(PLO)- The SBV will take strict measures in case it is discovered that employees and business units “force” customers to buy insurance.
Exchange with PLO On February 27, a commercial bank credit officer said that for new borrowers, according to production and business purposes, the bank is currently applying interest rates from 11.5 to 12% per year. However, customers can only enjoy this interest rate if they agree to buy life insurance. If insurance is not purchased, the loan interest rate will be 13.5%/year. It is known that this is a short-term and fixed loan interest rate for 10 months.
Recently, the Ministry of Finance, the Insurance Management and Supervision Department (QL-GSBH) have also received many complaints regarding the situation of commercial bank employees forcing customers to buy insurance.
Mr. Ngo Viet Trung, Director of the Department of Management-GSBH, Ministry of Finance said: “In 2022, we have planned to inspect 10 insurance businesses through banking channels and have carried out 4 inspections. We are in the process of finalizing the conclusion. If detecting violations of the law, we will strictly handle them or coordinate with the police to strictly handle them if there are signs of criminal violations. In 2023, we will continue continue to further strengthen the inspection, examination and supervision with this channel”.
In order to tighten the “force” of customers to buy insurance, Mr. Ngo Viet Trung added that the Department is submitting to the Ministry of Finance to submit to the Government to amend regulations on sanctioning administrative violations in the field of insurance business to suit the needs of customers. consistent with the content of the Law on Insurance Business No. 08/2022 as well as relevant legal documents.
“The sanction includes monetary fines and additional penalties. Even additional penalties may be in the form of a ban or a definite stop of business with the profession if the violation is serious.” – said Mr. Trung.
Recently, the State Bank of Vietnam (SBV) continues to direct credit institutions to strictly handle cases of violations of internal regulations and laws related to the insurance sector. The SBV will take strict measures in case it is discovered that employees and business units “force” customers to buy insurance and credit institutions take full responsibility before the law for this behavior.
In addition, SBV Deputy Governor Doan Thai Son requested credit institutions continue to strengthen internal inspection and control over insurance agency activities throughout the system to detect and strictly and promptly handle violations. violation violation. Especially the act of “forced”, linking the purchase of optional insurance products with the provision of banking products and services.
The Deputy Governor also requested banks to continue to review and update internal regulations on insurance agency activities, ensuring compliance with the law, including regulations on handling sanctions for insurance agents. in case of violation of internal regulations and laws related to insurance agency activities.
“At the same time, research and develop performance evaluation criteria (KPIs) so as not to put pressure on sales staff, not to allow the case of employees / business units to “force” customers. buy insurance,” said Mr. Son.
In order to tighten the “force” of customers to buy insurance, Mr. Ngo Viet Trung added that the Department is submitting to the Ministry of Finance to submit to the Government to amend regulations on sanctioning administrative violations in the field of insurance business to suit the needs of customers. consistent with the content of the Law on Insurance Business No. 08/2022 as well as relevant legal documents.
“The sanction includes monetary fines and additional penalties. Even additional penalties may be in the form of a ban or a definite stop of business with the profession if the violation is serious.” – said Mr. Trung.
Banks will ‘pay the price’ if they keep forcing borrowers to buy insurance
(PLO)- The State Bank of Vietnam has issued many official documents to prohibit credit institutions from “forcing” customers to buy insurance, but this situation is still rampant.
THUY LINH
