Homepage ADVERTISEMENT 01-22-2021
Banks ordered not to force customers to buy insurance
Friday,  11/6/2020, 07:34 

Banks ordered not to force customers to buy insurance

The Saigon Times

A bank teller counts Vietnamese banknotes. Commercial banks were ordered not to attach the compulsory purchase of insurance to loans – PHOTO: THANH HOA

HCMC – The State Bank of Vietnam (SBV) has asked credit institutions to enhance internal control and an inspection into insurance business operations and impose strict sanctions on those who force borrowers to buy insurance packages.

Besides, commercial banks were ordered not to attach the compulsory purchase of insurance to loans, Nguoi Lao Dong Online reported.

SBV ordered commercial banks to strictly comply with regulations on the insurance business to ensure the operations of insurance businesses and agents develop sustainably, according to a document on the insurance business sent to credit organizations by SBV’s Banking Supervision Agency.

Local banks, while introducing insurance products, must clearly explain the terms and conditions of purchasing insurance to customers who want to purchase the products, apart from helping customers understand the benefits of insurance.

The central bank also asked commercial banks to disseminate the prevailing regulations on insurance business to their employees to avoid violations.

The central bank’s move is aimed at putting insurance business operations in order, as many commercial banks are boosting insurance sales via banks and play a role as exclusive distributors of insurance products for major insurers. Insurance sales at several banks have also jumped over the past few months.

Even though many local banks denied compelling customers to buy insurance packages, many borrowers were forced to purchase insurance packages to get loans. Many bank employees have focused on how many insurance packages need to be sold without providing sufficient information and the terms of insurance contracts, sparking an outcry from customers.

Share:
   
Others
>>Read more:
© 2016 - 2020 The Saigon Times.