary documents according to each insurance business class, required by the Ministry of Economy and Finance.

Every application for license of any foreign insurance company shall be accompanied with other documents in addition to the documents specified in items 1-9 of the preceding Article. Such documents include:

1. Balance sheet and profit and loss account of last three accounting periods;

2. Letter of appointment of legal entity or natural person qualified to be mandator;

3. Information of place where the foreign company requested to locate its branch office in the Kingdom of Cambodia;

4. Translation of a certificate issued by competent authorities certified that the company has legally operated in the home country.

The first license to be issued to all types of insurance companies shall be valid for 5 years from the date of issuance. As for the business license for renewal shall be valid for 3 years from the date of issuance. These licenses are not alienable.

In case of documents falsification or providing false information pertaining to the application for the first license or the license renewal, the Ministry of Economy and Finance has rights to refuse the consideration, suspend activities and/or finally revoke the license and may sue the Court according to de facto mistakes against the concerned company that is the applicant.

Payment for fees of the first license issuance and license renewal shall be determined by a Prakas of the Ministry of Economy and Finance.

In accordance with article 48 of the Insurance Law, an insurance company established under local laws and each branch office of the foreign insurance company-prior to the commencement of business operation shall prove evidences that capital fund payment has been made or its first capital endowment has been received to do whatever to ensure the fulfillment of obligations to make a deposit in a special account at the National Treasury and the maintenance of solvency margin in a particular account at a commercial bank licensed by the National Bank of Cambodia, and under certain conditions as follow:

1- Solvency Margins :
a- shall be defined according to each type of the insurance company as provided in Article 56 of the this Sub-Decree.
b- shall further top up to the full amount by the concerned insurance company within 30 days at the latest starting from the date of receiving an absolute instruction of the Ministry of Economy and Finance once the solvency margin has been used and the balance is remained under an official limit. If not doing so, the concerned company shall be punished under Article 53 of the Insurance Law.

2- Deposit:
a shall be at least 10% of the registered capital.
b shall be permanently maintained in an account of the National Treasury until the insurance company finally ceases its business operation.
c shall not be included in the liquidity to work out the sufficiency solvency margin provided in point 1 of this Article 53.
d shall be further put up to the full amount by the concerned insurance company within 30 days at the latest starting from the date of receiving an absolute instruction of the Ministry of Economy and Finance once the deposit is less than an official limit. If not doing so, the concerned company shall be punished under Article 53 of the Insurance Law.

3- Cash for current activities:
a shall be under the direct control and usage of the concerned company, including the revenue from the insurance premium.
b when the cash is not sufficient for the insurance operation, the concerned company may further use the solvency margin.

For the branch office of the foreign insurance company to be located and operated within the Kingdom of Cambodia, the parent company shall submit to the Ministry of Economy and Finance the following application forms for setting up its branch office:

1. Statute notarized by a competent authority of the home country.
2. Resolution consistent with the Statute on the establishment of the branch office in the Kingdom of Cambodia.
3. Letter of approval issued by a supervisory authority of the origin country which allows the concerned company to establish the branch office in the Kingdom of Cambodia.
4. Resolution to appoint qualified persons to manage the branch office in the Kingdom of Cambodia.
5. Financial Statements of last three accounting periods, notarized by an independent auditor of the origin country.
6. Criminal Record issued by the country of the origin and curriculum vitae of persons who manage the branch office.
7. Other necessary documents required by the Ministry of Economy and Finance according to each business class.

The deposit stated in Article 53, 85 and 86 of this Sub-decree may be in Riel or foreign currency and/or letter of guaranty of the Royal Government of Cambodia.

All classes of insurance companies shall have adequate fund to ensure solvency margin. Solvency margin is a reserved fund for claims settlement unexpectedly occurred or the settlement of claim which is more than the reserve fund the company created from the insurance premium collected. The minimum of solvency margin shall be defined according to the significance of each type of the insurance company as follows:

1. For the life or general insurance company, the minimum of solvency shall be:

a. fifty percent (50%) of the duly registered capital for the initial operation year;

b. 13,300 million Riels when total insurance premium revenue does not exceed 66,500 million Riels after deduction of total reinsurance premium of previous
fiscal years
c. twenty percent (20%) of total insurance premium gained in previous fiscal year when the total premium insurance gained is of from 66,500 million Riels to 332,500 million Riels after deducting total reinsurance premium of previous year;

d. and 66,500 million Riels plus ten percent (10%) of insurance premium surplus which is more than 332,500 million Riels generated by deducting the total reinsurance premium of previous year from the total insurance premium.

2- For the life and general insurance company, the solvency margin specified in point (1) of this Article, to whatever extent, shall be at least 26,600 million Riels.

