Vietnam: Proposal for regulations that motorbike insurance companies are required to record calls to hotlines?
How does the Ministry of Finance of Vietnam respond to the removal of compulsory motorbike insurance?
Pursuant to the guidance in Official Dispatch 2/QLBH-PNT in 2023, issued on January 1, 2023 as follows:
Previously, on December 5, 2022, the Insurance Administration and Supervision Department received a petition, reflecting on November 9, 2022 about the abolition of the mandatory regulation of the motor vehicle owner civil liability insurance certificate on the National Public Service Portal system. In this regard, the Department of Insurance Management has the following comments:
The 2022 Law on Insurance Business in Vietnam has just been approved by the National Assembly and takes effect from January 1, 2023.
During the consultation process, there were also some suggestions to consider abolishing compulsory civil liability insurance of motorbike owners, the Ministry of Finance of Vietnam has made a report to explain to the National Assembly.
The law was approved by 94.18% of National Assembly deputies, including content on compulsory civil liability insurance of motor vehicle owners. The legal basis, international experience and practical implementation of compulsory civil liability insurance for motorbikes are as follows:
- According to the provisions of Clause 18, Article 3 of the 2008 Law on Road Traffic of Vietnam:
Interpretation of terms
In this Law, the terms below are construed as follows:
...
18. Road motor vehicle (below referred to as motor vehicle) means automobile; tractor; trailer or semi-trailer drawn by automobile or tractor; motorbikes, three-wheeled motor vehicle, moped (including electric moped) and the like.
- According to the provisions of Clause 2, Article 58 of the 2008 Law on Road Traffic of Vietnam:
Conditions for drivers of vehicles to join in traffic
2. When operating a vehicle, the driver shall carry the following papers:
...
d/ Motor vehicle owner civil liability insurance certificate.
- According to the provisions of Article 8 of the 2022 Law on Insurance Business in Vietnam:
Compulsory insurance
1. Compulsory insurance means an insurance product or plan serving the purposes of protection of public interest, environment and social safety.
2. Classes of compulsory insurance, including:
a) Compulsory insurance against civil liability of vehicle owner;
...
5. The Government shall impose detailed regulations on conditions binding upon extent of cover, insurance premiums, minimum amounts required for compulsory insurance coverage prescribed in clause 2 of this Article.
...
At the same time, the Department of Insurance Management stated:
- Most countries apply compulsory civil liability insurance of car and motorbike owners. To ensure implementation, many countries such as (India, Japan, Singapore...) have made it illegal to participate in traffic without civil liability insurance for third parties and Imprisonment may be imposed in case of recidivism or repeated violations.
- Compulsory civil liability insurance of motor vehicle owners (including cars and motorbikes) has been implemented in Vietnam for more than 30 years now. Currently, motorbikes are still the main source of motorized transport and the largest source of accidents in Vietnam (accounting for 63.48% of the causes of accidents).
Vietnam: Proposal for regulations that motorbike insurance companies are required to record calls to hotlines?
What papers must a driver carry when operating a vehicle?
According to the provisions of Clause 2, Article 58 of the 2008 Law on Road Traffic of Vietnam, the conditions for drivers of vehicles to join in traffic are as follows:
Conditions for drivers of vehicles to join in traffic
...
2. When operating a vehicle, the driver shall carry the following papers:
a/ Vehicle registration paper;
b/ Driver license, for motor vehicle operators defined in Article 59 of this Law;
c/ Technical safety and environmental protection inspection certificate, for motor vehicles prescribed in Article 55 of this Law;
d/ Motor vehicle owner civil liability insurance certificate.
Thus, the driver when operating a vehicle must carry the following papers:
- Vehicle registration paper;
- Driver license, for motor vehicle operators defined in Article 59 of this Law;
- Technical safety and environmental protection inspection certificate, for motor vehicles prescribed in Article 55 of this Law;
- Motor vehicle owner civil liability insurance certificate.
Proposal for regulations that motorbike insurance companies are required to record calls to hotlines?
Also in Official Dispatch 2/QLBH-PNT in 2023, the Insurance Management Department commented on this content as follows:
Currently, the Ministry of Finance of Vietnam (Insurance Management Department) is in the process of developing a Decree on compulsory insurance, based on the practical situation and suggestions of related parties, the Ministry of Finance of Vietnam (Insurance Management Department) has proposed Proposing the Government to amend a number of regulations related to compulsory civil liability insurance of motor vehicle owners such as:
- Adding regulations to reduce insurance premiums;
- Increase the proportion of spending on humanitarian assistance from 25% to 30%;
- Narrowing the exclusion of insurance liability;
- Continue to simplify insurance claims;
- Supplementing the regulation that insurers must record calls to hotlines to ensure the interests of insurance buyers and the insured;
- To increase the application of information technology in the settlement of compulsory insurance claims for civil liability of motor vehicle owners for motorbikes and mopeds.
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