Minimum VND 400M Liability Limit and Statutory Premium for Notaries Under Decree 104/2025/ND-CP

When notarizing critical legal transactions and high-value contracts, public and private notary offices constantly navigate the pressure of potential professional errors. Understanding the statutory regulations on notary liability limits under Vietnam’s evolving legal framework helps practice organizations stay fully compliant while establishing robust financial protection.

Under Decree No. 104/2025/ND-CP, the Government outlines specific criteria concerning policy conditions, insurance duration, compensation liabilities, and mandatory premium baselines for this compulsory insurance line.

📌 Legal Requirements for Minimum Notary Liability Limits

According to Clause 1, Article 31 of Decree 104/2025/ND-CP, the statutory minimum sum insured for notary professional indemnity insurance is clearly defined:

• The minimum sum insured is VND 400,000,000 (four hundred million Vietnamese Dong) per single occurrence or loss event.
• This liability limit must be stated clearly and transparently within the insurance contract or Certificate of Insurance.

Under these regulations, professional indemnity policies implement a minimum limit of VND 400,000,000 per claim and in aggregate for each individual notary during one policy year. For the notary office as a whole, the Certificate of Insurance will stipulate the total aggregate limit covering all practicing notaries working at that organization for the policy year. In all claim scenarios, total claim payments will not exceed the total agreed aggregate limit set for the policy period.

To explore the broader statutory framework, see our guide on mandatory notary professional indemnity insurance under Vietnam Notary Law and Decree 104/2025/ND-CP.

💵 Statutory Annual Premium Floor for Notaries

Alongside the liability limit, Clause 2, Article 31 of Decree 104/2025/ND-CP provides a strict pricing mechanism designed to protect the financial stability of the insurance scheme:

• Notary practice organizations and insurance companies are entitled to negotiate premiums, but the rate must not fall below VND 3,000,000 per year for each notary (excluding Value-Added Tax / VAT).
• Premiums are scheduled into annual payment terms and collected yearly under long-term policies (with a statutory minimum contract term of 5 years).
• After each policy year, the insurer may re-evaluate the organization’s risk profile to adjust the premium for the following year, provided both parties agreed to this clause in the initial contract.

When participating at the statutory baseline limit of VND 400,000,000 per occurrence and aggregate per notary, the applicable benchmark premium is VND 3,000,000 (excluding VAT) per notary per policy year.

📊 Standard Rating Tariff and Notary Limits for Offices Under VND 5 Billion

To streamline the policy issuance process for small-to-midsize practices, insurers provide a standardized tariff structure and liability framework for qualified notary offices:

Eligibility Criteria for the Standard Tariff

• The notary office generates annual gross revenue of under VND 5 billion.
• The total number of practicing professionals does not exceed 20 individuals.
• The notary organization has maintained a clean record with zero indemnity claims over the past 5 consecutive years up to the quotation date.

Standard Liability Limits and Schedule of Benefits

Unlike law firms, which benefit from flexible underwriting mechanisms based on variable turnover (detailed in our article on liability limits and standard premiums for law firms with annual turnover under VND 5 billion), notary offices are strictly bound by the statutory statutory floor of VND 3,000,000 per professional per year.

🔍 Underwriting Factors When Choosing Higher Coverage Limits

In practice, many property transfers, corporate contracts, and real estate transactions involve assets worth tens or even hundreds of billions of VND. For larger notary practices, the statutory minimum limit of VND 400 million may not offer adequate balance-sheet security against substantial legal claims.

When an organization elects to raise its notary indemnity limits above the legal minimum, insurance underwriters evaluate the following key risk components:

1. The requested liability limit per claim and the total annual aggregate limit.
2. The operational scale and annual revenue of the notary practice organization.
3. The total headcount of licensed notaries and specialized legal support staff.
4. The organization’s claims and dispute history over the preceding 5 years.

To better understand how this indemnity mechanism shields both practitioners and transaction parties, read our comprehensive overview of professional indemnity insurance for legal and notary practices in Vietnam.

📋 Pre-Signing Checklist for Notary Professional Indemnity Policies

Before executing an insurance contract, practice managers and office representatives should verify the following essential points:

• ☐ The indemnity limit meets or exceeds the mandatory minimum of VND 400,000,000 per occurrence per notary.
• ☐ The total practice aggregate limit matches the actual number of practicing notaries.
• ☐ The annual premium per notary is not lower than the statutory minimum floor of VND 3,000,000 (excluding VAT).
• ☐ The policy deductible starts from VND 2,000,000 per event in strict compliance with Decree 104/2025/ND-CP.
• ☐ The contract includes an accurate, complete roster of covered notaries and specifies annual risk-review clauses.

Each notary practice carries unique transaction profiles and operational risks. For guidance on structuring the right notary liability limits and securing fully compliant insurance solutions, consult the advisory team at paa.vn for professional, dependable assistance.