Compulsory motorbike insurance payments account for only 4% of revenue.
The Department of Insurance Management and Supervision ( Ministry of Finance ) has just announced the inspection conclusion of the Aviation Insurance Corporation (VNI) in 2023.
Accordingly, the inspection conclusion pointed out a series of violations by enterprises in insurance business activities, such as not properly implementing the provisions of the law on compulsory civil liability insurance of motor vehicle owners regarding reporting forms, receiving accident information via hotlines, and the validity period of insurance certificates...
According to VNI's report, in 2023, this enterprise generated revenue from compulsory civil liability insurance premiums for motor vehicle owners of more than VND 625 billion. Of which, the revenue from compulsory civil liability insurance premiums for motorbike owners was more than VND 110 billion, and that for car owners was more than VND 514 billion.
VNI earned more than 100 billion from selling compulsory insurance for motorbikes. Screenshot
According to VNI's report, in 2023, the company resolved 2,017 compulsory insurance claims, with a total payout of VND108.5 billion. However, only 66 cases were related to motorbikes, with a compensation of only VND4.4 billion, while the remaining VND104.1 billion was paid for cars.
In fact, the payment to buyers of compulsory motorbike insurance only accounts for about 4% of the amount of money businesses collect from this type of insurance.
Notably, the time for processing compensation and advance compensation for motor vehicle owners at VNI is assessed to be much slower than current regulations.
Of the 2,017 cases that were resolved, more than 1,760 cases were paid within 15 days; the remaining 257 cases were paid after 15 days, of which 94 cases had a processing time of more than 30 days.
The inspection results show that when selecting a sample of 5 files according to VNI's report, the compensation payment time is very slow. Some files take more than 300 days to resolve, even in some cases lasting up to 544 days or 607 days, while the prescribed time limit is only 15 to 30 days.
The compensation payment period of Aviation Insurance Corporation is up to more than 600 days. Screenshot
Regarding the provisional payment of insurance compensation related to the health and life of the insured, according to regulations, payment must be made within 3 days, but the inspection results show that VNI's provisional payment records are up to 367 days old.
Benefits over 100 million but compensation 30 million
According to the corporation's report, in 2023, the number of compulsory civil liability insurance compensation files resolved related to the health and life of third parties was 949 files, with a total compensation amount of VND 83.2 billion.
Of these, there are 574 compensation files for death cases (total amount is 65.05 billion VND), 375 compensation files for emergency treatment and disability cases (total amount is 18.15 billion VND).
Of the 949 files mentioned above, VNI has made advance compensation for 10 files, and this enterprise has not made advance compensation for 939 files.
The inspection of 10 sample files of the corporation that had made advance compensation showed that the time from the date of receiving notification from the insurance buyer and the insured about the accident to the date VNI made advance compensation exceeded 3 days, which is not in accordance with the provisions of Decree No. 03/2021/ND-CP.
Along with that, the corporation's payment of compulsory civil liability insurance compensation for motor vehicle owners is not complete and accurate according to legal regulations.
Specifically, in the compensation file number BT652100021.BT related to the death damage, the corporation only compensated the customer 30 million VND. This compensation level is not determined according to the law on compensation for death damage (150 million VND), nor is it according to the agreed level between the car owner and the victim (110 million VND), so it is not in accordance with the regulations.
From the inspection results, the Inspection Team recommended that the Department of Insurance Management and Supervision review administrative violations to handle administrative violations in the insurance business sector.
At the same time, VNI is requested to review and ensure strict implementation of regulations on compensation payment deadlines and make compensation advances in accordance with legal regulations.
VNI needs to properly fulfill its responsibilities as an insurance company in collecting compulsory civil liability insurance compensation records of motor vehicle owners, recording calls to the hotline as prescribed, reviewing cases of incorrect compensation, etc.
List of insurance companies that are doing badly, some places have lost more than 6,300 billion VND. In 2024, the "aftershocks" of the life insurance industry crisis from 2022 have not yet ended. The number of life insurance companies recording a decrease in profits in 2024 is overwhelming, including businesses that recorded negative profits.
Source: https://vietnamnet.vn/loat-sai-pham-trong-boi-thuong-bao-hiem-xe-may-o-to-tai-bao-hiem-hang-khong-2394413.html
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