Insurance contracts are dozens of pages long, even lawmakers find them difficult to understand.

Chairwoman of the Committee for Science , Technology and Environment Nguyen Thanh Hai said she had never bought insurance, but had borrowed a number of insurance contracts for research, because she heard many complaints from voters about the situation where "it is easy to put money in but very difficult to withdraw it".

According to her, many people are even discouraged because they have to follow the terms of the contract with its long appendices, so they accept losing the money they have paid.

Chairman of the Committee for Science, Technology and Environment Nguyen Thanh Hai: The amended law must clarify the principle of "you pay, you get what you pay for", and the benefits must be legitimate and easy. Photo: Quang Khanh

“We often do legal research, but reading and understanding insurance contracts is very difficult. Therefore, the revised law must clarify the principle of “paying and receiving”, and the benefits must be legitimate and easy”, Ms. Hai stated her opinion.

Ms. Hai believes that there should be a general insurance contract model that has been approved by competent authorities. This model must be made public and all insurance companies must comply.

The delegate analyzed that, for example, a 100-page contract must have 40-50 pages with common standards, only differing in subjects and payment levels. According to her, such a regulation will minimize risks so that when a dispute occurs, there is no need to discuss the general part, only the part related to each subject.

Vice Chairwoman of the Law and Justice Committee Nguyen Thi Thuy ( Thai Nguyen ) also pointed out the shortcomings related to life insurance contracts. She said she had borrowed a number of insurance contracts from different companies for research, but for those with experience in law, those contracts were still "really difficult to understand".

She said that each insurance contract is several dozen pages long with many specialized terms about finance and insurance. Because it is difficult to understand, insurance buyers often put their trust in the team of consultants, often their friends and acquaintances.

Delegates suggested that when amending the law, it is necessary to pay more attention to regulations related to the content of life insurance contracts, in which, in addition to the requirement to ensure absolute honesty, it is necessary to add the principle of contract transparency.

Vice Chairwoman of the Committee on Law and Justice Nguyen Thi Thuy. Photo: Quang Khanh

From the principled regulations, according to Ms. Thuy, the Ministry of Finance can be assigned to provide detailed regulations to design the contents of life insurance contracts and insurance companies can comply with them, in order to ensure the rights of insurance participants.

Regarding agents and consultants, delegates said that there are consultants who do not give specific advice, customers do not understand, when disputes arise, the losing side often belongs to the customer.

Also speaking about insurance agency management, delegate Dang Thi My Huong (Khanh Hoa) agreed with the regulation that individuals cannot act as agents for multiple insurance companies at the same time. To overcome the situation where individual agents commit fraud, provide false information, and cause damage to customers, the delegate suggested adding regulations on binding legal responsibility for the above acts.

Standard contract regulations will reduce companies' flexibility

Speaking to clarify some issues raised by delegates regarding life insurance contracts, Deputy Prime Minister Ho Duc Phoc said this is a type of conditional business insurance that must be licensed.

According to him, the Law on Insurance Business has a provision for contracts. The basic contents of economic contracts are designed when licensed, for example, health insurance, pension insurance, life-related insurance are examined by the Insurance Management and Supervision Department.

The Deputy Prime Minister also explained that if regulations on standard contracts were introduced, it would reduce the flexibility of companies, especially foreign companies.

Deputy Prime Minister Ho Duc Phoc: Law amendments must be certain and cautious with the ultimate goal of ensuring transparency... Photo: Quang Khanh

Regarding the speed of withdrawal, he shared that he used to participate in insurance and register to withdraw immediately, when the term expires the companies have to pay.

Deputy Prime Minister Ho Duc Phoc emphasized that the law amendment must be certain and careful with the ultimate goal of ensuring transparency, avoiding fraud or profiteering, and protecting the rights of insurance participants.

Vietnamnet.vn

Source: https://vietnamnet.vn/hop-dong-bao-hiem-dai-may-chuc-trang-nguoi-lam-luat-doc-van-thuc-su-kho-hieu-2458807.html