What is maximum insurance agent commission rate payment in Vietnam?
Please ask: What is maximum insurance agent commission rate payment in Vietnam? Hoping for a response - Question from Mr. Hao (Hanoi).
What is maximum insurance agent commission rate payment in Vietnam?
In Clause 3, Article 51, Circular 67/2023/TT-BTC stipulates the maximum insurance agent commission rate to be paid as follows:
(1) Maximum insurance agent commission rate for insurance contracts belonging to non-life insurance:
|
1 |
Property insurance |
5 |
|
2 |
Insurance of transported goods |
10 |
|
3 |
Hull insurance and shipowner civil liability for ships |
5 |
|
4 |
Hull insurance and ship owner's civil liability (except for ships) |
15 |
|
5 |
Liability insurance |
5 |
|
6 |
Aviation insurance |
0.5 |
|
7 |
Motor vehicle insurance (except civil liability insurance of motor vehicle owners) |
10 |
|
8 |
Fire insurance |
10 |
|
9 |
Credit insurance and financial risks |
10 |
|
10 |
Other damage insurance |
10 |
|
11 |
Agricultural insurance |
20 |
|
12 |
Guarantee insurance |
10 |
Maximum insurance agent commission rate for compulsory insurance:
|
No |
Compulsory insurance |
Maximum insurance agent commission rate (%) |
|
1 |
Compulsory insurance for civil liability of car owners |
5 |
|
2 |
Compulsory insurance for civil liability of motorbike and motorbike owners |
20 |
|
3 |
Compulsory fire and explosion insurance |
5 |
|
4 |
Compulsory insurance for the project during construction |
5 |
|
5 |
Compulsory professional liability insurance for construction investment consulting |
5 |
|
6 |
Compulsory insurance for civil liability for third parties in construction investment activities |
5 |
|
7 |
Compulsory insurance for construction workers on site |
5 |
- Insurance agent commissions for package insurance contracts are calculated by the total insurance agent commission for each insurance operation in the package insurance contract.
(2) Maximum insurance agent commission rate for life insurance contracts:
- For individual life insurance contracts:
The maximum insurance agent commission rate is applied to insurance operations according to the following regulations:
+ For insurance contracts issued before July 1, 2024, the maximum insurance agent commission rate is according to the following table:
|
Insurance operations |
Maximum insurance agent commission rate (%) |
|||
|
Periodic fee payment method |
One-time fee payment method |
|||
|
First year of contract |
Second contract year |
Subsequent contract years |
||
|
1. Term insurance |
40 |
20 |
15 |
15 |
|
2. Term life insurance - Insurance term is 10 years or less |
15 20 |
10 10 |
5 5 |
5 5 |
|
- Insurance term is over 10 years |
||||
|
3. Mixed insurance: |
||||
|
- Insurance term is 10 years or less |
25 40 |
7 10 |
5 10 |
5 7 |
|
- Insurance term is over 10 years |
||||
|
4. Lifetime insurance |
30 |
20 |
15 |
10 |
|
5. Periodic payment insurance |
25 |
10 |
7 |
7 |
|
6. Universal life insurance |
||||
|
From 10 years or less |
25 |
7 |
5 |
5 |
|
Over 10 years |
40 |
10 |
10 |
7 |
|
7. Unit-linked insurance |
40 |
10 |
10 |
7 |
+ For insurance contracts issued from July 1, 2024, the maximum insurance agent commission rate is as follows:
++ For insurance contracts with a term of 01 year or less and 01 year of annual renewal: 20%
For insurance contracts over 1 year:
|
Insurance operations |
Maximum insurance agent commission rate (%) |
|||
|
Periodic fee payment method |
One-time fee payment method |
|||
|
First year of contract |
Second contract year |
Subsequent contract years |
||
|
1. Term insurance, Lifetime insurance |
40 |
20 |
15 |
15 |
|
2. Term insurance, periodic payment insurance, mixed insurance: |
||||
|
- Insurance term is 10 years or less |
25 |
7 |
5 |
5 |
|
- Insurance term is over 10 years |
30 |
20 |
10 |
7 |
|
3. Universal insurance, unit-linked insurance |
30 |
20 |
10 |
7 |
- Insurance agent commission for pension insurance contracts: 3% of total insurance premium;
- For group life insurance contracts: The maximum insurance agent commission rate is equal to 50% of the corresponding rates applicable to individual life insurance contracts of the same type.
(3) Maximum insurance agent commission rate for health insurance contracts: 20%.
(4) For insurance products with separate written instructions, follow that separate written instructions.
What is maximum insurance agent commission rate payment in Vietnam? (Image from the Internet)
What are regulations on bonuses and support for insurance agents as agreed in agency contracts of life insurance companies and health insurance businesses in Vietnam?
In Article 52 of Circular 67/2023/TT-BTC, there are regulations on bonuses, support for insurance agents and other benefits as agreed in the insurance agency contract as follows:
Bonuses, insurance agent support and other benefits as agreed in the insurance agency contract
...
2. Bonuses, insurance agent support and other benefits as agreed in agency contracts of life insurance enterprises and health insurance enterprises are implemented as follows:
a) For agents performing new operations: Total bonuses, insurance agent support and other agent benefits in each fiscal year do not exceed the total value of 20% of actual insurance premiums. Actual proceeds of insurance contracts with a term of 01 year or less and 01 year of annual renewal and 30% of the first year's insurance premium actually collected for insurance contracts with a term of more than 01 year. year.
b) For agents taking care of renewable insurance contracts with a term of more than 1 year: Total bonuses, insurance agent support and other benefits in each fiscal year do not exceed 7 % of actual renewal premium collected during the year.
3. Life insurance enterprises that are paying bonuses, insurance agent support and other benefits to insurance agents that are higher than the rates specified in Clause 2 of this Article are responsible for reviewing and formulating roadmap and plan to reduce the payment rate of the above mentioned amounts for each fiscal year and complete the implementation of the plan no later than December 31, 2025.
4. The Board of Directors (Board of Members) of the life insurance enterprise is responsible for approving the plan as prescribed in Clause 3 of this Article before December 31, 2023 and carrying out inspection and supervision of the plan. this plan.
Thus, bonuses and support for insurance agents as agreed in the agency contracts of life insurance enterprises and health insurance enterprises in Vietnam are regulated as follows:
- For agents performing new exploitation:
Total bonuses, insurance agent support and other agent benefits in each fiscal year do not exceed the total value of 20% of actual premiums collected for term insurance contracts from 01 year or less and 01 year of annual renewal and 30% of the actual first year operating insurance premium collected for insurance contracts with a term of over 01 year.
- For agents taking care of renewable insurance contracts with a term of over 1 year:
Total bonuses, insurance agent support and other benefits in each fiscal year do not exceed 7% of actual renewal premiums collected during the year in Vietnam.
What regulations must an insurance agency organization follow in Vietnam?
In Clause 3, Article 53, Circular 67/2023/TT-BTC stipulates that the organization of insurance agency activities must comply with the following regulations:
- Explain to insurance buyers that insurance products distributed through insurance agency organizations are insurance products. Participation in insurance products is not a mandatory condition to use other products and services of the agency operating organization;
- Responsible for comparing data on new insurance contracts, insurance premium revenue, and effective insurance contracts made by insurance agency organizations with insurance enterprises on a monthly basis;
- Credit institutions and foreign bank branches performing insurance agency activities are not allowed to advise, introduce, offer for sale, or arrange the conclusion of investment-linked insurance contracts for customers during due 60 days before and 60 days after the full loan disbursement date.
Best regards!
