Mandatory Recording of Motorcycle Insurance Enterprises' Hotline Calls (Proposal)

Motorbike insurance companies required to record hotline calls (Proposal) (Image from the internet)

1. Ministry of Finance responds to petition to abolish mandatory motorbike insurance

On December 05, 2022, the Insurance Management and Supervision Department received a petition regarding the abolishment of mandatory motorbike insurance. In response, the Insurance Management and Supervision Department has the following opinions:

Insurance Business Law 2022 was recently passed by the National Assembly and takes effect from January 01, 2023. During the consultation process, there were some suggestions to reconsider the mandatory motorbike insurance. The Ministry of Finance reported and explained to the National Assembly. The law was passed with 94.18% approval from the National Assembly members, including provisions on mandatory motorbike insurance. The legal basis, international experience, and practical implementation of mandatory motorbike insurance are as follows:

- According to Clause 18, Article 3 of the Road Traffic Law:

18. Road motor vehicles (hereinafter referred to as motor vehicles) include automobiles..., two-wheeled motorcycles; three-wheeled motorcycles; mopeds (including electric motorcycles) and similar vehicles.

- According to Clause 2, Article 58 of the Road Traffic Law:

2. The driver must carry the following documents: d) Civil liability insurance certificate for motor vehicle owners.

- According to the Insurance Business Law 2022:

1. Mandatory insurance is an insurance product aimed at protecting public interests, the environment, and social safety.
2. Mandatory insurance includes:a) Mandatory civil liability insurance for motor vehicle owners;...
3. The Government of Vietnam stipulates the detailed conditions of insurance, insurance premiums, and minimum insurance amounts for mandatory insurance...

- Most countries require mandatory motorbike insurance. To ensure compliance, many countries such as India, Japan, and Singapore have established regulations making it illegal to participate in traffic without third-party civil liability insurance and may impose imprisonment for repeated violations.

- Mandatory motorbike insurance has been implemented in Vietnam for over 30 years. Currently, motorbikes remain the primary mode of motorized transport and the leading cause of traffic accidents in Vietnam (accounting for 63.48% of accident causes).

2. Motorbike insurance companies required to record hotline calls (Proposal)

At present, the Ministry of Finance is in the process of drafting a Decree on mandatory insurance. Based on practical conditions and suggestions from relevant parties, the Ministry of Finance has proposed that the Government of Vietnam amend some provisions related to mandatory civil liability insurance for motor vehicle owners as follows:

- Add a provision to reduce insurance premiums;- Increase the humanitarian aid rate from 25% to 30%;- Narrow the exclusion of insurance liability;- Continue to simplify insurance claim documents;- Add a provision requiring insurers to record calls to hotlines to ensure the rights of policyholders and insured persons;- Enhance the application of information technology in resolving mandatory third-party civil liability insurance claims for motorbikes and mopeds.

Diem My

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