Circular 37: Determining the Obligations of Credit Institutions in Insurance Agency Activities

According to regulations, Credit Institutions have the rights of insurance agents as stipulated by the law on insurance business. Additionally, credit institutions have the obligations of insurance agents as prescribed by the law on insurance business and the obligations stipulated in Clause 2, Article 6 of Circular 37/2019/TT-NHNN as follows:

Illustration (source: internet)

- Explain to customers that insurance products distributed through credit institutions are not products of the credit institutions;- Manage and store the list of employees within the credit institution who directly perform insurance agency activities for the insurer according to the agreement in the insurance agency contract;- Provide complete and accurate information to the insurer about the insurance fees collected, the insurance benefits paid, and other payments as agreed in the insurance agency contract;- Pay the entire collected insurance fees to the insurer after deducting the insurance agency commission, the insurance benefits paid, and other payments as agreed in the insurance agency contract;- Provide complete and accurate information and reconcile with the insurer the necessary information from the customers that the credit institution is obliged to collect according to Article 7 of this Circular.

Credit institutions must not use the collected insurance fees for purposes other than those agreed in the insurance agency contract. The insurance agency contract must be in writing in accordance with the provisions of the law on insurance business and relevant legal regulations.

This Circular stipulates that the insurance agency contract must contain the essential contents as prescribed by the law on insurance business and the agreement on the provision and reconciliation of information, payment of insurance fees between the insurer and the credit institution.

For more details, see Circular 37/2019/TT-NHNN which takes effect from March 2, 2020.

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE