(TIỂU LUẬN) GROUP DISCUSSION present a life insurance company in vietnam baoviet was granted the first class labour medal by the party and the state on the eve of its 50 years establishment

1965 -1974: Serving a small group of customers who are state economic units doing business in the field of import and export and ships in the North 1975-1982: As the largest and only Sta

THUONG MAI UNIVERSITY INSTITUTE OF

INTERNATIONAL TRAINING ***

GROUP DISCUSSION

Present a life insurance company in Vietnam

Group: 1 - Class code: 23100FMGM0317E

Leturer:

Hanoi, 20th Sep 2022

Table of content

I Overview: 3

1 History of formation and development: 3

2 Core values: 3

3 Trademark: 4

II Life insurance Products: 4

1 An Phat Cat Tuong: 4

1.2.1 Protection benefits: 4

1.2.2 Cumulative benefits: 4

1.2.3 Advanced benefits: 5

2 An Khang Thinh Vuong: 5

2.1 General information: 5

2.2 Insurance benefits: 5

2.2.1 Basic benefits: 5

2.2.2 Extended benefits: 6

2.2.3 Advanced benefits: 6

2.2.4 Premium benefits: 6

2.3 Insurance fees: 6

II Provisions and ownership rights/riders: 6

1 Provisions: 7

1.1.1 For the insured: 7

1.1.2 For insurance company: 7

1.4.1 The principle of subrogation: 9

1.4.2 Principle of loss contribution: 10

2 Ownership rights under life insurance: 12

MEMBER’S 13

I Overview:

Baoviet was established on 15 January 1965 and is the leading financial-insurance group in Vietnam It has been accredited as one of the top 25 enterprises in the country by the State Government

The Group is headquartered in Hanoi with a widespread network of more than 188 branches across 63 provinces nationwide Baoviet was the first insurance company incorporated in Vietnam

Baoviet was granted the First-Class Labour Medal by the Party and the State on the eve of its 50 years establishment, in January 2015

1 History of formation and development:

1964: Vietnam Insurance Company was established under Decision 179/CP of the

Government dated 17/12

1965: Officially entered into non-life insurance business from January 15, with the

head office in Hanoi and a single branch in Hai Phong

1965 -1974: Serving a small group of customers who are state economic units doing

business in the field of import and export and ships in the North

1975-1982: As the largest and only State-owned insurance enterprise in the whole

territory of Vietnam with a wide network and diversified insurance products such as aviation insurance, personal insurance, motor vehicle insurance, insurance river boat – fishing boat…

1989: Developed into Vietnam Insurance Corporation under Decision No

27-TCQD-TCCB issued by the Ministry of Finance on February 17

1996: Ranked “Special Class State Enterprise”, one of the 25 largest State-owned

enterprises in Vietnam

1996-2007: During this period, Baoviet continues to diversify and improve the

quality of products and services with the slogan "Best customer service for development"

2007: Vietnam Insurance Corporation changed its name to Baoviet Insurance

Corporation (trading name is Bao Viet Insurance) with the slogan Solid belief, sustainable commitment

2013: Bao Viet Insurance increased its charter capital from VND 1,800 billion to

VND 2,000 billion, becoming the leading enterprise in terms of charter capital in the field

of Non-Life Insurance in Vietnam

2 Core values:

Quality: Meet high quality standards in activities and services provided

Accessibility: Approachable, friendly and professional; care about colleagues and

customers

Cooperation: Cooperate and stick with colleagues throughout the Group; Build

sustainable relationships with customers and partners based on mutual understanding

Dynamic: Always looking forward, developing constantly; seize opportunities and create

new standards; ready to accept new ideas and initiatives

Responsibility: Transparency and honesty; show a sense of responsibility to the

community; building standards in corporate governance

a Flexible but focused

b Dynamic in business but not reckless

c Full of energy but not arrogant

d Reach out to the world but don't fake it

e Willing to absorb new things but selectively

II Life insurance Products:

2 An Phat Cat Tuong:

1.1 General information:

Subjects insured are individuals aged 0 to 65 years with a maximum age at the maturity date of 75 years

Insurance period from 10, 15 or 20 years

1.2 Insurance benefits:

1.2.1 Protection benefits:

Death benefit up to 5 billion dong

Serious injury benefits due to accidents up to 5 billion VND

End-stage critical illness benefits up to VND 500 million

1.2.2 Cumulative benefits:

The maturity benefit helps customers receive 100% of the contract account value when the contract maturity date is reached

The contract maintenance bonus (for the option of recurring premium payment) has

a special effect for customers who stick with it sustainably by adding to the contract account value at that date 10th contract anniversary and every 5 years thereafter

