Distinguishing Types of Motorbike Insurance

Currently, there are three types of motor vehicle insurance, including:

1. Compulsory Civil Liability Insurance of Motor Vehicle Owners;
2. Insurance for Passengers on Motor Vehicles; and
3. Physical Damage Insurance for Motor Vehicles.

Regarding Compulsory Civil Liability Insurance of Motor Vehicle Owners, Circular 22/2016/TT-BTC stipulates that this is a compulsory type of insurance that motor vehicle owners must participate in when operating traffic within the territory of Vietnam.

When participating in this type of insurance, the motor vehicle owner will be issued a Certificate of Compulsory Civil Liability Insurance of Motor Vehicle Owners. This certificate is the sole evidence of the mandatory civil liability insurance contract between the motor vehicle owner and the insurer. Each motor vehicle is issued one insurance certificate.

The motor vehicle owner must always carry a valid insurance certificate when participating in traffic and present this document upon request by the traffic police and other competent authorities as prescribed by law.

When purchasing insurance, the motor vehicle owner must pay the insurance premium to the insurer. The insurance premium for each type of motor vehicle is specifically stipulated in Appendix 5 attached to Circular 22. Specifically:

- Two-wheeled motorcycles: From 55,000 VND to 60,000 VND;- Three-wheeled motorcycles, scooters, and other similar motor vehicles: 290,000 VND

In the event of risks and accidents, the insurance company will compensate the motor vehicle owner for the following costs:

- Non-contractual damages to the body, life, and property of third parties caused by the motor vehicle;- Damages to the body and life of passengers under a passenger transport contract caused by the motor vehicle.

Apart from the compulsory type of insurance mandated by law as mentioned above, motor vehicle owners may voluntarily participate in insurance for passengers on motor vehicles and physical damage insurance for motor vehicles.

Insurance for Passengers on Motor Vehicles is currently widely sold on the streets or at agencies with fairly affordable insurance premiums, ranging from 5,000 VND to 10,000 VND. However, this type of insurance for passengers on motor vehicles only applies to accidents involving passengers on the vehicle, and it is not valid for inspection by traffic police or other competent authorities.

In the event of accidents or risks, the maximum compensation is 10 million VND/person/premium of 10,000 VND and 5 million VND/person/premium of 5,000 VND.

As for Physical Damage Insurance for Motor Vehicles, it is currently commonly applied to cars, trucks, buses, etc. When these types of vehicles encounter risks such as accidents, fires, and explosions, they will be compensated.

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