Bài giảng Tiếng Anh chuyên ngành bảo hiểm | Trường Đại học Lao động - Xã hội

BỘ NỘI VỤ
TRƯỜNG ĐẠI HỌC LAO ĐỘNG – XÃ HỘI Ban biên soạn:
1. Chủ trì: ThS. Cao Thị Huyền Nga
2. Thành viên: ThS. Trương Thị Tuyết Hạnh
(Dùng đào tạo trình độ Đại học ngành Ngôn ngữ Anh) LƯU HÀNH NỘI BỘ
HÀ NỘI, NĂM 2025 PREFACE
The textbook “English for Insurance” has been specifically designed to meet
the academic and professional demands of students majoring in English Language
Studies at the University of Labour and Social Affairs (ULSA), with a focus on English
for Specific Purposes (ESP). This book serves as a bridge between language acquisition
and real-world application in the field of insurance and risk management. It aims to help
learners acquire specialized terminology, comprehend key insurance concepts, and
communicate effectively in professional insurance contexts.
This textbook is intended for students who have already built a solid foundation
in general English and are now transitioning into the specialized language of the
insurance industry. It aligns with the ESP curriculum framework and supports the
development of reading comprehension, translation, and professional communication
skills through authentic materials related to insurance practice and principles.
The book is primarily designed for English Language majors, especially those
specializing in business English, translation, and ESP-oriented disciplines. It is also
suitable for use in universities and colleges where students are preparing for future roles
as translators, interpreters, educators, or professionals in bilingual business and financial
environments related to insurance.
The content is systematically organized into eight thematic units, covering
essential topics in the field of insurance, including: The Field of Insurance; Social
Insurance; Unemployment Insurance; Commercial Insurance; Insurance Contract; Life
Insurance; Risk Management; The Proposal; and Indemnity. Each unit includes a clear
set of learning objectives, vocabulary lists with phonetic transcription and Vietnamese
meanings, engaging reading passages, comprehension and language practice exercises,
translation tasks, and review activities to consolidate learning outcomes.
This structure ensures that learners gradually build up both linguistic competence
and professional literacy in the domain of insurance. The textbook can be used for
classroom instruction, self-study, or blended learning environments. Teachers may also
adapt the materials for discussion, case studies, and role-play simulations to enhance
engagement and practical understanding.
The compilation of this textbook is the result of both academic dedication and
professional insight. The authors would like to express their sincere appreciation to
colleagues and students whose valuable feedback has contributed to improving the
content and structure of this book. It is our hope that this resource will enrich students’
academic learning and better prepare them for their future careers in the field of
insurance and financial services.
May this textbook be a valuable companion on your academic journey, guiding
you confidently into the specialized world of insurance English. - Thank you – II TABLE OF CONTENTS
PREFACE ............................................................................................................................................. II
UNIT 1: SOCIAL INSURANCE ..........................................................................................................1
I. READING COMPREHENSION ......................................................................................................1
II. LANGUAGE WORK ......................................................................................................................5
III. TRANSLATION ............................................................................................................................8
IV. EXTRA READING ......................................................................................................................10
V. LESSON REVISION .....................................................................................................................15
UNIT 2: UNEMPLOYMENT INSURANCE.....................................................................................19
I. READING COMPREHENSION ....................................................................................................19
II. LANGUAGE WORK ....................................................................................................................23
III. TRANSLATION ..........................................................................................................................25
IV. EXTRA READING ......................................................................................................................26
V. LESSON REVISION .....................................................................................................................29
UNIT 3: THE ORIGIN OF COMMERCIAL INSURANCE ...........................................................35
I. READING COMPREHENSION ....................................................................................................35
II. LANGUAGE WORK ...................................................................................................................39
III. TRANSLATION .........................................................................................................................42
IV. EXTRA READING ......................................................................................................................44
V. LESSON REVISION .....................................................................................................................47
UNIT 4: INSURANCE CONTRACT ................................................................................................51
I. READING COMPREHENSION ....................................................................................................51
II. LANGUAGE WORK ...................................................................................................................55
III. TRANSLATION .........................................................................................................................59
IV. EXTRA READING ......................................................................................................................61
V. LESSON REVISION .....................................................................................................................64
UNIT 5: LIFE INSURANCE ..............................................................................................................67
I. READING COMPREHENSION ....................................................................................................68
