The Ministry of Finance: Strictly handling cases of forcing customers to buy insurance when borrowing capital

The Ministry of Finance will strengthen management and supervision of selling insurance activities of agents as credit institutions. Source: Internet

According to the Ministry of Finance, the law on insurance stipulates the principles, rights and obligations of stakeholders in insurance business operation. It aims to ensure that insurance participation is voluntary based on the needs and the financial capacity of customers. There are no specific regulations or limitations on insurance products sold through banks. Insurance agent contracts signed with banks also do not require that insurance products must be sold with or associated with banking products and services.

Along with that, the signing and implementation of insurance agent contracts must comply with the agreement between the insurance company and the bank and ensure compliance with the law on insurance and other laws. Insurance companies signed insurance agent’s contracts with banks. The management and supervision of bank employees selling insurance must ensure compliance with the provisions of the insurance agent contracts under the jurisdiction of banks.

Therefore, after receiving the reports of some press agencies about the situation that some banks and credit institutions showed signs of "forcing" customers to buy insurance when borrowing capital, the Ministry of Finance has sent a document requesting insurance companies to review, strengthen inspection and supervise the activities of insurance agents of banks, work with banks to promptly detect and handle cases of forcing customers to buy insurance, if any, to take measures to increase the rate of maintaining insurance contracts.

In the coming time, the Ministry of Finance will coordinate with the State Bank of Vietnam in researching and completing mechanisms and policies, strengthening the management and supervision of sale activities of agents as credit institutions so that this distribution channel can bring high efficiency, safety and not affect the interests of insurance buyers

At the same time, the Ministry of Finance will continue requesting insurance firms to strengthen inspection and supervision of the implementation of insurance agent contracts with credit institutions, ensure compliance with the law, enhance training quality of credit institutions' employees participating in selling insurance and have measures to rectify and promptly handle violations.