Ministry of Finance proposes to double fines for some violations of life insurance activities

The Ministry of Finance is currently soliciting comments on the draft decree amending and supplementing a number of articles of Decree No. 98/2013/ND-CP, Decree No. 48/2018/ND-CP, Decree No. 80/2019/ND-CP and Decree No. 102/2021/ND-CP issued by the Government, regulating administrative sanctions for violations in the fields of insurance business and lottery business.

Notably, the Ministry of Finance has proposed doubling the penalty for many violations in life insurance activities, including:

Product introduction documents do not honestly reflect the basic information in the rules and terms of the insurance product, do not clearly state the insurance benefits and exclusions of insurance liability, and the information is unclear, causing the insurance buyer to misunderstand the benefits of the product.

The Ministry of Finance has proposed doubling the fines for some violations of life insurance activities. — The Ministry of Finance proposes to double the penalty for some violations in life insurance activities (Photo TL)

The product introduction document does not clearly show that the insurance product is provided by a foreign non-life insurance enterprise or branch, and is not a product of a distribution partner.

Penalties also apply to acts of not clearly showing that participation in an insurance product is not a mandatory requirement to perform or enjoy any other service of the distribution partner; implementing insurance products in the investment-linked insurance, retirement insurance, and health insurance business not in accordance with the provisions of law.

The Ministry of Finance proposed raising the fine to 90 to 100 million VND for the above violations.

In addition, the Ministry of Finance also proposed a fine of 60 - 70 million VND for violations of regulations on insurance products and insurance commissions. Violations include: Providing insurance products in the fields of life insurance, health insurance, motor vehicle insurance, micro-insurance without registering and having the Ministry of Finance approve the method and basis for calculating insurance premiums according to the provisions of Clause 3, Article 87 of the Law on Insurance Business No. 08/2022/QH15.

Failure to comply with the methods and bases for calculating insurance premiums for life insurance and health insurance products... that have been registered with the Ministry of Finance as prescribed in Article 145 of the Law on Insurance Business No. 082022/QH15.

The above proposals of the Ministry of Finance to improve and regulate insurance business activities have attracted much public attention recently.

Source