New proposal causes concern
The Ministry of Finance has just published a summary, acceptance, and explanation of comments from relevant agencies on the draft Law amending and supplementing a number of articles of the Law on Insurance Business 2022. One of the contents that received many comments was the regulation on health insurance products.
Point b, Clause 3, Article 63 of the Law on Insurance Business 2022 stipulates: Dicea insurance companies, branches of foreign non-life insurance companies trading in health insurance products with a term of 1 year or less and insurance products for death risks with a term of 1 year or less.
The draft law amends this content to: "Dicea insurance enterprises, foreign non-life insurance branches trading in health insurance products with a term of 1 year or less".
Commenting on the draft law, the Insurance Association said that the type of "health insurance" according to Article 4 and the subject of health insurance insurance under Article 33 of the Law on Social Insurance did not clearly include the risk of death. However, the draft Law has removed the regulation on non-life insurance companies being allowed to trade in "death insurance products with a term of 01 year or less". Accordingly, death benefits are regulated by the health insurance type. In this case, employees are still allowed to do business in health insurance with the risk of death from the employee.
Moreover, health insurance products with a term of 1 year or less are designed simply, without the same savings or investment factors as lifespan insurance products. Death benefits are often part of health insurance programs, helping to protect the finances of employees when they are unfortunately killed in an accident, illness, or disease. Therefore, the death benefit under 1 year is inherently similar to the accident and health insurance that non-life insurance companies are implementing.
In case the draft Law is construed as above, DNBH agrees with the content in the draft Law and proposes that the drafting agency review and amend Clause 15, Article 4 and Clause 2, Article 33, adding the risk of death when the employee participates in health insurance to ensure clarification and unification of understanding of the types of non-life DNBH insurance implemented. Currently, non-life insurance companies are still implementing health insurance products for death insurance.
Proposal to retain the right to trade in death risk products for a period of 1 year or less
Enterprises such as MSIG, Tokyo Marine, ABIC all proposed to keep the regulation that non-life insurance enterprises are allowed to trade in death insurance products with a term of 01 year or less. If the provisions are amended as in the draft Law, whether non-life capital investment can sell products with the right to death or not is unclear, causing difficulties for businesses.
According to the explanation, currently, non-life insurance companies have been implementing death risk insurance products, the removal of this regulation will lead to difficulties in legal basis for non-life insurance companies if they continue to implement this insurance product.
Or at the same time, amend Clause 2, Article 33 of the Law on Social Insurance to: "The insurance subject of a health insurance contract is human health and human life".
PIT Insurance proposes to keep the content of Point b, Clause 2, Article 63 "and death insurance products with a term of 01 year or less" to avoid misunderstanding that health insurance is not allowed to include the risk of death. At the same time, it is proposed to add in Clause 15, Article 4 the explanation of the term as follows: Health insurance is a type of insurance for the case of the insured who is injured, has an accident, is sick, or has an illness, including the risk of death or health care.
The reason is that health insurance products on the market and in the world all include the risk of death of insured people.
Bao Minh Insurance proposes to amend and supplement Clause 15, Article 4: Health insurance is a type of insurance for cases where the insured is injured, has an accident, illness, disease and risks arising directly from an accident, illness, disease or health care.
The company believes that the adjustment of the definition is to accurately represent the nature of health insurance and cover the risks arising from insurance events in health insurance.
GIC proposes to amend and supplement Clause 15, Article 4: 15. Health insurance is a type of insurance for cases where the insured is injured, has an accident, is sick, ill, or dies or receives health care.
Responding to the recommendations of businesses, the Ministry of Finance said that this content needs to be comprehensively assessed on the current situation and legal regulations. Therefore, the drafting agency will take note of the opinions of the enterprise to make a comprehensive amendment next time.
