Fines to be doubled for dodgy insurance providers

By Duc Minh   September 19, 2023 | 07:10 pm PT
Fines to be doubled for dodgy insurance providers
A life insurance contract. Photo by VnExpress/ Quynh Trang
The Ministry of Finance is seeking to double the penalties for insurance providers that mislead or coerce clients to up to VND100 million (US$4,100).

The proposal is in a decree it has issued on the insurance and lottery industries.

Insurance companies and their bancassurance partners have been found to intentionally mislead bancassurance customers by calling insurance policies "high-interest savings", and making loans contingent on buying insurance.

The ministry proposed increasing the fines from VND40-50 million to VND90-100 million for misrepresenting information or terms and conditions, not clarifying customers’ benefits, limiting responsibilities, not declaring what they are selling is insurance, or not stating that buying insurance does not affect access to distribution partners’ services.

Fines for violations related to insurance provisions and commissions will go up from VND10-20 million to VND60-70 million.

Fines for paying commissions and benefits exceeding the maximum amount will be VND90-100 million.

Data from the ministry shows the insurance industry averaged growth of 17% annually between 2011 and 2020.

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