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Vietnam Business » Vietnam Financial News » Errant insurers get rapped on knuckles

Errant insurers get rapped on knuckles

In 2008, 15 non-life insurance agreement signed in motor insurance to at least 1.56 percent for insurance payments to remove approximately 1.3 percent. For example, if an insurer is required to pay the claim of a $ 100 surcharge is to collect $ 1.56. Over the next few weeks, four more non-life insurer of the Agreement on the total number of players were signed to increase to 19.

A 400-day research and hot debate in two years, led 19 players non-life-slap fines and fines for violations of restrictions of competition. Last week, a three-day meeting in Vietnam witness competition ended with economic sanctions against 19 insurers in the amount of 0.025 percent of revenue in 2008. The perpetrators are three foreign support, South Korea invested joint venture of Samsung Vina Insurance, a company Groupama French and Fubon Taiwan. In 2008, 15 non-life insurance agreement signed in motor insurance to at least 1.56 percent for insurance payments to remove approximately 1.3 percent. For example, if an insurer is required to pay the claim of a $ 100 surcharge is to collect $ 1.56. Over the next few weeks, four more non-life insurer of the Agreement on the total number of players were signed to increase to 19. Bach Van Mung, head of the Interministerial Vietnam Competition Authority, said the sentences were fair and should serve as a signal to business and not a large financial institution blow. The scope of the sanctions under the competition law could be 0-5 percent of the revenue of a company. The market leader in revenue Viet Bao Do you have any major life sentence VND553 million ($ 29,000). Tran Phan Viet Hai, deputy general director of Samsung Vina Insurance, said that may be paid without an increase in premiums, local non-life insurance no claims in the future. "So when we look at the case from the opposite perspective, was positive for the market," said VIR. Already in mid-2008, Association of Vietnamese Insurers (AVI), Secretary-General Phung Dac Loc of the non-life insurance CEO summit in mid-2008 was from AVI, said that crashed because of the unhealthy competition from 2005 to 2008, local non-life insurer to pull Down-car insurance premiums to attract customers. This price competition led to huge losses to local non-life insurance companies in this segment cars. Statement Loc requested then 15 insurers, to sign the agreement. But Vietnam competition, the researcher and the Competition Authority, decision-makers had only one angle in relation to the legal framework. It should be noted that during 2005-2008, researchers conducted surveys of approximately 70 false competition. An official investigation by the Antitrust Division of the institute, said that the international market was view the case unlawful. "Could be the work as Advisor to the Vietnam Competition Surveillance, experts from Japan and the United States sometimes conflicting views on the offer of a legal framework and practice in each country is different. But the case, experts from Japan and the United States, all with our conclusions agreed, "he said. Vietnam Competition Authority, there is some competition from Japan and the U.S. are working in the framework of bilateral cooperation between Vietnamese ministries and their counterparts in other countries. In the witness sessions, representatives acknowledged agribank Insurance Joint Stock Company, that the violations were against the result of the lack of awareness on the legal framework of competition and was a valuable lesson for all players.

Vietnam Business And Financial News Network. Source [english.vietnamnet.vn]

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