What are regulations on compulsory civil liability insurance in Vietnam?

What are regulations on compulsory civil liability insurance in Vietnam?

Pursuant to Article 8 of the Decree 03/2021/NĐ-CP stipulating insurance liability as follows:

1. Insurance liability refers to the maximum payment potentially made by insurance enterprises for damage to health, lives and assets of third party and passengers done by motor vehicles in accidents within scope of compensation.

2. Based on practical costs for medical examination, treatment and care services and asset damages, Ministry of Finance shall prescribe liabilities of compulsory civil liability insurance of motor vehicle users.

Pursuant to Article 4 of the Circular 04/2021/TT-BTC stipulating insurance liability as follows:

1. Insurance liability for health and life casualties caused by motor vehicles shall be VND 150 million per individual involved per accident.

2. Insurance liability for asset damage:

a) Insurance liability for accidents caused by motorbikes, motorized tricycles, mopeds (including electric mopeds) and vehicles with similar structures according to Law on Road Traffic shall be VND 50 million per accident.

b) Insurance liability for accidents caused by automobiles, tractors, trailers or semi-trailers towed by automobiles, tractors or specialized vehicles according to Law on Road Traffic shall be VND 100 million per accident.

As regulations above, insurance liability for health and life casualties caused by motor vehicles shall be VND 150 million per individual involved per accident.

Based on practical costs for asset damages, insurance liability can be up to VND 100 million per accident. 

What are regulations on duration and effect of compulsory civil liability insurance in Vietnam?

Pursuant to Article 9 of the Decree 03/2021/NĐ-CP stipulating duration and effect of insurance as follows:

1. Insurance duration is specified on certificates of insurance, to be specific:

a) For motorcycles, motorized tricycles, mopeds (including electric mopeds) and similar vehicles according to Law on Road Traffic, the minimum insurance duration is 1 year and the maximum insurance duration is 3 years.

b) For remaining motor vehicles, the minimum insurance duration is 1 year and the maximum insurance duration shall conform to valid period of periodic technical safety and environmental protection inspection which has more than 1 year of valid period. 

c) For following cases, insurance duration shall be less than 1 year: Foreign motor vehicles which temporarily import 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.

d) In case motor vehicle users who have multiple vehicles participating in insurance at different times in a year wish to unify insurance participation time in the following year, insurance duration of these vehicles may be less than 1 year and equal to remaining valid period of the first contract concluded in that year. Insurance duration of the following year for insurance contracts and certificates of insurance which have been unified in terms of participation time shall conform to Point a and Point b Clause 1 of this Article.

2. Insurance effect shall start and end according to the duration specified on certificates of insurance.

3. In case shift in ownership of motor vehicles takes place within the duration specified on certificates of insurance, all insurance benefits related to civil responsibilities of the former motor vehicle users shall remain valid for the new motor vehicle users.

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