II. LANGUAGE WORK ...................................................................................................................72
III. TRANSLATION .........................................................................................................................74
IV. EXTRA READING ......................................................................................................................76
V. LESSON REVISION .....................................................................................................................79
UNIT 6: RISK MANAGEMENT ........................................................................................................83 III
I. READING COMPREHENSION ....................................................................................................83
II. LANGUAGE WORK ...................................................................................................................88
III. TRANSLATION .........................................................................................................................90
IV. EXTRA READING ......................................................................................................................92
V. LESSON REVISION .....................................................................................................................96
UNIT 7: THE PROPOSAL .................................................................................................................99
I. READING COMPREHENSION ....................................................................................................99
II. LANGUAGE WORK .................................................................................................................103
III. TRANSLATION .......................................................................................................................105
IV. EXTRA READING ....................................................................................................................106
V. LESSON REVISION ...................................................................................................................109
UNIT 8: INDEMNITY ....................................................................................................................... 112
I. READING COMPREHENSION .................................................................................................. 113
II. LANGUAGE WORK ................................................................................................................. 117
III. TRANSLATION ....................................................................................................................... 119
IV. EXTRA READING ....................................................................................................................120
V. LESSON REVISION ...................................................................................................................124
SAMPLE TEST 1 ...............................................................................................................................127
SAMPLE TEST 2 ...............................................................................................................................131
SAMPLE TEST 3 ...............................................................................................................................135
WORD LIST .......................................................................................................................................137
REFERENCES ...................................................................................................................................160 IV
UNIT 1: SOCIAL INSURANCE LEAD IN:
1. What do you know about social insurance?
2. Do you or your family members have any type of social insurance?
3. What kinds of situations might make people need social insurance?
4. In your opinion, who should pay for social insurance — the employee, the
employer, or the government?
5. How would life be different if there were no social insurance at all?
I. READING COMPREHENSION A. Pre-reading:
Discuss the following questions:
How important is social insurance in Vietnam?
B. Reading text:
VIET NAM SOCIAL INSURANCE SYSTEM
Social insurance is a type of insurance, which is contributed mainly by laborers
and labor users. The purpose of this insurance is to support the laborer in case that they
cannot come to work like diseases, maternity and retirement, or they suffer from
occupational diseases or work accidents.
The social insurance in Vietnam consists of two main types: compulsory
insurance and voluntary insurance. The employers will pay the insurance fee monthly
for the employees by deducting part of their monthly salary, and the payment rate for
insurance is various depending on the types of insurance and the conditions of the payers.
The supportive money to the employee will be calculated based on the
insurance’s time and level of payment.
1. Compulsory social insurance: 1
This is the insurance that the employee must purchase when they are at work. At
present the monthly rate for this insurance is approximately 8% of the monthly salary,
and this rate will be raised in the future. The compulsory social insurance is used for the cases below:
* Sickness: This policy is used for both sickness of the employees and their
children under 7 years old. The subsidies rate in this case is from 45 to 75% the income
of the nearest month before leaving based on the insurance payment time and the absent time.
* Maternity: This is applied for all women who give birth, adopt kids, abort or
sterilize. The subsidies for women in this case are 100% the average income of the sixth
nearest months, in addition to a one-time support of 2-month minimum wage. Time to
receive the subsidies is 6 to 8 months for those who give birth or adopt kids, and 7 to 50
days for abortion or sterilization.
* Occupational diseases and accident: This is only used for employees who suffer
from work accidents at or outside the office when conducting the work, diseases caused
by working conditions and lose 5% of theỉr working capability. The insurance subsidies
for this case include a one-time support with the lowest amount of minimum wage, and
another monthly support with the lowest proportion of 30% of the lowest minimum wage.
* Retirement: In Vietnam, the retired employees receive the monthly pension of
45% of the average monthly salary if they have paid the insurance fee for 15 years. After
that, additional subsidies for each extra year they paid the insurance fee will be sent to
them with the rate of 2 % for men and 3% for women, but the highest rate must not exceed 75%.
