Realizing the unfortunate risks that customers encounter after borrowing capital, recently, the branches of the Bank for Agriculture and Rural Development (Agribank) in the province have coordinated with Agribank Insurance Joint Stock Company (ABIC Thanh Hoa) to effectively implement propaganda and consulting activities for customers to participate in credit security products (BATD). Thereby, helping the bank reduce the rate of bad debt, customers protect their finances against risks in life.
Agribank Bac Thanh Hoa staff advise customers to participate in BATD products.
ABIC's BATD is a voluntary insurance product for loans at Agribank branches. At Agribank branches and transaction offices in the province, ABIC's associated products are publicly listed and specific. When borrowing capital, customers are consulted about their benefits and must pay a certain amount of insurance for the loan amount. When customers participate in the BATD product, if they are unfortunately exposed to personal risks, such as: death, injury, permanent disability due to accidents or death due to illness..., depending on each specific case, ABIC will pay for hospitalization costs or pay off the customer's loan debt at Agribank. This helps customers and their families reduce the financial burden due to unexpected, unwanted risks. In fact, many insurance contracts have helped many families reduce the debt burden for their relatives because when a risk occurs, the insurance company will be the one to pay the debt on behalf of the bank with loans ranging from tens of millions to hundreds of millions of dong. From there, customers can rest assured because they always have the necessary financial resources, minimizing risks in life, especially risks to life, health and the ability to repay loans.
When customers need to access credit programs at Agribank, bank staff will advise them on insurance packages to secure their loans. These BATD product packages are intended to prevent customers from unforeseen risks in life after borrowing from the bank. When unfortunate events occur, ABIC Thanh Hoa will pay the debt on behalf of customers or compensate for part or all of the loss within the scope of the customer's insurance participation. Although not required for individuals borrowing capital, it plays a very important role. Specifically, in the case of Mr. Pham Trong Ha's family in Nam Trach village, Yen Trung commune (Yen Dinh). It is known that due to the need for capital for economic development, Mr. Ha's family went to Agribank Yen Dinh to learn about the procedures and was lent 160 million VND by the bank. During the loan process, the bank staff advised on the BATD loan insurance package with a fee of more than 2.5 million VND to protect the loan of 160 million VND of ABIC Thanh Hoa. In May 2023, Mr. Ha discovered that he had a terminal illness and passed away suddenly, causing his family to worry about the bank loan. While Mr. Ha's family was confused, Agribank Yen Dinh coordinated with ABIC Thanh Hoa to visit and guide the family to complete the application. Immediately after that, ABIC Thanh Hoa paid all the bank loan and interest and supported the family with funeral expenses.
Currently, in the province, more than 80% of customers borrowing capital from Agribank participate in BATD insurance. Every year, ABIC Thanh Hoa has paid compensation worth hundreds of billions of VND to customers who unfortunately have risks. Along with implementing liability compensation as committed to customers, ABIC Thanh Hoa will also organize timely visits and encouragement. Thanks to that, customers will reduce material difficulties and be encouraged mentally. Mr. Tran Thang Khanh, Director of ABIC Thanh Hoa, said: BATD is a human insurance product provided to customers borrowing capital from Agribank. The BATD product package is voluntary, customers can participate in purchasing loan insurance with appropriate fees. ABIC Thanh Hoa is committed to always accompanying customers. When customers have human risks such as accidents, death due to illness, etc., ABIC Thanh Hoa always coordinates promptly with Agribank staff to visit. At the same time, guide and urge customers to prepare documents, assess damages and make compensation quickly and promptly, ensuring customers' rights.
Loan insurance is an optional expense when customers borrow capital from banks. However, loan insurance products such as BATD of ABIC are encouraged to buy because they are completely beneficial to customers and partly support banks in controlling credit quality. To protect the rights of people when borrowing credit capital from credit institutions, the State Bank of Vietnam - Thanh Hoa Province Branch has issued a document stating that it will take strict measures to handle employees of business units who "force" customers to buy insurance packages with high fees before disbursing capital and credit institutions will be fully responsible before the law for this behavior.
Article and photos: Khanh Phuong
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