Are visitors to the bank “invited”, even “required” to buy insurance?

Banks are promoting the sale of insurance to increase non-financial income and compensate for low credit growth – Photo: QUANG DINH

Many clients said that when they go to the bank to send savings, they are often invited, even “forced” to buy life insurance. While bank employees had to find ways to reach their assigned insurance sales target, many customers said they were “surrounded” by all kinds of insurance when they came to the bank to borrow or deposit money. save.

“Smart saver”

In mid-August 2020, when she arrived at a branch of a bank of the “Big 4” group to conduct transactions, Ms. Van (Phu Nhuan district, Ho Chi Minh City) was quite surprised when she was at the table, where the customer sat down to sign the coupon. A large table appears comparing “traditional savings” and “smart savings”.

Specifically, with “traditional savings”, a person who saves VND 82,000 / day will accumulate VND 30 million / year and after 15 years, VND 450 million will have the same interest. If “smart savings” with the same amount, in addition to the amount accumulated as normal savings, guests also enjoy many other benefits, such as a minimum payment of VND 500,000 / day when hospitalized, serious illness or an accident compensated hundreds of millions of VND …

In addition to the comparison table above, Mr. Thanh Tung (Binh Thanh District, Ho Chi Minh City) said that another bank also added the phrase “This is a product that protects you against countless risks in life that your grandparents often do. “God calls everyone to do.” “Before, when I got a loan to buy an apartment, I also had to buy fire and explosion insurance, life insurance, and now I send money to buy all kinds of insurance. I felt like I was surrounded by … insurance, “Tung said.

According to Tuoi Tre’s research, so-called “smart savings” are essentially a “3-in-1” combination insurance product, including protection, accumulation, and investment. If a client participates, a long-term commitment is required, usually around 15 years. Some banks stipulate that if they stop after the first year, they will lose at least 50% of the amount paid. Even at some banks, if the customer terminates the contract after the first year, it will only be about … 20% of the amount paid.

In fact, not all clients who participate in this product understand the “rules of the game” or know the nooks and crannies to ask bank employees thoroughly, not to mention many consultants who don’t say so clearly, making clients think wrongly. like saving money and being able to withdraw money anytime you need it.

According to a bank leader, most of the money paid by guests in the first year will go to premiums, commissions to employees, reinsurance … If it ends after 1 year of participation, the client will lose most of the amount paid . Therefore, if a ‘smart savings’ product is chosen, customers must calculate their financial capacity for a long time because the participation is very long ”, recommended this person.

Do bank staff add insurance sales?

According to Tuoi Tre, insurance sales at banks have increased dramatically in recent years despite the epidemic. Bank statistics show that in July, SCB’s insurance sales amounted to 164 billion dong, leading the market. Followed by VIB with 155 billion VND, followed by ACB, MB and Techcombank with 90 billion VND / month or more.

Also according to these data, accumulated in the first 6 months, insurance sales through VIB reached more than 700 billion, leading the market; MB ranked second, with more than 520 billion. After 4 years, insurance sales of some banks have increased by … 1,000 – 2,700 times, mainly from depositors.

Banks are also rushing to hire staff to sell insurance. For example, Techcombank has trained nearly 4,000 insurance agents and advisers. Some major banks such as Vietcombank, VietinBank and BIDV also published hundreds of installments to provide cross-selling services for life insurance products.

With high expectations in the insurance segment, the target assigned by many banks to the branches is very high, in turn, the branches “force” the target to the transaction offices and then divide the average among the employees. To meet assigned goals, advisers also find ways to sell policyholders rather than giving full advice to clients.

Therefore, there have been many cases of “bad rice, not sweet soup” among insurance-related clients and banks. Reflecting on Tuoi Tre, a customer in the Go Vap district who obtained a loan to buy a car in installment “processed” the bank to force him to buy car insurance from an insurance company affiliated with the bank, whereas he previously bought a safe. insurance from another company.

Because this guest disagrees, the bank only issues a mortgage certificate (used in lieu of vehicle registration) for a period of … every 3 days, making it impossible for your car to get far because every 3 days is required to request a new certificate. . However, the NH side denied this information and said that there was no interception of customers.

The certification within 3 days, according to this bank, is due to the fact that the vehicle insurance has only 3 days to expire. This bank also said that it has filed an exception for customers to buy insurance from an unaffiliated insurance company, but the limit has expired, but the bank still creates conditions for customers!