* Death: Subsidies for the death of the employees are sent to their relatives. There
are two types of subsidies, either lump sum payment or monthly, and the relatives of the
death can only receive one of these two types of support. Subsidies are calculated based
on the insurance payment time with the rate of 1.5 the average salary for one year, and
with monthly subsidies, the rate is 50% to 70% of the minimum wage. 2. Voluntary Social Insurance
This type of insurance is not mandatory, and employees can choose to purchase
it or not. The benefit of buying this insurance program is to increase the subsidies for
them and their relatives when they retire or die. The amount of this insurance is
calculated by multiplying the monthly income with the voluntary insurance ratio.
Monthly income is chosen by the insurance payer, with the lowest rate equal to the
minimum wage and the highest rate of 20 months of minimum wage. The insurance fee
will be paid monthly, quarterly or every 6 months 2 3. Unemployment Insurance
This type of insurance is applied compulsorily to the laborers and their users in
some special conditions. To receive the subsidies from this insurance, the employee
must register to the insurance organization and pay unemployment at least 12 months in
the nearest 24 months before being unemployed. The subsidies of this insurance are
equal to 60% of the average salary of the nearest 6 months before being unemployed
and paid from 3 to 12 months, depending on the time that the employees have paid the insurance fee before.
(Source: www.vietnamonline.com)
Comprehension questions: Read the text and answer the following questions 1. What is social insurance?
…………………………………………………………………………………………..
…………………………………………………………………………………………..
2. What is the purpose of the social insurance?
…………………………………………………………………………………………..
…………………………………………………………………………………………..
3. What are the main types of the social insurance in Viet Nam?
…………………………………………………………………………………………..
…………………………………………………………………………………………..
4. How many cases are included in compulsory social insurance? What are they?
…………………………………………………………………………………………..
…………………………………………………………………………………………..
5. How is the amount of the voluntary social insurance counted?
…………………………………………………………………………………………..
…………………………………………………………………………………………..
6. How can the employees receive the subsidies from the unemployment insurance?
…………………………………………………………………………………………..
…………………………………………………………………………………………..
7. What kinds of situations does the compulsory social insurance support?
…………………………………………………………………………………………..
…………………………………………………………………………………………..
8. Who pays for the compulsory social insurance of employees?
…………………………………………………………………………………………..
…………………………………………………………………………………………..
9. What benefits can women receive under the maternity policy?
…………………………………………………………………………………………..
………………………………………………………………………………………….. 3
10. What must an employee do to receive unemployment insurance subsidies?
…………………………………………………………………………………………..
…………………………………………………………………………………………..
C. After reading
Read the following questions carefully and choose the best answer to each
question (A, B, C, or D) based on the information in the reading passage.
1. What is the main purpose of social insurance in Vietnam?
A. To increase workers’ salaries
B. To support workers when they cannot work due to sickness, maternity, or retirement
C. To provide housing for workers D. To pay taxes for workers
2. How many main types of social insurance are there in Vietnam? A. One B. Two C. Three D. Four
3. Who pays for compulsory social insurance? A. The government only B. The employee only C. The employer and employee D. The insurance company
4. What is the current monthly rate of compulsory social insurance in Vietnam? A. 5% of monthly salary B. 8% of monthly salary C. 10% of monthly salary D. 15% of monthly salary
5. What percentage of income do employees receive during maternity leave? A. 45% B. 60% C. 75% D. 100%
6. In the case of retirement, employees receive 45% of their average monthly salary if
they have paid the insurance fee for how many years? A. 10 years B. 12 years C. 15 years D. 20 years
7. Which of the following cases is NOT covered by compulsory social insurance? A. Sickness B. Maternity C. Unemployment D. Occupational diseases
8. What is the highest retirement pension rate allowed in Vietnam’s system? A. 50% B. 60% C. 75% D. 90%
9. What is the main benefit of voluntary social insurance?
A. To increase retirement and death subsidies
B. To cover unemployment support
C. To get higher medical insurance
D. To reduce monthly salary deduction
10. To receive unemployment insurance, how long must an employee have paid
unemployment insurance within the nearest 24 months? 4 A. 6 months B. 9 months C. 12 months D. 18 months II. LANGUAGE WORK
Exercise 1: Match each word in column A with its definition in column B A B 1. Budget
a. Payment made under insurance or social security. 2. Social services
b. Annual estimate of country’s revenue and expenditure. 3. Voluntary c. Compulsory. 4. Benefit
d. Done or acting or able to act of one’s own free will. 5. Welfare
e. Condition of having retired. 6. Retiree
f. Good fortune, happiness, well-being 7. Mandatory
g. A person who leave office or employment because of age. 8. Retirement
h. Commission to act for another.
