Maximum insurance agent commission rate under the insurance contract in Vietnam

14:01, 11/07/2024

On May 15, 2017, the Ministry of Finance of Vietnam issued Circular 50/2017/TT-BTC to provide guidelines for the implementation of Decree 73/2016/ND-CP detailing the implementation of the Law on Insurance Business and the Law on Amendments and Supplements to certain Articles of the Law on Insurance Business.

Depending on whether the insurance contract pertains to non-life insurance or life insurance, there will be different commission rates, specifically:

For insurance contracts under non-life insurance in Vietnam:

No.	Insurance Service	Maximum Commission Rate (%)
I	VOLUNTARY INSURANCE
1	Property insurance and loss insurance	5
2	Goods in transit insurance (including roads, sea, inland waterways, railways, and air)	10
3	Hull and civil liability insurance for sea-going vessels	5
4	Hull and civil liability insurance (excluding sea-going vessels)	15
5	Liability insurance	5
6	Aviation insurance	0.5
7	Motor vehicle physical damage insurance	10
8	Voluntary fire and explosion insurance	10
9	Credit and financial risk insurance	10
10	Business interruption insurance	10
11	Agricultural insurance	20
12	Surety insurance	10
II	COMPULSORY INSURANCE
1	Civil liability insurance for car owners	5
2	Civil liability insurance for motorcycle and moped owners	20
3	Professional liability insurance for legal consultancy activities	5
4	Professional liability insurance for insurance brokerage companies	5
5	Fire and explosion insurance	5
6	Construction all risk insurance	5
7	Professional liability insurance for construction investment consultancy	5
8	Insurance for workers on construction sites	5

For insurance contracts under life insurance:

- Individual life insurance contracts:

Insurance Service	Maximum Commission Rate (%)
	Periodic Premium Payment Method			Single Premium Payment Method
	First Contract Year	Second Contract Year	Subsequent Contract Years	Single Premium Payment Method
1. Term life insurance	40	20	15	15
2. Endowment insurance - Insurance period of 10 years or less - Insurance period over 10 years	15 20	10 10	5 5	5 5
3. Mixed insurance: - Insurance period of 10 years or less - Insurance period over 10 years	25 40	7 10	5 10	5 7
4. Whole life insurance	30	20	15	10
5. Annuity insurance	25	10	7	7

- Group life insurance contracts: The maximum commission rate is 50% of the corresponding rates applicable to similar individual life insurance contracts.

Refer to related regulations in Circular 50/2017/TT-BTC effective from July 1, 2017.

- Thanh Lam -

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