What is fine for not having car owner civil liability insurance certificate in 2024 in Vietnam?

What is fine for not having car owner civil liability insurance certificate in 2024 in Vietnam?

At Point d, Clause 2, Article 58 of the 2008 Road Traffic Law, conditions for drivers of vehicles to join in traffic are stipulated as follows:

Conditions for drivers of vehicles to join in traffic

1. Drivers of vehicles to join in traffic must be of the age and in good health as prescribed in Article 60 of this Law, and proper driver licenses for the types of vehicle they are permitted to operate, which are granted by competent state agencies.

Learner drivers, when joining in traffic, shall practice driving on driving practice vehicles and have their driving supported by driving instructors.

2. When operating a vehicle, the driver shall carry the following papers:

a/ Vehicle registration paper;

b/ Driver license, for motor vehicle operators defined in Article 59 of this Law;

c/ Technical safety and environmental protection inspection certificate, for motor vehicles prescribed in Article 55 of this Law;

d/ Motor vehicle owner civil liability insurance certificate.

In Article 21 of Decree 100/2019/ND-CP amended by Clause 11, Article 2 of Decree 123/2021/ND-CP, regulations on penalties for offences against regulations on qualification for operating motor vehicles are as follows:

Penalties for offences against regulations on qualification for operating motor vehicles

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4. A fine ranging from VND 400,000 to VND 600,000 shall be imposed upon:

a) Any person from 16 to under 18 years of age operating a motorcycle with engine displacement of 50 cm³ or more; or

b) Any person operating a motor vehicle and the like or tractor without carrying an unexpired certificate of civil liability insurance for motor vehicles.

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10. Apart from incurring fines, the violating operator shall incur the following additional penalties:

a) The offence(s) specified in point a, point c clause 5; point b, point d clause 7; point c clause 8; point b clause 9 of this Article shall lead to suspension of the driver’s license that is not issued by a competent authority, falsified driver’s license or invalid driver’s license;

b) The offence(s) specified in point c clause 5, point d clause 7, point c clause 8 shall lead to suspension of the most recently-issued driver’s licenses according to information system for management of driver’s license from 01 - 03 months.

Thus, certificate of car civil liability insurance is one of the documents required to carry when participating in traffic in Vietnam.

Therefore, if you do not have or do not carry certificate of car civil liability insurance, you can be fined from 400,000 VND to 600,000 VND.

What is fine for not having vehicle owner civil liability insurance certificate in 2024 in Vietnam? (Image from the Internet)

What is minimum pPeriod of compulsory civil liability insurance of cars in Vietnam?

Article 9 of Decree 67/2023/ND-CP stipulates the insurance period as follows:

Insurance period

1. 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:

a) Foreign motor vehicles which were temporarily imported for re-export participate in traffic within Socialist Republic of Vietnam territory for less than 1 year.

b) Service life of motor vehicles is less than 1 year as per the law.

c) Temporarily registered motor vehicles according to regulations of Ministry of Public Security.

2. In case a motor vehicle owner has multiple vehicles covered by insurance at different times in a specific year and wishes to unify insurance coverage time in the following year in order to manage, insurance period of these vehicles may be less than 1 year and equal to remaining effective period of the first insurance policy concluded in that year. For policies and certificates of insurance which have been unified in terms of coverage time, insurance period of the following year shall conform to Clause 1 of this Article.

3. In case a vehicle title transfer takes place within the effective period specified on a certificate of insurance, the former motor vehicle owner has the power to terminate the policy as prescribed in Article 11 hereof.

Thus, the period of compulsory civil liability insurance for car owners is a minimum of 1 year and a maximum of 3 years in Vietnam.

Insurance period of less than 1 year will fall into the following cases:

- Foreign cars temporarily imported for re-export with a duration of traffic participation in the territory of the Socialist Republic of Vietnam for less than 1 year.

- Cars with a shelf life of less than 1 year as prescribed by law.

- Cars are subject to temporary registration according to regulations of the Minister of Public Security.

In what cases is an insurance company not responsible for compensating for compulsory civil liability insurance of motor vehicle owners?

Clause 2, Article 7 of Decree 67/2023/ND-CP stipulates that insurers shall not provide indemnities in the following cases:

a) Damage done intentionally by motor vehicle owners, motor vehicle operators or victims of the accidents.

b) Vehicle operators intentionally fleeing the scene after committing accidents without exercising civil liabilities of motor vehicle owners. Vehicle operators intentionally fleeing the scene after committing accidents and exercising civil liabilities of motor vehicle owners shall not be insurance exclusions.

c) Operators who fail to satisfy requirements of age range to operate motor vehicles as per regulations in the Law on Road Traffic; operators who do not carry legitimate, proper driving licenses according to regulations of laws on training, testing and granting driving licences, or carry damaged driving licences or use expired driver's licences at the points of time when accidents occur or carry inappropriate driving licenses when operating motor vehicles which require specific driving license. In case driving licenses of operators are revoked or suspended, the operators are considered not carrying driving licenses.

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

dd) Damage to property caused by operators whose blood/breath alcohol concentrations (BACs) exceed the maximum permitted BAC under guidance of the Ministry of Health; or use narcotics or other prohibited stimulants as per the law.

e) Damage to property due to thievery or robbery as a result of an accident.

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

h) War, acts of terrorism, earthquake.

Best regards!