ĐB Trần Đình Gia (Đoàn Hà Tĩnh) challenges insurance business
Continuing the 31st session, on the morning of March 18th, at the National Assembly, under the chairmanship of National Assembly Chairman Vuong Dinh Hue, the Standing Committee of the National Assembly organized a questioning session with Minister of Finance Ho Duc Phoc on issues in the financial sector. There were 51 National Assembly deputies registered to ask questions.
Nguyen Thi Ha (Bac Ninh delegation) said that recently, the life insurance market, especially foreign life insurance companies, selling insurance products through credit institutions, bank branches, have had violations. Ha asked the Minister to report on the handling of violations and solutions to prevent these violations.
Minister of Finance Ho Duc Phoc answers questions
Ban the use of misleading advice to sell insurance
Answering questions about the practice of insurance agents misleading customers in selling insurance policies, Minister of Finance Ho Duc Phoc stated that this practice is carried out by insurance agents and companies.
In terms of management, the law strictly prohibits insurance officials from providing incorrect advice, competing, enticing, or using any means to sell insurance policies to individuals with low awareness.
The Ministry of Finance has conducted inspections and audits upon receiving complaints and has imposed severe penalties and transferred cases that show signs of violations to competent authorities for handling.
Regarding insurance policies, they used to be very lengthy, with dozens of pages, making it difficult for individuals to grasp the information, resulting in losses for policyholders.
However, after the amendment of the Insurance Business Law in 2023 and related regulations, a chapter has been dedicated to insurance policies to ensure that they are more concise, clear, and closely regulated.
At the same time, the law stipulates that within 21 days, if any mistakes are found in an insurance policy, policyholders have the right to demand a refund, and insurance companies must reimburse the policyholders.
“Therefore, issues related to insurance policies or customer acquisition have been clearly regulated in the 2023 Insurance Business Law,” said Minister Ho Duc Phoc.
Regarding life insurance, Minister of Finance Ho Duc Phoc stated that in the country, there are 19 insurance companies, with only 2 domestic insurance companies and 17 joint venture and foreign insurance companies. The activities are mainly carried out by agents and employees within the country.
When selling insurance through banks, it may be due to the actions of bank employees, but it may also be due to the insurance companies’ partnerships to enjoy service fees. The roles of the chairpersons and leaders of commercial banks have not been clearly determined.
However, in the implementation process, there is a lack of orientation and management in inspection and supervision, resulting in improper advice from insurance agents and affecting the rights of policyholders.
