Title: Duration of Insurance for Compulsory Civil Liability Insurance for Motor Vehicle Owners as Regulated
How is the insurance term for compulsory civil liability insurance of motor vehicle owners regulated?
Pursuant to Article 9 of Decree 67/2023/ND-CP which stipulates the insurance terms as follows:
Insurance Term
1. The minimum term for compulsory civil liability insurance of motor vehicle owners is 1 year and the maximum is 3 years, except for the following cases where the insurance term is less than 1 year:
a) Foreign motor vehicles temporarily imported and re-exported with a driving duration in the territory of the Socialist Republic of Vietnam of less than 1 year.
b) Motor vehicles with a usage period of less than 1 year as stipulated by law.
c) Motor vehicles subject to temporary registration as stipulated by the Minister of Public Security.
2. In cases where the motor vehicle owner has multiple vehicles insured at different times of the year but wishes to consolidate them for uniform management in the following year, the insurance term for these vehicles may be less than 1 year and equal to the remaining validity period of the earliest insurance contract signed that year. The insurance term of the following year for insurance contracts and Insurance Certificates after consolidation will follow the stipulations in Clause 1 of this Article.
3. Within the effective period stated on the Insurance Certificate, if there is a transfer of ownership of the motor vehicle, the former motor vehicle owner has the right to terminate the insurance contract in accordance with Article 11 of this Decree.
Thus, the minimum term for compulsory civil liability insurance of motor vehicle owners is 1 year and the maximum is 3 years, except for the following cases where the insurance term is less than 1 year:
- Foreign motor vehicles temporarily imported and re-exported with a driving duration in the territory of the Socialist Republic of Vietnam of less than 1 year.
- Motor vehicles with a usage period of less than 1 year as stipulated by law.
- Motor vehicles subject to temporary registration as stipulated by the Minister of Public Security.
How is the insurance term for compulsory civil liability insurance of motor vehicle owners regulated?
Can vehicles beyond their usage period purchase civil liability insurance?
Pursuant to Article 4 of Decree 67/2023/ND-CP which stipulates the general principles as follows:
General Principles
...
5. Insurance enterprises have the right to refuse to sell compulsory insurance in the following cases:
a) For compulsory civil liability insurance of motor vehicle owners:
Motor vehicles beyond their usage period as stipulated by law.
b) For compulsory fire and explosion insurance:
Establishments with fire and explosion risks not having received a fire prevention and fighting acceptance according to legal regulations.
Establishments with fire and explosion risks not having a safety inspection record on fire prevention and fighting from a competent authority, or the inspection record is over 1 year old from the date of issuance to the time of purchasing compulsory fire and explosion insurance.
Establishments with fire and explosion risks currently being temporarily suspended or suspended for violating fire prevention and fighting regulations.
c) For compulsory insurance in construction investment activities:
The insurance buyer does not meet the full capacity requirements stipulated in the Construction Law and its guiding documents.
...
As such, according to legal regulations, insurers have the right to refuse to sell compulsory insurance to motor vehicles that are beyond their usage period as stipulated by law.
Therefore, motor vehicles beyond their usage period cannot purchase compulsory civil liability insurance.
How is the insurance liability limit for compulsory civil liability insurance of motor vehicle owners regulated?
Pursuant to Article 6 of Decree 67/2023/ND-CP which stipulates the insurance liability limits as follows:
Insurance Liability Limit
1. The insurance liability limit for health and life damages caused by motor vehicles is 150 million VND per person per accident.
2. The insurance liability limit for property damage:
a) Caused by two-wheeled motorcycles, three-wheeled motorcycles, mopeds (including electric motorcycles), and vehicles of similar structure as stipulated by the Road Traffic Law is 50 million VND per accident.
b) Caused by automobiles, tractors, trailers or semi-trailers drawn by automobiles or tractors as stipulated by the Road Traffic Law is 100 million VND per accident.
Thus, the insurance liability limit for compulsory civil liability insurance of motor vehicle owners is stipulated as follows:
- The insurance liability limit for health and life damages caused by motor vehicles is 150 million VND per person per accident.
- The insurance liability limit for property damage:
+ Caused by two-wheeled motorcycles, three-wheeled motorcycles, mopeds (including electric motorcycles), and vehicles of similar structure as stipulated by the Road Traffic Law is 50 million VND per accident.
+ Caused by automobiles, tractors, trailers or semi-trailers drawn by automobiles or tractors as stipulated by the Road Traffic Law is 100 million VND per accident.
LawNet