i. State assistance to those lacking adequate money or welfare.
j. Welfare services such as education, health, housing.
Exercise 2: Use the suitable words from the box to fill in the gaps risks issues voluntary survivor till private mandatory social benefits although Retirees welfare
SOCIAL INSURANCE AND WELFARE PROGRAMS
The word “insurance” is used to describe the transfer programs because they deal
with (1)……………. : the risk of job loss, of health care expenses, and of inadequate
assets during retirement. But social insurance is very different from (2)………………
insurance. The key distinction is that participation in social insurance programs is (3)
………………… or is induced by substantial fiscal subsidies. Social insurance
programs are also very different from (4) ……………… programs. Welfare benefits are
means tested, i.e., they are paid only to those with incomes (and assets) below some
levels. In the United States, these means tested programs include Medicaid, food stamps,
subsidized housing, school lunches, and others.
In contrast, social insurance programs are “event conditioned”. (5)
……………… are paid when some events occur in an individual’s life regardless of the
individual’s income or assets. Unemployment benefits are paid to those who lose their 5
jobs. Medicare benefits to those who are ill and over 65. Social Security benefits are
available to those over age 62, disability benefits to those unable to work, and (6)
………………. benefits to the widows and children of deceased workers.
Unlike welfare programs, social insurance programs are not designed to be
vehicles for income redistribution. (7) ………………. some fraction of social insurance
outlays are paid to those with low incomes, most of the benefits go to middle and higher
income households. This is particularly true in the United States where cash benefits to
(8) ………………… and the unemployed are positively related to previous earnings and
where healthcare is largely provided by private hospitals and physicians even when financed by social insurance.
Exercise 3: Find suitable subjects for each sentence below 1. Social insurance
2.The duration of paying social insurance premiums 3. Unemployed person Subjects 4. The common minimum wage
5. Compulsory social insurance
6. The relatives of the insured person 7. Voluntary social insurance
1. ……………………………… ensures a replacement or offsets partially
income for employees when they have lost or reduced their income caused by sickness,
maternity, employment injury, occupational disease, unemployment, old age or death
based on their contributions to social insurance fund.
2. ………………………………. is type of social insurance which both
employees and employers are obliged to join.
3. ………………………………….. is type of social insurance which employees
voluntary to join and are allowed to select premium rate and mode of paying social
insurance premiums themselves to social insurance fund based on their income for social insurance benefits.
4. ……………………….. means a person who has contributed to unemployment
insurance fund but has lost his/her job or his/her labor contract has terminated and has not found the job.
5. ………………………………… is calculated from the starting date to the
ending date of paying social insurance premiums. In case, the employee has not paid
social insurance premiums constantly, the duration of paying social insurance premiums
is calculated based on the total contribution period to social insurance fund. 6
6. ………………………………… means the official minimum wage, which is
promulgated by the Government in each period.
7. ……………………………. include his/her children, spouse; father, mother,
father-in-law, mother-in-law and persons to whom the insured person has to raise.
Exercise 4: Use the correct form of the words given in italics to fill in the gaps
1. The origins of insurance lie so far in the history of ………………. (civilize)
that they have not been identified.
2. In the early stage of the process, if the risk occurred the …………… (insure)
would have to sell some property (or draw cash from their bank account) in order to pay
what they owed to the insured.
3. The company would employ …………….. (special) people to underwrite
risks, and if the risks occurred the company would pay indemnity to the insured out of
a common fund that the company held as investments.
4. The four concepts that describe the role of insurance in a market economy are
value, …………….. (protect), risk and service.
5. Risk is …………………… (predict) – the tendency that actual results may
differ from predicted results.
