1. The right to survey customers’ needs and ability to participate in insurance
Unit-linked insurance is a life insurance product in the investment-linked business and has the following characteristics:
Insurance premiums and benefits are separated between the risk insurance and the investment part. The buyer has the flexibility to determine the insurance premium and the amount of insurance under the agreement.
Otherwise, the buyer may choose to invest the insurance premium to purchase units of unit-linked funds established by the insurance enterprise. The buyer is entitled to the entire investment result and bears all risks in proportion to the invested premium. This sale is made between the insurance enterprise and the insurance buyer.
The insurance enterprise is entitled to the premiums paid by the insurance buyer.
(Article 2, Circular 135/2012/TT-BTC)
Analyzing customers’ insurance needs is a mandatory provision:
– Before entering into a contract, the insurer must analyze the customer’s needs and ability to participate in insurance. From there, we can provide advice as well as products and insurance amounts that are suitable for customers.
– Based on customer information to answer questions through analytical samples, enterprises must determine the customer’s risk tolerance level. The customer must then sign the assessment to confirm the information.
– Customers must sign to confirm their understanding of the insurance product they intend to purchase. And be clearly aware of insurance benefits, investment benefits and possible risks. In addition, customers must also understand the fees businesses charge customers.
(Article 12, Circular 135/2012/TT-BTC)
2. Customers complain to agents selling unit-linked insurance “negligence sale”
Based on the aforementioned legal basis, Life Insurance is not only a life insurance product but also a profitable investment. Additionally, insurance buyers are granted the right to invest in a fund established by the insurance company, which is funded by the insurance premiums of CVD contracts. Moreover, buyers have the flexibility to invest in one or more of the company’s funds, but it is important to note that they must also bear the corresponding risk associated with the portion of the fee invested.
This is a high-risk product for buyers, requiring buyers to clearly understand the product, their rights and obligations when purchasing the product. Therefore, the risk survey form cannot be separated from the insurance contract.
In fact, according to customer feedback, some agents do not give clear advice. They even ignore or voluntarily complete the survey when this is against the law.
Because of that situation, the Draft Decree has tightened the regulation of BDSM. In addition, insurance buyers should proactively protect themselves to avoid risks when participating in Unit-linked insurance in particular and any insurance products in general.
(Refer to Securities Investment Newspaper May 29, 2023)
About our company
HMLF is a Law Firm licensed to provide legal services to Enterprises. With over 70 years of experience in:
– Finance, Accounting, Tax.
– Industry: Manufacturing, Service, Aviation, Transport, Technology, Finance.
– Helping Customers control transactions from internal legal to international trade. Become the best legal defender for Businesses.
– Try to offer optimal solutions to bring customers satisfaction.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
