May I ask in which cases shall the insurers not be liable for any damage incurred? This is the question that Mr. Nguyen Van Minh in Ho Chi Minh City sent to LawNet for answers on May 16, 2020.
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LawNet would like to answer Mr. Minh’s question as follows:
According to Clause 18 Article 3 of the Law on Road Traffic 2008 of Vietnam, road motor vehicle (below referred to as motor vehicle) means automobile; tractor; trailer or semi-trailer drawn by automobile or tractor; motorcycles, three-wheeled motor vehicle, moped (including electric moped) and the like.
According to Article 6 of Circular No. 22/2016/TT-BTC of the Ministry of Finance of Vietnam, the Certificate of Compulsory Civil Liability Insurance (hereinafter referred to as “Certificate of Insurance”) of a motor vehicle owner means the single proof of the conclusion of the contract for compulsory insurance by the owner and insurer. Each motor vehicle shall be granted only one Certificate of Insurance.
Where a covered occurrence occurs, the insurer shall indemnify for the amount that the motor vehicle owner paid or is going to pay as an indemnity to victims. Where the vehicle owner died or lives with total permanent disability due to the occurrence, the insurer shall directly indemnify for such damaged people.
Specifically, limits of indemnity are specified in Circular No. 22/2016/TT-BTC as follows:
- A death as a result of motor vehicle accidents shall be indemnified at the rate of 100 million dong per person per occurrence.
- Property damage by two-wheelers, tricycle, motorbikes and the like (including vehicles for the disabled) shall be indemnified at the rate of 50 million dong per occurrence.
- Property damage by cars, tractor, construction vehicles, and vehicles 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) shall be indemnified at the rate of 100 million dong per occurrence.
However, according to Article 12 of Circular No. 22/2016/TT-BTC, insurers shall not be liable for any damage incurred in the 07 following cases:
- The vehicle owner, driver or victim intentionally causes damage to his/herself.
- The driver or vehicle owner deliberately runs away from his/her civil liability after the traffic accident.
- The driver does not obtain a driving license or obtain an inappropriate driving license. Where the driver whose driving license is temporarily or permanently withdrawn shall be considered as driving without a driving license.
- Traffic accidents results in indirect consequences: decreases in commercial value, or losses associated with the use of damaged property.
- Property is stolen or robbed in the traffic accident.
- Wars, terrorism attacks or earthquakes occur.
- Loss or damage of special property includes: gold, silver, and gemstones, valuable papers such as money, antiques, valuable paintings or pictures, dead bodies or corpses.
View relevant provisions at: Circular No. 22/2016/TT-BTC of the Ministry of Finance of Vietnam stipulating regulations, terms, schedules of premiums and limits of liability of the compulsory civil liability insurance of motor vehicle owners.
Nguyen Trinh
