What is the maximum coverage by compulsory civil liability insurance of motor vehicle owners in Vietnam?
What are the regulations on insurance exclusion when the vehicle operator caused an accident with alcohol concentration in the blood in Vietnam?
According to Article 13 of Decree 03/2021/ND-CP (effective until September 6, 2023), the regulations on insurance exclusion are as follows:
Insurance exclusion
Insurance enterprises shall not compensate for following cases:
1. Damage done intentionally by motor vehicle users, motor vehicle operators or victims of the accidents.
2. Vehicle operators intentionally fleeing the scene after committing accidents without exercising civil responsibilities of motor vehicle users. Vehicle operators intentionally fleeing the scene after committing accidents and exercising civil responsibilities of motor vehicle users shall not be included under insurance exclusion.
3. Operators who are not within adequate age range to operate motor vehicles as per road traffic laws; operators who do not carry legitimate, proper driving license (driving license with template number at the back inconsistent with the latest template number in information system for managing driving license) issued by competent authorities at the time of accidents or carry inappropriate driving license when operating motor vehicles which require specific driving license. In case driving license of operators are revoked or suspended, the operators are considered to be not carrying driving license.
4. Damage that causes indirect consequences including: reduced commercial value, damage related to use and utilization of damaged assets.
5. Damage to assets caused by operators who have alcohol concentration in breath or blood, or use narcotics or other prohibited stimulants as per the law.
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Under the regulations applied before September 6, 2023, the compulsory civil liability insurance of motor vehicle owners will not indemnify for damages caused by the vehicle operator with alcohol concentration in the bloodor breath.
What is the maximum coverage by compulsory civil liability insurance of motor vehicle owners in Vietnam?
Will insurers provide indemnities for damages in an accident caused by vehicle operator with alcohol concentration in the blood in Vietnam?
According to Article 7 of Decree 67/2023/ND-CP, the regulations regarding insurance coverage and insurance exclusions are as follows:
Insurance coverage and insurance exclusions
1. Insurance coverage
Insurers shall provide indemnities for the following damage:
a) Non-contract damage to health, life and property done to a third party by motor vehicles participating and operating in traffic.
b) Damage to health and life of passengers on the motor vehicles caused by motor vehicles participating in traffic and operating.
2. Insurance exclusions
Insurers shall not provide indemnities in the following cases:
a) Damage done intentionally by motor vehicle owners, motor vehicle operators or victims of the accidents.
b) Vehicle operators intentionally fleeing the scene after committing accidents without exercising civil liabilities of motor vehicle owners. Vehicle operators intentionally fleeing the scene after committing accidents and exercising civil liabilities of motor vehicle owners shall not be insurance exclusions.
c) Operators who fail to satisfy requirements of age range to operate motor vehicles as per regulations in the Law on Road Traffic; operators who do not carry legitimate, proper driving licenses according to regulations of laws on training, testing and granting driving licences, or carry damaged driving licences or use expired vehicle operator's licences at the points of time when accidents occur or carry inappropriate driving licenses when operating motor vehicles which require specific driving license. In case driving licenses of operators are revoked or suspended, the operators are considered not carrying driving licenses.
d) Damage that causes indirect consequences including: reduced commercial value, damage related to use and utilization of damaged property.
dd) Damage to property caused by operators whose blood/breath alcohol concentrations (BACs) exceed the maximum permitted BAC under guidance of the Ministry of Health; or use narcotics or other prohibited stimulants as per the law.
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According to Decree 03/2021/ND-CP, before September 6, 2023, there was no regulation on the allowable limit of alcohol concentration in the blood and breath for vehicle operators. Thus, if the damage was caused by the vehicle operator having alcohol concentration in the blood or breath, the compulsory civil liability insurance of motor vehicle owners would not cover indemnities.
However, from September 6, 2023, the compulsory civil liability insurance of motor vehicle owners will still cover indemnities for damages caused by the vehicle operator with alcohol concentration in the blood or breath within normal levels as prescribed by the Ministry of Health.
According to the Guidelines on Biochemistry Technical Procedures issued with Decision 320/QD-BYT in 2014, the alcohol concentration in the blood or breath at normal levels is <10.9 mmol/L.
Thus, the insurer will still be liable for indemnity when damages are caused by the vehicle operator with alcohol concentration in the blood or breath <10.9 mmol/L.
What is the maximum coverage by compulsory civil liability insurance of motor vehicle owners in Vietnam?
According to Article 6 of Decree 67/2023/ND-CP, the maximum coverage are as follows:
- The maximum coverage for damage to health and life caused by motor vehicles is VND 150 million/individual/accident.
- Maximum coverage for damage to property:
+ If the damage caused by motorcycles; motorized tricycles; mopeds (including electric mopeds) and similar vehicles according to Law on Road Traffic, the maximum coverage shall be VND 50 million/accident.
+ If the damage caused by automobiles; tractors; trailers and semi trailers towed by automobiles and tractors according to Law on Road Traffic, the maximum coverage shall be VND 100 million/accident.
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