These Regulations are enacted in accordance with Paragraph 7, Article 29 of the Labor Insurance Act (hereinafter referred to as the Act).
The term "unreturned insurance benefits" used in these Regulations refers to insurance benefits that have been claimed by insured persons but then revoked or abolished by the insurer and insured persons have not paid back.
The term "loan" used in these Regulations refers any loan (hereinafter referred to as the loan) given to insured persons according to Subparagraph 4, Paragraph 1, Article 67 of the Act.
The term "owed principal and interest" in these Regulations refers to principal and interest of loans that have not been paid within the contract period as stipulated or have not been paid up completely or those of loans considered achieving maturity.
The insurer may delegate a financial institution to give the loan.
When an insured person fails to return insurance benefits, the insurer may make deductions from the following insurance benefits claimable by the insured person or his or her beneficiary until the full amount is paid up:
1. Childbirth benefits;
2. Injury and sickness benefits;
3. Disability benefits;
4. Old age benefits;
5. Death benefits;
6. Missing person benefits.
When an insured person described in the preceding paragraph applies for payment of National Pension Insurance benefits and years of labor insurance coverage are to be calculated, the insurer may make a deduction from each insurance benefit payment until the full amount is paid up.
Under one of the following circumstances, repayment for uncompleted loans shall be considered completed:
1. An insured person or his or her beneficiary applies for old age pension benefits, death benefits or permanent disability benefits.
2. The insured person applies to the local competent authority for Labor Insurance compensation.
Insured persons are required to present a written notice to the agency responsible for the industry in concern or the competent authority to deduct unpaid principal and interest from the compensation specified in Subparagraph 2 of the preceding paragraph. However, when the Labor Insurance compensation applied for is smaller than the remaining unpaid principal and interest, only the amount applied for shall be deducted.
When an insured person has not paid up the principal and interest of the loan, the insurer shall act according to Articles 7 and 8 and deduct the unpaid amount from the insurance benefits the insured person or his or her beneficiary applies for.
When insured persons who have not paid up the principal and interest of the loan or their beneficiaries apply for the insurance benefits specified in Subparagraph 1, Paragraph 1, Article 5, the insurer shall act according to the following and make deductions from the benefits payable until the principal and interest of the loan are paid up:
1. With benefits to be paid in one lump sum, the owed principal and interest shall be deducted completely from the payment except for funeral and burial allowance payments.
2. With pension benefits, one third of the amount to be paid shall be deducted each time until the owed principal and interest are paid up. However, when an insured person has deceased while receiving old age or disability pension benefits and his or her beneficiary chooses to apply for payment of such benefits in one lump sum, the owed principal and interest shall be deducted completely from the payment.
When an insured person applying for payment of National Pension Insurance benefits as stated in the preceding paragraph and years of Labor Insurance coverage are to be calculated, the insurer shall deduct one third of each pension payment calculated according to years of Labor Insurance coverage until the owed principal and interest are paid up.
Pursuant to the 2nd sub-paragraphs of first paragraph or the preceding paragraph after the deduction of pension amount is lower than NT $ 3,000, the insurer can only deducte the difference between the pension benefits and NT $ 3,000.
When an insured person applies for Labor Insurance benefits other than those specified in Paragraph 1 of the preceding article, the insurer shall deduct one third of each payment until the principal and interest of the loan are paid up. However, no deduction shall be made with insurance benefits less than NT$10,000 or medical benefits.
Calculation of interest on the principal and interest that have not been paid up during the loan period shall be conducted in accordance with the simple interest formula; the annual interest rate shall be the rate announced at the time the contract expires plus 1.25%.
When adjustment of rate of interest on the loan is announced, the interest rate stated in the preceding paragraph shall be adjusted according to the new floating interest rate but it may not exceed the interest rate announced at the time the contract expires.
The insurer shall make deductions to recover owed amounts in the following sequence:
1. Unreturned insurance benefits
2. The owed principal and interest of the loan
3. Other amounts to be deducted or paid up according to law
When a deduction from insurance benefits insured persons or their beneficiaries apply for has been made, the insurer shall issue a written notice along with the insurance benefit payment.
These Regulations shall take effect on the day they are promulgated.
The regulations are amended on February 5, 2015, and apply on March 1, 2015.