What is maximum duration for civil liability insurance of motor vehicles users in Vietnam?

1. What is maximum duration for civil liability insurance of motor vehicles users in Vietnam? 

Pursuant to Article 9 of Decree 03/2021/ND-CP stipulating duration and effect of insurance are 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.

Thus, the term of civil liability insurance of motor vehicles users in Vietnam for motorcycles is at least 01 year and maximum is 03 years and is stated on the Certificate of Insurance in Vietnam.

2. In which cases do motor vehicles users's civil liability insurance not compensate for damage in Vietnam?

In Article 13 of Decree 03/2021/ND-CP, it is stipulated that insurance exclusion in the following cases:

Insurance enterprises shall not compensate for following cases:

1. Damage done intentionally by motor vehicle users, motor vehicle operators or victims of the accidents.

2. Vehicle operators intentionally fleeing the scene after committing accidents without exercising civil responsibilities of motor vehicle users. Vehicle operators intentionally fleeing the scene after committing accidents and exercising civil responsibilities of motor vehicle users shall not be included under insurance exclusion.

3. Operators who are not within adequate age range to operate motor vehicles as per road traffic laws; operators who do not carry legitimate, proper driving license (driving license with template number at the back inconsistent with the latest template number in information system for managing driving license) issued by competent authorities at the time of accidents or carry inappropriate driving license when operating motor vehicles which require specific driving license.  In case driving license of operators are revoked or suspended, the operators are considered to be not carrying driving license.

4. Damage that causes indirect consequences including: reduced commercial value, damage related to use and utilization of damaged assets.

5. Damage to assets caused by operators who have alcohol in breath or blood, or use narcotics or other prohibited stimulants as per the law.

6. Damage to assets which are lost or stolen as a result of the accidents.

7. Damage to special assets including: gold, silver, precious stones, financial instruments namely money, antiques, precious fine arts, and cadavers.

8. War, acts of terrorism, earthquake.

According to this Article, in the cases prescribed above, the civil liability insurance enterprise of motor vehicle owners will not pay insurance in Vietnam.

3. What is deadline for claim request for compensation of motor vehicles users's civil liability insurance in Vietnam? 

In Article 16 of Decree 03/2021/ND-CP, deadline for claim request for compensation of motor vehicles users's civil liability insurance is as follows:

1. Deadline for requesting claims shall be 1 year from the date on which accidents occur except for cases of delay due to objective reasons or force majeure as per the law.

2. Within 5 working days from the date on which accidents occur (except for force majeure), insurance buyers or insurance beneficiaries must send notice of accidents in writing or electronically to insurance enterprises.

3. Deadline for making claim of insurance enterprises shall be 15 days from the date on which adequate applications for insurance claims are received and 30 days from the date on which adequate applications for insurance claims are received in case verification is required.  

4. In case of rejecting insurance claims, insurance enterprises must inform insurance buyers or insurance beneficiaries in writing about reasons of rejection within 30 days from the date on which adequate applications for insurance claims are received.

Thus, deadline for claim request for compensation of motor vehicles users's civil liability insurance is 1 year from the date of the accident, except in case of delay due to objective and force majeure causes in Vietnam.

Best Regards!