business communication dai ichi life vietnam

Company BackgroundDai-iChi Life Vietnam, founded in January 2007 with 100% investedcapital from Japan, is a subsidiary of Dai-iChi Life, Japan’s largest life insurerand one of the world’

NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATION PROGRAMS

Instructor: PhD Le Thi Thu Mai

Dai-iChi Life Vietnam

And case study of Communication Problems

AbstractThe purpose of this report is to understand how communication problemsillustrated in real life In Dai-iChi Life Vietnam, lack of communication skills,non-alignment in the process of handling communication crises are the twomain problems in their communication system that lead to unexpectedconsequences

TABLE OF CONTENTS

Abstract 2

I Company Background Error! Bookmark not defined.5

II Case 1: The company is accused of being multi-levelError! Bookmark not defined.5

1 Descriptions of the situation Error! Bookmark not defined.5

2 Reasons for studying this situation Error! Bookmark not defined.7

3 Reasons for this situation Error! Bookmark not defined.7

4 Consequences of this situation (with evidence/facts/statistics/image) 9

5 Suggestion Error! Bookmark not defined.11

III Case 2: The company is accused of being defraudmentError! Bookmark not defined

1 Descriptions of the situation Error! Bookmark not defined.12

2 Reasons for studying this situation Error! Bookmark not defined.13

3 Reasons for this situation Error! Bookmark not defined.14

4 Consequences of this situation (with evidence/facts/statistics/image)Error! Bookmark not

5 Suggestion Error! Bookmark not defined.18

IV Lessons Error! Bookmark not defined.20

Reference 21

TABLE OF FIGURE

Figure 1.1 The article about Ms Lù Thị Pằng at Court of First Instance on

1/2016 Error! Bookmark not defined.9

Figure 1.2 The evidence about the information like "Is Dai-iChi Vietnam a

multi-level company" or "Dai-iChi VN company scam"Error! Bookmark not defined.10Figure 1.3 The statistic about the decrease in the CPI of the firm after the

incident Error! Bookmark not defined.11

Figure 2.1 The feedback letter from Dai-iChi Life Vietnam to the customerError! Bookmark no

Figure 2.2 The five Rs in Business Communication Error! Bookmark not defined.16

Figure 2.3 The article about the company gave apologies and accepted the

responsibility for the fault Error! Bookmark not defined.18

I Company Background

Dai-iChi Life Vietnam, founded in January 2007 with 100% investedcapital from Japan, is a subsidiary of Dai-iChi Life, Japan’s largest life insurerand one of the world’s leading insurance companies, with solid financialstrength and nearly 15 years of experience Dai-iChi Life Vietnam maintainsthird place in terms of business network, with over 290 offices and generalagencies covering 63 cities and provinces across the country, and a labor force

of more than 1,800 employees and 120,000 financial consultants (as ofDecember 31, 2021)

Dai-iChi Life Vietnam has achieved over 18,650 billion dong of totalpremium in 2021, an increase of 19.4 percent over 2020, confirming its positionamong the top three foreign life insurance companies in Vietnam in terms oftotal premiums market share Dai-iChi Life Vietnam’s total assets as ofDecember 31st, 2021, were nearly 46,400 billion dong

II Case 1: Dai-iChi insurance company is accused of being level

multi-1 Descriptions of this situation

According to the lawsuit filed by Mrs Pang, on October 31, 2012, herson Vi Van Thuan (32 years old) signed an insurance contract with Dai-ichi lifeVietnam Company with the insurance period of 15 years

Insurance products include An Tam Hung Thinh with an amount of VND

670 million and comprehensive accident supplement insurance benefits with anamount of VND 150 million Mr Thuan has paid the fee for 1 year in theamount of 10 million VND

In September 2013, Mr Thuan died Ms Pang asked Dai - Ichi lifeVietnam Company to pay the amount of VND 820 million as the signedcontract

However, Dai-ichi life Vietnam Insurance Company refused to pay thecontract for Mr Thuan's family because he believed that Mr Thuan wasdishonest in providing information about being addicted to alcohol, havingsuffered a traumatic brain injury before signing an insurance contract.

