Forcing borrowers to buy insurance: Ministry of Finance requests inspection

The Ministry of Finance said: According to reports from newspapers and radio stations, recently there have been cases of employees of some banks introducing, soliciting, and forcing customers to buy life insurance or investment-linked insurance when they come to deposit money or borrow capital.

Banks are required to strictly handle cases of "forcing" customers to buy insurance when borrowing money. Illustrative photo

Minister Ho Duc Phoc continued to request the Department of Insurance Management and Supervision to strengthen the management and supervision of insurance market activities. Conduct inspections and examinations of insurance companies, including insurance agents and insurance brokers, to prevent the situation of insurance companies cooperating with banks to force customers to purchase insurance before lending capital or introducing depositors to invest in insurance products in violation of relevant laws.

The leaders of the Ministry of Finance requested the Department of Insurance Management and Supervision to organize the announcement of a hotline (phone number, email) to receive information reflecting on the above-mentioned disguised insurance products from people and businesses, promptly check and verify information to take inspection measures, coordinate with the police and the State Bank's inspection and supervision agencies to prevent and strictly handle according to the provisions of law.

"Coordinate with the State Bank's banking inspection and supervision agency to conduct inspections and strictly handle credit institutions that allow employees to force customers to buy insurance," the directive clearly stated.

The Ministry of Finance also requested to review and report on the risk assessment of the Vietnamese insurance market situation, with an assessment of the current status of the quantity and operations of insurance companies, insurance agents, and reinsurance compared to the market size and especially the compliance with regulations in capital mobilization and investment activities (if any) of insurance companies in some areas with high risk coefficients.