6. The social insurance fund should be implemented in a simple, user-friendly
and convenient way to ensure insured employee receives his/her benefits
………………. (adequacy) and timely.
7. The ministries, relevant bodies, offices under the Government in the range of
their responsibilities and ………………….. (authorize) are responsible for the state
management of social insurance.
8. The insurer has the job of ………………… (persuade) potential customers
that they should buy the insurance.
Exercise 5: Write the corresponding parts of speech to the words given Verbs Nouns Adjectives Employment Vary Support Calculation Conductive Pay Sterilization 7 Retire Adopt Mandate III. TRANSLATION
Exercise 1: Translate the following passage into Vietnamese
Benefits Under Compulsory Social Insurance
Employees participating in the compulsory social insurance scheme are entitled to five
main benefits, corresponding to the following benefits: 1. Sickness Benefit
- Under the sickness benefit, employees who fall ill or are injured (outside of work-
related causes) are entitled to sick leave.
- During this time, the employee receives a portion of their salary, usually
calculated as 75% of their average monthly salary. The duration of the sick leave
depends on how long the employee has worked and the nature of the illness.
- For regular illnesses, employees can take up to 30 days off if they have worked
less than 15 years, or 40 days if they have worked between 15 and 30 years. For
serious illnesses, the sick leave can extend up to 180 days.
- The sick leave provides a critical lifeline for employees who need time to recover
without losing financial stability. 2. Maternity Benefit
- The maternity benefit is one of the most supportive features of the social
insurance system in Vietnam. It ensures that female employees are financially
covered during pregnancy and childbirth, helping to alleviate the stress of balancing work and family.
- Pregnant employees are entitled to maternity leave of six months. In the case of
twins or more, the leave period is extended by one month for each additional child.
- During maternity leave, the employee receives 100% of their average monthly
salary. Additionally, female workers can also receive financial aid for prenatal
care, childbirth, and even miscarriage or abortion in specific cases.
- In certain conditions, male employees are also entitled to take time off to support
their spouse after childbirth, with a leave period ranging from 5 to 14 days
depending on the birth circumstances.
(Source: https://www.russinvecchi.com.vn/publication/social-insurance-in-vietnam/) 8
Exercise 2: Translate the following passage into English
Quyền lợi khi tham gia bảo hiểm xã hội là gì?
Toàn bộ quyền lợi của người lao động khi tham gia BHXH được quy định cụ thể tại Điều 10 Luật BHXH gồm:
- Hưởng chế độ bảo hiểm xã hội theo quy định của Luật này;
- Được cấp sổ bảo hiểm xã hội;
- Được cơ quan bảo hiểm xã hội định kỳ hằng tháng cung cấp thông tin về việc
đóng bảo hiểm xã hội thông qua phương tiện điện tử; được cơ quan bảo hiểm xã
hội xác nhận thông tin về đóng bảo hiểm xã hội khi có yêu cầu;
- Yêu cầu người sử dụng lao động và các cơ quan, tổ chức có liên quan thực hiện
đầy đủ trách nhiệm về bảo hiểm xã hội đối với mình theo quy định của pháp luật;
- Được tuyên truyền, phổ biến chính sách, pháp luật về bảo hiểm xã hội;
- Chủ động đi khám giám định y khoa để xác định mức suy giảm khả năng lao
động nếu thuộc trường hợp đang bảo lưu thời gian đóng bảo hiểm xã hội và được
thanh toán phí giám định y khoa khi kết quả giám định y khoa đủ điều kiện để
hưởng chế độ bảo hiểm xã hội theo quy định của Luật này;
- Khiếu nại, tố cáo và khởi kiện về bảo hiểm xã hội theo quy định của pháp luật.
- Ngoài ra, người thụ hưởng chế độ bảo hiểm xã hội có các quyền sau đây:
- Nhận các chế độ bảo hiểm xã hội đầy đủ, kịp thời, thuận tiện;
- Hưởng bảo hiểm y tế trong trường hợp đang hưởng lương hưu; nghỉ việc hưởng
trợ cấp tai nạn lao động, bệnh nghề nghiệp hằng tháng; trong thời gian nghỉ việc
hưởng chế độ thai sản từ 14 ngày làm việc trở lên trong tháng; trong thời gian
nghỉ việc hưởng chế độ ốm đau từ 14 ngày làm việc trở lên trong tháng hoặc nghỉ
việc hưởng trợ cấp ốm đau đối với người lao động bị mắc bệnh thuộc danh mục
bệnh cần chữa trị dài ngày...
