Compulsory Automobile Insurance 2024: How Much Does It Cost? Penalty for Not Having Compulsory Automobile Insurance While Participating in Traffic?
How much is mandatory car insurance in 2024?
Based on Article 8 of Decree 67/2023/ND-CP as follows:
Insurance Premium Rates
1. The insurance premium rates for each type of motor vehicle are specified in Appendix I promulgated with this Decree.
2. Based on the insurance claim history of each motor vehicle or the accident history of the vehicle owner, the insurer shall proactively consider and adjust the insurance premium rates. The maximum increase or decrease in insurance premiums is 15% compared to the insurance premium rates specified in Appendix I promulgated with this Decree.
The mandatory car insurance premium rates are as follows:
| TT | Type of Vehicle | Insurance Premium (VND) || --- | --- | --- || I | Non-commercial Cars | || 1 | Cars with fewer than 6 seats | 437,000 || 2 | Cars with 6 to 11 seats | 794,000 || 3 | Cars with 12 to 24 seats | 1,270,000 || 4 | Cars with over 24 seats | 1,825,000 || 5 | Dual-purpose cars (Pickup, minivan) | 437,000 || II | Commercial Cars | || 1 | Fewer than 6 seats as registered | 756,000 || 2 | 6 seats as registered | 929,000 || 3 | 7 seats as registered | 1,080,000 || 4 | 8 seats as registered | 1,253,000 || 5 | 9 seats as registered | 1,404,000 || 6 | 10 seats as registered | 1,512,000 || 7 | 11 seats as registered | 1,656,000 || 8 | 12 seats as registered | 1,822,000 || 9 | 13 seats as registered | 2,049,000 || 10 | 14 seats as registered | 2,221,000 || 11 | 15 seats as registered | 2,394,000 || 12 | 16 seats as registered | 3,054,000 || 13 | 17 seats as registered | 2,718,000 || 14 | 18 seats as registered | 2,869,000 || 15 | 19 seats as registered | 3,041,000 || 16 | 20 seats as registered | 3,191,000 || 17 | 21 seats as registered | 3,364,000 || 18 | 22 seats as registered | 3,515,000 || 19 | 23 seats as registered | 3,688,000 || 20 | 24 seats as registered | 4,632,000 || 21 | 25 seats as registered | 4,813,000 || 22 | Over 25 seats | [4,813,000 + 30,000 x (number of seats - 25 seats)] || 23 | Dual-purpose cars (Pickup, minivan) | 933,000 || III | Cargo Vehicles (Trucks) | || 1 | Under 3 tons | 853,000 || 2 | From 3 to 8 tons | 1,660,000 || 3 | Over 8 to 15 tons | 2,746,000 || 4 | Over 15 tons | 3,200,000 || IV | Driving Practice Vehicles | 120% of the premium of the same type of vehicle || V | Taxis | 170% of the premium of commercial vehicles with the same number of seats || VI | Specialized Vehicles | || 1 | Ambulances | Equal to 120% of the premium of dual-purpose vehicles (pickup, minivan) || 2 | Money transport vehicles | Equal to 120% of the premium of vehicles with fewer than 6 seats || 3 | Other specialized vehicles with specified design load | Equal to 120% of the premium of cargo vehicles with the same load; if the vehicle does not specify the design load, the premium is equal to 120% of the premium of cargo vehicles with a load of under 3 tons. || VII | Trailer Trucks | Calculated at 150% of the premium of cargo vehicles with a load of over 15 tons.
The premium for trailer trucks includes the premiums for both the tractor unit and the trailer. || VIII | Buses | Calculated according to the premium of non-commercial vehicles with the same number of seats |
How much is mandatory car insurance in 2024? What are the penalties for not having mandatory car insurance while participating in traffic? (Image from the internet)
What are the penalties for not having mandatory car insurance while participating in traffic?
According to Clause 4, Article 21 of Decree 100/2019/ND-CP as amended by Clause 11, Article 2 of Decree 123/2021/ND-CP regarding penalties for violations of conditions for motor vehicle drivers:
Penalties for violations of conditions for motor vehicle drivers
...
4. A fine of VND 400,000 to VND 600,000 for any of the following violations:
a) A person aged 16 to under 18 driving a motorcycle with an engine capacity of 50 cm3 or more;
b) A person driving a car, tractor, and other similar vehicles without or not carrying a valid certificate of civil liability insurance for motor vehicle owners.
Thus, according to the above regulation, if a car driver does not carry or does not have a valid mandatory car insurance, he/she will be administratively fined from VND 400,000 to VND 600,000.
What is mandatory car insurance?
Based on the provisions of Article 6 of Decree 03/2021/ND-CP as follows:
Certificate of mandatory civil liability insurance for motor vehicle owners (hereinafter referred to as Insurance Certificate)
1. The Certificate of mandatory civil liability insurance for motor vehicle owners is evidence of the insurance contract agreement on mandatory civil liability between the motor vehicle owner and the insurer. Each motor vehicle is issued one Insurance Certificate. If the owner loses the Insurance Certificate, he/she must submit a written request to the insurer (where the Insurance Certificate was issued) for reissuance.
2. When purchasing mandatory civil liability insurance for motor vehicle owners, the owner is issued an Insurance Certificate by the insurer. The insurance enterprise only issues an Insurance Certificate to the motor vehicle owner when the insurance premium is paid in full or there is an agreement with the owner on the premium payment term according to the Ministry of Finance's regulations.
3. The Insurance Certificate is designed proactively by the insurer and must include the following contents:
a) Name, address, phone number (if any) of the motor vehicle owner.
b) License plate number or chassis number, engine number.
c) Type of vehicle, load capacity, number of seats, purpose of use for cars.
d) Name, address, hotline phone number of the insurer.
dd) Civil liability insurance coverage for third parties and passengers.
e) Responsibilities of the motor vehicle owner, driver in case of an accident.
g) Insurance period, insurance premium, premium payment period.
h) Date, month, year of issuance of the Insurance Certificate.
i) Code, barcode registered, managed, and used according to the provisions of the Ministry of Science and Technology to store, transmit and retrieve information identifying the insurance enterprise and the main contents of the Insurance Certificate.
4. In case of issuing an electronic Insurance Certificate, the insurer must comply with the provisions of the Electronic Transactions Law and the guiding documents; the electronic Insurance Certificate must fully comply with current regulations and reflect all the contents stipulated in Clause 3 of this Article.
Thus, according to the above regulations, mandatory car insurance is evidence of the mandatory car insurance contract agreement between the motor vehicle owner and the insurer. Each motor vehicle is issued one mandatory insurance. If the car owner loses the mandatory car insurance, he/she must submit a written request to the insurer (where the Insurance Certificate was issued) for reissuance of the Insurance Certificate.
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