Recently, the Government of Vietnam has issued the Decree No. 03/2021/NĐ-CP on compulsory civil liability insurance of motor vehicle users. According to this Decree, electric mopeds are compulsory to participate in civil liability insurance.
Article table of contents
Previously, according to Circular No. 22/2016/TT-BTC (based on the Decree No. 103/2008/NĐ-CP)
Motor vehicle owners traveling on road within the territory of Vietnam shall buy compulsory insurance under provisions hereof and other relevant regulations of laws.
The definition of “motor vehicle” prescribed in the Circular No. 22/2016/TT-BTC only includes motor car, tractor, construction vehicle, vehicle for agricultural or forestry uses and other types of military vehicles for the use of national security and defense (including trailers and semi-trailers pulled by motor cars or tractors), motor tricycle, motorbike not exceeding 50cc and the like (including vehicles for the disabled) on public road. In comparison with the Law on road traffic 2008 of Vietnam, the definition of “motor vehicle” also consists of electric moped.
Until January 15, 2021, the Government of Vietnam issued the Decree No. 03/2021/NĐ-CP on compulsory civil liability insurance of motor vehicle users, which replaced the Decree No. 103/2008/NĐ-CP. One of the most notable contents of the Decree No. 03/2021/NĐ-CP is the supplement of “electric moped” to the definition of “motor vehicle” at Point 2 Article 3, which is completely consistent with the provisions of the Law on road traffic 2008 of Vietnam. Specifically:
Article 3. Term interpretation
…
2. “motor vehicles” include road motor vehicles and heavy-duty vehicle, in which:
a) “road motor vehicles” include automobiles; tractors; trailers and semi trailers towed by automobiles and tractors; motorcycles; motorized tricycles; mopeds (including electric mopeds) and similar vehicles according to Law on Road Traffic.
b) “heavy-duty vehicles” include construction machines, agricultural and forestry machinery and other heavy-duty machines used for national defense and security purposes according to law on Road Traffic.
Besides, pursuant to Point d Clause 2 Article 58 of the Law on road traffic 2008 of Vietnam, the motor vehicle owner civil liability insurance certificate is 01 of 04 papers that the driver must carry when operating a vehicle. This means that a motor vehicle owner is compulsory to take part in this insurance. Thus, in the near future, electric mopeds are also required to participate in civil liability insurance.
Pursuant to Clause 2 Article 4 of the Circular 04/2021/TT-BTC of the Vietnam Finance Ministry, insurance liability for asset damage caused by motorbikes, motorized tricycles, mopeds (including electric mopeds) and vehicles with similar structures shall be VND 50 million per accident; while insurance liability for health and life casualties caused by motor vehicles shall be VND 150 million per individual involved per accident (according to the current provision, the amount of insurance liability is VND 100 million per individual involved per accident).
Besides, the Circular 04/2021/TT-BTC also stipulates the insurance premiums which is VND 55,000 for electric mopeds and equal to motorbikes from 50 cc or lower.
Therefore, from March 01, 2021, when the Decree No. 03/2021/NĐ-CP officially takes effect, electric mopeds are compulsory to participate in civil liability insurance.
Le Thanh
- Key word:
- Decree No. 03/2021/NĐ-CP
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