Deputy Prime Minister explains buying insurance 'it's easy to put money in, but very difficult to withdraw it'

“It's easy to put money in but very difficult to withdraw it”

On the morning of November 3, the National Assembly discussed the draft Law amending and supplementing a number of articles of the Law on Insurance Business and the Law amending and supplementing a number of articles of the Law on Public Debt Management.

Regarding the insurance sector, Vice Chairwoman of the Law and Justice Committee Nguyen Thi Thuy pointed out the shortcomings related to life insurance contracts. She reflected that she had borrowed a number of insurance contracts from different companies for research, but for someone with experience in law, she herself still found it “really difficult to understand”.

According to the Vice Chairman of the Law and Justice Committee, each insurance contract is several dozen pages long with many specialized terms related to finance and insurance. Because it is difficult to understand, insurance buyers often place their trust in the team of consultants, often their friends and acquaintances.

From practical shortcomings, Ms. Nguyen Thi Thuy suggested that when amending this law, more attention should be paid to regulations related to the content of life insurance contracts. In addition to the requirement to ensure absolute honesty, it is necessary to supplement the principle of transparency of insurance contracts.

Delegate Nguyen Thanh Hai. (Photo: Nhu Y)

Chairman of the Committee for Science , Technology and Environment Nguyen Thanh Hai shared that although he had never bought insurance, he had borrowed some contracts for research when he heard many voters complain about the situation of "it is easy to pay but very difficult to withdraw". Many people were even discouraged because they had to follow the terms of the contract with very long appendices, so they accepted to lose the money they had paid.

“ We often do research and legal work, but reading and understanding insurance contracts is very difficult. Therefore, the revised law must clarify the principle of contribution, benefit, and benefit must be easy ,” said the Chairman of the Committee on Science, Technology and Environment.

In addition, delegates also suggested 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. " 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 ," said Ms. Nguyen Thanh Hai.

Insurance brokers cause difficulties because of "sales-based"

Speaking to explain and clarify some issues raised by delegates regarding life insurance contracts, 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 a standard contract is not prescribed, according to Deputy Prime Minister Ho Duc Phoc, it is because if it is prescribed like that, 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 for implementation ," he said.

Deputy Prime Minister Ho Duc Phoc at the meeting in the group. (Photo: Nhu Y).

Regarding the speed of withdrawing money, 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 ," the Deputy Prime Minister explained.

To overcome the shortcomings in the past, according to the Deputy Prime Minister, this revised law has issues related to cross-selling of insurance, regulating in a transparent manner, 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 banks can sell, lend credit, and sell insurance but must be public and transparent for management agencies to monitor and inspect.

Explaining why organizations and individuals who have violated the law are not allowed to contribute capital, the Deputy Prime Minister once again emphasized that this is conditional insurance, with the condition of having a minimum capital of 750 billion. Participants must have clean cash flow, anti-money laundering, anti-manipulation, anti-impact on the long-term interests of customers. When managing insurance, we must be very careful.

" During nearly a term as Minister of Finance, I did not provide any retirement insurance, although the law allows it, but this must be examined very carefully. Because if the business goes bankrupt, the people will suffer ," Deputy Prime Minister Ho Duc Phoc shared.

The Deputy Prime Minister affirmed that, regarding the long-term interests of the people, we must be very certain, cautious and protect the interests of insurance participants, ensure transparency, and avoid being exploited for profit and fraud.

(Source: Tien Phong)

Link: https://tienphong.vn/pho-thu-tuong-ho-duc-phoc-ly-giai-viec-mua-bao-hiem-dong-tien-vao-thi-de-rut-ra-rat-kho-post1792947.tpo

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