On November 3, at the National Assembly's discussion session on the draft Law amending and supplementing a number of articles of the Law on Insurance Business, Chairman of the Committee for Science, Technology and Environment Nguyen Thanh Hai said that although he had never bought insurance, he had borrowed some research contracts when listening to voters' reflections on the situation of "putting money in easily but withdrawing it is very difficult".
Many people are even discouraged by having to fulfill the terms in the contract with very long appendices, so they accept losing the money they have paid.
Chairman Nguyen Thanh Hai stated that even though he regularly does research and legal work, it is very difficult to read and understand insurance contracts. Therefore, the amended law must clarify the principle that it is easy to make contributions with benefits and benefits.
The female delegate also suggested that the general insurance contract model has been appraised by competent authorities. This model must be made public and required by all insurance companies to comply.
She said that if this can be done, it will reduce the risk so that when a dispute arises, there is no need to discuss the general part, only the individual part related to each subject.
Delegate Nguyen Quang Huan (HCMC Delegation) said that the current law stipulates 5 prohibited acts, including the prohibition of threatening and forcing the signing of insurance contracts, but there is no provision prohibiting conflicts of interest.
Delegates cited that countries that regulate an issue should also avoid conflicts of interest. Because of the conflict of interests here, commercial banks in Vietnam can establish insurance companies.
Banks implement interest rate reduction policies as required by the State Bank, but reduce interest rates re-lended through insurance, requiring businesses with reduced interest rates to buy insurance to balance bank revenue, ensuring no change.
This leads to conflicts of interest and is not strict and transparent.
Therefore, the delegate proposed to add a provision prohibiting conflicts of interest in the draft law to ensure fairness for businesses and transparency in insurance business activities.
Speaking about life insurance contracts, Deputy Prime Minister Ho Duc Phoc said that this is a type of conditional business insurance that must be licensed. Therefore, the law has one thing for economic contracts with basic contents.
Explaining why there is no model contract, according to the Deputy Prime Minister, because if it is regulated like that, it will reduce the flexibility of companies, especially foreign companies.
Therefore, contracts implemented in conjunction with such insurance must be approved by the Insurance Management and Supervision Department (Ministry of Finance) in conjunction with such insurance before being implemented.
This is voluntary insurance, so the terms must be very clear to implement. Regarding whether to withdraw money quickly or slowly, the Deputy Prime Minister said that he personally participated in insurance, seeing "registering is the way to withdraw immediately".
When the deadline expires, they have to pay. If you want to cancel your contract and withdraw money before the expiration date, it may not be because the company is causing difficulties, but the insurance broker is causing difficulties. Because they follow sales, they should create technical problems so that we can go some more times before withdrawing.
Overcoming the shortcomings in the past, according to the Government leader, this revised law has issues related to insurance cross-selling, clearly stipulating that participants have the right to choose to buy cross-insurance.
For example, an insurance agent can sell many types of insurance from different insurance companies, or a bank can sell or lend credit along with selling insurance but must be public and transparent for management agencies to monitor and inspect.
