What are the cases where motor vehicle owners are not covered by compulsory civil liability insurance in Vietnam? When must insurers provide advance indemnity for damage to health and life?
- Vietnam: When must insurers provide advance indemnity for damage to health and life?
- When an accident occurs, what are the responsibilities of the policyholder and the insured towards insurer of compulsory civil liability insurance by motor vehicle owners?
- What are the cases where motor vehicle owners are not covered by compulsory civil liability insurance in Vietnam?
Vietnam: When must insurers provide advance indemnity for damage to health and life?
Pursuant to Clause 3, Article 12 of Decree 67/2023/ND-CP stipulates as follows:
Principles of indemnification
Insurer shall consider and settle an insurance claim as prescribed by law on insurance business and the following principles:
....
3. Within 3 working days after being notified by the policyholder or the insured about the accident, the insurer must provide advance indemnity for damage to health and life, to be specific:
a) In case the accident has been identified to be covered by insurance:
70% of estimated indemnity per person in case of fatalities.
50% of estimated indemnity per person in case of bodily injuries.
b) In case the accident has not been identified to be covered by insurance:
30% of the maximum coverage per person in case of fatalities and estimated whole person impairment (WPI) of 81% or more.
10% of the maximum coverage per person in case of estimated WPI of from 31% to less than 81%.
After providing advance indemnity, insurers may request MVIF to reimburse the advance payment if the accident is an insurance exclusion or not covered by insurance.
Thus, within 3 working days after being notified by the policyholder or the insured about the accident, the insurer must provide advance indemnity for damage to health and life.
The amount of advance compensation for loss of health and life is carried out in accordance with the above regulations.
What are the cases where motor vehicle owners are not covered by compulsory civil liability insurance in Vietnam? When must insurers provide advance indemnity for damage to health and life?
When an accident occurs, what are the responsibilities of the policyholder and the insured towards insurer of compulsory civil liability insurance by motor vehicle owners?
Pursuant to the provisions of Clause 1, Article 12 of Decree 67/2023/ND-CP stipulating the responsibilities of the policyholder and the insured towards insurer as follows:
- Immediately notify the insurer via hotline to cooperate in providing treatment in order to cure and limit damage to health, life and property, protect the accident scenes.
- refrain from moving, dismantling or repairing property without consensus of insurers; except for cases in which such activities are necessary to ensure safety, prevent damage to health, life and property or comply with requests of competent agencies.
- collect and provide documents required under an application for insurance claims within responsibilities of the policyholder and the insured for the insurer according to Article 13 of this Decree.
- enable the insurer to verify documents provided by the policyholder and the insured.
What are the cases where motor vehicle owners are not covered by compulsory civil liability insurance in Vietnam?
Pursuant to the provisions of Clause 2, Article 7 of Decree 67/2023/ND-CP, insurers shall not provide indemnities in the following cases:
- Damage done intentionally by motor vehicle owners, motor vehicle operators or victims of the accidents.
- 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.
- 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 driver'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.
- Damage that causes indirect consequences including: reduced commercial value, damage related to use and utilization of damaged property.
- 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.
- Damage to property due to thievery or robbery as a result of an accident.
- Damage to special property including: gold, silver, precious stones, financial instruments namely money, antiques, precious fine arts, and cadavers.
- War, acts of terrorism, earthquake.
LawNet