- Được thanh toán phí giám định y khoa đối với trường hợp không do người sử
dụng lao động giới thiệu đi khám giám định mức suy giảm khả năng lao động mà
kết quả giám định y khoa đủ điều kiện để hưởng chế độ bảo hiểm xã hội theo quy định của Luật này;
- Ủy quyền bằng văn bản cho người khác thực hiện bảo hiểm xã hội;
- Đối với người từ đủ 80 tuổi trở lên nếu có nhu cầu thì được cơ quan bảo hiểm xã
hội hoặc tổ chức dịch vụ được cơ quan bảo hiểm xã hội ủy quyền thực hiện việc
chi trả lương hưu, trợ cấp bảo hiểm xã hội tại nơi cư trú trên lãnh thổ Việt Nam;
- Được cơ quan bảo hiểm xã hội định kỳ hằng tháng cung cấp thông tin về việc
hưởng chế độ bảo hiểm xã hội thông qua phương tiện điện tử; được cơ quan bảo
hiểm xã hội xác nhận thông tin về hưởng bảo hiểm xã hội khi có yêu cầu;
- Khiếu nại, tố cáo và khởi kiện về bảo hiểm xã hội theo quy định của pháp luật; 9
- Từ chối hưởng chế độ bảo hiểm xã hội.
(Source: https://luatvietnam.vn/bao-hiem/bao-hiem-xa-hoi-la-gi-563-32915- article.html) IV. EXTRA READING
LAW ON SOCIAL INSURANCE
Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which
was amended and supplemented under Resolution No. 51/2001/QH10 of December 25,
2001, of the 10th National Assembly, the 10th session;
This Law provides for social insurance.
CHAPTER I: GENERAL PROVISIONS Article 1. Regulation scope
1. This Law provides for social insurance regimes and policies; the rights and
responsibilities of insured laborers, agencies, organizations and individuals; social
insurance organizations; social insurance funds; procedures for implementation of social
insurance and state management of social insurance.
2. This Law does not apply to health insurance, deposit insurance and types of business insurance.
Article 2. Subjects of application
1. Laborers entitled to participate in compulsory social insurance are Vietnamese citizens, including:
a/ Persons working under contracts of indefinite term or contracts of a term of full three months or longer;
b/ Cadres, officials, public servants;
c/ Defense workers, police workers;
d/ Officers and professional personnel of the people's army; professional officers
and non-commissioned officers, technical officers and non-commissioned officers of
the people's police; persons engaged in cipher work and enjoying salaries like armymen or policemen;
e/ Non-commissioned officers and soldiers of the people's army and non-
commissioned officers and combatants of the people's police on term services;
f/ Persons working overseas for a definite term who previously paid compulsory social insurance premiums.
2. Employers entitled to participate in compulsory social insurance include state
agencies, non-business units, people's armed force units; political organizations, socio-
political organizations, socio-professional-political organizations, socio-professional 10
organizations, other social organizations; foreign agencies and organizations,
international organizations operating in the Vietnamese territory; enterprises,
cooperatives, individual business households, cooperative groups, other organizations
and individuals hiring, employing and paying wages to laborers.
3. Laborers entitled to participate in unemployment insurance include
Vietnamese citizens working under labor contracts or working contracts of indefinite
term or a term of between full twelve months and thirty six months for employers
specified in Clause 4 of this Article.
4. Employers entitled to participate in unemployment insurance are employers
specified in Clause 2 of this Article who employ ten or more laborers.
5. Persons entitled to participate in voluntary social insurance are working-age
Vietnamese citizens who are not specified in Clause 1 of this Article.
6. Agencies, organizations and individuals related to social insurance.
Laborers participating in compulsory social insurance, laborers participating in
unemployment insurance and persons participating in voluntary social insurance are
hereinafter collectively referred to as laborers.