Any of following modifications of the licensed state owned insurance company must be subject to approval by the Ministry of Economy and Finance:

1. Change of its insurance class;
2. Change in its registered capital;
3. Change of business places of the company or its branch organization
4. Adjustment of its business scope;
5. Split or merge of the company;
6. Change of the shareholders who own more than 10 percent of the total shares;
and.
7. Other modifications stipulated by the Ministry of Economy and Finance.
In case that an insurance company intends to change its chairman of board of
directors or its general director, such company shall report to the Ministry of Economy and Finance for examining qualification for the position.

Establishment of branch or representative office of the State insurance company that have had the license in areas in the Kingdom of Cambodia shall be approved in advance by the Ministry of Economy and Finance.

The insurance company shall be under the scope as follows:

1. Property insurance includes insurance on property loss and damage, liability, construction, erection, transport by road, air and sea, travel, marine hull, aircraft hull and trade credit.

2. Person accident insurance include life, health and accident to individuals.
All insurance company may operate the insurance business only under the scope specified in the license save for the insurance on accidents and workmen's compensation that all insurance companies may conduct the same operation.

All insurance companies can operate the reinsurance for:

1. Outward reinsurance; and
2. Inward reinsurance.

The retention of insurance premium of the property insurance company for each operating year shall not be more than four (4) times of combination of current capital and reserve fund. The surplus will be reinsured.

Liability of the insurance company for each risk factor means that the liability for maximum damage caused by each accident cannot exceed ten percent (10%) of combination of current capital and reserve fund of the insurance company. The surplus, if any, shall be reinsured.

In the case that an insurance company needs to effect an outward reinsurance, all companies operating in the Kingdom of Cambodia shall be given a priority.

All insurance contract with total sum insured less than or equal to five hundred thousand US dollars (500,000 US dollars) shall be reinsured with insurance companies in the Kingdom of Cambodia save for life insurance contract.

If an insurance company fails to register in the commercial register within six (6) months from the date of obtaining the license without acceptable reasons, such license shall automatically become invalid.

All insurance companies licensed to operate the insurance business in the Kingdom of Cambodia shall use at least seventy five percent (75%) of its reserve fund as provided in Article 56 of the present Sub-decree for reinvestment in the Kingdom of Cambodia.

Except for life insurance business, all insurance companies shall reinsure at least twenty percent (20%) of insurance service contracted by such company to the State owned reinsurance company at the minimum insurance premium rate defined by the Ministry of Economy and Finance as provided in Article 89 of this Sub-decree.

Should it is fund that an insurance company is in the solvent circumstance that it cannot sufficiently insure its contract or cannot insure the degree of coming risks, the Ministry of Economy and Finance shall remind in writing and absolutely instruct such company to develop a clear financial program so that the company can be restored to an original state. If such insurance company is unable to restore under the above absolute orders the Ministry of Economy and Finance has the rights to forbid the use of the company's assets in the Kingdom of Cambodia until a final settlement is reached.

With approval from the Ministry of Economy and Finance, all insurance companies may transfer partly or totally the unexpired insurance portfolios, which are acceptable to one insurance company or more.

If a life insurance company has been dissolved and declared bankrupt in accordance with laws, the life insurance contract and reserved fund under its possession shall be transferred to other life insurance companies. In the event that the concerned company is unable to take this measure the Ministry of Economy and Finance shall point out one or more names of life insurance companies to accept the accept such life insurance contract.

License given to an insurance company, agent and broker, and loss adjuster may be revoked at any time if each:

does not fully meet the required conditions;
or cannot accomplish within an agreed period all planned measures in accordance with redirection program;
or is seriously fails in fulfillment of obligations required by the existing regulation.

The branch office of the foreign insurance company that is operating its business in the kingdom of Cambodia shall timely provide the Ministry of Economy and Finance with necessary information in respect of capital change, composition of shareholders, and bankruptcy of its parent company in the foreign country.

In the case that a license has been revoked from a foreign parent insurance company by competent authorities, the Ministry of Economy and Finance would also immediately revoke a license issued to such company's branch office in the Kingdom of Cambodia to have the branch office winded up under laws.

Reasons for decision to withdraw the license or postponement of operation shall be clearly specified in writing and sent to the concerned parent company.

Decision to withdraw the license shall be published in the Royal Journal.

Decision to ultimately revoke the license from an insurance company will lead to a legal dissolution of the company.

Apart from compliance with the Insurance Law, all types of insurance companies including branch offices of foreign insurance companies shall be subject to the provisions of relevant laws on management of commercial companies, public enterprises, the State-private joint ventures, taxation, and administration of the Kingdom of Cambodia.