Brochures for life insurance and health insurance products in Vietnam

Requirements for brochures of an insurance product

Pursuant to Clause 1, Article 31 of Circular 67/2023/TT-BTC, brochures of an insurance product must meet the following requirements:

- Introduce basic features of the insurance product;

- Honestly reflect basic information in the rules, conditions, and terms of insurance products, clearly state insurance benefits and exclusions of insurance liability, and not provide unclear information that may mislead the policyholder about the benefits of the product;

- If provided through an insurance agent or insurance broker, the brochure must clearly state that this is an insurance product provided by an insurer, a branch of a foreign non-life insurer, and not a product of the insurance agent or insurance broker; participation in the insurance product is not a mandatory requirement to perform or enjoy any other service of the insurance agent or insurance broker.

- The font used in brochure is Times New Roman, with a minimum font size of 12 or another font with an equivalent size.

Brochures for life insurance and health insurance products in Vietnam (Internet image)

Requirements for brochure for investment-linked insurance in Vietnam

Pursuant to Clause 2 of Article 31 of Circular 67/2023/TT-BTC, brochure for investment-linked insurance must meet the requirements of Clause 1 of Article 31 of Circular 67/2023/TT-BTC and include the following:

- Investment policies, investment objectives, asset investment structure, committed minimum investment interest rate of the universal life fund (for universal life insurance products); types of existing unit-linked funds, investment policies, types of investment assets, investment asset allocation ratio of each fund (for unit-linked insurance products);

- Rates and maximum amounts of fees charged to the policyholder;

- Clear information that the policyholder will enjoy the entire return on the investment and will bear the full investment risk from the unit-linked funds they have chosen (for unit-linked fund products), the investment-linked insurance policy is a long-term commitment and the policyholder should not cancel the policy because the fees charged to the policyholder may be very high in the early stages of the policy;

- Performance results of the existing unit-linked funds in the most recent 5 fiscal years, or the entire period that the fund has been established and operating if it is less than 5 years (for unit-linked fund products).  The insurer must clearly state that this information is historical performance for reference purposes and is not a guarantee of the future performance of unit-linked funds.  Past investment results used as a reference must be consistent with the unit-linked product and the unit-linked funds being introduced.

Requirements for brochure for retirement insurance in Vietnam

Pursuant to Clause 3, Article 31 of Circular 67/2023/TT-BTC, brochure for retirement insurance must meet the requirements of Clause 1 of this Article and include the following:

- Investment policies, objectives and asset investment structure of the voluntary retirement fund, minimum investment interest rate committed to the policyholder for the premium allocated to the retirement insurance account;

- Rates and maximum amounts of fees charged to the policyholder;

- Clear information for the policyholder to know that entering into a retirement insurance policy is a long-term commitment and the retirement insurance account cannot be withdrawn early except in the cases specified in Article 119 of Decree No. 46/2023/ND-CP;

- As for insurance products that do not belong to the retirement insurance as prescribed in Section 3, Chapter VII of Decree No. 46/2023/ND-CP, in the brochure, the insurer may not use the trade name as retirement insurance or other names that may mislead the policyholder that these products provide additional income for the insured when they reach the end of their working age.

Mai Thanh Loi

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