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VietNamNews

Fraudsters bamboozle insurers

Update: September, 14/2013 - 09:48

More people than ever before are embezzling social insurance funds, Phung Dac Loc, Secretary General of the Viet Nam Insurance Association, told Dai doan ket (Great Unity) newspaper.

How much money has been embezzled this year?

"Every year the insurance sector of Viet Nam contributes more than VND100,000 billion (US$4.7 billion) to the state budget. However, recently many people have embezzled money from insurance funds. It is time for the government to force the culprits to pay back the money that they have misappropriated," said Le Van Thanh, general director of the Bao Minh Joint Stock Insurance Company. 

Well, a number of individuals who were detected committing this crime ran away to avoid prosecution. However, as for the number of people who were successful, I have to confess we don't know.

When an insurance company receives a compensation complaint, that company has to review the petition and settle it within 15 days.

If it finds the documentation insufficient, the company has to send a letter of rejection to the claimant asking him/her to provide further written information. But the 15-day time limit is too short for the insurance company to properly appraise the claim.

So with cases involving a small sum of money or when the verification process is too cumbersome, staff at the insurance company often pay the compensation in order to make their lives easier.

In what areas does this occur most often?

The health care sector and automobiles.

Let's say a car owner only bought his insurance following an accident or made the accident look much more serious than it really was in the hopes of getting more insurance money. Or if the driver didn't have a driving license and immediately got a fake one.

People can claim insurance money easily with fake documents.

Document falsification is also rampant in the health sector. In one office, within one week about 50 per cent of the staff had to go to the hospital.

However, the office's roster sheet indicated that no one was absent during that period of time.

Can the insurance companies do something to stop this bad practice?

In the past, I remember, the Viet Nam Social Insurance Company (VSS) did not want to make public the names of people or companies that had made profits from the insurance fund because they thought other people might copy the bad practice.

But now it is time we make everything transparent.

In addition, the VSS has asked the government to allow it to increase the number of health inspectors to 2,600 people so that they will be able to inspect the 140 million health dossiers that the VSS has to pay annually. — VNS



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