REGULATIONS ON INSURANCE AGENT COMMISSIONS
In accordance with the Circular No. 50/2017/TT-BTC dated May 15, 2017 of the Ministry of Finance guiding the Decree No. 73/2016/ND-CP on details of the implementation of the Law on insurance business and the Law on amendments to certain articles of the Law on insurance business.
Accordingly, the maximum insurance commissions for insurance policies of non-life insurance are from 5% - 20%; within that the highest commission is 20% for Agricultural insurance and Civil liability insurance covered for motorcycles’ or moped’s owner; the maximum commission of 0.5% is applicable to aviation insurance; the maximum commission of 5% is applicable to property insurance and casualty insurance; hull insurance and insurance of ship owner’s civil liabilities for seagoing ships; liability insurance; civil liability insurance covered for car’s owner; professional liability insurance covered for legal consultancy activities;
professional liability insurance covered for insurance brokers; fire insurance; construction insurance; professional liability insurance covered for construction consultancy; insurance for employees working at site. For whole life insurance, the installment payment of maximum commission for the first year is 30%; the maximum commission rate for insurance policies of health insurance line is 20%.
Also in accordance with this Circular, publish financial statements that have been audited enclosed with opinions of the independent audit organizations on their website; at the same time, within the first 15 days of a month, the insurer/foreign branch shall publish a list of products permitted to provide in previous month (if any).
This Circular takes effect on July 01, 2017.
