Deputy Prime Minister explains the insurance situation of "easy to pay, difficult to withdraw"

Discussing in groups about the Law amending and supplementing a number of articles of the Law on Insurance Business on November 3, National Assembly delegates reflected on the situation that many people are discouraged because they have to carry out the terms in the contract with very long appendices, so they accept losing the money they have paid.

Insurance buyers often entrust with... trust

On November 3, discussing in groups about the Law amending and supplementing a number of articles of the Law on Insurance Business, Chairman of the Committee on Science , Technology and Environment Nguyen Thanh Hai mentioned the situation of "paying money is easy but withdrawing is very difficult". Many people are even discouraged because they have to implement the terms in the contract with very long appendices, so they accept losing the money they have paid. The female delegate suggested that the amended law must clarify the principle of "paying, receiving and receiving must be easy".

Ms. Nguyen Thanh Hai suggested that a general insurance contract form should be approved by competent authorities. This form should be made public and all insurance companies should comply. This will minimize risks so that when a dispute occurs, there is no need to discuss the general part, only the individual part related to each subject.

Vice Chairwoman of the Law and Justice Committee Nguyen Thi Thuy reflected that she had studied a number of insurance contracts and found them really difficult to understand, even as a lawmaker.

"Each insurance contract is several dozen pages long with many specialized terms about finance and insurance. Therefore, insurance buyers often entrust their trust to a team of consultants, often their friends and acquaintances," she said.

Ms. Nguyen Thi Thuy suggested that, in addition to the requirement to ensure absolute honesty, it is necessary to add the principle of transparency of insurance contracts.

Improving the technological environment in insurance operations

Delegate Doan Thi Le An, President of the Cao Bang Provincial Women's Union, proposed the regulation of separating the source of equity and the source of insurance premiums, which contributes to ensuring financial safety, transparency in insurance activities and avoiding the mistaken use of capital sources for risky investments, causing risks for participants. However, to ensure the ability to implement, the delegate suggested clearly defining the principle of allocating common costs, because in reality, insurance companies have shared costs between insurance and investment activities, and specific instructions are needed to avoid costs being pushed into the source of insurance premiums, causing increased costs for buyers.

Delegate Doan Thi Le An, President of Cao Bang Provincial Women's Union

The female delegate also suggested further consideration of international cooperation, management of foreign-invested insurance enterprises, and foreign reinsurance to ensure effective integration and management.

The protection of insurance participants' rights should be emphasized: It is possible to add a separate chapter on "Rights and obligations of insurance participants" and "Mechanism for resolving disputes and complaints" for people to easily follow. Next, it is necessary to improve the digital technology environment in insurance activities. For example, regulations on the use of electronic contracts, exploitation of big data, and protection of participants' personal information; this is in line with the development trend and should soon be included in the Law or guiding decree.

Explaining the insurance situation "easy to pay but difficult to withdraw"

Explaining some issues of concern to delegates, Deputy Prime Minister Ho Duc Phoc said that this is a type of conditional business insurance that must be licensed. Therefore, the law has a provision for economic contracts with basic contents.

Explaining why there is no standard contract, he said that if there is such a regulation, it will reduce the flexibility of companies, especially foreign companies.

Therefore, contracts implemented in connection with that insurance must be approved by the Department of Insurance Management and Supervision (Ministry of Finance) along with that insurance before being implemented.

"This is voluntary insurance so the terms must be very clear to implement," he said.

Regarding the speed of withdrawal , the Deputy Prime Minister said that he personally participated in insurance and found that "you can withdraw immediately after registering". "When the term expires, they have to pay. If they want to cancel the contract and withdraw money before the term expires, it may not be the company that is causing difficulties, but the insurance broker. Because they depend on sales, they create technical problems so that we have to go through a number of times before we can withdraw," he explained.

Deputy Prime Minister Ho Duc Phoc speaks at the meeting

To overcome the shortcomings in the past, according to the Government leader, this revised law has issues related to cross-selling of insurance, clearly regulating that participants have the right to choose to buy cross-insurance.

For example, an insurance agent can sell many types of insurance from different insurance companies, or a bank can sell or lend credit along with selling insurance, but it must be public and transparent for management agencies to monitor and inspect.

Source: https://phunuvietnam.vn/pho-thu-tuong-ly-giai-tinh-trang-bao-hiem-dong-tien-de-rut-ra-thi-kho-20251103180927054.htm