Increased penalties for violations of insurance sales through banks

ANTD.VN - The Ministry of Finance proposed to amend and supplement the review and increase the penalty level for a number of acts related to the provision and sale of insurance products through banking channels or other distribution channels of insurance agents.

The Ministry of Finance is seeking comments on the draft Decree amending and supplementing a number of articles of Decree No. 98/2013/ND-CP, Decree No. 48/2018/ND-CP, Decree No. 80/2019/ND-CP, Decree No. 102/2021/ND-CP of the Government regulating administrative sanctions for violations in the fields of insurance business and lottery business.

According to the Ministry of Finance, the issuance of the Decree amending and supplementing the above Decrees for the insurance business sector is necessary to ensure consistency and synchronization between the regulations on administrative sanctions in the insurance business sector and the newly amended, supplemented and abolished regulations in the Law on Insurance Business 2022 and its implementing documents, the Law on Handling of Administrative Violations 2020 and its implementing documents, and other relevant legal provisions.

At the same time, remove obstacles arising in practical implementation. Improve the capacity of state management agencies on insurance business in the management, supervision and operation of the market.

Bộ Tài chính đề xuất bổ sung, tăng mức xử phạt đối với các vi phạm liên quan đến bán bảo hiểm qua ngân hàng ảnh 1

The Ministry of Finance proposes to supplement and increase penalties for violations related to insurance sales through banks.

The draft Decree developed by the Ministry of Finance is expected to be amended and supplemented in the direction of reviewing and increasing penalties for a number of acts related to the provision and sale of insurance products through banking channels or other distribution channels of insurance agents.

Specifically, violations that will be punished include: Not providing the insurance buyer with documents during the process of concluding the insurance contract as prescribed; Not clearly and fully explaining to the insurance buyer about insurance benefits, insurance liability exclusion clauses, rights and obligations of the insurance buyer when concluding the insurance contract as prescribed;

Failure to provide the insured with evidence of entering into an insurance contract as prescribed; Threatening or forcing the conclusion of an insurance contract; Product introduction documents that do not truthfully reflect the basic information in the rules and terms of the insurance product.

The draft Circular also amends and supplements in the direction of reviewing and increasing the level of penalties for a number of acts related to the provision of insurance products through insurance agents or employees in the agency organization directly performing insurance agency activities.

Specifically, the violations include: Providing incomplete and inaccurate information about insurance products to insurance buyers, using documents provided by insurance companies and branches of foreign non-life insurance companies.

Arbitrarily creating product introduction documents, sales illustrations or arbitrarily changing the content of product introduction documents, sales illustrations provided by insurance companies or branches of foreign non-life insurance companies.

Not clearly explaining to the insurance buyer the benefits of the product and the specific risks of the product, requiring the insurance buyer to confirm the documents in the insurance application file.

Record some content related to insurance product consultation at the time the insurance buyer signs the Insurance Application.

Insurance agency organizations do not explain to insurance buyers that insurance products distributed through insurance agency organizations are insurance products. Participation in insurance products is not a mandatory condition for using other products and services of the agency organization;

For the provision of investment-linked insurance products, life insurance companies do not independently check the content of insurance product consultation provided by agents.

In the case of provision through an agency, no inspection is performed before deciding to issue a contract. The inspection does not include an assessment of whether the insured participates in the insurance product on a voluntary basis and the insurance products are advised in accordance with the financial needs of the insured.

Amend and supplement in the direction of reviewing and increasing the level of penalties for a number of other administrative violations regarding the establishment of professional reserves, insurance agents, establishment and operation licenses, duties of actuaries... some violations are amended from warnings to fines... to increase the level of deterrence...

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