The Government issued Decree No. 174/2024/ND-CP dated December 30, 2024, regulating administrative sanctions for violations in the field of insurance business, effective from February 15, 2025.
The fine for an organization is twice the fine for an individual for the same violation.
The maximum fine for individuals committing administrative violations in the insurance business sector is 100 million VND, and for organizations is 200 million VND.
In addition, there is an additional penalty of temporary suspension of operations.
The Decree clearly states that the act of colluding with the beneficiary of insurance benefits to settle insurance compensation and pay insurance money illegally; the act of forging documents and intentionally falsifying information to refuse compensation and pay insurance money when the insurance event has occurred; the act of forging documents and intentionally falsifying information in the claim file and paying insurance money; the act of self-inflicted damage to one's own property and health to enjoy insurance benefits, except in cases where the law provides otherwise and is not yet serious enough to warrant criminal prosecution, shall be subject to the following fines:
- A fine from 20 million VND to 40 million VND for one of the following violations where the amount of money appropriated is less than 10 million VND or the damage is less than 20 million VND;
- A fine of 40 million to 60 million VND for one of the following violations in which the amount of money appropriated is from 10 million to less than 15 million VND or causing damage from 20 million to less than 30 million VND;
- A fine of 80 million to 100 million VND for one of the following violations in which the amount of money appropriated is from 15 million to less than 20 million VND or causing damage from 30 million to less than 50 million VND.
A fine of VND 160 million to VND 200 million shall be imposed for one of the violations of fraud in insurance business by a commercial legal entity committing one of the acts specified in Clause 1, Article 213 of the 2015 Penal Code (amended and supplemented in 2017) where the amount of money appropriated is less than VND 200 million or the damage is less than VND 400 million or has not reached the level of criminal prosecution.
In addition, the violator is forced to return the amount of money he has appropriated.
Failure to clearly and fully explain to the insurance buyer about insurance benefits and exclusion clauses will result in a fine of up to 100 million VND.
Fines from 60 million VND to 100 million VND for insurance companies and branches of foreign non-life insurance companies that violate the law.
Advertising life insurance products not in accordance with the law will be fined from 80-100 million VND.
The Decree also clearly stipulates sanctions for violations of regulations on the implementation of life insurance and health insurance by insurance enterprises, branches of foreign non-life insurance enterprises, and mutual organizations providing micro-insurance.
A fine of VND 80 million to VND 100 million shall be imposed for one of the following violations: Insurance rules, conditions and terms that do not comply with legal regulations; documents summarizing insurance rules, conditions and terms of life insurance products and health insurance products that do not comply with legal regulations; information and advertising about life insurance products that do not comply with legal regulations.
Fine up to 180 million VND for violating regulations on insurance brokerage business managers.
