Surprising facts about the insurance company that was recently discovered to have "embezzled" motorcycle insurance compensation money

The Department of Insurance Management and Supervision ( Ministry of Finance ) has just announced the inspection conclusion of the Aviation Insurance Corporation (VNI). Accordingly, in 2023, this enterprise recorded revenue from compulsory civil liability insurance premiums for motor vehicle owners of more than 625 billion VND, of which revenue from motorbikes was 110.5 billion VND, and from cars was 514.7 billion VND.

Through inspection, the Department discovered that VNI had not complied with legal regulations on compensation payment deadlines, compensation advances and collection of related documents from the police.

Notably, there was one fatal accident but the company only compensated the customer 30 million VND, while the compensation for loss of life according to regulations is 150 million VND or according to the agreement between the car owner and the victim is 110 million VND. In addition, there were 10 cases where VNI did not notify the accident victim about the compensation for damage to health and life.

According to the financial report for the first quarter of 2025, VNI recorded insurance premium revenue of VND 717.9 billion, an increase of 18% over the same period last year. However, it is noteworthy that despite being named "Aviation Insurance", this enterprise does not generate any revenue from the aviation insurance sector. Instead, motor vehicle insurance accounts for a large proportion, nearly 71%, equivalent to more than VND 509 billion.

Compensation costs in the first quarter also increased sharply, to VND352 billion (up 58%), of which compensation for motor vehicle insurance alone accounted for 58.7%, equivalent to VND207 billion.

According to the newly released documents of the Annual General Meeting of Shareholders, VNI said that in 2024, it will continue to maintain its position in the top 10 non-life insurance companies in Vietnam. Motor vehicle insurance is still the main business segment, accounting for 62.4% of total revenue.

In the first quarter of 2025, VNI will not record revenue from aviation insurance.

Rebranding after 16 years of operation

Aviation Insurance Corporation is expected to change its name to DBV Insurance Corporation (DBV) after 16 years of operation.

According to the report signed by Chairman of the Board of Directors Le Tuan Dung, the name change is necessary because the current name "Aviation Insurance" has caused some misunderstandings and is no longer suitable for the business orientation. Although the brand "Aviation Insurance - VNI" has a certain reputation, it has not created a distinct mark in the market.

The company representative said that to create a breakthrough, VNI needs a clear brand repositioning strategy, investing in digital technology and communications to build a modern image, closer to customers.

Along with the name change, the current logo – designed in 2008 – was also considered outdated, with many small details no longer suitable for modern communication channels such as signs, printed publications or digital platforms.

In addition, the name "Aviation Insurance" makes many customers misunderstand that VNI is owned by Vietnam Airlines Corporation and only serves the aviation industry. Meanwhile, Vietnam Airlines Corporation is no longer a shareholder of VNI, making this name no longer suitable for the current ownership structure and development strategy.

DB Insurance (Korea) takes control

Since April 2024, DB Insurance (Korea) has become the controlling shareholder with a 75% ownership ratio at VNI. This unit is gradually building a business strategy according to international standards, focusing on improving customer experience, applying technology and developing a diverse product portfolio.

Source: https://nld.com.vn/dieu-bat-ngo-ve-cong-ty-bao-hiem-vua-bi-phat-hien-an-chan-tien-boi-thuong-bao-hiem-xe-may-196250424071551313.htm