In the past, the implementation of commercial compensation has been effective, helping to increase the number of customers coming to the Company. Although this is an expense that is not considered a reasonable expense, therefore it is not deductible when calculating corporate income tax, it reduces a part of the Company's profit. However, the Company does not ignore this service, on the contrary, the Company should still implement it more widely to create prestige and attract more potential customers in the long term. The Company must also pay attention to correctly assessing the potential of the subjects that the Company intends to compensate for commercial compensation to ensure that it will sign future insurance contracts, and at the same time, it must also set a reasonable loss limit to conduct commercial compensation to ensure that it helps customers and does not lose too much of the Company's expenses. Thus, this is an effective measure to increase market share that the Company should promote.
Prevent and limit insurance fraud
This is a dangerous and unavoidable behavior when the tricks are becoming more and more sophisticated, more unpredictable and causing a loss of a large amount of money for the Company. To minimize insurance fraud in compensation work, the Company needs to require employees to seriously and carefully check the claim records and if there are any suspicious signs, it is necessary to immediately notify to avoid cases of making fake insurance contracts, declaring the date of loss occurring after the date of signing the insurance contract or the assessor and the customer colluding to declare an increase in the value of the loss... All implementation processes must be recorded specifically and in detail so that when errors or mistakes are discovered, the cause can be quickly found and timely measures can be taken. When discovering a case of insurance fraud that the Company has already paid compensation for, the Company must quickly file a complaint, reclaim that compensation and announce that information on the Company's website as well as other branches to take timely preventive measures.
Promote the effectiveness of third party claim work
Maybe you are interested!
-
Improving business efficiency of import-export cargo insurance business transported by sea at Petrolimex Insurance Joint Stock Company - 11 -
Summary of Ranking Results of Vietnam's Import Market of Traditional Goods -
Practical Application of Inspection and Examination Measures; Handling of Import Tax Obligations Violations and Compulsory Compensation for Damages -
Voluntary Social Insurance Policy Evaluation -
Evaluation of Journalists' Access to and Processing of Social Insurance Policy Information
Claiming from a third party helps the Company recover some of the compensation paid to the customer, reducing compensation costs. To effectively carry out the work of claiming from a third party, when a loss occurs, the Company needs to require the customer or the customer's representative to reserve the right to claim from a third party, in case the third party is at fault, the Company has a basis to claim compensation. After completing the assessment, the compensation staff must also collect all necessary documents, certificates, how to calculate the compensation amount and the compensation amount to quickly request the third party to pay.
In addition to the above measures, the Company needs to update information on compensated losses (time of loss, cause of loss, damaged goods, compensation plan, lessons learned, etc.) so that customers and employees can grasp information about the Company's compensation activities quickly and conveniently.
In short, the Company must perform many tasks synchronously, must try to improve the quality of compensation work to be able to enhance its reputation, ensure market share in the Vietnamese insurance market. The combination of the above measures must be truly flexible, implemented quickly and suitable for each stage. To increase the business efficiency of the import-export cargo insurance business transported by sea, in addition to the measures for each task above, the Company needs to set out specific strategies and orientations both in the short term and in the long term to suit the actual situation to both take advantage of the advantages of the market, the Company's strengths and have measures to overcome and limit the impact of the difficulties and weaknesses that the Company encounters. To do that, the Company needs to improve the quality of service, have reasonable incentives for
customers to compete with experienced and large-scale foreign insurance companies and must know how to take advantage of being a Vietnamese insurance company, understanding the Vietnamese market better than new foreign companies. Every year, the Company needs to evaluate the quality and business efficiency of import-export goods insurance in the previous year and in each period to draw experience, propose specific policies to be implemented such as how much market share to expand, who are the main customers, what compensation rate to strive for and how to shorten the compensation period... The more specific the policy is, the easier it is to implement.
2.2 For Vietnam Insurance Association
The Vietnam Insurance Association was established in 1999 with the aim of protecting the legitimate rights of its members, cooperating and developing the Vietnamese insurance market. The Association's activities in recent years have not been able to fully demonstrate its functions and roles in the Vietnamese insurance market. In order to improve the Association's operational efficiency and contribute to improving the effectiveness of insurance compensation for imported and exported goods transported by sea, the Vietnam Insurance Association needs to carry out the following tasks:
Restructure the organization to be clearer and more effective
Currently, the Association operates in the general insurance market, without a clear separation, focusing deeply on one type of insurance such as Non-life Insurance, Life Insurance or Reinsurance... so it has not performed its function well in a specific field. Other countries in the world often have two or more insurance-related Associations, such as in Japan there are 2 Associations (Association of Life Insurers, Association of Non-Life Insurers) or in Singapore there are up to 8 insurance associations (Association of Non-life/Life Insurance, Association of Reinsurers...) and there will be a specialized focus on one
more fields. Therefore, the Vietnam Insurance Association should be divided into the Non-Life Insurance Association and the Life Insurance Association... In the Non-Life Insurance Association, it will specialize in insurance activities such as cargo insurance, motor vehicle insurance, hull insurance... This will make the activities of insurance activities more coherent.
Support to improve professional qualifications and management skills of staff in the Association.
The Association needs to regularly train and improve the professional qualifications of officers and employees specializing in marine insurance in general, import-export cargo insurance in particular, especially in the implementation of compensation for losses. The Association can organize training courses, seminars... specializing in import-export cargo insurance for members with higher frequency and larger scale.
Improve operations related to research, assessment, general market orientation and information updates
The biggest limitation of the Association at present is that the provision of information related to insurance is still slow, not updated and complete. Therefore, the Association needs to regularly update information, provide statistics, analysis articles related to the insurance situation, compensation, advantages and disadvantages related to import-export goods insurance on the website, specialized magazines so that import-export goods insurers have materials to review, analyze their business situation and come up with appropriate development strategies.
In addition, the Association needs to have regular relationships with domestic insurance companies to understand the operating situation of each company in the market; it needs to cooperate with other insurance associations and societies in the world to be able to exchange and learn experiences on goods compensation and other issues.
Only by performing these tasks well can the Vietnam Insurance Association fully promote its role and function in the Vietnamese insurance market, contributing to orienting and evaluating the entire Vietnamese insurance market.
2.3 For the State
Vietnam advocates the development of a market economy, but the role of the State cannot be obscured or reduced. In that context, State agencies must demonstrate their great role through orientation and the development of appropriate policies and strategies for the insurance industry in general. Based on that, Vietnamese insurance companies will have more support to develop and compete with foreign companies.
Perfecting the legal environment, creating consistency in the policies and mechanisms issued by the State
The State needs to improve the legal environment to create favorable conditions for insurance enterprises to operate. Therefore, it is necessary to promote the development and supplementation of new legal regulations suitable for today's insurance business environment, and at the same time amend cumbersome and overlapping regulations and procedures that hinder the business activities of insurance companies. The State should not interfere too deeply in the operations of enterprises but should only monitor insurance business activities through indicators on business activities and inspect and handle violations. The issuance of such legal regulations must be consistent with international practices and customs on insurance - compensation for imported and exported goods transported by sea, creating a unified environment for competition between domestic and foreign insurance enterprises.
Expand relations with other countries in the world
The State needs to expand foreign relations to help Vietnamese insurance companies gradually move towards the international market and expand their market share abroad. Thereby, Vietnamese insurance companies have the opportunity to learn from the experiences of countries with a long history of developing cargo insurance (UK, Italy...) in terms of development strategy, loss management, and effective compensation and assessment methods.
Regularly monitor market activity
The State needs to pay attention to the current unfair competition of Vietnamese enterprises in reducing insurance premiums and expanding insurance coverage excessively to compete for customers and take timely measures to handle it.
Build a suitable development strategy for the whole market
State authorities must also regularly update information, conduct investigations and statistics on the loss situation, appraisal quality and compensation efficiency of the entire insurance market, especially the phenomenon of unfair competition between insurance companies, thereby making reasonable recommendations for insurance companies in cargo insurance business activities. At the same time, together with insurance companies, build a long-term and short-term development strategy for the sustainable development of import-export cargo insurance services transported by sea.
The above measures for PJICO, the State and related parties all have an impact on the efficiency and quality of PJICO's compensation work. With efforts to implement in a synchronous, unified and long-term manner, it can help shorten the compensation time, reduce unreasonable compensation amounts, avoid insurance fraud and enhance the Company's reputation. The result of the above improvements is to increase the efficiency of the business of insurance for imported and exported goods transported by sea at PJICO, implementing
achieve the goals and directions set out in the coming period of the Company. In addition, that impact not only affects the Company's own operations but also helps customers quickly restore their business operations after losses, develop the Vietnamese insurance market and increase the country's socio-economic efficiency.
CONCLUDE
The graduation thesis with the topic "Evaluation of insurance compensation for import and export goods transported by sea at the PJICO Hanoi Company Office in the period of 2006 - 2008 and orientation for the next period" has completed and solved the research objectives. Through the research, we can draw some main points as follows:
Cargo loss assessment and compensation are two very important tasks in the insurance of imported and exported goods transported by sea. Based on that, the Insured and the Insurer calculate the exact compensation amount, ensuring the efficiency of business operations. Due to the importance of these two operations, many experiences on risks, losses and compensation calculations have been compiled and summarized to create a useful source of knowledge.
PJICO is one of the four leading insurance companies and the most effective company in the field of insurance for import and export goods transported by sea in the Vietnamese insurance market. In the past time, the Company has performed the appraisal and compensation work quite well and applied a common process throughout the Company system.
Many objective and subjective factors affect the effectiveness of PJICO's compensation work. However, favorable external factors along with the Company's internal strengths have partly reduced the difficulties and limitations in compensation work for import-export goods transported by sea at PJICO. Thanks to that, the effectiveness of insurance compensation work in particular and the insurance business for import-export goods transported by sea have had positive results in recent years.