In October 2014, Mrs Lu Thi Pang filed a lawsuit against Dai-ichi lifeVietnam Insurance Company to the People's Court of Nghia Lo town, askingthe company to pay the insurance premium and late payment interest at thebank's interest rate

During the proceedings, the representative of Dai-ichi Life InsuranceCompany presented the medical record of Mr Vi Van Thuan issued by theCentral Mental Hospital

The medical record shows that Mr Thuan was admitted to the hospitalwith symptoms of fatigue, poor appetite, little sleep at night and was diagnosedwith chronic alcoholism The company said that Mr Thuan was not honestbefore declaring the insurance contract information, so he did not agree to paythe insurance money for him

Defending the legitimate rights and interests of the plaintiff, lawyerNguyen Minh Long - City Bar Association Hanoi believes that in the medicalrecord, only Vi Van Thuan's name is listed, but while there is no photo, there is

no handwriting or signature of Mr Vi Van Thuan for reference

The medical record clearly states that Mr Thuan has had a brain injuryaccident, is an alcoholic, has weak health, but the death certificate shows that

Mr Thuan is completely healthy, the cause of death is recorded as "suddendeath"

Lawyer Long also said that for the insurance process, the company must

be responsible for verifying the information provided by the customer If theinsurance company fails to verify or make an error, the company must beresponsible but cannot blame the customer

Some people are neighbors, the head of Mr Thuan's village was present

at the court and determined that the morning before his death, Mr Thuan wasstill planting corn in the fields

In the months that the medical record states that Mr Thuan is undergoingtreatment, people still see him going to the fields to grow corn Therefore,lawyer Long said that the reality contradicts the evidence provided by theinsurance company to the court

After that, the court said that Mr Thuan died of sudden death, so he couldonly pay for An Tam Hung Thinh insurance product

As for the Advanced Comprehensive Accident Insurance product with avalue of VND 150 million, the company does not have to pay (if Mr Thuan diesdue to an accident, this amount will be paid)

From the above grounds, the trial panel accepted part of the defendant'sappeal, corrected the first-instance judgment, and forced Dai-ichi Life VietnamInsurance Co., Ltd to pay Ms Lu Thi Pong more than VND 765 million inprincipal and interest of An Tam Hung Thinh insurance contract

2 Reasons for studying this situation

In today's complex society, a variety of firms, particularly insurancecompanies, simply want to make deals with their customers (be performed byemployees) without careful explanation of the conditions of insurance terms Itthen resulted in several scandals and a decrease in the value of business.However, it is difficult to find a comprehensive solution that will satisfy co-victims As a result, the goal of this study is to highlight one of the incidentsthat garnered a lot of attention for a large firm with up to 15 years of existence

in Vietnam Finding alternative methods to improve the steps that can protectthe company's brand would also increase the pleasure

3 Reasons for this situation

● Lack of communication skills

The first reason for this problem is a lack of communication skills in theworkplace, specifically in horizontal communication among managers at thesame level: different departments in the organization Before releasing a product

to the market, those departments must communicate and collaborate closely andconsistently to ensure that the working process is on track and that all productcategories are fully prepared However, they worked infrequently andinconsistently, and did not fully transmit insurance terms to their customers.The second cause of that problem is a lack of communication skillsamong employees and customers Employees simply wanted to close deals withtheir customers in order to meet KPI They do not provide customers fullinsurance terms In fact, Mr Thuan died due to sudden death, so he could onlypay for An Tam Hung Thinh insurance product So based on the AdvancedComprehensive Accident Insurance product with a value of VND 150 million,the company does not have to pay (if Mr Thuan dies due to an accident, thisamount will be paid) Therefore, the employees did not complete their tasks forthe company, which made the customers misunderstood and harmed thecompany

In addition, the communication department processes information slowlyand is not really effective When bad news about the company spread, thecompany did not have a proper way to handle the information Rival companiesand organizations rely on it to deliberately attack the company, creating stories

to slander the company in order to bring down the company With the dizzyingspeed of sharing on the media today, the news travels very far, causing thecompany's reputation to be reduced, and customers feel bewildered

● Lack of responsibility (chapter 1) & lacks of listening skills(Chapter 2)

In September 2013, Mr Thuan died Ms Pang asked Dai - Ichi lifeVietnam Company to pay the amount of VND 820 million as the signedcontract However, Dai-ichi life Vietnam Insurance Company refused to pay thecontract for Mr Thuan's family because he believed that Mr Thuan wasdishonest in providing information about being addicted to alcohol, havingsuffered a traumatic brain injury before signing an insurance contract Thisshows the delay and irresponsibility of not listening to the wishes of customers

of Dai-ichi Life VN when unexpected events occur

4 Consequences of this situation (with evidence/ facts/ statistics/images)

The incident harmed Dai-iChi insurance company's reputation amongcustomers, and they were forced to compensate Mrs Pang with 765 millionVND

