Conditions for operating insurance agents in Vietnam

Do you intend to do business as an insurance agent but do not know how the conditions for operating an insurance agent are regulated in accordance with the laws of Vietnam? What rights and obligations does an insurance agent have? What behavior is prohibited for insurance agents? What is the operating principle of an insurance agent? In the article below, Lawyer X will help you answer questions about this issue, please read along for reference.

Legal grounds

• Law on insurance business 2000
• Decree 73/2016/ND-CP

What is an insurance agent?

Agents are the intermediary between a product manufacturer and a customer. Agents are allowed to sell products on behalf of and representatives to sell previously agreed products and receive appropriate remuneration from the enterprise.

It is roughly understood like that, but for the insurance business, our state has a clear definition of an insurance agent in Article 84 of the 2000 Law on Insurance Business as follows:

“Insurance agent means an organization or individual authorized by an insurance enterprise on the basis of an insurance agent contract to perform insurance agency activities in accordance with this Law and other provisions of law related.”

Contents of activities of insurance agents

What are the conditions for insurance agency operations?

According to Article 85 of the Law on Insurance Business 2000, the duties and activities of an insurance agent include the following:

Insurance introduction and sale: Agents are responsible for introducing and advising on insurance product packages suitable to customers’ financial and risk conditions. As well as introducing the prestige, position and financial potential of the authorized insurer.

Arrange the conclusion of insurance contracts: Starting from helping customers complete the necessary procedures, truthfully declare factors such as personal information, health status, work, etc. The insurance company will agree to approve the insurance package that the customer has registered.

Premium collection: According to the insurance contract, the customer needs to pay the premium by the due date. Instead of customers having to go directly to the company, insurance agents are authorized to collect fees at customers’ homes to save customers time and costs.

Arrange for compensation and insurance payment upon occurrence of an insurance event: Whenever a customer incurs a risk and requests assistance from insurance, the insurance agent is obliged to assist the customer in completing the procedure. continue to be eligible for assistance from the insurance company under the policy. At the same time, the agent is also responsible for verifying the customer’s information and transferring it to the insurance company. Help insurance companies settle claims and insurance payments quickly, accurately, openly and transparently.

Performing other activities related to the performance of the insurance contract: In addition to the tasks mentioned above, the agent also performs a number of other activities as prescribed in the authorization contract, the business representative between insurance companies and agents.

Regulations on operating conditions of insurance agents

Pursuant to Article 86 of the Law on Insurance Business, 2000. An organization or individual wishing to become an insurance agent must satisfy the following conditions:

For individuals

Employees in an agency organization directly performing insurance agency activities must fully meet the following conditions:

Being a Vietnamese citizen permanently residing in Vietnam;
Being full 18 years old and having full civil act capacity;
Having a certificate of insurance agent training issued by an insurance enterprise or Vietnam Insurance Association.

For the organization

Is an organization legally established and operating;
Employees in the agency organization directly performing insurance agency activities must fully meet the prescribed conditions as a personal agent;
Persons who are being examined for penal liability or are serving prison sentences or deprived of the right to practice by the Court for committing crimes as prescribed by law may not sign insurance agency contracts.

Principles of operation of an insurance agent

According to Article 83 of Decree 73/2016/ND-CP, the operating principles for insurance agents are as follows:

(1) Organizations and individuals engaged in insurance agency activities must satisfy all conditions for agency activities as prescribed in Article 86 of the Law on Insurance Business and must sign an insurance agency contract as prescribed in Article 87 of the Law on Insurance Business.

An insurance contract as prescribed in Article 87 of the Law on Insurance Business 2000 must have the following principal contents:

• Name and address of the insurance agent;
• Name and address of the insurance enterprise;
• Rights and obligations of insurance enterprises and insurance agents;
• Content and scope of insurance agency activities;
• Insurance agent commissions;
• Contract term;
• Principles of dispute resolution.

(2) An organization or individual may not concurrently act as an agent for another insurance enterprise or foreign branch without the written approval of the insurance enterprise or foreign branch of which they are acting. .

(3) An individual who has been granted an agent certificate but has not operated as an agent for a period of 3 consecutive years must take the exam to obtain a new agent certificate before acting as an agent. Failure to act as an agent means that an individual does not sign a contract to act as an agent for an insurance enterprise or foreign branch or does not work in an organization that is an agent of an insurance enterprise or foreign branch.

What rights and obligations does an insurance agent have?

Rights and obligations of insurance agents are specified in Article 85 of Decree 73/2016/ND-CP as follows:

An insurance agent has the following rights:

• Select and sign insurance agency contracts with insurance enterprises and foreign branches in accordance with law;
• Attend training, retraining, and improvement classes for insurance agents organized by insurance enterprises and foreign branches;
• To be provided with the necessary information for their activities and other conditions for the performance of an insurance agency contract;
• To enjoy commissions and other lawful rights and benefits from insurance agency activities;
• Request the insurance enterprise or foreign branch to return the deposit or collateral as agreed in the insurance agency contract.

Insurance agents have the following obligations:

• To fulfill the commitments in the insurance agent contract signed with the insurance enterprise or foreign branch;
• Escrow or mortgage assets for insurance enterprises or foreign branches, if so agreed in the insurance agency contract;
• Introduce, offer and sell insurance; provide complete and accurate information to the insurance buyer; perform the insurance contract according to the scope authorized in the insurance agent contract;
• Participating in advanced training courses organized by insurance agent training institutions;
• Subject to inspection and supervision by competent state agencies and fulfill financial obligations in accordance with the law.

Thus, an insurance agent means an organization or individual authorized by an insurance enterprise on the basis of an insurance agency contract to perform insurance agency activities in accordance with this Law and other provisions of this Law. relevant laws. When operating as an insurance agent, organizations and individuals need to ensure compliance with the principles of insurance agency operation, enjoy the rights and be responsible for performing the obligations towards insurance agents in accordance with the provisions of this Law.

Related articles:

• Where to buy compulsory car insurance in Vietnam?
• Is health insurance in Vietnam subject to VAT?
• General provisions on insurance contracts in insurance business in Vietnam

Prohibited acts for insurance agents

Insurance agents may not perform the following acts:

• Providing false information and advertising about the contents and scope of activities of the insurance enterprise, foreign branch, insurance conditions, and terms, harming the legitimate rights and interests of the insurance buyer. ;
• Preventing the insurance buyer from providing information related to the insurance contract or inciting the insurance buyer or the insured person not to declare details related to the insurance contract;
• Competing for customers in the form of preventing, enticing, bribing; or threatening employees or customers of insurance enterprises, foreign branches, insurance agents or other insurance brokerage enterprises;

• Inciting customers to cancel the valid insurance contract in any form.

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