In recent days, life insurance companies have been continuously announcing that they will stop selling investment-linked products and supplementary products from July 1st, according to new regulations in Decree 46/2023/ND-CP.
Specifically, Manulife Vietnam has just sent a notice to agents and consultants regarding the discontinuation of sales of the following products: Future Gift, Peace of Mind, Happy Journey, and supplementary products, effective July 1st. Accordingly, products with supplementary benefits such as accident and critical illness coverage will no longer be offered as part of the main contract.
However, insurance contracts with investment-linked products or supplementary products that were in effect before July 1st will continue to be maintained according to the terms and conditions of the product in the contract.
AIA Vietnam agents have also confirmed that they will discontinue offering the following packages: Complete Balance, Shared Health, Peace of Mind for Thousands of Miles, along with Comprehensive Critical Illness and Healthcare 2.0.
According to AIA Vietnam, AIA's Complete Balance product currently offers lifetime protection up to age 100, a 25% bonus in case of serious cancer, and an additional percentage of the insured amount depending on the type of injury due to accident. However, from July 1st, the product will only offer lifetime protection up to age 100 and 100% of the insured benefit in case of total and permanent disability or death.
After July 1st, supplementary and linked products will no longer be sold alongside life insurance products.
According to reports, prior to July 1, 2025, many dealerships are recommending that customers sign contracts early to take advantage of the full range of supplementary benefits.
According to financial experts, in the context of the Vietnamese life insurance industry facing numerous negative customer complaints, prohibiting the bundled sale of life insurance products with supplementary products is considered an important step to enhance transparency and protect consumer rights.
Previously, the deliberate inclusion of numerous supplementary products within the main insurance contract by insurance agents led to ambiguity in information, leaving buyers unclear about which benefits they were paying for, the payout amounts, and the conditions under which they would receive payments. As a result, when a risk occurred, many people found themselves in a situation of "buying insurance but not receiving coverage," thus losing trust in the product and the insurance company.
Clearly separating insurance products helps customers understand, control, and proactively choose according to their actual needs, instead of being misled by complex product packages. At the same time, this also helps to limit the fraudulent behavior of some sales agents. For businesses and regulatory agencies, this facilitates monitoring, complaint handling, and enhances accountability.
Larry Truong, an expert in the insurance field, believes that the new regulation separating primary and supplementary insurance products is essential. According to him, this allows consumers to proactively choose benefits that suit their needs and finances, instead of being forced to purchase entire insurance packages with many unnecessary benefits as before.
In reality, many life insurance policies used to include supplementary benefits such as hospitalization and critical illness coverage, which not all customers needed. This increased costs without providing adequate protection. From July 1st, customers can choose individual supplementary benefits and only pay for what they truly need.
Mr. Truong emphasized that the new regulations will force businesses to improve the quality of their consultants, especially in terms of professional ethics and expertise, thereby making the insurance market more transparent. He also recommended that people carefully research before signing a contract, understand their rights, reasons for purchasing, and the actual value of the product to better protect themselves and avoid future risks.
Source: https://nld.com.vn/bao-hiem-nhan-tho-het-thoi-tu-van-map-mo-196250523124425958.htm
