CHAPTER - 1 GENERAL PRINCIPLES
The Insurance of the Military Personnel (“the Insurance”) is based on this Act.
The Military Personnel stated in this Act refers to the ranking Officers, Non Commissioned Officers, and enlisted soldiers currently in service.
The Insurance covers 5 categories including death, disability, retirement, parental leave without pay, and funeral expense of the dependents.
The Insurance is in charged by the Ministry of National Defense . The Insurance matters under this Act may be delegated by the authority in charge to other government agencies or public enterprises (hereinafter the “Insuring Agencies”) for execution.
All financial surplus of the Insurance shall be set aside as insurance reserves. The regulations governing management and utilization of the reserves shall be prescribed by the competent authority.
For handling fee payable to the insuring agencies for the Insurance, the central government shall budget regular fund and the amount shall never be over 3.5% of the total annual premium revenue.
With regard to the financial responsibilities of the Insurance, the retirement payments that shall be calculated and paid on the basis of the insurance coverage in accordance with the provisions prior to the Articles of this Act amended on 31 May 2013 came into force and the policy reserves have not been deposited accordingly shall be examined and compensated by the central government. The loss that occurred after the Articles of this Act amended on 31 May 2013 came into force, unless the occurrence due to war, armed conflict, or force majeure shall be examined and compensated by the central government, shall be compensated by adjustment of the premium rate.
CHAPTER - 2 INUSRANCE BENEFICIARY
The beneficiary of the retirement payments, disability compensations, subsidies for parental leave without pay, and funeral expense of the dependents is the insured herself/himself. The death indemnities shall be received by the relatives as the beneficiary in the following order:
1. The spouse.
In case that the insured has already designated the beneficiary of the death indemnities prior to the Articles of this Act amended on 31 May 2013 came into force, the designation shall be complied with.
If the insured does not have any relatives listed in the preceding Article or such relatives are unable to be the beneficiaries due to the environmental restriction of the area they live, the insured may designate other relatives, friends, or non-profit judicial persons to be the beneficiaries after getting approval from the Ministry of National Defense.
If the Beneficiary can not be notified due to being limited (or restricted) by their leaving area's environment, the insurance indemnity will be paid according to the standard payment at the time the beneficiary applied and has been approves for release.
CHAPTER - 3 INSURANCE PREMIUM
The premium rate of the Insurance is 8% to 12% of the insured’s monthly amount of insurance unit.
The premium rate prescribed in the preceding Paragraph shall be calculated regularly by the actuary or the actuarial institute retained by the insuring agencies. The actuarial result with the actual revenue and expenditure of the Insurance shall be evaluated by the competent authority and reported to the Executive Yuan. The premium rate will be reviewed and determined by the Executive Yuan and shall be sent to the Legislative Yuan for reference. The same process shall apply to the adjustment of the premium rate. However, during the actuarial procedure, the amount of the retirement payments that shall be calculated and paid on the basis of the insurance coverage in accordance with the provisions prior to the Articles of this Act amended on 31 May 2013 came into force and the policy reserves have not been deposited accordingly shall be excluded from the calculation of the premium rate.
The monthly amount of insurance unit prescribed in Paragraph 1 is calculated based on the monthly salary of the insured.
The monthly amount of insurance unit of compulsory military officers and non-commissioned officers shall be based on the monthly amount of insurance unit of volunteer military officers and non-commissioned officers in the same rank at the pay grade 1. The monthly amount of insurance unit of soldiers and military school students receiving grants from the government shall be based on the monthly amount of insurance unit of volunteer corporals at the pay grade 1.
The premium shall be paid monthly; 35% of the premium is paid by the insured herself/himself and 65% is subsidized by the government. However, the premium of the compulsory officers, non-commissioned officers and soldiers is borne by the government in full amount.
The premium that is subsidized or borne by the government prescribed in the preceding Paragraph shall be budgeted respectively by the organization that the insured serves and paid to the insurance agencies monthly.
Prior to the enforcement of the amended Act on 20 April 2010, the insurance premium will be shouldered by the National Treasury during the valid period of the Insurance based on the condition that an insured person has been insured for 30 years or has been insured for less than 30 years but will continue to pay the insurance premium until the insured person is insured for 30 years; Should any of the insured events listed in Article three (3) occur, the insurance payments may be withdrawn according to this Act.
CHAPTER - 4 INSURANCE PAYMENT
The insurance payment is computed according to the Insurance Basic Point of the month when the insured person has perished as its standard.
The rules of the death indemnity payment are as follows:
1- Died in a Battle: Pay 48 basic points.
2- Died on Duty: Pay 42 basic points.
3- Died of Sickness or Accident: Pay 36 basic points.
If the death indemnity payment is lower than the deserved retirements, the payment should be paid according to the retirements amount.
Those who miss on the ground for more than one year, at the sea or in the air for more than half a year while in action, while on duty or accident and can not be located, are considered as died in action, on duty or accident.
The rules of the disability payment are as follows:
1- Being disabled in action:
First Degree: Pay 40 basic points.
Second Degree: Pay 30 basic points.
Third Degree: Pay 20 basic points.
Major disability: Pay 10 basic points.
2- Disabled while on duty
First Degree: Pay 36 basic points.
Second Degree: Pay 24 basic points.
Third Degree: Pay 16 basic points.
