To prevent people from turning their backs, life insurance must be truly transparent.

National Assembly Delegate of Bac Kan province Nguyen Thi Thuy speaks.

On the morning of May 31, discussing at the Hall on the additional assessment of the results of the implementation of the socio-economic development plan and the state budget in 2022, delegate Nguyen Thi Thuy (Bac Kan) analyzed the shortcomings of life insurance, proposed many solutions to improve quality as well as attract people's participation.

According to the delegate, in essence, life insurance is a highly humane product, helping to support people, minimizing losses and damages from risks related to life, health, illness and disease.

However, after many lawsuits and customer complaints were publicly posted recently, public opinion has become suspicious.

Many customers have checked the contract again and are confused.

There are customers who have brought their contracts to the insurance company to ask but the information they received was completely different from what the consultant provided. This makes many people who intend to buy insurance have to be more vigilant...

The delegate said that recently, many newspapers have published articles to show people how to avoid risks when buying life insurance.

A newspaper has published a series of articles pointing out the "hidden traps" in insurance contracts, showing that it is time to seriously consider this issue, so that the core, humane values of life insurance are not affected by those who deliberately violate it.

Life insurance contracts are usually about 70-100 pages long, are complex financial products with many specialized terms, and the loss will mainly be on the buyer's side if they encounter an unscrupulous consultant.

Delegates from Bac Kan province emphasized that even financial experts who do not work in the insurance sector will have difficulty accessing life insurance contracts.

Many financial experts say they only understand about 70% of the content of this contract.

Recently, life insurance contracts are often in the form of investment links, with a portion of the customer's money invested in stocks and bonds, making them even more complicated.

Many people share that no matter how carefully they read, they still cannot understand the flexibility in insurance packages; they cannot know if they invest after 5 or 7 years, what percentage of the amount they paid will be returned.

Regarding the team of consultants, delegate Nguyen Thi Thuy emphasized that this is the key step leading to many recent lawsuits and disputes.

Because of the very complex nature of life insurance contracts, a team of consultants is needed.

However, many consultants, instead of clearly advising on the nature of life insurance as risk prevention, deliberately give ambiguous or even misleading advice about insurance products to quickly close the order and sign the contract.

According to the regulations of the Ministry of Finance , the maximum commission rate that consultants receive is up to 40% in the first year of the contract.

Because of the generous commission, many consultants only tell customers about the benefits they enjoy, without clearly stating the binding terms, unfavorable terms...

Many customers think that they will be protected by health insurance and will receive back all the money they paid after the contract ends, but in reality, it is not as the consultant said.

With some types of investment-linked contracts, profits are only expected, depending on the market, and the insurance company that invests this money is not 100% sure that this amount will generate profits.

The delegate pointed out that this is the source of many recent frustrations due to the lack of transparency in consultation.

According to the Vietnam Insurance Association, the 2022 inspection showed that intentional misrepresentation of insurance products was one of the errors discovered.

Public opinion also questioned whether or not the insurance company knew but deliberately ignored the mistakes of consultants and insurance agents, causing disadvantages to customers.

When one side is a professional insurance company and the other side is an unprofessional buyer, while many consultants are not qualified enough, pushing all the responsibility onto the buyer is unreasonable both in reason and emotion.

Pointing out that Vietnam's life insurance participation rate is among the lowest in the world, at about 11% of the population, while the Philippines is 38%, Malaysia is 50%, and the US is 90%, delegate Nguyen Thi Thuy said that to achieve such a high rate, it is necessary to improve the life insurance market so that people trust and do not feel risky when buying insurance. That means participating in insurance requires honesty and transparency from both sides to bring benefits.

From the above analysis, delegate Nguyen Thi Thuy recommended that the Ministry of Finance conduct a comprehensive inspection of life insurance activities, focusing on investment-linked insurance.

The Ministry of Public Security verifies whether there are signs of fraud or customer deception; if so, it will initiate an investigation.

It is time for insurance companies to review all stages of the insurance process, from contract design to consulting, contract signing and customer complaint settlement.

“Only when there is true transparency and sincerity will people not turn their backs on life insurance,” delegate Nguyen Thi Thuy emphasized./.

According to VNA

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