The account value increase bonus benefit is calculated as a percentage on each progressive layer of the average contract account value in the year immediately preceding the benefit determination date and added to the value of the contract account contract account

The interest to enjoy the minimum committed interest rate helps customers enjoy the investment interest rate announced after the end of each financial year and not lower than the minimum committed interest rate

Investment bonus benefits that help the contract account's value at the time of contract termination will be evaluated and adjusted (if necessary) to ensure it is not lower than the account value guarantee

1.2.3 Advanced benefits:

Accidental death benefit extended to 10 billion dong

Medical care benefits pay up to 1,000 times the insured amount for medical care, equivalent to 2 billion VND for hospital benefits and surgery benefits

Cancer benefits are up to VND 2.5 billion, insurance for both early stage cancer and late stage cancer with the maximum payout amount up to 100% of the cancer insurance amount

Cerebrovascular accident - stroke benefit is up to 2.5 billion VND, insured for both major stroke and severe stroke with the maximum payout amount up to 100% of the stroke insurance amount

1.3 Insurance fees: can pay a recurring fee every 5 years or equal the insurance

period (10, 15 or 20 years) or pay a one-time fee Fees include:

- Initial fee

- Contract management fee

- General association fund management fee

- Contract termination fee

- Pre-withdrawal fee

The total premium will be calculated on the basis of the risk premium rate, the amount of risk insurance, the gender and age of the insured at the date of deductible, occupation, health status of the insured, the provisions on risk assessment of the life insurance company and the selected insurance package

2 An Khang Thinh Vuong:

2 1 General information:

Subjects insured are individuals aged 0 to 65 years with the basic program and from

0 to 60 years old with the advanced and advanced program

Lifetime coverage or up to 90 years of age

2.2 Insurance benefits:

2.2.1 Basic benefits:

Death benefit

Accidental serious injury benefits

End-stage critical illness benefits are up to VND 500 million, 50% advance support for Death benefits and this amount will be deducted when other benefits are paid or when the contract is terminated

2.2.2 Extended benefits:

Maturity benefits help customers choose to receive maturity benefits equal to 100%

of the contract account value at the age of 90

Benefits of maintaining the contract with a bonus equal to 2% or 5% of the average contract account value in the bonus period will be added to the contract account value at that date contract anniversary 5 and every 5 years thereafter

Special benefit with bonus equal to percentage of annual premium of the first policy year will be added to the policy account value on the policy anniversary date 10th and 20th times

The interest of the minimum commitment interest rate helps customers enjoy the investment interest rate announced after the end of each financial year and not lower than the minimum committed interest rate

The benefit of increased investment in the value of the contract account at the time

of termination of the contract will be evaluated and adjusted (if necessary) to ensure that it

is not lower than the value of the Guaranteed Account

2.2.3 Advanced benefits:

Accidental death benefit is extended up to 10 billion VND

Insurance benefits for incurable diseases are up to 2.5 billion dong, including early and late stage cancer, stroke and heart attack

2.2.4 Premium benefits:

Medical care benefits up to 2 billion VND for hospital fee benefits and surgery level benefits including basic hospital fees, special hospital fees, support surgery costs and support emergency transportation costs

2.3 Insurance fees:

Premium can be paid 10, 15, 20 years or until the insured reaches 55, 60, 65 years

old Fees include:

- Initial fee

- Contract management fee

- General association fund management fee

- Contract termination fee

- Pre-withdrawal fee

The total premium will be calculated on the basis of the risk premium rate, the amount of risk insurance, the gender and age of the insured at the date of deductible, occupation, health status of the insured, the provisions on risk assessment of the life insurance company and the selected insurance package

I Provisions and ownership rights/riders:

1 Provisions:

1.1 Principle of absolute honesty (utmost good faith):

All business transactions should be carried out on the basis of mutual trust and absolute honesty Both the insured and the insurer must be truthful in all matters relating to the conclusion of the insurance contract

1.1.1 For the insured :

It is an obligation to fully and accurately disclose all relevant material facts, whether required or not The purpose of the principle of absolute honesty is to reduce the cost of risk assessment and to bind the insurer's liability According to this principle, the party who knows important information related to the insurance policy in which he is participating will have to notify the counterparty of such information The scope of the principle applies

to both insurers and policyholders

*Some note:

(1) A significant factor is any factor that affects the acceptance of insurance and settlement of insurance benefits Example: The insured person has a habit of drinking alcohol That habit is an important factor for an insurance company that will cover his body, life, illness, and motor vehicle insurance he drives Some important factors in different types of insurance:

+ For home insurance: What kind of building materials and materials, how to

design, where the house is built,

+ For personal insurance: age, occupation, illness history of the insured, health

records of family members,

+ For auto insurance: Used time of car, driving age, accident history,

(2) Obligation to declare: Normally, an insurance claimant is required to disclose important factors when making an insurance claim The declaration must be completed before the insurance contract is signed When the insured person intentionally fails to fully declare important factors, it is considered a violation of the principle of absolute honesty and the insurance contract may be canceled in whole or in part

1 1 2 For insurance company :

The principle of absolute honesty in insurance does not only apply to the insured, but the law requires that insurance companies, when transacting and introducing to offer insurance services to customers, must also perform these obligations and principles The insurance company, through its operator or agent, is responsible for providing complete and accurate information related to the insurance contract such as insurance benefits, premiums, insurance amounts, etc., explain terms, answer questions for policyholders The insurance company intentionally provides false information to conclude an insurance

contract, the Insured has the right to unilaterally suspend the performance of the insurance contract, the insurance company must compensate for damage arising from his error

1.2 Principle of insurable interest:

An insurable interest is a benefit or interest relating to, attached to, or dependent upon the safety or security of the subject-matter insured This principle states that the insured person who wishes to purchase insurance must have an insurable interest An insurable interest may be an existing or future interest in the subject-matter insured Insurable interests are ownership, right of possession, right to use property; rights and obligations to nurture and support the insured Specifically:

*For non-life insurance:

In property insurance, the policyholder has a contact number with the subject of insurance that is recognized by law The first legally recognized relationship is: the owner The second relationship is the rights and responsibilities before that property For example,

a person has an insurable interest in items he or she borrows because if they are lost or damaged, he or she will have to make a replacement, repair, refund or restore

In civil liability insurance: insurance benefits must be based on the provisions of the law on binding civil liability

*For life insurance:

According to the new view of insurable interest in life insurance, it can be understood in the most general way: Insurable interest is the relationship between the policyholder and the insured In particular, the risk that occurs to the insured will cause loss, financial or mental damage to the insurance buyer Accordingly, it can be seen that: Every individual has unlimited insurance benefits for his or her own life, so they can insure their life with any value they want, as long as there is enough insurance premium payment Coverage also exists for the person's parents, spouse, children, siblings or other persons responsible for custody or legal guardianship of the person Insurable interests also exist for the Insurance Buyer being an organization in the following cases: An organization buys insurance for its employees working for that organization; credit institutions, banks buy insurance for customers who borrow money from that bank or credit institution

In order to ensure this principle, before issuing an insurance contract, the insurance company must check between the insured and the subject-matter insured whether there are any insurable interests in accordance with the principles and regulations of the insurance contract or not

1.3 Principle of majority (law of large numbers):

According to this rule, if a research is carried out on a sufficiently large number of research subjects, one will calculate the relative probability of the actual probability of an event occurring

The law of large numbers is an important scientific basis of insurance This rule helps insurance companies estimate the probability of receiving insurance, to help calculate fees and manage payment reserve funds, because: The insurance company only guarantees for random events, if on a case-by-case basis, insurance can seem like a game of chance; However, on a large number of insured objects, the Insurer can predict the probability of occurrence with an acceptable degree of accuracy

*The law of large numbers applies only when:

Large number of similar risks and losses: Observation must be carried out on a large number and at the same time must be on the basis of risk grouping, grouping of insured objects according to appropriate criteria For example, to calculate the damage of human bodily injury due to an accident, one observes over a large number of accidents that occur, causing damage to human health and over a period of time ( usually one year)

Risks of loss must be independent: The occurrence or non-occurrence of one event does not change the probability of the occurrence of another event

1.4 Principle of indemnity (indemnity):

According to the principle of indemnity, when a loss occurs, the insurer must compensate in some way to ensure that the insured is in the same position as before the loss occurred, nothing more, no less The parties must not take advantage of insurance for their own gain The purpose of the indemnity principle is to restore part or all of the insured's financial condition to its pre-existing condition The principle of indemnity ensures that the insured cannot receive more than the value of the loss they suffer The insurance company's liability also only arises when there is damage caused by the insured peril The principle of indemnity only applies to two types of insurance: property insurance and civil liability insurance, not life insurance and personal insurance operations

*Some cases to note:

+ According to this principle, in case the insured person receives indemnity from many different insurance policies, possibly from different insurance companies or from the same insurance company, the total amount of compensation Normally, all insurance policies will not exceed the loss value

+ Where the insured is also responsible for the damage by a third party For example, receiving compensation from the driver of the car that hit you At that time, the total amount of compensation paid by the third party and the insurance company will not exceed the value of the loss suffered by the insured If the insured has received indemnification from the insurance company, the insured is obliged to reserve and transfer the right of third party claim to the insurance company

1 4.1 The principle of subrogation: