BIDV Insurance Corporation

In May 2011, BIC introduced the new BIC An Hung policy, which provides an insurance package for small and medium enterprises (SMEs). BIC’s An Hung policy offers simple, easily selected combined services, including a four-in-one product.

If customers want to buy BIC fire insurance, they can choose other insurance products to add to the package, including: business interruption insurance, labor compensation insurance and public liability insurance. These four products are neatly bundled into one package and can be instantly agreed through just one set of paperwork. This bundle also saves customers money, as increased simplicity means decreased premiums as BIC cuts costs on marketing and policy management.

While BIC An Hung’s policy covers risk from fire, lightening, and explosions, SMEs will also be compensated for site clearance and fire clearance costs, and expert hire costs. If a customer buys business interruption insurance, they can be compensated for any financial losses incurred due to fire, lightening and explosions, including: outstanding rent arrears or future rent payments, contract penalties, or interest on bank loans. BIC also offers compensation in case of death, injury and medical costs arising through accidents. In addition, customers can buy legal liability insurance for loss of third party life or assets. The total sum insured through this value-for-money one-stop insurance product is over 50 billion dong.

Through our relationship with BIDV, BIC will roll out SME package insurance throughout 600 BIDV branches and business offices nationwide. The policy will also be available through BIC directly via the corporation’s 21 branches and 80 business offices, 1,000 agencies and BIC’s insurance broker partners.

Vietnam has around 500,000 SMEs, accounting for 98% the country’s enterprises. SMEs not only contribute remarkably to the development of the country’s economy but also generate over one million jobs a year, partly alleviate poverty and enhance social security. However, SMEs are the most affected through accidents and risks, especially fires and explosions. There is no exact total of the losses suffered by SMEs in recent years, but it is estimated to be in the thousands of billions of dong, which combined with the losses, spells bankruptcy for many enterprises. SME indifference to fire insurance is due to shortsightedness in terms of its potential value. To overcome customer indifference, insurance companies often sell fire insurance bundled with other, more popular policies. BIC is the first company to provide an all-in-one SME solution, offering comprehensive and convenient protection against risk of fire and explosions.