Motor vehicle insurance fraud at petrolimex joint stock insurance company period 2000 to 06 month 2006 Analysis and Solution.

ĐẠI HỌC MỞ - TP. HCM UNIVERSITE LIBRE DE RUXELLES
UNIVERSITE OUVERTE DE HCM VILLE ECOLE DE COMMERCE SOLVAY

MMVCFB


PROGRAMME DE MAITRISE EN MANAGEMENT VIETNAM -
COMMUNAUTE FRANCAISE DE BELGIQUE



NGUYEN VAN TUAN





MOTOR VEHICLE INSURANCE FRAUD AT
PETROLIMEX JOINT-STOCK INSURANCE COMPANY
PERIOD 2000 - 06/2006:
ANALYSIS & SOLUTIONS






MASTER OF MANAGEMENT THESIS

Ho Chi Minh City, Vietnam
2007


ĐẠI HỌC MỞ - TP. HCM UNIVERSITE LIBRE DE RUXELLES
UNIVERSITE OUVERTE DE HCM VILLE ECOLE DE COMMERCE SOLVAY

MMVCFB


PROGRAMME DE MAITRISE EN MANAGEMENT VIETNAM -
COMMUNAUTE FRANCAISE DE BELGIQUE


NGUYEN VAN TUAN




MOTOR VEHICLE INSURANCE FRAUD AT
PETROLIMEX JOINT-STOCK INSURANCE COMPANY
PERIOD 2000 - 06/2006:
ANALYSIS & SOLUTIONS

MASTER OF MANAGEMENT THESIS





Advisor
Dr. TRAN XUAN KIEM

Ho Chi Minh City, Vietnam
2007

This is my original work.
Any data, result or quote in the project is clearly identified.
NGUYEN VAN TUAN



ACKNOWLEDGEMENTS


I would like to express my sincere thanks to Professor Doctor Tran Xuan
Kiem who serves as my local coach and guidance, supports and comments on
my research papers. Despite the complexity and scope of the topic, he convinces
me with scientific instructions and valuable suggestions from the very beginning
to the completion of the thesis. My great thanks also expressed to professors in
the roles of arguments and defense for contributing valued ideas, science and
practices, which much encourages me.
I would also like to thank deeply Professors of thesis defense committee
who spare their time to pay attention to my presentation, give comments and
pose valuable questions, which help me to be more comprehensive of the topic
of my thesis. My gratefulness extended to the two Directors of the MBA
program, Lawyer Doctor Tran Anh Tuan and Prof. Nagel, Vietnamese and
Belgian professors, coordinators of the MBA Vietnam - Belgium program that I
am honored to follow during the past two years.
Last but not least, I am grateful to the Management Board of PJICO, my
classmates, colleagues and my beloved family members for providing me with
time release to pursuit of the MBA program at Hochiminh City Open University
and Solvay Business School/ University Libre of Brussel.

TABLE OF CONTENTS

Commitment
Acknowledgemennts
Contents
List of tables
List of graphs
List of abbreviations
Glossary

INTRODUCTION 01
1 - The reason to choose the subject 01
2 - The aim of the subject 02
3 - The object and scope of the research 02
4 - The research method 02
5 - The structure of the thesis content 03

CHAPTER I
: GENERAL THEORY OF MOTOR VEHICLE
INSURANCE AND INSURANCE FRAUD
1.1 - The objective necessity and the effect of motor vehicle insurance 04
1.1.1 - The role and feature of road traffic 04
1.1.2 - The features of motor vehicle taking part in road transport 04
1.1.3 - Necessity of motor vehicle insurance 05
1.1.4 - The effect of motor vehicle insurance 07
1.2 - The basic content of motor vehicle insurance 07
1.3 - Motor vehicle insurance fraud 08
1.3.1 - Insurance fraud 08

1.3.2 - Types of motor vehicle insurance fraud 08
1.3.3 - Cause arising behavior of motor vehicle insurance fraud 08
1.3.4 - Consequence of motor vehicle insurance fraud 08
1.3.5 - Insurance fraud of some countries in the world 09