Article 3. Interpretation of terms
In this Law, the terms below are construed as follows:
1. Social insurance means the guarantee to fully or partially offset a laborer's
income that is lost or reduced due to his/her sickness, maternity, labor accident,
occupational disease, unemployment, retirement or death, on the basis of his/her
contributions to the social insurance fund.
2. Compulsory social insurance means a form of social insurance in which laborer
and employer must participate.
3. Voluntary social insurance means a form of social insurance in which a laborer
voluntarily participates, may select premium rates and modes of premium payment
suitable to his/her income in order to enjoy social insurance coverage.
4. Unemployed person means a person who had paid unemployment insurance
premiums then has lost his/her job or terminated his/her labor or working contract and has not yet found a job.
5. Duration of social insurance premium payment means a duration counting
from the time a laborer starts paying social insurance premiums to the time he/she stops
the payment thereof. When a laborer pays social insurance premiums in interrupted
durations, the duration of social insurance premium payment is the total time of social insurance premium payment.
6. Common minimum salary means the lowest salary promulgated by the Government in each period. 11
7. Relative means an insured person's child, wife or husband, natural father,
natural mother, father-in-law, mother-in-law or other persons whom the insured person is obliged to nurture.
Article 4. Social insurance regimes
1. Compulsory social insurance covers the following regimes: a/ Sickness; b/ Maternity;
c/ Labor accident, occupational disease; d/ Retirement; e/ Survivorship allowance.
2. Voluntary social insurance covers the following regimes: a/ Retirement; b/ Survivorship allowance.
3. Unemployment insurance covers the following regimes: a/ Unemployment allowance; b/ Job-learning support; c/ Job-seeking support.
Article 5. Social insurance principles
1. The level of social insurance entitlement shall be calculated on the basis of the
premium rate, the social insurance payment duration and the sharing among social insurance participants.
2. The payable compulsory social insurance or unemployment insurance
premium shall be calculated on the basis of laborers' salary or remuneration. The payable
voluntary social insurance premium shall be calculated on the basis of the income level
selected by laborers, which, however, must be at least equivalent to the common minimum salary.
3. Laborers who pay both compulsory and voluntary social insurance premiums
are entitled to the retirement regime and survivorship allowance regime on the basis of
the duration of payment of social insurance premiums.
4. The social insurance fund shall be managed in a uniform, democratic, open
and transparent manner, be used for proper purposes and be independently accounted
according to the component funds of compulsory social insurance, voluntary social
insurance and unemployment insurance.
5. Social insurance shall be implemented in a simple, easy and convenient
manner, promptly and adequately ensuring the interests of the insured.
Article 6. State policies on social insurance 12
1. The State shall encourage and create conditions for agencies, organizations
and individuals to participate in social insurance.
2. The State shall adopt preferential policies of investment in the social insurance
fund and other necessary measures to preserve and develop the fund. The social
insurance fund shall be protected by the State and shall not become bankrupt.
3. Retirement pensions, social insurance allowances and profits from activities
investment of the social insurance fund are tax-free.
(Source: http://www.moj.gov.vn.com)
Exercise 1: Read the text and choose the best answer to the questions
1. What is the main purpose of the Law on Social Insurance?
A. To regulate business insurance policies
B. To provide for social insurance regimes, rights, and responsibilities of parties involved
C. To regulate health insurance only
D. To define taxation of social insurance
2. According to the Law, which type of insurance is NOT covered under this Law?
A. Compulsory social insurance B. Voluntary social insurance C. Unemployment insurance D. Health insurance
3. Which of the following groups must participate in compulsory social insurance?
A. Persons working under contracts of three months or more B. Self-employed individuals C. Retired officials D. Foreign workers
