Vietnam: What are the new regulations specified in Decree 67/2023/ND-CP favorable for insurance participants?
- Shall the maximum increase or decrease be 15% of the compulsory civil liability insurance premiums of motor vehicle owners?
- Does Decree 67/2023/ND-CP expand the expenditure contents and increase humanitarian assistance expenditure levels in Vietnam?
- Shall the maximum increase or decrease be 25% of the compulsory fire and explosion insurance premiums in Vietnam?
On September 6, 2023, the Government of Vietnam issued Decree 67/2023/ND-CP on compulsory civil liability insurance of motor vehicle owners, compulsory fire and explosion insurance and compulsory insurance for construction investment activities.
Accordingly, Decree 67/2023/ND-CP inherits and completes the current legal provisions on compulsory civil liability insurance of motor vehicle owners, compulsory fire and explosion insurance and compulsory insurance for construction investment activities, notably the new regulations favorable for insurance participants, including:
Shall the maximum increase or decrease be 15% of the compulsory civil liability insurance premiums of motor vehicle owners?
Insurance conditions, insurance premiums and minimum coverage are among the important contents in Decree 67/2023/ND-CP.
Compared to the previous regulation, under Article 4 of Decree 67/2023/ND-CP, an insurer may refuse to sell compulsory insurance in case of end-of-life motor vehicles as prescribed by law.
Regarding insurance premiums, on the basis of insurance coverage records of each motor vehicle or accident records of each motor vehicle owner, insurers shall consider increasing or decreasing insurance premiums. The maximum increase/decrease shall be 15% of the insurance premiums prescribed in Decree 67/2023/ND-CP.
Under Decree 67/2023/ND-CP, for insurance exclusion for alcohol content, insurers shall not provide indemnities in case of damage to property caused by operators whose blood/breath alcohol concentrations (BACs) exceed the maximum permitted BAC under guidance of the Ministry of Health.
In order to further simplify the application for insurance claim, according to Article 13 of Decree 67/2023/ND-CP, it is allowed to use the certified true copies or copies bearing confirmation of insurers after being compared with originals or photocopies for documents related to vehicles and operators; insurers must enhance the application of information technology in settling insurance claims for owners of motorcycles and mopeds.
Decree 67/2023/ND-CP also adjusts a number of regulations on the content of insurance certificates in accordance with regulations of the Ministry of Public Security on issuance and management of vehicle registration certificates according to personal identification numbers and facilitates the deployment, management, use codes and barcodes in accordance with the law.
In order to facilitate the implementation process of insurers and supervise the implementation of authorities, under Decree 67/2023/ND-CP, the period of compulsory civil liability insurance of motor vehicle owners shall be from 1 to 3 years (except for the following cases where insurance period shall be less than 1 year: Foreign motor vehicles which were temporarily imported for re-export participate in traffic within Socialist Republic of Vietnam territory for less than 1 year; Service life of motor vehicles is less than 1 year as per the law; Temporarily registered motor vehicles according to regulations of Ministry of Public Security.
In the operation of 24/7 hotlines to promptly receive information on accidents and loss, provide and clarify issues concerning compulsory insurance for policyholders, insurers must record calls to the hotlines to ensure the rights of policyholders and the insured.
Does Decree 67/2023/ND-CP expand the expenditure contents and increase humanitarian assistance expenditure levels in Vietnam?
Regarding regulations related to the management and use of the Motor Vehicle Insurance Fund, in order to contribute to support people who suffer damage when an accident occurs, Article 17 of Decree 67/2023/ND-CP expands the content of humanitarian assistance expenditure for cases not covered by insurance.
the Motor Vehicle Insurance Fund shall cover humanitarian assistance expenditures in cases where accidents are caused by uninsured and unknown vehicles, not covered by insurance and accidents are insurance exclusions according to Clause 2 Article 7 of Decree 67/2023/ND-CP (other than damage done intentionally by accident victims).
In addition, the humanitarian assistance expenditure level shall not exceed 30% and the expenditure level on assistance in the construction and installation of equipment for preventing and minimizing damage and accidents in road traffic shall not exceed 15% of the of total contribution to MVIF each year and the balance of MVIF of preceding years (if any) in order to further increase humanitarian assistance expenditures, while remaining expenditures for dissemination and education of road traffic safety and regulations on compulsory civil liability insurance of motor vehicle owners. These are the three contents with the largest funding in accordance with the objectives of establishment and principles of management and use of the Motor Vehicle Insurance Fund.
In addition, the expenditure levels on humanitarian assistance are 30% of maximum coverage per person in case of fatalities and victims with WPI of 81% or more; 10% of maximum coverage per person in case of person in an accident with WPI of from 31% to less than 81%.
Shall the maximum increase or decrease be 25% of the compulsory fire and explosion insurance premiums in Vietnam?
Regarding compulsory fire and explosion insurance and compulsory insurance for construction investment activities, in Article 26 of Decree 67/2023/ND-CP, the maximum increase or decrease shall be 25% of the compulsory fire and explosion insurance premiums in Vietnam so that insurers can actively assess the risk level of the insured, ensuring the interests of the policyholder.
LawNet
