Is there a refund of the paid insurance premiums when selling a vehicle in Vietnam?

Is there a refund of the paid insurance premiums when selling a vehicle in Vietnam?

Pursuant to Clause 3 Article 9 of the Decree 67/2023/NĐ-CP stipulating insurance validity as follows:

Insurance Period

1. The compulsory civil liability insurance period for vehicle owners is at least 1 year and at most 3 years, except for the following cases with insurance periods of less than 1 year:

a) Motor vehicles from foreign countries temporarily imported or re-exported with a period of participation in traffic on the territory of the Socialist Republic of Vietnam of less than 1 year.

b) Motor vehicles with a service life of less than 1 year under the law.

c) Motor vehicles that are temporarily registered according to the regulations of the Minister of Public Security.

2. In the case where a vehicle owner has multiple vehicles participating in insurance at different times of the year but to the next year has the need to bring them to the same insurance time to manage, the insurance period of these vehicles may be less than 1 year and equal to the remaining effective period of the first insurance contract of that year. The insurance period of the following year for insurance contracts, insurance certificates after being brought to the same time is implemented according to the provisions of Clause 1 of this Article.

3. Within the remaining effective period stated on the Insurance Certificate, if there is a transfer of ownership of a motor vehicle, the old motor vehicle owner has the right to terminate the insurance contract according to the provisions of Article 11 of this Decree.

Pursuant to Article 11 of the Decree 67/2023/NĐ-CP stipulating refund of insurance premium after termination of insurance contract as follows:

Termination of the insurance contract and legal consequences of the termination of the insurance contract

In the case where a motor vehicle is recalled by the Ministry of Public Security, the insurance contract shall be terminated from the time of recall of the vehicle registration certificate and license plate. The insurance company shall be responsible for refunding the insurance premiums paid to the insured corresponding to the remaining term of the insurance contract from the time the insurance contract is terminated.

As regulations above, if a vehicle owner sells their vehicle while the insurance certificate is still valid, the old vehicle owner has the right to terminate the insurance contract. The old vehicle owner must submit a written request to the insurance company for termination. The insurance company must refund the insurance premiums paid to the old vehicle owner corresponding to the remaining term of the insurance contract.

What are regulations on liability limits of compulsory civil liability insurance for vehicle owners in 2023 in Vietnam?

Pursuant to Article 6 of the Decree 67/2023/NĐ-CP stipulating liability limit as follows:

- For damage to health and life caused by motor vehicles: VND 150 million for one person in one accident.

- For damage to property:

+ Caused by two-wheeled motorcycles; three-wheeled motorcycles; motorbikes (including electric motorbikes) and other vehicles with similar structures under the 2008 Road Traffic Law: VND 50 million in one accident.

+ Caused by cars; tractors; trailers or semi-trailers towed by cars or tractors under the 2008 Road Traffic Law: VND 100 million in one accident.

What content are included in the insurance certificate for compulsory civil liability insurance in Vietnam?

Pursuant to Article 10 of the Decree 67/2023/NĐ-CP stipulating as follows:

Insurance certificate

1. When purchasing compulsory civil liability insurance for vehicle owners, the vehicle owner is issued an insurance certificate by the insurance company. Each motor vehicle is issued one insurance certificate. A vehicle owner who loses their insurance certificate must submit a written request to the insurance company to issue a new insurance certificate.

2. The insurance certificate is designed by the insurance company and must include the following information:

a) Name, address, and phone number (if any) of the vehicle owner.

b) Vehicle license plate and chassis, engine numbers.

c) Vehicle type, payload, number of seats, purpose of use for cars.

d) Name, address, and hotline number of the insurance company.

e) Limits of liability insurance for third parties.

f) Responsibilities of the vehicle owner and driver in the event of an accident.

g) Insurance period, insurance premium, insurance premium payment period.

h) Date, month, year of issuance of the insurance certificate.

i) Serial number, barcode registered, managed, and used in accordance with the law to store, transfer, and retrieve information identifying the insurance company and identifying the compulsory civil liability insurance product for vehicle owners.

3. In the case of issuing an electronic insurance certificate, the insurance company must comply with the provisions of the Law on Electronic Transactions and implementing documents; Electronic insurance certificates must comply with all current regulations and fully reflect the contents specified in Clause 2 of this Article.

As regulatiosn above, the insurance certificate is designed by the insurance company and must include the following information:

- Name, address, and phone number (if any) of the vehicle owner.

- Vehicle license plate and chassis, engine numbers.

- Vehicle type, payload, number of seats, purpose of use for cars.

- Name, address, and hotline number of the insurance company.

- Limits of liability insurance for third parties.

- Responsibilities of the vehicle owner and driver in the event of an accident.

- Insurance period, insurance premium, insurance premium payment period.

- Date, month, year of issuance of the insurance certificate.

- Serial number, barcode registered, managed, and used in accordance with the law to store, transfer, and retrieve information identifying the insurance company and identifying the compulsory civil liability insurance product for vehicle owners.

Best regards!