CHAPTER II
: SITUATION OF MOTOR VEHICLE INSURANCE
FRAUD AT PETROLIMEX JOINT-STOCK INSURANCE
COMPANY PERIOD 2000 - 2005
2.1 - About PJICO 10
2.1.1 - History of establishing and developing PJICO 10
2.1.2 - Market share in the non-life insurance market 10
2.2 - Situation of performing motor vehicle insurance 12
2.2.1 - Insurance performance 12
2.2.2 - Control of loss 13
2.2.3 - Inspection and compensation 14
2.2.4 - Evaluating business results of motor vehicle insurance 15
2.3 - Status of motor vehicle insurance fraud at PJICO period 2000-2005 16
2.3.1 - Status of insurance fraud period 2000-2005 16
2.3.2 - Cause arising of motor vehicle insurance fraud at PJICO 19
2.3.3 - Consequence of business results due to insurance fraud 20
2.4 - Prevention and disruption of motor vehicle insurance fraud at PJICO 21
2.4.1 - Advantages and disadvantages 21
2.4.2 - Doubtful symbols of insurance fraudulence 22
2.4.3 - Solutions to prevent and disrupt motor vehicle insurance fraud 23
2.4.4 - Evaluating effect of fraud prevention and disruption 25
2.4.5 - Existing problems 25

CHAPTER III: RECOMMENDATIONS TO REINFORCE
PREVENTION AND DISRUPTION OF MOTOR VEHICLE
INSURANCE FRAUD AT PJICO
3.1 - Recommendations to PJICO 27
3.1.1 - General strategy 27
3.1.2 - Controlling policy documents 28
3.1.3 - Enhancing agent’s sense of profession 28
3.1.4 - Inspection and compensation 29
3.2 - Recommendations to Association of Vietnamese Insurers 29
3.3 - Recommendations to the State’s organizations 30

CONCLUSION 32

References









LIST OF TABLES
Table Name of Table Page
2.1 Management cost of motor vehicle insurance from 2000 to
2005
13
2.2 Survey & claim of motor vehicle insurance from 2000 to
2005

14
2.3 Activities of motor vehicle insurance in the first half of the
year 2006
15
2.4 Business results for motor vehicle insurance from 2000-2005 16
2.5 Situation of motor vehicle insurance fraud at PJICO period
2000-2005
17
2.6 Expenditure for management of operations 20


LIST OF GRAPHS
Graph

Name of Graph Page
1.1 Number of motors registered from 2000 to 11/2006 05
1.2 Number of automobiles registered from 2000 to 11/2006 05
1.3 Road traffic situation of Vietnam from 1991 to 2006 06
2.1 Market share of non-life insurance companies year 2003 11
2.2 Market share of non-life insurance companies year 2004 11
2.3 Market share of non-life insurance companies in 2005 11
2.4 Premium income of the year 2004 & 2005 12
2.5 Growth rate of motor vehicle premium income 13




LIST OF ABBREVIATIONS

ALFA Agence pour la lutte contre la fraude aø l’assurance
AVI Association of British Insurers
AVI Association of Vietnamese Insurers
IBC Insurance Bureau of Canada
UAP Union des Assurances de Paris













GLOSSARY
Assured: The same as an “Insured”, “Policyholder”, or someone has an
insurance policy.
Claim: Any request or demand for payment under the terms of the insurance
policy.
Cover: A policy covering a number of types of loss or damage. Policies may
also offer additional benefits such as medical expenses and legal costs.
Deductible: The specified amount a loss must exceed before a claim is
payable. Only the amount that is in excess of the deductible is recoverable.
Depreciation: The decrease in value of any property due to wear, tear, and/ or
time. Generally, depreciation is no an insurable loss.
Excess: An amount of money that the policyholder has to pay towards the cost

of a claim.
Exclusion: Restriction in your insurance policy that limits and may exclude
coverage for certain perils, persons, property or locations.
Fraud: Deliberate trickery intended to gain an advantage.
Fraudster: Person who makes fraud.
Insurance fraud: The act of falsifying or exaggerating the facts of an accident
to an insurance company to obtain payment that would not otherwise be
made.
Third party: Person or entity not party to an agreement but with an interest in
the agreement.




COMMENTS OF THE COUNSELLOR


Subject: Motor Vehicle Insurance Fraud At Petrolimex Joint-Stock
Insurance Company in the Period 2000-2006: Analysis and Solutions
Student: NGUYEN VAN TUAN

I. On The Formality :

The thesis has a well-defined structure, with logical sections and
sub-sections. The style and reasonings are clear. The thesis presents data,
images, tables, graphics and charts which illustrate well the arguments.
The Bibliography is properly established.

