Is the regulation prohibiting the sale of insurance products with banking services causing confusion?

ABIC Insurance General Director Nguyen Hong Phong - Photo: H.THU

From July 1, the amended Law on Credit Institutions officially took effect.

Notably, regarding prohibited acts, Clause 5, Article 15 of the Law prohibits credit institutions, foreign bank branches, managers, operators, and employees of credit institutions and foreign bank branches from linking the sale of non-compulsory insurance products with the provision of banking products and services in any form.

However, at the seminar on understanding insurance distribution through banking channels on the afternoon of July 3, many leaders of non-life insurance companies said that the content of the regulation prohibiting "linking the sale of non-compulsory insurance products with the provision of banking products and services in any form" was unclear, causing inconsistent understanding.

No one has given a satisfactory answer about 'attachment'

Commenting on this content, Chairman of the Board of Directors of Agribank Insurance (ABIC) Nguyen Tien Hai said that the above regulation is causing difficulties for non-life insurance companies by creating inconsistent understandings between readers and implementing parties.

ABIC General Director Nguyen Hong Phong emphasized that many non-life insurance companies are looking for answers to the question of what is attachment.

"We asked legal experts and discussed with each other to determine what attachment is, but no one could give an answer that satisfied everyone.

This word affects the business operations of insurance companies that are doing the right thing and fully complying with regulations.

We are looking forward to specific guidance documents on this matter. In particular, it should be clearly stated that banks are not allowed to include in credit contracts a requirement to purchase insurance before disbursing loans.

But insurance companies and agents have the right to advise on this good insurance product, buying it will ensure the safety of the loan if an unfortunate incident occurs...

"If the law is clearer, it will be very good. We have strict regulations in business activities to prevent loopholes and violations, but we cannot make it difficult for businesses," Mr. Phong said.

Mr. Phong also affirmed that ABIC and some other enterprises such as BIC and VietinBank Insurance fully comply with the provisions of the law and that consulting and selling insurance to customers is voluntary, without coercion.

Mr. Phong added that banks are also businesses and all want to have measures to manage and control their business risks. Non-life insurance is a risk management tool.

"We are thinking of collateral to secure bank loans. But many loans, even unsecured loans, have no protection or many loans, collateral is only a part... Not to mention if there is a risk, the bad debt ratio increases, the credit institution has to bear it.

Therefore, if insurance is a means and tool for risk management, customers, banks and society will benefit," Mr. Phong added.

Delegates attending the discussion - Photo: H.THU

Instructions for implementation, compliance

Mr. Tran Hoai An, General Director of BIDV Insurance (BIC), suggested that the State Bank and relevant agencies should soon issue decrees and circulars guiding the law as well as the above prohibition.

"In it, there are specific instructions on how to attach and what is strictly prohibited. We must implement and comply with the prohibited contents, and there is no waiting for instructions to circumvent them," Mr. An clearly stated.

Deputy General Director in charge of VietinBank Insurance Executive Board Bui Thi Thanh Xuan said that the new Law on Credit Institutions stipulates that commercial banks are allowed to conduct insurance agency activities in accordance with the provisions of the law on insurance business, in accordance with the scope of insurance agency activities as prescribed by the Governor of the State Bank.

But the prohibition is stipulated as above, leading to inconsistent understanding.

She cited the law on insurance business which also clearly stipulates that insurance agents are credit institutions that are allowed to offer, introduce, advise, and even assist customers in collecting documents for compensation.

According to Ms. Xuan, non-life insurance companies are still providing consulting and customer support as usual, without any violations. However, just looking at the above prohibition and misunderstanding clearly that "attaching" has caused difficulties for businesses. She also asked the agencies to clearly explain the word "attaching".

Source: https://tuoitre.vn/quy-dinh-cam-gan-ban-san-pham-bao-hiem-voi-dich-vu-ngan-hang-dang-gay-lung-tung-2024070321000428.htm