4. Who are the employers required to participate in compulsory social insurance? A. Only state agencies
B. Only enterprises with over 50 workers
C. All organizations and individuals hiring and paying wages to laborers
D. Only political organizations
5. How many regimes does compulsory social insurance cover? A. Three B. Four C. Five 13 D. Six
6. What regimes does voluntary social insurance include? A. Sickness and unemployment
B. Retirement and survivorship allowance C. Maternity and unemployment
D. Labor accident and maternity
7. Which of the following principles is TRUE about social insurance?
A. All laborers must pay the same premium rate
B. Social insurance shall be implemented in a simple, convenient, and transparent manner
C. The State does not manage the social insurance fund
D. Retirement pensions are subject to income tax
8. According to the Law, what is the “common minimum salary”?
A. The lowest wage paid by private companies
B. The lowest salary promulgated by the Government in each period
C. The average salary of state employees
D. The minimum wage set by employers
9. What principle determines the level of social insurance entitlement? A. Based on government budget
B. Based on the premium rate, payment duration, and sharing among participants
C. Based on workers’ age and gender
D. Based on the economic growth rate
10. According to the Law, what tax policy applies to pensions and insurance allowances?
A. They are taxed like regular income
B. They are subject to business tax C. They are tax-free
D. They are only taxed if above a certain amount
Exercise 2: Read the statements below and write True or False in the answer box
based on the information in the text. No Statement True/False 1
The Law on Social Insurance applies to all types of insurance,
including health insurance and business insurance. 2
Laborers working under contracts of more than three months must
participate in compulsory social insurance. 14 3
Self-employed individuals are automatically included in compulsory social insurance. 4
Employers who hire and pay wages to laborers are required to
participate in compulsory social insurance. 5
Voluntary social insurance includes benefits for sickness and maternity. 6
Unemployment insurance provides job-learning and job-seeking support. 7
The social insurance fund must be managed openly, transparently, and used for proper purposes. 8
The amount of voluntary social insurance premium is calculated
based on the income level chosen by the laborer. 9
Retirement pensions and insurance allowances are subject to income tax under this Law.
10 The State is responsible for encouraging and protecting the social
insurance fund from bankruptcy. V. LESSON REVISION
Exercise 1: Choose the best option (A, B, C or D) to fill in the gaps.
1. Social insurance is designed to support workers when they cannot work due to ________. A. retirement B. education C. travel D. promotion
2. In Vietnam, social insurance is divided into two main types: compulsory and ________. A. basic B. optional C. voluntary D. public
3. Employers pay insurance fees monthly by deducting a part of the employee’s ________. A. allowance B. bonus C. salary D. overtime
4. The amount of insurance benefit is calculated based on the level and ________ of payment. A. duration B. date C. schedule D. method
5. Compulsory social insurance is required for anyone who is ________. A. unemployed B. a student C. currently working D. retired
6. The sickness benefit covers both the worker’s illness and the sickness of their ________. A. parents B. friends C. children under 7 D. supervisors 15
7. Women who give birth receive 100% of their average income for the last ________ months. A. three B. six C. nine D. twelve
8. Workers suffering from occupational accidents can receive a one-time payment or a ________ allowance. A. monthly B. yearly C. special D. emergency
9. Retired employees receive a pension equal to 45% of their average salary after paying insurance for ________ years. A. ten B. fifteen C. twenty D. twenty-five
10. The maximum pension rate for both men and women must not exceed ________ percent. A. 60 B. 70 C. 75 D. 80
11. Voluntary social insurance is mainly designed for workers who are ________. A. foreigners B. unemployed
C. self-employed D. government officers
12. The lowest income for calculating voluntary insurance must be at least equal to the ________ wage. A. basic B. common minimum C. average D. legal
13. Unemployment insurance applies only to those who have paid for at least ________ months in the last 24 months. A. six B. nine C. twelve D. eighteen
14. The unemployment benefit equals ________ percent of the average salary of the
nearest six months before unemployment. A. 45 B. 50 C. 60 D. 75
15. According to the law, social insurance aims to offset the loss of income caused by
sickness, accident, or ________. A. marriage B. promotion C. retirement D. education
16. The Law on Social Insurance does not apply to health insurance, deposit insurance, or ________ insurance. A. property B. business C. labor D. personal
17. The social insurance fund must be managed openly, democratically, and ________. A. locally B. independently C. transparently D. privately
18. Employers who hire and pay wages to laborers are obligated to ________ social insurance premiums. A. ignore B. withhold C. pay D. record
19. Pensions and allowances from the social insurance fund are completely ________.
A. tax-free B. temporary C. refundable D. reduced 16