Headlines 12/11/2020 10:53 SA

Strict penalties to be imposed on banks forcing clients to buy loan protection insurance policies

Thùy Liên

State Bank of Vietnam issues the Official Dispatch No. 7928/NHNN-TTGSNH regarding insurance and insurance agent business.

According to this document, credit institutions and foreign bank branches must adhere to the following regulatory requirements:

- Reviewing, strengthening the internal examination and control of insurance agent business activities throughout entire systems of credit institutions.

- Strictly sanctioning any act of forcing clients to buy life or other insurance policies when extending credit to clients, or linking the forced purchase of insurance policies with the extension of credit to clients.

- Ensuring that credit officers and other officers involved in insurance agent business thoroughly grasp, and are provided with knowledge about, laws on insurance business;

Particular attention must be paid to acts in violation of laws on insurance business.

- Strictly obeying the State Bank’s commands issued in the Official Dispatch No. 10273/NHNN-TTGSNH dated December 31, 2019 and Official Dispatch No. 1705/NHNN-TTGSNH dated March 16, 2020.

For more details, please read the Official Dispatch No. 7928/NHNN-TTGSNH dated October 30, 2020.



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