AIA, the Asian unit of American International Group, said it has signed a US$1.85 million life insurance policy with a client in southern of Vietnam, the largest deal of its kind in the country to date.
The client, a businessmen whose name was not released, will pay an annual premium of VND1.2 billion ($63,000) for the coverage through age 100, according to a report published on news website VnExpress Friday.
Phung Dac Loc, chairman of the Association of Vietnam Insurers, said a $2 million life insurance policy is not unusual in other countries, but it's considered exorbitant in Vietnam.
An unnamed official at the Ministry of Finance confirmed in the report that the $1.85 million contract is indeed the largest life insurance policy for an individual client in Vietnam so far.
He added that although there is no upper limit on life insurance polices, insurers should be cautious when clients seek out deals that are too large.