Limits of Liability Insurance for Compulsory Civil Liability Insurance of Motor Vehicle Owners: How Are They Regulated?
Can Expired Vehicles Be Covered by Civil Liability Insurance?
Pursuant to Article 4 of Decree 67/2023/ND-CP which stipulates general principles as follows:
General Principles
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5. Insurance companies have the right to refuse selling mandatory insurance in the following cases:
a) For mandatory civil liability insurance of motor vehicle owners:
Motor vehicles that have expired according to the law.
b) For mandatory fire and explosion insurance:
Establishments posing a fire and explosion hazard that have not been inspected for fire prevention and fighting as required by law.
Establishments posing a fire and explosion hazard without a safety inspection report on fire prevention and fighting from the competent police authority, or the report is more than 1 year old from the date of issuance to the date of purchasing the mandatory fire and explosion insurance.
Establishments posing a fire and explosion hazard that are temporarily suspended or shut down due to violations of fire prevention and fighting laws.
c) For mandatory insurance in construction investment activities:
The insurance purchaser does not fully meet the operational capacity conditions for construction as stipulated in the Construction Law and related guiding documents.
Thus, according to the law, the insurer has the right to refuse selling mandatory insurance for motor vehicle owners' civil liability insurance if the vehicle has expired according to the law.
Therefore, if a motor vehicle has expired, it cannot purchase mandatory civil liability insurance.
How are the insurance liability limits for mandatory civil liability insurance of motor vehicle owners stipulated?
How Are the Insurance Liability Limits for Mandatory Civil Liability Insurance of Motor Vehicle Owners Stipulated?
Pursuant to Article 6 of Decree 67/2023/ND-CP which stipulates the insurance liability limits as follows:
Insurance Liability Limits
1. The insurance liability limit for damage to health and life caused by motor vehicles is 150 million VND per person per accident.
2. The insurance liability limit for property damage:
a) For damage caused by two-wheeled motorcycles; three-wheeled motorcycles; mopeds (including electric motorcycles) and similar vehicles according to the Road Traffic Law is 50 million VND per accident.
b) For damage caused by cars; tractors; trailers or semi-trailers pulled by cars or tractors according to the Road Traffic Law is 100 million VND per accident.
Thus, the insurance liability limits for mandatory civil liability insurance of motor vehicle owners are stipulated as follows:
- The insurance liability limit for damage to health and life caused by motor vehicles is 150 million VND per person per accident.- The insurance liability limit for property damage:+ For damage caused by two-wheeled motorcycles; three-wheeled motorcycles; mopeds (including electric motorcycles) and similar vehicles according to the Road Traffic Law is 50 million VND per accident.+ For damage caused by cars; tractors; trailers or semi-trailers pulled by cars or tractors according to the Road Traffic Law is 100 million VND per accident.
How Is the Insurance Period for Mandatory Civil Liability Insurance of Motor Vehicle Owners Stipulated?
Pursuant to Article 9 of Decree 67/2023/ND-CP which stipulates the insurance period as follows:
Insurance Period
1. The minimum insurance period for mandatory civil liability insurance of motor vehicle owners is 1 year and the maximum is 3 years, except for the following cases where the insurance period is less than 1 year:
a) Foreign motor vehicles temporarily imported and re-exported with a duration of traffic participation in the Socialist Republic of Vietnam's territory of less than 1 year.
b) Motor vehicles with an expiry date of less than 1 year as stipulated by law.
c) Motor vehicles subject to temporary registration according to the regulations of the Minister of Public Security.
2. In case the motor vehicle owner has multiple vehicles insured at different times in a year but wishes to consolidate them into a single insurance period for management in the following year, the insurance period for these vehicles may be less than 1 year and equal to the remaining effective duration of the first insurance contract of that year. The insurance period for subsequent years for these insurance contracts and the Insurance Certificate after being consolidated into a single time is regulated according to Clause 1 of this Article.
3. During the valid period stated on the Insurance Certificate, if there is a transfer of vehicle ownership, the old motor vehicle owner has the right to terminate the insurance contract according to Article 11 of this Decree.
Thus, the minimum insurance period for mandatory civil liability insurance of motor vehicle owners is 1 year and the maximum is 3 years, except for the following cases where the insurance period is less than 1 year:
- Foreign motor vehicles temporarily imported and re-exported with a duration of traffic participation in the Socialist Republic of Vietnam's territory of less than 1 year.- Motor vehicles with an expiry date of less than 1 year as stipulated by law.- Motor vehicles subject to temporary registration according to the regulations of the Minister of Public Security.
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