Figure 1.1 The article about Ms Lù Thị Pầng at Court of First Instance

on 1/2016

After the undeserved events happened, Dai-iChi's reputation was stronglyaffected by customers' distrust of its employees In addition, when the badinformation of Dai-iChi VN is spread out, the company has not taken measures

to handle this information, which is not good Rival companies andorganizations rely on it to deliberately attack the company, creating stories toslander the company in order to bring down the company With the dizzyingspeed of sharing on the media today, the news travels very far, causing thecompany's reputation to be reduced, and customers feel bewildered

The proof is that when you search for information about Dai-iChicompany, you will very easily come across information like "Is Dai-iChiVietnam a multi-level company" or "Dai-iChi VN company scam"

Figure 1.2 The evidence about the information like "Is Dai-iChi Vietnam

a multi-level company" or "Dai-iChi VN company scam"

Moreover, after the incident, the CPI of the company in 2014 graduallyfell down and its CPI in 2015 only increased by 0.6% compared to the sameperiod in the last year, which is the lowest percentage in the past 8 years

Figure 1.3 The statistic about the decrease in the CPI of the firm after the

incident

5 Suggestions

This is a common scenario involving insurance contracts Most insurancecompanies want a large number of customers but skip the informationverification stage; this is a loophole that individuals can profit from as well as away for insurance companies to avoid the law or refuse insurance

● Be active in dealing with the problem of the customers

The organization should be active in solving the matter with the customers.The customers will tend to be loyal to the firm that can solve their matters

quickly and actively So, when the customers give feedback for the company,they should search out why their customers respond to this Moreover, if thefirm gives responses to their customers, they have to make sure that they willprovide clear and apparent evidence In fact, Dai-iChi Life provides medicalrecords from the Central Psychiatric Hospital showing symptoms of illness notsupported by insurance However, in the medical record, only Vi Van Thuan'sname is listed, but while there is no photo, there is no handwriting or signature

of Mr Vi Van Thuan for reference

● Explain all insurance regulations to their customers

Furthermore, the firms must explain all insurance regulations to theircustomers They can apply some strict laws if they explore any situations thatemployees did not clear out the insurance terms for their customers Then, it canavoid the situation in which employees only focus on the KPI while failing toinform customers about their responsibilities

● Organizing safety training sessions for all company employees

Finally, organizing safety training sessions for all company employees is

an effective way to ensure the best quality of consumers Because if thosetraining sessions are completed, Dai-iChi will experience fewer downward andupward problems, as well as incorrect information

III Case 2: Dai-iChi insurance company is being accused ofdefraudment

1 Descriptions of this situation

On March 20, 2022, Ms Phuong complained to Dai-ichi Life VN andreported to the press that her signature was forged by a consultant of Dai-ichiLife VN to set up a bank account at at Bao Viet Bank (South Saigon branch), tomake fake documents withdrawal of 100 million dong from her insurance policy

According to Ms Phuong, on November 29, 2021, suddenly, a customer carestaff of Dai-ichi Life VN called to inform her that they had paid her 100 milliondong of the refund value of the insurance policy The time to do the withdrawalprocedure was 4 months ago This amount has been transferred to a bankaccount in the name of Mrs Phuong However, Ms Phuong said, since buyinginsurance at Dai-ichi Life VN (in 2017) until now, her health has remainedstable and has not developed any diseases, so she has never filed a claim At thesame time, she has never signed any documents to withdraw money from theinsurance policy.

After that, Ms Phuong sent a complaint affirming that there was not anyclaim to refund the contract value At the same time, she asked the insurancecompany to investigate and resolve the case as soon as possible, because itseriously affected her legitimate interests However, until 3 months aftersubmitting the complaint, at the end of February 2022, Ms Phuong received areply emailed in which Dai-ichi Life's side VN said that there is no legal basis

to handle the request to cancel the advance transaction from the refund value ofthe above contract

Disagreeing with the content of the reply, Ms Phuong has repeatedlyrequested to work directly with the responsible person of this insurancecompany, but it was not until March 21 (that is, nearly 4 months since thebeginning of the year) After the press reported, Dai-ichi Life VN arranged ameeting with Ms Phuong

2 Reasons for studying this situation

Firstly, professionalism is one of the most imperative things that couldimpact on the success of the organization The company that is sustainable has

to express their professional behavior to their customers Moreover, firmsshould have strict regulations for their employees to control unexpected