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HEALTH INSURANCE CONTRACTS: AGENTS MAY BE REWARDED UP TO 100% OF COMMISSIONS

On November 11, 2020, the Ministry of Finance issues the Circular No. 89/2020/TT-BTC on amending and supplementing a number of articles of the Circular No.  50/2017/TT-BTC dated May 15, 2017, the Circular No. 105/2016/TT-BTC dated June 29, 2016, the Circular No. 195/2014/TT-BTC dated December 17, 2014, the Circular No. 115/2014/TT-BTC dated August 20, 2014 and repealing the Circular No. 116/2014/TT-BTC dated August 20, 2014 and the Circular No. 43/2016/TT-BTC dated March 03, 2016 on amending Article 5 of the Circular No. 116/2014/TT-BTC.

According to new provisions, non-life insurance businesses and foreign branches shall spend a maximum amount of 50% of insurance commission of insurance contracts exploited in the fiscal year on agent commendation and agent financial aid. For health insurance operations, a maximum amount of 100% of insurance commission of health insurance contracts exploited in the fiscal year shall be spent on agent commendation and agent financial aid.

With regards to revenues from the provision of insurance auxiliary services, insurance businesses, foreign branches and insurance brokerage businesses shall account into their revenue after finishing the service provision or after completing each part of the service provision, regardless such money amount has been paid or not.

Besides, the Circular also amends provisions on the reporting regimes for insurance businesses as prescribed in the Circular No. 105/2016/TT-BTC, the Circular No. 195/2014/TT-BTC and the Circular No. 115/2014/TT-BTC, etc.

This Circular takes effect on December 26, 2020

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