Strict regulations to ensure the rights of insurance buyers

Cut administrative procedures, create more favorable conditions for businesses

The majority of National Assembly Deputies Group 14 agreed to promulgate the draft Law amending and supplementing a number of articles of the Law on Insurance Business to remove difficulties and obstacles, reduce administrative procedures, create more favorable conditions for businesses; at the same time, contribute to more transparent management of insurance business activities.

Some opinions noted that the provisions in the draft Law need to ensure transparency, objectivity, feasibility, protect the rights and interests of the parties, ensure equal and stable operations of enterprises, contribute to clearing bottlenecks, develop the insurance market and meet the requirements of innovation in legislative thinking.

Vice Chairman of the National Assembly Vu Hong Thanh speaks

In addition, it is necessary to review transitional regulations to ensure full coverage of cases that need to be regulated, avoiding problems arising in practice.

Regarding health insurance with a term of 1 year or less and term insurance products with a term of 1 year or less, National Assembly Delegate Bui Thi Quynh Tho ( Ha Tinh ) said that in current regulations, health insurance does not explain the term related to "term insurance". Therefore, non-life insurance companies have proposed to clearly define the content of "term insurance" that must be included in health insurance to ensure the work of inspection, examination and handling of cases.

National Assembly Delegate Bui Thi Quynh Tho (Ha Tinh) speaks

Regarding the official term of operation (amended and supplemented Article 73), the Drafting Agency has stipulated an extension of the official term of operation to a maximum of 12 months plus 15 days.

At the same time, also in Clause 2, Article 73 of the draft Law stipulates that "before officially operating, insurance enterprises, reinsurance enterprises, and foreign branches must proactively contribute sufficient charter capital, allocated capital, appoint legal representatives, and appoint positions approved in principle by the Ministry of Finance ".

According to delegate Bui Thi Quynh Tho, the draft Law is amended to "Ministry of Finance approves" and removes the word "principle", so this issue needs to be clarified. If approved, it will conflict with the Enterprise Law, while the election process is by the Board of Directors and the Board of Shareholders, and if it is approved by the Ministry of Finance, there may be disagreement.

Regulations that more tightly bind the responsibilities of insurance providers

On the other hand, National Assembly member Nguyen Danh Tu (An Giang) said that recently, many insurance contracts have been very long, with many legal and technical terms in their content. Although the nature of insurance business is that the two parties are equal, one party provides insurance services and products, the other party buys insurance.

National Assembly Deputy Nguyen Danh Tu (An Giang) speaks

However, in reality, these two parties are asymmetrical. One side is a company, a large enterprise, with a team of experts, specialized in that field. The other side is the insurance buyer, usually a person without much experience, without much specialized knowledge of both insurance and law.

Therefore, the insurance broker must be an intermediary to ensure the rights of the insurance buyer. However, the broker receives commissions and brokerage fees from the insurance company, leading to many cases of consulting on points that are beneficial to the insurance company, especially the conditions that exclude liability for the insurance company; the conditions that are not beneficial to the insurance buyer are often provided incompletely, generally, and with technical terms that the insurance buyer cannot fully understand.

Delegates attending meeting Group 14 (1) — Delegates attending meeting Group 14

“All of these lead to cases where, when signing contracts and during the implementation of insurance contracts, insurance payments must be prolonged, leading to insurance lawsuits and insurance cancellations,” delegate Nguyen Danh Tu emphasized.

According to delegate Nguyen Danh Tu, based on the terms of the contract, there may be insurance buyers who do not have enough professional knowledge, eventually falling into a situation where the company excludes liability, leading to the buyer not enjoying benefits, and may also lose previous insurance premiums.

Delegates attending Group Meeting 14 (2) — Delegates attending meeting Group 14

For the above reasons, delegate Nguyen Danh Tu suggested that the draft Law should supplement provisions that more strictly regulate the responsibilities of insurance providers, as well as brokers, to ensure the rights of insurance buyers, especially the terms in the contract...

Source: https://daibieunhandan.vn/quy-dinh-chat-che-de-bao-dam-quyen-loi-cua-nguoi-mua-bao-hiem-10394136.html