II. On The Contents :
In Chapter 1 of the Thesis, the author outlines the theoretical basis

of motor vehicle insurance and insurance fraud. Chapter 2 presents the
situation of motor insurance fraud at Petrolimex Joint-Stock Insurance
Company in the period of 2000-2005. Chapter 3 suggests
recommendations to reinforce prevention and disruption of motor
vehicle insurance fraud at PJICO.

The author has proved to master properly basic theorical
knowledge of the subject matter, as well as to apply it to analysing it in
the insurance business praxis.

The author knows well how to pose the question, to limit the issue,
and to collect a plentiful range of information in order to analyse and
evaluate the concrete situation aiming at suggesting solutions to the
problem.

This work meets the requirements of a MBA dissertation. We
recommend the jury allows NGUYEN VAN TUAN to present this
thesis, with our own evaluation: Assessing the formality and the
contents, this thesis gets Good rating, 9/10.

The Counsellor




Tran Xuan Kiem, DBA



THE FIRST ARGUMENT

THE SECOND ARGUMENT

Motor vehicle insurance fraud at PJICO period 2000-06/2006: Analysis & Solutions
Master of Management Thesis
Page 1
MOTOR VEHICLE INSURANCE FRAUD AT
PETROLIMEX JOINT-STOCK INSURANCE COMPANY
PERIOD 2000 - 06/2006:
ANALYSIS & SOLUTIONS


INTRODUCTION
1 - The reason to choose the subject
Nowadays, together with higher and higher development of science and
technology, means of transport is also improved modernly and significantly
with the speed of hundreds of miles per hour such as: airplane, train,
automobile, ship But, with the effort of human as well as the assistance of
science and technology, we have not yet rejected all the traffic accidents which
are happening increasingly and the loss is bigger and bigger, sometimes like
disaster. In order to compensate for the life and property loss happened
accidentally to the owners, insurance for means of transport is an effectively

solution at the present.
However, to any development, there is always the negative to go with it.
As per insurance industry, the act of insurance fraud has been actually
becoming a threat to the profit target of all the insurance companies in Vietnam
in general, and of Petrolimex Joint-Stock Insurance Company (abbreviated as
PJICO) in particular. Now, we should give a cursory glance at the situation of
motor vehicle insurance compensation of Vietnamese non-life insurance
companies in the first half of the year 2006.
Motor vehicle insurance fraud at PJICO period 2000-06/2006: Analysis & Solutions
Master of Management Thesis
Page 2
The ratio of the total compensation payment to the total premium
income is that: Bao Viet with 51.21%, Bao Minh with 49.40%, PTI with
55.75%, PVIC with 21.11%, others with 45.39% and especially PJICO with
68.69%. These figures indicate that the ratio of PJICO is the highest one of all.
What has influenced on the high ratio? Is there any fraudulence in survey &
claim activities? To understand this problem somewhat, with my employment
experience at PJICO Gia Dinh - the Branch of Petrolimex Joint-Stock
Insurance Company, I have decided to choose the subject of “Motor vehicle
Insurance Fraud at Petrolimex Joint-Stock Insurance Company period 2000-
06/2006: Analysis & Solutions” to do as my thesis.
2 - The aim of the subject

To make clear the problem of motor vehicle insurance fraud, the subject
comes to the research of the real situation at PJICO with real figures and
examples illustrated. From that, the research will bring forward the detailed
methods to make good and perfect the prevention and disruption of insurance
fraudulent acts.
3 - The object and scope of the research
The research object of the thesis is fraudulent in motor vehicle insurance

at Petrolimex Joint-Stock Insurance Company.
The research scope of the thesis is collecting and analyzing the data
from the year 2000 to 06/2006.
4 - The research method

The research method of the thesis is investigating, reckoning up,
surveying, analyzing, comparing and synthesizing data to obtain the advanced
purpose. The thesis is using the knowledge of scientific theory and considers
Motor vehicle insurance fraud at PJICO period 2000-06/2006: Analysis & Solutions
Master of Management Thesis
Page 3
the Vietnamese real conditions in the insurance industry to bring forward
necessary recommendations.
Needed information:
- Secondary information:
•
Development strategy and policy of Vietnamese
insurance industry.
•
Summary reports specialized in insurance industry.
•
PJICO's annual summary reports.
•
Experience in carrying out solutions to prevent and
disrupt insurance fraud at insurance companies in
Vietnam.
- Primary information:
•
Interviewing, discussing with insurance experts and
PJICO's steering committee.

