State Bank announces hotline to report being "forced" to buy insurance when borrowing

SGGPO 21/02/2023 15:36

On the afternoon of February 21, the State Bank of Vietnam (SBV) announced that in order to promptly grasp and handle all feedback and recommendations from people, agencies, and businesses related to the provision of insurance services by credit institutions (CIs), the SBV announced the feedback phone number (during office hours): (024) 388266344/(024) 3936.1017. Email: duongdaynong.cqttgsnh@sbv.gov.vn

The State Bank of Vietnam also said that the Banking Inspection and Supervision Agency in coordination with the Insurance Management and Supervision Department ( Ministry of Finance ) have agreed to establish a hotline between the two agencies; agreed to conduct inspections and handle violations in the insurance agency activities of credit institutions.

According to the State Bank, this agency regularly issues documents directing and warning credit institutions about the provision of insurance-related services, requiring credit institutions to implement a number of contents such as: strictly complying with legal provisions in the Law on Credit Institutions, the Law on Insurance Business and related documents; providing complete and accurate information about insurance products, insurance companies... to insurance buyers and fully and clearly explaining insurance benefits, insurance liability exclusion clauses, rights and obligations of insurance buyers; not arbitrarily declaring information to insurance buyers without the consent of insurance buyers; strictly prohibiting the act of "forcing" customers to buy insurance; not putting pressure on employees/business units in introducing and selling insurance products, not allowing cases where employees/business units "force" customers to buy insurance...

However, recently, some media continue to report the phenomenon of some credit institutions "forcing" customers to buy insurance when borrowing money, increasing interest rates/"forcing" customers to pay off loans if they cancel their insurance contracts...

The State Bank of Vietnam said it will take strict measures in case it discovers employees or business units "forcing" customers to buy insurance, and credit institutions will be fully responsible before the law for this behavior.

Source: https://www.sggp.org.vn/ngan-hang-nha-nuoc-cong-bo-duong-day-nong-phan-anh-viec-bi-ep-mua-bao-hiem-khi-vay-post679536.html