Decree 67/2023/ND-CP: Are insurers not allowed to offer any promotion program or discount of any kind for compulsory civil liability insurance of motor vehicle owners?
- Are insurers in Vietnam not allowed to offer any promotion program or discount of any kind for compulsory civil liability insurance of motor vehicle owners under Decree 67/2023/ND-CP?
- What are the responsibilities of insurers in Vietnam under Decree 67/2023/ND-CP?
- On what principles will insurers in Virtnam consider and settle civil liability insurance claims for third parties in the construction activities of Vietnam?
Are insurers in Vietnam not allowed to offer any promotion program or discount of any kind for compulsory civil liability insurance of motor vehicle owners under Decree 67/2023/ND-CP?
Recently, the Government of Vietnam issued Decree 67/2023/ND-CP dated September 6, 2023 on compulsory civil liability insurance for motor vehicle owners, compulsory fire and explosion insurance, and compulsory insurance for construction investment activities.
Accordingly, in Article 75 of Decree 67/2023/ND-CP as follows:
Responsibilities of insurers
1. Refusing to offer any promotion program or discount of any kind for compulsory civil liability insurance of motor vehicle owners.
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Thus, compared to Decree 03/2021/ND-CP, under Decree 67/2023/ND-CP, insurers are not allowed to offer any promotion program or discount of any kind for compulsory civil liability insurance of motor vehicle owners.
What are the responsibilities of insurers in Vietnam under Decree 67/2023/ND-CP?
Pursuant to Article 75 of Decree 67/2023/ND-CP stipulating the responsibilities of insurers in Vietnam as follows:
- Refuse to offer any promotion program or discount of any kind for compulsory civil liability insurance of motor vehicle owners.
- Prepare and submit the following reports:
+ Professional report: The insurer shall prepare and submit it to the Ministry of Finance. To be specific:
- Report on the implementation of regulations on compulsory civil liability insurance of motor vehicle owners (using Form No. 1 Annex X); Report on the collected insurance premiums and payouts for compulsory fire and explosion insurance (using Form No. 2 Annex X); Report on the collected insurance premiums and payouts for compulsory insurance for construction investment activities (using Form No. 3 Annex X).
Data collection date: From January 01st to December 31st of the reporting year.
Report submission deadline: March 31st of the following financial year.
Methods of submission: In person or via postal service or via e-mail or via the reporting system of the Ministry of Finance (once the reporting system of the Ministry of Finance is operational).
+ Report on the collection and transfer of compulsory fire and explosion insurance (using Form No. 4 Annex X): The insurer must prepare and submit it to the Ministry of Public Security. To be specific:
Data collection date: Report for the first 6 months of the year (from January 1 to June 30 of the reporting year); Report for the whole year (from January 1st to December 31st inclusively of the reporting year).
Deadline for submission: Report for the first 6 months of the year (July 31st); Report for the whole year (January 31st of the next financial year).
Methods of submission: In person or via postal service to the Ministry of Public Security.
- Set up and operate 24/7 hotlines to promptly receive information on accidents and loss, and provide and clarify issues concerning compulsory insurance for policyholders, the insured, and relevant parties; record calls to the hotlines to ensure the rights of policyholders and the insured.
- Integrate the lookup feature for Certificate of Compulsory Civil Liability Insurance of motor vehicle owners on websites and web portals of insurers, allowing competent agencies to inspect, examine, supervise, and allow policyholders and the insured to look up and verify insurance period and effective period of insurance certificates.
- Provide specific explanations on insurance requirements, insurance premiums and sums insured to ensure policyholders and the insured clear discrimination between compulsory insurance and voluntary insurance.
- Promoting the application of information technology in settling insurance claims for compulsory civil liability insurance of motor vehicle owners to motorcycles and mopeds.
- Cooperate with policyholders and relevant parties in collecting 1 application for insurance claims and be responsible before the law on the accuracy, adequacy, and validity of such application; proactively collect documents required in the application under the liability of insurers as prescribed herein.
- Provide advanced indemnification and indemnification payments for compulsory insurance in a quick and accurate manner according to the regulations herein.
- Pay public security authorities expenses for photocopies of applications, and records/minutes of motor vehicle accidents that have been provided as prescribed by law and kept secret during investigations.
- Notify policyholders and the insured of the expiry dates of insurance policies within 15 working days before the expiry dates.
- Provide contributions to MVIF according to regulations in Article 16 of Decree 67/2023/ND-CP; transfer 1% of total insurance premiums for compulsory fire and explosion insurance that is collected from its original insurance policies for fire prevention and fighting purposes in the immediate preceding fiscal year as prescribed in Article 30 of Decree 67/2023/ND-CP.
- Separately account for the collected insurance premiums, insurance agent commissions, insurance payouts, and expenses related to compulsory insurance.
- Provide and update information to databases on compulsory civil liability insurance of owners of motor vehicles at the request of the Council.
- Other obligations in accordance with regulations of law.
On what principles will insurers in Virtnam consider and settle civil liability insurance claims for third parties in the construction activities of Vietnam?
Pursuant to Article 59 of Decree 67/2023/ND-CP, insurers in Virtnam shall consider and settle civil liability insurance claims under the following principles:
(1) If a third party suffers damage to health, life or assets directly arising from construction and under insurance liability, the insurer shall provide coverage to the policyholder according to the following coverage rates:
+ Specific coverage rate damage to health and life is determined for each type of injury according to the Schedule for health and life indemnity under Annex VI attached to Decree 67/2023/ND-CP or according to an agreement (if any) between the insured and victim or victim’ heir (in case the victim has deceased) or victim’ representative (in case the victim lacks legal capacity according to a judicial decision or does not come of age as prescribed in the Civil Code) but must not exceed the coverage rate specified under Annex VI attached to Decree 67/2023/ND-CP.
In case a judicial decision is made, the judicial decision shall prevail as long as the coverage rate specified under Annex VI attached to Decree 67/2023/ND-CP is not exceeded.
+ Specific coverage rate for damage to assets in a case is determined based on practical damage and level of fault but must not exceed the insurance liability limit agreed upon in the insurance policy.
+ Relevant legal expenses (if any)
The total insurance payout of the insurer prescribed in this Clause shall not exceed the liability insurance coverage limit prescribed in Article 55 of Decree 67/2023/ND-CP.
(2) When the third party makes a claim, the policyholder shall cooperate with the insurer in settling the insurance claim as follows:
- Immediately notify the insurer via contract information means, then submit a written notification to the insurer within 14 days from the date on which such claim is received.
- Implement all measures within their capacity to minimize losses.
- Implement, cooperate, and allow the insurer to implement necessary actions and measures or agree to the request of the insurer in order to protect the entitlements of the insurer after providing coverage for damage under insurance liability according to regulations of Decree 67/2023/ND-CP.
(3) When the third party makes a claim, the insurer shall:
- Carry out a loss assessment according to regulations of law and prepare a record of assessment of causes and extent of damage according to the regulations in Clause 6 Article 60 of Decree 67/2023/ND-CP.
- Provide guidance and cooperate with the policyholder and relevant agencies, organizations and individuals in collecting enough documents to make an application for insurance claims.
- Cooperate with the policyholder in settling the insurance claim for losses of the third party under insurance liability if an insured event occurs.
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