Insurance Brokerage Commission Shall Not Exceed 15% of Insurance Premiums

14:01, 11/07/2024

This is the noteworthy content in Circular 50/2017/TT-BTC guiding the implementation of Decree 73/2016/ND-CP detailing the implementation of the Law on Insurance Business and the Law amending and supplementing certain articles of the Law on Insurance Business.

According to Circular 50, insurance brokerage enterprises are entitled to receive insurance brokerage commissions from insurance premiums at the following rates:

- Insurance companies, foreign branches, and insurance brokerage enterprises can negotiate the rates and payment of original insurance brokerage commissions.- Once the policyholder has paid the insurance premium, the insurance company or foreign branch is responsible for paying the insurance brokerage commission from the collected insurance premium within the agreed payment period, but no more than 30 days from the date of receiving the insurance premium.- In any case, the original insurance brokerage commission must not exceed 15% of the actual insurance premium collected for each insurance transaction.

Note: Reinsurance brokerage commissions are implemented according to agreements between the parties, ensuring compliance with international practices.

More details can be found in Circular 50/2017/TT-BTC effective from July 1, 2017.

- Thanh Lam -

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