MoIT supports insurance companies in consumer right protection
Recently, apart from inspection, the Ministry of Industry and Trade (MoIT) has guided insurance companies to research, formulate and perfect policies to protect the legitimate rights of consumers. Vietnam Economic News’ Nga Duong had an interview with Nguyen Quynh Anh, Vice Chairwoman of the National Competition Commission (NCC) on this issue.
Would you please tell us about the role of the MoIT in consumer rights protection relating to the insurance sector in general, including life insurance?
Since October 1, 2019, life insurance contracts have no longer been on the list of contracts that must be registered with the MoIT but are only under the supervision of the Ministry of Finance (MoF) according to the provisions of Decision No.25/2019/QD-TTg dated August 13, 2019 of the Prime Minister. This aims to realize the Government’s resolution on promoting administrative reform, transferring the control of life insurance products to a single agency (MoF), facilitating business operations of enterprises and in line with international practice.
At the talk show co-organized by the Newspaper of Industry and Trade and the National Competition Commission about consumer protection in the field of finance
Several legal documents, such as Decree No.46/2023/ND-CP of the Government, or Circular No.67/2023/TT-BTC of the MoF, were issued in 2023 providing guidance and stipulating detailed requirements on the terms and conditions of life insurance contracts to create a clear legal corridor for insurance businesses.
Despite this, what has the MoIT done to protect consumer rights?
From the perspective of state management, the NCC has recently carried out many tasks related to life insurance contracts to protect consumer rights, such as promoting dissemination of legal knowledge on the implementation and control of standard contracts, general transaction conditions, warnings on concluding standard contracts with specialized terms, including life insurance contracts.
The commission has also published information on consumers’ requests, feedback and complaints to warn about possible complex disputes in each period, guide them to submit complaints to the Insurance Supervisory Authority under the MoF for consideration and settlement in accordance with the provisions of the Law on Insurance Business and related laws.
At the same time, the NCC has carried out three inspections on the consumer rights protection as planned in the life insurance sector in 2023 and 2024; imposed administrative sanctions on these businesses with a total fine of VND315 million for their violations.
The agency also reviewed and guided insurance businesses to research, formulate and perfect policies in compliance with the Law on Consumer Rights Protection.
What measures have the MoIT in coordination with the MoF taken to enhance the effectiveness of law enforcement on consumer rights protection in the insurance sector?
In order to enhance the effectiveness of law enforcement in this regard, the NCC under the MoIT has coordinated with the MoF to request businesses to promptly review and complete documents, internal procedures, standard contracts, and general transaction conditions applicable to consumers to ensure compliance with current legal provisions, including the Law on Consumer Rights Protection 2023 effective from July 1, 2024 and related guiding documents.
In the coming time, the NCC will continue to coordinate with related units under the MoF in protecting consumer rights at insurance companies to avoid problems that affect consumer rights in particular and social stability in general.
