Principles of insurance agency activities of credit institutions in Vietnam

Principles of insurance agency activities of credit institutions in Vietnam (Internet image)

Regarding this issue, LawNet responded as follows:

1. Principles of insurance agency activities of credit institutions in Vietnam

Principles of insurance agency activities of credit institutions and foreign bank branches for life insurance enterprises according to Article 5 of Joint Circular 86/2014/TTLT-BTC-NHNNVN are as follows:

- A credit institution or foreign bank branch may not concurrently act as an agent for another life insurance enterprise without the written approval of the life insurance enterprise for which it currently acts as an agent; may not influence insurance buyers to provide false information or not to provide necessary information for the life insurance enterprise; and may not incite customers to cancel currently effective insurance policies in any form.

- Staff members of a credit institution or foreign bank branch who directly act as insurance agents shall be managed within the general insurance agents system of Vietnam Insurance Association.

- Life insurance enterprises, credit institutions and foreign bank branches may link insurance products with banking products and services but shall ensure that the conclusion of insurance policies is separated from the conclusion of other contracts of credit institutions and foreign bank branches, and independently take responsibility for their own products and services.

2. Insurance agent contracts of credit institutions in Vietnam

Insurance agent contracts of credit institutions according to Article 6 of Joint Circular 86/2014/TTLT-BTC-NHNNVN are as follows:

- An insurance agent contract must have the following contents:

+ Name, address, establishment and operation license, at-law representative of or person authorized by the credit institution or foreign bank branch;

+ Name, address, establishment and operation license, at-law representative of or person authorized by the life insurance enterprise;

+ Effective date and validity duration of the contract;

+ Contents and scope of agency activities authorized by the life insurance enterprise to the credit institution or foreign bank branch for performance;

+ Insurance commissions and other payments (if any);

+.Rights and obligations of the life insurance enterprise;

+ Rights and obligations of the credit institution or foreign bank branch;

+Agreement on information provision between the life insurance enterprise and the credit institution or foreign bank branch;

+ Termination of the contract;

+ Dispute settlement and jurisdiction.

- In addition to the contents specified in Clause 1 of  Article 6 of Joint Circular 86/2014/TTLT-BTC-NHNNVN, an insurance agent contract may contain other lawful contents as agreed by the life insurance enterprise and the credit institution or foreign bank branch.

3. Insurance commissions and agent management expenses of credit institutions in Vietnam

Insurance commissions and agent management expenses of credit institutions according to  Article 7 of Joint Circular 86/2014/TTLT-BTC-NHNNVN are as follows:

- Life insurance enterprises shall pay insurance commissions to credit institutions and foreign bank branches as agreed in insurance agency contracts, which must not exceed the insurance commission levels currently prescribed by law.

- In addition to insurance commissions, life insurance enterprises may pay agent management expenses and other expenses as prescribed by law and agreed in insurance agency contracts.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE