Sun Life Insurance is being asked to settle debts totaling over 600 billion VND.

The Insurance Supervision and Management Department ( Ministry of Finance ) has just issued a conclusion on the thematic inspection at Sun Life Vietnam Life Insurance Company Limited.

44 agents and employees did not comply with regulations.

Through a sample inspection, 44 cases were found where insurance agents and bank employees did not comply with regulations during the insurance sales process.

Bảo hiểm Sun Life bị đề nghị xử lý hơn 600 tỉ đồng - Ảnh 1. — Illustrative image

Specifically, there were 6 cases (involving 4 individual insurance agents and 2 bank employees) where company regulations were violated, including allowing others to sign on behalf of the policyholder, signing insurance application forms created via the SunSmart application, and signing insurance contract handover receipts on behalf of the policyholder…

There were 11 cases (involving 7 individual agents and 2 bank employees) where the company's regulations regarding the handover of insurance contracts were not followed.

Seven cases involved individual agents who did not comply with company regulations regarding the use of agent codes and the equipment, supplies, and machinery provided by the company.

Nine cases (involving seven individual agents and one bank employee) failed to comply with company regulations regarding face-to-face meetings with customers during consultations and insurance application processing.

Five cases (involving three individual agents and one bank employee) failed to comply with company regulations regarding the supervision of customers signing insurance application forms and related documents.

Six cases (involving 3 individual insurance agents and 3 bank employees) involved failure to comply with the company's internal regulations in the process of serving and supporting customers.

Notably, the inspection revealed that the company incorrectly accounted for expenses and revenues related to the distribution of life insurance through the bank channel (bancassurance) as deductible expenses when determining corporate income tax for 2021, in violation of insurance business and tax laws, totaling over VND 600.4 billion.

Specifically, the revenue recorded for premium refunds to customers who canceled their insurance contracts amounted to over 622.9 million VND.

Initial support costs and cooperation fees paid to banks were accounted for as deductible expenses when determining corporate income tax for 2021, amounting to over VND 343.2 billion .

Payments and accounting for support to banks were made in violation of insurance business laws and tax laws, totaling over 247.8 billion VND.

The implementation of the emulation program was inconsistent with the initial proposal, unrelated to the insurance company's production and business activities, and accounted for as deductible expenses when determining corporate income tax, amounting to over 8.6 billion VND.

Proposal to handle over 600 billion VND

The Ministry of Finance has requested the General Director of the Life Insurance Company Limited to... Sun Life Vietnam has implemented a financial adjustment request for the 2021 accounting period: accounting for a reduction in deductible expenses when determining corporate income tax for 2021 by an amount exceeding VND 600.4 billion.

For expenses with similar content, name, payment method, documents and related documents as the expenses stated in the inspection conclusion of the related accounting periods, the company is requested to adjust the accounting, determine, recalculate, and declare additional corporate income tax accordingly; not allocate expenses paid by the insurance company, and not account for them in accordance with the law into the contract owner funds.

The Ministry of Finance also requested the General Director of Sun Life Vietnam Insurance Company Limited to review and rectify the training and management of insurance agents, ensuring that insurance agents comply with the law and company regulations.

During the process of receiving and handling information, suggestions, and feedback from insurance customers, if any violations with signs of criminal activity are detected, the relevant files and documents shall be immediately transferred to the competent investigative agency or People's Procuracy for handling in accordance with the law.

The General Department of Taxation (Ministry of Finance) is tasked with directing the Ho Chi Minh City Tax Department and relevant units to monitor and review Sun Life Vietnam Insurance Company Limited's compliance with tax and invoice regulations regarding the expenses mentioned in the inspection report; thereby taking action against any administrative violations related to taxes and invoices (if any) and providing guidance and handling similar cases.

Source link