Circular No. 76/TC-TCNH stipulates the commission system for insurance companies, brokerage organizations, and insurance agents operating in Vietnam from 1996. The commission includes insurance agents, insurance collaborators, insurance brokers, and reinsurance. This circular stipulates the maximum commission rate, eligible recipients, accounting procedures, and inspection methods.
적용 범위
Insurance companies, brokerage organizations, and insurance agents operating in Vietnam.
핵심 사항
- are entitled to insurance commissions including insurance agents, insurance collaborator organizations, insurance brokerage organizations, and insurance companies in the case of arranging reinsurance contracts (Article 1)
- Insurance commissions shall not be paid to entities not legally engaged in business operations in Vietnam, direct purchasers of insurance, or employees of the insurance company itself (Article 2)
- The amount of insurance commission expenditure shall be implemented according to the commission rate table applicable to each type of insurance business (Article 3)
- Insurance commissions shall be recorded as business expenses (Article 4)
- The Ministry of Finance shall inspect the implementation of the insurance commission system (Article 5)
🌐 이 문서의 사회적 영향
- Positive impact: Strengthening management and transparency in insurance business operations, preventing illegal commission payments.
- Negative impact: It may impose a financial burden on insurance companies if they must comply with the maximum commission rates.
- Insurance companies may adjust commission rates based on business practices, but shall not exceed the prescribed limits.
❓ 자주 묻는 질문
Which entities are eligible to receive insurance commissions?
Eligible recipients include insurance agents, insurance collaborator organizations, insurance brokerage organizations, and insurance companies in the case of arranging reinsurance contracts (Article 1).
What is the maximum amount of insurance commission that can be spent?
The amount of insurance commission expenditure shall be implemented according to the commission rate table applicable to each type of insurance business (Article 3).
Can insurance companies adjust the commission rates?
Yes, based on business practices, insurance companies may adjust the commission rates applied among services within the same type of insurance business but shall not adjust commission rates between different types of insurance businesses (Article 3).
Will insurance companies be subject to penalties for violating the insurance commission system?
Yes, all violations of the insurance commission system stipulated in this Circular will be handled according to current laws depending on the severity of the violation (Article 5).
When does this Circular take effect?
This Circular takes effect from January 1, 1996 (Article III).
전문
CIRCULAR
MINISTRY OF FINANCE DECREE NO. 76/TC-TCNH OF OCTOBER 25, 1995
REGULATING COMMISSIONS ON INSURANCE
Implementing Decree No. 100/CP dated December 18, 1993 of the Government on insurance business; to strengthen state management over insurance business activities; the Ministry of Finance hereby regulates commissions on insurance as follows:
I/ GENERAL PROVISIONS:
1/ This Circular applies to insurance enterprises, insurance brokerage organizations, and insurance agents permitted to operate in Vietnam.
2/ Insurance commission is the amount of money that an insurance enterprise pays to the person who brings insurance services or reinsurance services to itself.
- Insurance commissions include:
+ Agent commission: is the amount of money paid by an insurance enterprise to an insurance agent based on an agency agreement.
+ Collaborator commission: is the amount of money paid by an insurance enterprise to an insurance collaborator organization based on a collaboration agreement.
+ Brokerage fee: is the amount of money paid by an insurance enterprise to an insurance brokerage organization based on mutual agreement between both parties.
- Insurance commissions also include reinsurance commissions, which are the amounts paid by an insurance enterprise to another insurance enterprise that has reinsured for it based on a reinsurance agreement.
3/ The Ministry of Finance uniformly manages the ratio of insurance commissions. The payment and accounting of insurance commissions shall be carried out according to the current financial management regime.
4/ Insurance enterprises may only pay insurance commissions to eligible recipients from actual premiums and reinsurance fees collected.
II. SPECIFIC PROVISIONS:
1/ Recipients of insurance commissions include:
a. Insurance agents: are individuals meeting the conditions stipulated in Article 19 of Decree No. 100/CP dated December 18, 1993 of the Government on insurance business. Insurance enterprises must organize their own network of insurance agents and register the number and list of agents with the Ministry of Finance as prescribed in Point 1, Section II, Circular No. 46-TC/CĐTC dated May 30, 1994 of the Ministry of Finance guiding the implementation of Decree No. 100/CP. Insurance enterprises are only allowed to pay insurance commissions to agents who have signed an agency agreement.
b. Insurance collaborator organizations: are legal entities providing services to insurance enterprises based on insurance collaboration agreements.
c. Insurance brokerage organizations: are legal entities acting as intermediaries between those seeking insurance and insurance enterprises to receive brokerage fees.
d. Insurance enterprises, in cases where they arrange reinsurance contracts.
2/ Insurance commissions shall not be paid to the following entities:
- Organizations and individuals bringing services to insurance enterprises but not permitted by law to engage in lawful business operations in Vietnam.
- Organizations and individuals directly purchasing insurance.
- Employees of the insurance enterprise itself.
3/ Levels of commission payments:
a. Levels of commission payments: implemented according to the table of commission rates applicable to each type of insurance business. (attached to this circular).
The commission rates specified in this Circular are the maximum commission rates that insurance enterprises are permitted to pay to agents, insurance collaborator organizations, insurance brokerage organizations, and insurance enterprises (in cases of arranging reinsurance contracts) when they actually bring insurance services.
Based on business practices, insurance enterprises may adjust commission rates among different insurance services within the same type of insurance business but may not adjust commission rates between different types of insurance businesses.
b. Levels of reinsurance commission payments:
- Mandatory levels of reinsurance commission payments must be applied according to the regulations of the Ministry of Finance regarding the implementation of mandatory reinsurance regimes.
- Other cases allow insurance enterprises to implement based on reinsurance agreements.
4/ Accounting system:
Commission payments made in accordance with this Circular are considered part of the premium structure and are recorded as insurance business expenses.
5/ Inspection work:
The Ministry of Finance will inspect the implementation of the insurance commission system together with the supervision of other aspects of insurance business operations of insurance enterprises and insurance brokerage organizations according to current laws.
III/ IMPLEMENTATION PROVISIONS:
Insurance enterprises permitted to operate in Vietnam must immediately review the insurance commission systems currently in place at their units, make necessary amendments, and comply with the provisions of this Circular.
Any violations of the insurance commission system stipulated in this Circular will be handled according to current laws depending on the severity of the violation.
This Circular takes effect from January 1, 1996. All previous regulations contrary to this Circular are abolished.
During implementation, if there are difficulties or obstacles, please promptly report them to the Ministry of Finance for consideration and resolution./.
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