Increase in compensation for compulsory insurance for cars and motorbikes in Vietnam from March 1, 2021

Nguyen Trinh

08:35, 22/01/2021

This is a notable content of the Circular No. 04/2021/TT-BTC of the Ministry of Finance of Vietnam elaborating to the Decree No. 03/2021/NĐ-CP on compulsory civil liability insurance of motor vehicle users.

In particular, pursuant to Article 4 of the Circular No. 04/2021/TT-BTC issued by the Ministry of Finance of Vietnam, insurance liability for health and life casualties caused by motor vehicles shall be VND 150 million per individual involved per accident (the compensation is just VND 100 million per individual involved per accident according to the current regulation).

Besides, regarding the level of insurance liability for property damage, continuing to inherit the provisions of the Circular No. 22/2016/TT-BTC, the Circular No. 04/2021/TT-BTC stipulates as follows:

- Insurance liability for accidents caused by motorbikes, motorized tricycles, mopeds (including electric mopeds) and vehicles with similar structures according to the Law on Road Traffic of Vietnam shall be VND 50 million per accident.

- Insurance liability for accidents caused by automobiles, tractors, trailers or semi-trailers towed by automobiles, tractors or specialized vehicles according to the Law on Road Traffic of Vietnam shall be VND 100 million per accident.

The Circular No. 04/2021/TT-BTC issued by the Ministry of Finance of Vietnam and takes effect on March 01, 2021.

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