Major disability: Pay 8 basic points.
3- Disabled due to sickness or accident:
First Degree: Pay 30 basic points.
Second Degree: Pay 20 basic points.
Third Degree: Pay 12 basic points.
Major disability: Pay 6 basic points.
The degrees of disability stated above are determined by the Ministry of National Defense.
The retirement payments are stipulated as follows: 1. For those who have been insured for five years, 5 units will be paid.
2. For those who have been insured for more than five years, 1 unit will be added for every exceeding year starting from the sixth year up to the tenth year.
3. For those who have been insured for more than ten years, 2 units will be added for every exceeding year starting from the eleventh year up to the fifteenth year.
4. For those who have been insured for more than fifteen years, 3 units will be added for every exceeding year starting from the sixteenth year.
5. For those who have been insured for twenty years, 1 unit will be added for every exceeding year up to the limit of 45 units as the maximum.
For those who have been insured for less than five years and have never received disability compensations, subsidies for parental leave without pay, or funeral expense of the dependents, the insurance premium paid by the insured shall be refunded in accordance with the premium payable criteria of the latest payable month.
An insured person that has applied for leave without pay shall upon application, decide whether to cancel or continue with the insurance. Upon making the decision, no further alterations can be made.
For those who have been insured over one (1) year, have children less than three (3) years old, have applied for Parental leave without pay and have chosen to continue with the insurance, the subsidy for Parental leave without pay may be granted upon application.
The abovementioned subsidy is calculated via 60% of the average insurance basic points for the six (6) months prior to the month the insured person begins the Parental leave without pay and is paid monthly during the period of the Parental leave without pay for a maximum period of six (6) months. However, for those who have applied for Parental leave without pay for a period of less than six (6) months, the payment will be paid with regards to the actual numbers of months taken for leave without pay. For those who have applied for less than one (1) month, the calculation is made based upon the numbers of days taken for the Parental leave without pay.
For those nurturing more than two (2) children in the family, the subsidy may only be granted to one (1) child.
If both parents are insured by the Insurance and have applied for Parental leave without pay of the same child during different periods and have chosen to continue with the insurance, the subsidy for Parental leave without pay may be requested separately.
For those insured that had opted to continue with the Insurance during the period of Parental leave without pay but have deferred the Insurance premium and applied for the subsidy for Parental leave without pay, the insured person should pay off the part of the deferred insurance premium that the insured person is personally liable for; For those that have not paid off the abovementioned premium, a deduction will be made from the insurance payment receivable.
The abovementioned deferred payment of the Insurance premium may be deferred for three (3) years.
For those insured that have applied for leave without pay rather than for the reason of Parental leave and had opted to continue with their insurance during the period they have applied for leave without pay, the insured person shall be liable for the entire insurance premium.
When the insured’s dependents die due to illness or accidents, the funeral expense of the dependents shall be granted in accordance with the following criteria:
1. Parents and the spouse, 3 units will be paid.
2. The funeral expense of the children are as below:
（1）In case that the child was at least twelve years of age and under the age of twenty-five, 2 units will be paid.
（2）In case that the birth registration of the child had been completed and under the age of twelve, 1 unit will be paid.
In case there are more than one insured who are qualified to claim the same funeral expense of the same dependents, they shall negotiate internally and elect one of them with proof to claim the payment. After receiving the payment, alteration is disallowed.
When the insured’s father, adopted father, mother, or adopted mother die, the insured is entitled to claim the payment of funeral expense of the dependents for the death of one of them only.
If the insured person has encountered two kinds of incidents be cause of the same reason within six months, the insurance compensation will be paid based on the highest one.
An insured person with one of the following situations will not be compensated:
1- Having insured for less than 30 years and ceased to pay the insurance premium without any reason.
2- Dying not because of war or on duty, but instead committing suicide and dies or being disable.
3- Being sentenced to die because of a crime.
4- Being proven and judged to having committed rebellion crime.
For the personnel mentioned above, except for being embargoed of their properties, or having collected a disability compensation, the insured person or the beneficiary can apply for the refund of the insurance premium without any interest.
The insurance beneficiary that has one of the following situations will lose his/her rights of collecting the insurance compensation:
1- Losing his/her citizenships of the Republic of China.
2- Being proven and judged to have committed rebellion crime.
3- Intentionally causing the death of the insured person.
4- The insurance compensation have not been collected for over 5 years without any reason since the day it should be paid.
The insured who was missing in action, on duty, or in an accident and has returned to the troop or hometown after the insurance payment had been processed, shall report to the officer-in-charge, the Reserve Command of the county/city, or the local government with a clear statement. After consenting by the competent authority, the insurance payment received by the insured may not be recovered.
In case the insured or beneficiary received any payments by fraudulent acts, besides criminal punishment , he/she shall return all principals plus interests of the insurance payments.
The insured that returns to the troop prescribed in Paragraph 1 shall rejoin the Insurance.
CHAPTER - 5 SUPPLEMENTARY PROVISIONS
The rights of applying for insurance compensation can not be embargoed or pay debts, and can not be mortgaged, transferred or use as collateral, either.
The insurance business, insurance compensations, insurance contract and records are exempted from all taxes.
The Enforcement Regulations of this Act is instituted by the Executive Yuan.
This Act is enforced effective on its announcement date.