CREDIT INSTITUTIONS MUST COMPARE VARIATION OF INSURANCE CONTRACT AT LEAST ONCE A MONTH
This content is prescribed by the State Bank of Vietnam in the Circular No. 37/2019/TT-NHNN dated December 31, 2019 guiding credit institutions and foreign bank branches to act as insurance agents for insurance enterprises.
In accordance with this Circular, at least once a month as agreed upon in insurance agent contracts, credit institutions (except for policy banks), foreign bank branches (hereinafter collectively referred to as credit institutions) shall coordinate with insurance enterprises to collate information about new insurance contracts, premium turnover, changes of valid insurance contracts, information related to insurance compensation and payment settlement carried out by credit institutions upon the occurrence of insurance events.
In addition, the provision of clients’ information shall comply with law on security.
This Circular also prescribes that such credit institutions have the obligations of insurance agents as prescribed in the law on insurance business as well as the following obligations:
First, to explain to customers about insurance products distributed by credit institutions other than the credit institutions' products.
Second, to remit the entire amount of collected insurance premiums to the insurance enterprises after deducting insurance agent commissions, insurance benefit payments and other payments as agreed upon in the insurance agent contracts...
This Circular takes effect on March 02, 2020.
