How much is the current compulsory car insurance premium in Vietnam? Will I be penalized if I don't have auto insurance?
Is a car considered a motor vehicle? Is it compulsory to buy auto insurance?
Pursuant to Clause 2, Article 3 of Decree 03/2021/ND-CP stipulates as follows:
“Article 3. Interpretation of terms
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2. Motor vehicles include road motorized vehicles and special-use motorcycles, in which:
a) Motorized road vehicles, including cars; tractor; trailers or semi-trailers towed by cars or tractors; two-wheeled motorcycles; three-wheeled motorcycles; motorcycles (including electric scooters) and vehicles of similar structure in accordance with the Law on Road Traffic.
b) Special-use vehicles include construction motorbikes, agricultural and forestry motorcycles and other special vehicles used for defense and security purposes in accordance with the Law on Road Traffic.”
According to the above regulations, a car is one of the types of motor vehicles.
Pursuant to Article 1 of Decree 03/2021/ND-CP stipulates as follows:
"Article 1. Scope
This Decree provides for compulsory insurance for civil liability of motor vehicle owners:
1. Compulsory insurance for civil liability of motor vehicle owners.
2. Managing and using the Motor Vehicle Insurance Fund.
3. Manage, operate and exploit the database of compulsory civil liability insurance of motor vehicle owners.
4. Responsibilities of relevant ministries, ministerial-level agencies and organizations in the implementation of compulsory insurance for civil liability of motor vehicle owners.”
According to the above regulations, Decree 03/2021/ND-CP will regulate compulsory insurance for civil liability of motor vehicle owners.
Further consider Clause 2, Article 58 of the Law on Road Traffic 2008 as follows:
"Article 58. Conditions of drivers participating in traffic
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2. When operating a vehicle, the driver must carry the following papers:
a) Vehicle registration;
b) Driving license for motor vehicle operators specified in Article 59 of this Law;
c) Certificate of inspection of technical safety and environmental protection for motor vehicles specified in Article 55 of this Law;
d) Certificate of civil liability insurance of the motor vehicle owner."
Accordingly, when participating in traffic, the driver must bring car insurance.
From the above regulations and analysis, auto insurance is mandatory when participating in traffic by car.
How much is the current compulsory car insurance premium in Vietnam? Will I be penalized if I don't have auto insurance?
How much is the current compulsory car insurance premium in Vietnam?
Pursuant to Appendix I issued together with Circular 04/2021/TT-BTC, the cost of auto insurance is regulated as follows:
Accordingly, based on the type of car to determine the cost of auto insurance according to the above appendix.
What are the requirements for participating in auto insurance today?
Pursuant to Article 4 of Decree 03/2021/ND-CP stipulates as follows:
“Article 4. Principles of insurance participation
1. Insurance enterprises and insurance buyers shall deploy compulsory insurance for civil liability of motor vehicle owners according to the conditions, premium rates and insurance liability levels specified in this Decree.
2. For each motor vehicle, the liability to indemnify the civil liability of the motor vehicle owner only arises under a single insurance contract.
3. In addition to participating in compulsory insurance contracts for civil liability of motor vehicle owners according to the conditions, premium rates and insurance liability levels specified in this Decree, motor vehicle owners and insurance enterprises The insurer may agree in the insurance contract on the extension of insurance conditions, the increased level of insurance liability and the corresponding additional premium. In this case, the insurance enterprise is responsible for separating the compulsory insurance for civil liability of the motor vehicle owner in the Certificate of Insurance.”
Thus, the current participation in auto insurance must comply with the 03 principles of the above regulations.
What is the penalty for not having car insurance when participating in traffic?
Pursuant to Clause 4, Article 21 of Decree 100/2019/ND-CP (amended by Clause 11 Article 2 of Decree 123/2021/ND-CP) as follows:
“Article 21. Sanctions for violations against regulations on conditions of motor vehicle operators
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4. A fine of between VND 400,000 and VND 600,000 shall be imposed for one of the following violations:
a) Persons between full 16 years old and under 18 years old operate motorcycles with a cylinder capacity of 50 cm3 or more;
b) Drivers of automobiles, tractors and vehicles similar to cars do not have or do not carry a valid certificate of civil liability insurance of the motor vehicle owner.”
Thus, the driver of a car without carrying or without auto insurance will be administratively fined from VND 400,000 to VND 600,000.
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