Ensuring people's rights when participating in insurance

On the morning of November 3, during a discussion at Group 15 (including the National Assembly Delegation of Phu Tho and Dak Lak provinces) on the draft Law amending and supplementing a number of articles of the Law on Insurance Business, some opinions suggested that it is necessary to clearly and transparently regulate consultation and provision of contract information to ensure rights and encourage people to participate in insurance.

Head of the National Assembly Delegation of Phu Tho province Bui Minh Chau chaired the discussion session. Photo: Xuan Quy

Empower businesses to proactively use personal agents

Commenting on the draft Law amending and supplementing a number of articles of the Law on Insurance Business, National Assembly Deputy Dang Bich Ngoc (Phu Tho) said that Clause 10, Article 1 of the draft Law stipulates the operating principles of insurance agents in the direction that insurance agents who are selling to insurance companies in a certain field (life insurance, non-life insurance, health insurance) are not allowed to act as agents for other insurance companies in the same field.

In fact, the Law on Insurance Business 2022 has limited the scope of activities of individual agents (the Law only allows agency activities at 1 insurance company), with the aim of limiting conflicts of interest between insurance companies using agents. Therefore, the provisions in Clause 10, Article 1 of the draft only clarify but do not change the nature of the current regulations.

National Assembly Delegate Dang Bich Ngoc (Phu Tho) speaks. Photo: Xuan Quy

According to the delegate, if insurance companies have effective methods of managing agents, they should consider creating conditions for agents to exploit products of many companies to increase income and develop their careers. This is especially necessary in remote areas where the distribution network is limited. Therefore, the delegate proposed that regulations should be in the direction of empowering insurance companies to proactively decide and take responsibility for using individual agents, in accordance with practice, and promoting market development.

Regarding the conditions for insurance businesses to officially operate, National Assembly member Nguyen Thi Phu Ha (Phu Tho) suggested considering abolishing the conditions for businesses to officially operate, and carefully evaluating the transition from "pre-inspection" to "post-inspection". Since this is a form of mobilizing money from businesses and people, it is necessary to strictly check the operating conditions of insurance businesses, reinsurance businesses, and foreign branches in Vietnam to ensure the safety of insurance participants.

National Assembly Delegate Nguyen Thi Phu Ha (Phu Tho) speaks. Photo: Xuan Quy

Amending regulations to allow non-life insurance businesses to deploy products for 5 years or less

Regarding the operations of insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam (Clause 2, Article 1), through contact with local voters, National Assembly Deputy Nguyen Van Manh (Phu Tho) said: after the Law on Insurance Business 2022 takes effect, non-life insurance enterprises face many difficulties when the products being deployed are not suitable to the needs and wishes of participants. This draft Law is amending Clause 3, Article 63 of the Law on Insurance Business, which stipulates the time to deploy short-term premium-collecting death risk insurance products (from 1 year or less) but is limited in terms of insurance term as prescribed in Point b, Clause 3, Article 63.

National Assembly Delegate Nguyen Van Manh (Phu Tho) speaks. Photo: Xuan Quy

According to the delegate, the problem focuses on two groups of customers. First, customers are large organizations that organize bidding to select insurance companies (these customers require to sign health insurance contracts with a term of many years, usually 2-5 years, short-term premiums per year; however, because the bidding process takes a lot of time, effort, and cost, it cannot be organized annually as required by non-life insurance companies). Second, customers are borrowers of credit institutions (these customers require to sign health insurance contracts or death risk insurance contracts with a term of many years, corresponding to the loan term, usually 1-5 years, short-term premiums per year).

Delegates assessed that the draft Law amending Article 63 in the direction of adding "term insurance products with a term of 1 year or less" to replace "insurance products for death risks with a term of 1 year or less" still does not resolve the current problems of non-life insurance enterprises.

Overview of the discussion session. Photo: Xuan Quy

Therefore, the delegates suggested that the Drafting Committee carefully review the difficulties and obstacles of businesses; at the same time, amend the regulations in the direction that non-life insurance businesses are allowed to deploy health insurance products with a term of 5 years or less and insurance products for death risks with a term of 5 years or less.

In addition, delegate Nguyen Van Manh also reflected that currently, most life insurance participants have not been fully and thoroughly advised on the contract content before signing. Therefore, this draft Law needs to regulate more clearly and transparently the consultation and provision of contract information to ensure the safety of rights and strengthen trust, encouraging people to participate in insurance.

Source: https://daibieunhandan.vn/bao-dam-quyen-loi-cua-nguoi-dan-khi-tham-gia-bao-hiem-10394155.html