Aviation Insurance fined for delay in compensation settlement

The Department of Insurance Management and Supervision ( Ministry of Finance ) has recently issued Decision No. 18 on administrative sanctions against the Aviation Insurance Corporation (VNI, now BDV Insurance).

The total fine was VND260 million for three violations. The most serious violation was setting up reserves in violation of the law, with a fine of VND180 million. The company was also fined VND50 million for delay in settling compensation for customers and VND30 million for incomplete and inaccurate information and data in the report.

The insurance company was fined a total of 260 million VND (Illustration: Manh Quan).

Previously, the Department of Insurance Management and Supervision also announced the inspection conclusion of this insurance company, pointing out a series of violations in the 2023 period in insurance business activities.

Specifically, the company has not complied with the legal regulations on compulsory civil liability insurance of motor vehicle owners regarding reporting forms, receiving accident information via hotline, and the validity period of insurance certificates...

The time limit for compensation and advance compensation for compulsory civil liability insurance of motor vehicle owners is still too slow compared to regulations.

As reported by aviation insurance, the total number of compulsory civil liability insurance claims of motor vehicle owners settled in 2023 was 2,017. The insurance compensation amount was 108.5 billion VND.

Of these, more than 1,760 cases had compensation payment deadlines within 15 days. 257 cases were paid compensation within 15 days.

However, through the inspection of 5 sample files, the results were completely different from the company's report. Accordingly, the compensation payment time was very slow, some files were over 300 days, some files were up to more than 600 days compared to the regulation of 15-30 days.

Regarding the provisional insurance compensation related to the health and life of the insured, according to regulations, payment is made within 3 days. However, the inspection results show that the insurance company that made the provisional payment has a record of up to 367 days.

Regarding business results, according to the report, in 2023, revenue from compulsory civil liability insurance premiums for motor vehicle owners will be more than VND 625.2 billion. Of which, compulsory insurance premium revenue for motorbike owners will be VND 110.5 billion, and for car owners, VND 515.7 billion.

However, the amount of compensation paid by this company was 108.5 billion VND for 2,017 cases. Of which, 66 motorbike insurance cases were compensated with a total of 4.4 billion VND and 1,951 car insurance cases were compensated with 104.1 billion VND.

Source: https://dantri.com.vn/kinh-doanh/chay-i-giai-quyet-boi-thuong-bao-hiem-hang-khong-bi-xu-phat-20250520111440880.htm