“The agent said this contract pays 8% interest a year and I can withdraw anytime” — but when the customer needed the money, they discovered it was investment-linked insurance with heavy early-withdrawal charges. Who is responsible when an agent mis-sells? The Law on Insurance Business 2022 answers clearly: the insurer is responsible to the customer — even when the fault lies with the agent.
1. The short answer: the insurer is liable
Point g, Clause 2, Article 128 of the Law on Insurance Business 2022 (No. 08/2022/QH15, effective 01/01/2023) provides that insurers must perform the obligations agreed in insurance contracts arranged by insurance agents. It stresses: even where the agent breaches the agency contract and harms the lawful rights and interests of the insurance buyer, the insurer remains responsible.
In other words: customers deal with and claim against the insurer, not individual agents. The insurer then handles the agent internally under the agency contract.
2. Conduct prohibited for insurance agents
Clause 3, Article 129 lists prohibited acts, including:
- Providing false information or advertising about the insurer’s operations, insurance conditions and clauses, harming the lawful rights and interests of insurance buyers;
- Preventing buyers from providing contract-related information, or inducing non-disclosure;
- Inducing customers to cancel existing valid contracts in any form;
- Completing disclosures for the buyer without consent;
- Failing to explain clearly and fully the insurance benefits, exclusion clauses, and the buyer’s rights and obligations.
3. Insurers are also fined for lax agent supervision
The law not only makes insurers bear the consequences but requires them to inspect, supervise agency contract performance and assess agents’ advisory quality. Under Article 24 of Decree 174/2024/ND-CP (effective 15/02/2025), an insurer that fails to supervise and lets agent violations occur faces a fine of VND 60–100 million, plus a requirement to stop using the violating agent for 12 months.
4. Consequences when the insurer breaches its duty to inform
A key change in the 2022 Law: when the insurer (including through agents) provides false information to conclude a contract, the buyer may cancel the contract — and the insurer must refund all premiums paid and compensate resulting damages (if any).
5. Steps to take if you were mis-sold
Step 1 — Gather evidence: messages, call recordings, brochures, benefit illustrations the agent gave you — especially promises about interest rates, “withdraw anytime”, “no charges”.
Step 2 — Complain in writing to the insurer: cite Articles 128 and 129 and demand resolution (cancellation, refund).
Step 3 — Complain to the Insurance Supervisory Authority (Ministry of Finance) if the insurer does not resolve it satisfactorily.
Step 4 — Sue in court to enforce your contractual and statutory rights.
6. Frequently asked questions
Q: The agent has quit — is the insurer still responsible?
A: Yes. The insurer’s responsibility attaches to the insurance contract the agent arranged, regardless of whether the agent still works there.
Q: I only have the agent’s verbal promises, nothing in writing. Can I still complain?
A: Harder, but possible — recordings, messages, and witnesses all count as evidence. Lesson: always ask the agent for written materials and read carefully before signing.
Q: I bought through a bank (bancassurance) — who is responsible?
A: Credit institutions acting as insurance agents are also governed by Articles 128–129; the insurer remains responsible for performing the insurance contract.
Mis-sold insurance and need to claim your rights? Contact us for advice.
This article was prepared by the FLAW AI Legal Council. The content is pending QA Council review prior to approval; the information is for reference only and does not replace legal advice for your specific circumstances.