On 2 November 2023, the Ministry of Finance issued Circular 67/2023/TT-BTC (“Circular 67/2023”) guiding a number of articles of the Law on Insurance Business and Decree 46/2023/ND-CP detailing the implementation of a number of articles of the Law on Insurance Business, effective from 2 November 2023, notably new regulations related to the provision of insurance services and products in the cyberspace and through insurance agents.
1.1 Regarding insurance services and products provided in the cyberspace
Circular 67/2023 regulates the forms of providing insurance services and products in the cyberspace; notices of the provision of insurance services and products in the cyberspace; regulations on service, techniques, data storage and security; and responsibilities of insurance enterprises, branches of foreign non-life insurance enterprises, agencies providing micro-insurance using the mutual model, and insurance brokerage enterprises.
1.2 Insurance agents must give accurate and complete advice on the insurance products they provide
According to Article 53.1 of Circular 67/2023, when providing advisory information on insurance products, insurance agents or employees in organisations acting as insurance agents must provide complete and accurate information to insurance buyers about insurance products, using documents provided by insurance enterprises, branches of foreign non-life insurance enterprises. Insurance agents or their employees are not allowed to create their own product introduction documents, business illustration documents or arbitrarily change the content of product introduction documents or business illustration documents provided by insurance enterprises or branches of foreign nonlife insurance enterprises.
1.3 Record the consultations about investment-linked insurance products
According to Article 53.2(d) of Circular 67/2023, when providing investment linked insurance products, individual insurance agents or employees in organisations acting as insurance agents must record the content of communication related to insurance product consultation at the time the insurance buyer signs the Insurance Application Form. The content to be recorded must include at least the following information: ▪ Name and certificate number of the insurance agent; ▪ Name, age, address, phone number of the insurance buyer; ▪ Details of consultation given by agents or employees in organisations acting as insurance agents regarding insurance benefits, investment benefits and risks that the insurance buyer may encounter when participating in the investment-linked insurance product, information about the fees charged by the insurance and the conditions for enjoying the benefits as agreed in the insurance contract;
Notify of insurance premiums and premium payment deadlines chosen by the insurance buyer to confirm suitability for the insurance buyer's financial capacity; ▪ Notify the insurance buyer about the time to consider buying insurance, the rights and obligations of the insurance buyer, clearly stating the obligation to make truthful statements, and the key details on rights and benefits as agreed in the insurance contract and entitlement conditions; ▪ Confirmation of the insurance buyer that he/she buys the insurance on a voluntary basis and appropriately with the financial ability and insurance needs of the insurance buyer.
In case other relevant information or this information is related to the private life and personal secrets of the insurance buyer, the recording must be approved by the insurance buyer in advance. Insurance enterprises must ensure compliance with this regulation no later than 1 year from the effective date of Circular 67/2023, i.e. 2 November 2023.
1.4 Credit institutions and foreign bank branches are strictly prohibited from consulting, introducing, offering for sale, or arranging to enter into investment-linked insurance contracts in combination with loans
According to Article 53.3(a) of Circular 67/2023, organisations acting as insurance agents must explain to insurance buyers that the insurance products distributed through these organisations are insurance products and the purchase of insurance products is not a mandatory condition to use other services and products provided by the organisations acting as insurance agents. At the same time, according to Article 53.3(c) of Circular 67/2023, credit institutions and foreign bank branches performing insurance agency activities are not allowed to consult, introduce, offer for sale, or arrange the conclusion of investment-linked insurance contracts for customers within 60 days before and 60 days after the date of full disbursement of loans.
1.5 An insurance contract cannot be issued if the recording content is not confirmed by the insurance buyer
According to Article 53.5 of Circular 67/2023, life insurance enterprises must independently check the consultations given by agents on insurance products (in case of provision through organisations acting as insurance agents, this checking must be done before issuing a contract). This checking is intended to evaluate whether or not the insurance buyer buys the insurance product voluntarily and the insurance product is appropriate for the financial needs of the insurance buyer. In case the consulting content is recorded without the insurance buyer's confirmation of participating in insurance on a voluntary basis, and appropriately with the insurance buyer's financial capacity and insurance needs, the insurance enterprises are absolutely not allowed to issue contracts to provide investment-linked insurance products.
Source: https://gvlawyers.com.vn/wp-content/uploads/2023/11/EN_Legal-Newsletter-No.-11.2023.pdf