5 - The structure of the thesis content

Including Introduction, Conclusion and three chapters as follows:
•
Chapter 1: The general theory of motor vehicle insurance and
insurance fraud.
•
Chapter 2: The situation of motor vehicle insurance fraud at
Petrolimex Joint-Stock Insurance Company.
•
Chapter 3: Some recommendations to reinforce the task of
preventing and disrupting motor vehicle insurance
fraud at Petrolimex Joint-Stock Insurance Company.

Motor vehicle insurance fraud at PJICO period 2000-06/2006: Analysis & Solutions
Master of Management Thesis
Page 4
CHAPTER I:
THE GENERAL THEORY OF MOTOR VEHICLE
INSURANCE AND INSURANCE FRAUD

1.1 - THE OBJECTIVE NECESSITY AND THE EFFECT OF MOTOR
VEHICLE INSURANCE
1.1.1 - The role and feature of road traffic

The transport industry has a very important role because it can influence
directly or indirectly on almost other industries, such as: economy, culture,
society, and national defense and security. In the trend of globalization, the
transport is a basic condition for the process of integrating into the world, a
standard to consider the development of each nation. It is clear that the

transport can decide the expansion of the economic relations, goods exchanges
among regions and countries.
Indeed, the network of transport is attaching to an special importance
and enlarged with the quality higher and higher, especially road transport,
waterway transport, rail transport and air transport. Among them, the road
transport by motor vehicle is the most popular with the features such as: fast
transport, moderate cost, simple and convenient use, popular transport means
and wide operation network.
1.1.2 - The features of motor vehicle taking part in road transport

The number of motor vehicles is increasing day by day. This is a cause
leading to more and more traffic accidents with higher and higher seriousness.
In nearly 7 years (from 2000 to 11/2006), the number of motors produced
locally and imported reached to over 12,823,000 units, and automobiles
Motor vehicle insurance fraud at PJICO period 2000-06/2006: Analysis & Solutions
Master of Management Thesis
Page 5
assembled locally and imported reached to 500,300 units, increasing by
18,400,000 motors and 965,000 automobiles.
Graph 1.1
: Number of motors registered from 2000 to 11/2006






Graph 1.2: Number of automobiles registered from 2000 to 11/2006

(Source: National Traffic Safety Committee)
(:8081/ATGT/upload/TNGT1990-2005.htm)

1.1.3 - The necessity of motor vehicle insurance

1.1.3.1 - Road traffic situation of Vietnam from 1991 to 2006:
Together with the fast development of overland transport network, more
and more traffic accidents have been a threat of the society. That is the first
interest of the State, stinging problems to not only the transport industry but
also every industries and levels in every spheres. Today, the society’s public
opinion is concentrating on reflecting severely traffic accidents and its
seriousness. To understand this point further, have a look at the below graph.
0

120,000

100,000

80,000

60,000

40,000

20,000

2005

2004

2003

2002

2001

2000

2006

Quantity

Year
18
,
900
73
,
200
50,300
67,600
99,800
116,300
74,200

0

2000

2001 2002 2004 2005
300,000

600,000

900,000

1,200,000
1,500,000
1,800,000
2,100,000
2,400,000
2,700,000
Quantity

Year
2006
62
5
,8
00

2
,148
,
200

1,914

,
000

1,106
,
000

1,997
,
000

2,711
,
000

2,321
,
000

Motor vehicle insurance fraud at PJICO period 2000-06/2006: Analysis & Solutions
Master of Management Thesis
Page 6
Graph 1.3: Road traffic situation of Vietnam from 1991 to 2006






(Source: National Traffic Safety Committee)

(:8081/ATGT/upload/TNGT1990-2005.htm)

From the year 1996 to 2001, there were 21,078 accidents each year on
average, causing 6,995 persons died and 24,115 injured. As per 2002, these
figures were highly increasing to 27,134 accidents, 12,800 persons died and
30,733 injured. The following years, though the number of accidents was going
down, the number of the dead was still high.
1.1.3.2 - Necessity of motor vehicle insurance:
According to the survey of accidents, 80% of people controlling motor
vehicles are bread-winners in families and organizations. When accidents
happen, the first loss that has to be mentioned is life and this arises series of
consequence: loss income (for families), business interruption (for enterprises)
which badly influences on the economy. Alternatively, traffic accidents are
damaged to not only drivers but also others and property. The question is that
when the sufferer’s interest is not guaranteed, who comes forward with
compensation? Obviously, the need of setting up a common fund to
compensate for both sides’ damages is objectively indispensable.
Saying so to realize that motor vehicle insurance for not only physical
35,000

