It is absolutely necessary to prohibit the act of forcing people to buy insurance when borrowing money from banks.

Minister of Finance Nguyen Van Thang admitted that recently there has been a situation where bank employees have been providing consulting services along with insurance products, causing confusion between insurance products and banks.

On the morning of November 18, continuing the 10th Session, the National Assembly discussed in the hall the draft Law amending and supplementing a number of articles of the Law on Insurance Business.

Discussing at the conference hall, delegate Ha Sy Huan ( Thai Nguyen delegation) said that insurance business through banks is inevitable, in line with international trends. However, in recent times, there have been many shortcomings in implementation, especially the situation of forcing people to buy insurance associated with loans.

Delegate Ha Sy Huan proposed that insurance business activities through banks must be placed within a strict legal framework, with substantial supervision and strict sanctions, ensuring and protecting the legitimate rights and interests of insurance participants.

"I propose to add to the draft law provisions on principles and supervision of insurance business. In particular, there should be clear and transparent regulations between insurance consulting activities and lending and capital mobilization of banks, and absolutely prohibit acts of forcing to buy insurance when borrowing capital. At the same time, sanctions against banks and insurance companies that violate consulting principles should be increased," Mr. Huan emphasized.

Delegates from Thai Nguyen delegation said that the draft law was amended to facilitate agents to cross-sell life insurance, non-life insurance and health insurance. This is an issue directly related to the distribution model, quality of advice and benefits of insurance participants.

Mr. Ha Sy Huan said this is the right policy. Allowing insurance agents to cross-sell insurance products, if well managed, will help reduce social costs in training, certification, network organization, and meet diverse customer needs.

However, delegate Huan suggested that there should be specific conditions, insurance cross-selling agents must register and clearly publicize which company they are agents of? in what type?, to avoid conflicts of interest, consumers must be transparently informed when agents advise on products of other companies in other types.

Delegate Nguyen Huu Thong ( Lam Dong delegation) said that the draft law supplements the direction of allowing individuals who are insurance agents of life insurance companies to simultaneously act as agents distributing health insurance and non-life insurance products of other insurance companies and vice versa.

Delegate Nguyen Huu Thong (Lam Dong delegation) spoke

However, Mr. Thong is concerned about expanding the cross-selling mechanism in the current monitoring system of insurance agency activities, which still has many shortcomings. This regulation has potential risks and conflicts of interest.

According to Mr. Thong, recently, there have been many complaints from people about being given misleading advice and being forced to buy insurance through banks and agents. If we expand cross-selling without strengthening legal requirements and control mechanisms, it will be difficult to overcome this situation.

"Insurance agents are authorized representatives of insurance companies. When representing multiple companies at the same time, they can be influenced by commissions and preferential policies, thereby no longer ensuring the obligation to prioritize the interests of insurance buyers," said Mr. Nguyen Huu Thong.

According to Mr. Thong, if the drafting agency still chooses the option of allowing cross-selling, the draft law needs to have a tighter binding mechanism. For example, clearly specifying the number of businesses that an individual agent is allowed to represent.

Responding to these opinions, Minister of Finance Nguyen Van Thang admitted that recently there has been a phenomenon of bank employees consulting on banking services and selling insurance, causing confusion between banking products and insurance products; there has even been a situation of forcing people to buy insurance as mentioned by the delegate.

The Commander of the Finance sector affirmed that the Law on Credit Institutions prohibits credit institutions, foreign bank branches, managers, operators, and employees of credit institutions and foreign bank branches from linking the sale of non-compulsory insurance products with the provision of banking products and services in any form.

He added that the current Law on Insurance Business also strictly prohibits threats and coercion to enter into insurance business contracts; and strictly regulates consulting and recording work to improve agent quality.

"In the coming time, the Ministry of Finance will continue to strengthen inspection and handling of violations, and at the same time submit to competent authorities to issue regulations to limit this situation," said the Minister of Finance.

Source: https://phunuvietnam.vn/can-cam-tuyet-doi-cac-hanh-vi-ep-mua-bao-hiem-khi-vay-von-ngan-hang-20251118133419112.htm