Inspectors discover insurance company 'cutting' compensation money from car accident victims

Customers not being compensated properly will affect confidence in the insurance market - Photo: AI

United Insurance Corporation (UIC) is a non-life insurance company, invested by three "big guys" in the market: Bao Minh Insurance (Vietnam), Sompo Japan Insurance (Japan) and KB Insurance (Korea).

Arbitrarily "cutting" compensation benefits of car insurance buyers

Based on the inspection conclusion just announced in mid-April 2025, the Department of Insurance Management and Supervision ( Ministry of Finance ) pointed out many violations at United Insurance in 2023.

Most notable is the compulsory civil liability insurance for motor vehicle owners. The inspector discovered that the company had applied a deduction for compensation for damages that was not in accordance with the law.

Specifically, after the accident, someone requested insurance compensation. Instead of paying nearly 40 million VND for property damage, the company arbitrarily "bit off" 50%, with the reason that the customer "collided with a third party and had no traffic police records".

In another case, the company also applied a 15% deduction on the compensation amount to the customer, citing asset depreciation.

Regarding auto physical damage insurance, Lien Hiep Insurance has "bitten" off customers' money for four compensation cases, with a 30% deduction.

Typically, a customer had a car accident, property damage covered by insurance was more than 75 million VND, the company only paid 58 million VND.

In the above cases of arbitrarily reducing compensation for customers, in addition to some reasons to make excuses, there are cases where the insurance company does not even give a reason.

Overall, during the year, the company earned nearly 1.4 billion VND in revenue from compulsory insurance for motor vehicle owners, mainly from cars, motorbikes accounted for a negligible amount. There were no claims for motorbike owners, only for car owners (12 cases, compensation of 550 million VND).

In addition, the company also resolved 946 cases and compensated nearly 7.8 billion VND in insurance related to motor vehicle physical damage insurance.

Rectify and handle violations

Besides motor vehicle insurance, Lien Hiep Insurance Company also actively operates in the fields of health insurance, fire/explosion insurance, etc. Through inspection, it was discovered that the insurance company also violated some other operations.

In conclusion, the inspectors of the Department of Insurance Management and Supervision (Ministry of Finance) requested that businesses review and rectify the recording of information on insurance certificates in case of violations. Rectify and resolve compensation fully and accurately, ensuring the rights of customers according to the law.

Ensure compliance with mandatory fire/explosion reporting regulations, as well as complete records and documents, as required by law. Correct errors related to health insurance reserve provisions.

Ensure payment for insurance company liabilities as prescribed. At the same time, review and be responsible for compliance with tax laws and related laws.

Regarding the financial picture, in 2024, Lien Hiep Insurance Company collected more than 420 billion VND from insurance business revenue and 88 billion VND from financial revenue, a significant decrease compared to the previous year.

After deducting expenses, the profit after tax was approximately 123 billion VND (-30%). At the end of the year, the company's assets increased sharply to nearly 3,000 billion VND. Liabilities reached 2,180 billion VND, higher than the 777 billion VND of equity.

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Source: https://tuoitre.vn/thanh-tra-phat-hien-cong-ty-bao-hiem-xen-tien-boi-thuong-cua-khach-bi-tai-nan-xe-20250422213503678.htm