30,
000

25,000

20,
000

15
,

000

10,
000

5,000

0

1996

2001

2000

1999

1998

1997

2005

2006

2004

2003

2002

Year

No. of Accidents
No. of the Dead


No. of the Injured
No. of Accident
s

Motor vehicle insurance fraud at PJICO period 2000-06/2006: Analysis & Solutions
Master of Management Thesis
Page 7
damage but also civil liability at a minimum level is necessary and matches the
real demand of life.
1.1.4 - The effect of motor vehicle insurance
1.1.4.1 - To individuals:
The accidental risk causes the damages of life and property to the victim
and the shock of spirit to his family. Motor vehicle insurance comes to life to
contribute the stable finance, overcome the loss of the victim.
1.1.4.2 - To the society:
Contributing to prevention and precaution of traffic accidents.
1.1.4.3 - To the State:
Contributing to the development of the economy, the increase of the
State budget and creating jobs for employees.

1.2 - THE BASIC CONTENT OF MOTOR VEHICLE INSURANCE
Motor vehicle insurance is comprised of different types and divided into
two: Compulsory Insurance and Voluntary Insurance.

- Compulsory Insurance:
+ Civil liability insurance for motor vehicle owner
+ Civil liability of motor vehicle owner for passengers
- Voluntary Insurance:
+ Motor vehicle physical damage insurance
+ Motor vehicle owner’s civil liability to goods in transit
+ Personal accident insurance of riders on non-passenger service car and
driver, assistant driver
Motor vehicle insurance fraud at PJICO period 2000-06/2006: Analysis & Solutions
Master of Management Thesis
Page 8
1.3 - MOTOR VEHICLE INSURANCE FRAUD
1.3.1 - Insurance fraud

With strong growth of non-life insurance market, more people
increasingly buy motor vehicle insurance and its market has expanded rapidly.
However, among of those who really need to buy insurance for their life
protection, stability in case of risks, there have been a lot of insurance buyers
taking advantage of insurance to make profits for their own interests illegally.
That is the act of insurance fraud.
1.3.2 - Types of motor vehicle insurance fraud
To practice insurance fraud act, owners of motor vehicles use many of
sophisticated tactics, including:
- Rationalizing the day of accident and of insurance.
- Altering accident details.
- Producing counterfeit site.
- Claim more than actual damage.
- Double insurance.
- Accident due to wilful act.
1.3.3 - Cause arising behavior of motor vehicle insurance fraud

Insurance fraud is the act of breaking the law that causes not only
damages to the property of the enterprise but also deficits to the budget of the
State. Individuals, organizations who take part in this act all have more or less
cupidity that changes into action when having the promotion of favorable
conditions and factors.
1.3.4 - Consequence of motor vehicle insurance fraud

Motor vehicle insurance fraud at PJICO period 2000-06/2006: Analysis & Solutions
Master of Management Thesis
Page 9
1.3.4.1 - To insurance companies:
Causing a decrease of profit and obviously an influence on the prestige
of the company.
1.3.4.2 - To the State and society:
Behind the fraud cases having the abetment from some officers of the
State, there will be more and more the status of defying the law, disturbing the
social orders.
1.3.4.3 - To customers:
Fraud inflates the cost of customers’ insurance and honest customers
will suffer a loss for the acts of insurance fraud that are not detected by
insurance companies.
1.3.5 - Insurance fraud of some countries in the world

Nowadays, when the global economy has developed with a rapid rate,
the demands of life are also increasing thereof. When almost all activities of
the life are insured, it is a logical necessity that there will be more or less
formals of insurance fraud. The phenomenon of insurance fraud has become
popular in almost countries with damages bigger and bigger. For example: In
South Africa, the claims suspicious of fraud is from 8 to 35% of total claims; In

Germany, this figure is 10%; New Zealand: 15% Insurance fraud has, on
average, caused the loss of USD 94 billion per year for the American insurance
industry. It has been proved statistically that among 4 fires, there was one fire
caused with wilful act for insurance fraud. Thanks to the serious status of
insurance fraud, every American household pays more from USD 200 to USD
300 per year for increasing insurance premium. For this reason, in the world,
insurance fraud prevention and disruption have been paid much attention to by
insurance companies.
Motor vehicle insurance fraud at PJICO period 2000-06/2006: Analysis & Solutions
Master of Management Thesis
Page 10

