This is a petition from the voters of Quang Ngai province to the State Bank of Vietnam.
In response to the voters, the State Bank of Vietnam stated that, in the past time, the State Bank has regularly directed, warned, and rectified the insurance agency activities of credit institutions.
The State Bank has required commercial banks to provide full and accurate information about insurance products and insurance companies to the insurance buyers and explain clearly and fully about insurance benefits, exclusion clauses of insurance liability, and rights and obligations of the insured.
Banks are not allowed to declare information on behalf of the insurance buyers without their consent; and strictly prohibit the act of “forcing” customers to purchase insurance.
The State Bank will continue to closely coordinate with the Ministry of Finance to strengthen the inspection and supervision of insurance services provided through banks. |
Strengthening internal inspection and control activities to detect and promptly handle violations in insurance agency activities, especially the act of consulting and linking the purchase of non-mandatory insurance products with the provision of banking products and services.
“Banks continue to strengthen the inspection and rectification of insurance agency activities throughout the system, not allowing any case of forcing or enticing customers to participate in insurance. In case of any violation, the bank must take strict handling measures according to regulations,” the State Bank stated.
This agency also requested the provincial and municipal branches of the State Bank to strengthen the inspection and supervision of the insurance agency activities of credit institutions based in their localities and strictly handle any violation of the law on insurance business activities…
Earlier, in November 2023, the Ministry of Finance issued Circular No. 67/2023/TT-BTC guiding some articles of the Law on Insurance Business, Decree No. 46/2023/NĐ-CP of the Government detailing the implementation of some articles of the Law on Insurance Business, which supplemented stricter provisions on insurance business activities, especially agency activities through foreign bank branches.
The Circular stipulates that credit institutions and foreign bank branches acting as insurance agents shall not consult, introduce, offer, or arrange the conclusion of linked insurance contracts for customers within 60 days before and after the full disbursement of the loan.
“In the future, the State Bank will continue to closely coordinate with the Ministry of Finance to strengthen the inspection and supervision of insurance services provided through banks. In case of any violation, it will be considered and strictly handled according to the provisions of law,” the agency affirmed.
According to the reporter’s observation, the practice of forcing bank loan borrowers to purchase insurance still occurs in some banks. Some loans with special incentives are offered on the condition that customers must purchase life insurance.
However, the situation of “forcing” borrowers to purchase insurance has decreased compared to before, and now bank consultants mainly provide information about insurance products for customers to choose from.
Thai Phuong
