According to the Decree, the maximum insurance payout and premium of microinsurance products are as follows:
- Insurance payout under insurance contracts of products:
+ Microinsurance products for protection from life and health risks: the payout shall not exceed 5 times the income per capita as prescribed by standards of near-poor households in urban areas at the implementation time of the product.
+ Microinsurance products for protection from asset risks shall not exceed the market price of the insured asset at the time of insurance participation and shall not exceed 5 times the income per capita as prescribed by standards of near-poor households in urban areas at the implementation time of the product.
- Annual insurance premium:
+ The annual insurance premium of each insurance contract of a microinsurance product shall not exceed 5% of the income per capita as prescribed by standards of near-poor households in urban areas
+ Attention: Insurance premiums shall be corresponding to insurance benefits.
Term of microinsurance products
Life insurers may provide microinsurance products for protection from life and health risks with a term of up to 5 years
Non-life insurers and branches of foreign non-life insurers may provide:
- Microinsurance products for protection from life and health risks with a term of up to 1 year;
- Microinsurance products for protection from asset risks with a term of up to 5 years.
Health insurers may provide:
- Microinsurance products for protection from life risks with a term of up to 1 year;
- Microinsurance products for protection from health risks with a term of up to 5 years.
Mutuals providing microinsurance products may only provide microinsurance products with a term of up to 1 year.
See more details in Decree No. 21/2023/ND-CP of the Government of Vietnam, effective as of May 5, 2023.
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