CHAPTER II:
SITUATION OF MOTOR VEHICLE INSURANCE FRAUD
AT PETROLIMEX JOINT-STOCK INSURANCE COMPANY
PERIOD 2000 - 2005

2.1 - ABOUT PJICO
2.1.1 - History of establishing and developing PJICO

Petrolimex Joint-Stock Insurance Company was established on 15 June
1995, including 7 founding shareholders who are huge economic organizations
of Government with potential and reputation both domestic and abroad.
Since its establishment, PJICO has constantly developed and by now
ranked the third position in Vietnam non-life insurance market. PJICO takes
about 13% market share in 2005 with the total premium income of nearly
VND 730 billion, having now become one of the leading market players in
several types of insurance such as: Motor vehicle, Marine, CAR&EAR
insurances.
2.1.2 - Market share in the non-life insurance market

PJICO was considered to be the fastest developing company in the
Vietnamese non-life insurance market, with the annual average growth of
60%. Indeed, in 1995, the Vietnamese insurance market comprised of only
three companies: Bao Viet, Bao Minh and Bao Long. One year later, PJICO
got 4.08% of market share and this figure was increasing year by year. In 2003,
PJICO’s market share reached 8.75% and 2004 of 12.39%, ranked the third
position in non-life insurance market (after Bao Viet and Bao Minh). In 2005,
PJICO took around 13% market share, considerably narrowing the gap between
Motor vehicle insurance fraud at PJICO period 2000-06/2006: Analysis & Solutions
Master of Management Thesis
Page 11

PJICO and the market leader.
Graph 2.1
: Market share of non-life insurance companies year 2003






(Source: Vietnamese insurance market year 2004 - Ministry of Finance)

Graph 2.2: Market share of non-life insurance companies year 2004

(Source: Vietnamese insurance market year 2004 - Ministry of Finance)

Graph 2.3: Market share of non-life insurance companies in 2005







(Source: Annual report year 2005 - PJICO)
Bao Minh 22.89%

Bao Viet 42.42
%

PVI
C
14.06%

PJICO 8.75%

PTI 4.08%

UIC 2.27%

Allianz 1.69%

VIA 1.56%

Bao Long 1.49%

BIDV
-
QBE 0.44%

Samsung
-
Vina 0.21%

Bao Ngan 0.07%

Groupama 0.06%

Vien Dong 0.0
1
%

Bao Minh 21.93%


Bao
Vi
e
t 40.31%

PVI
C
11.47%

PJICO 12.39%

PTI 4.34%

UIC 2.00%

Allianz 1.66%

VIA 2.21%

Bao Long 1
.
93%

BIDV
-
QBE 0.52%

Samsung
-
Vina 0.21%

Bao Ngan 0.26%

Groupama 0.002%

Vien Dong 0.63%

Bao Viet 39%
Bao Minh 21%

Others 14%
PJICO 13%
PVIC 13%
Motor vehicle insurance fraud at PJICO period 2000-06/2006: Analysis & Solutions
Master of Management Thesis
Page 12

2.2 - SITUATION OF PERFORMING MOTOR VEHICLE INSURANCE
2.2.1 - Insurance performance

When the economy from many backgrounds functioned as market
structure developed, there was a boom of the number of specialized transport
means. This was an indispensable factor for the rule “Majority covers
Minority” in insurance business. Clearly acknowledging the importance of
motor vehicle insurance, PJICO has brought out the detailed plan to execute
this kind of insurance. According to time, along with the whole PJICO’s
continual effort, this insurance has stood firm and actually become the key
product line in terms of premium income. Indeed, the premium income of
motor vehicle insurance was increasing by years and also very high in
comparison with other products and this helped PJICO build the good image in
the public and maintain its market share even under the economic integration
pressure. The income of this product line in 2005 reached VND 343.8 billion,
accounted for 47% of the total and 2004 did VND 286.828 billion, accounted
for 48% of total premium income.
Graph 2.4
: Premium income of the year 2004 & 2005

(Source: Annual report year 2005 - PJICO)

117,685

67,369

286,828

75,830

50,172

142,472

85,742

343,800

92,519

61,699

0

2005

2004

0

VND b
illion
Insurance lines

Engineering & Property

Hull_P&I

Motor vehicle
s

Cargo

Person
al acc & health care

Others

50

100

150

200

250

300

350