Cases where insurers shall not provide indemnities from September 6, 2023 in Vietnam

Cases where insurers shall not provide indemnities from September 6, 2023 in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Coverage of compulsory civil liability insurance by motor vehicle owners in Vietnam

Insurers shall provide indemnities for the following damage:

- Non-contract damage to health, life and property done to a third party by motor vehicles participating and operating in traffic.

- Damage to health and life of passengers on the motor vehicles caused by motor vehicles participating in traffic and operating.

(Clause 1, Article 7, Decree 67/2023/ND-CP)

2. Cases where insurers shall not provide indemnities from September 6, 2023 in Vietnam

According to Clause 2, Article 7, Decree 67/2023/ND-CP, insurers shall not provide indemnities in the following cases:

- Damage done intentionally by motor vehicle owners, motor vehicle operators or victims of the accidents.

- Vehicle operators intentionally fleeing the scene after committing accidents without exercising civil liabilities of motor vehicle owners. Vehicle operators intentionally fleeing the scene after committing accidents and exercising civil liabilities of motor vehicle owners shall not be insurance exclusions.

- Operators who fail to satisfy requirements of age range to operate motor vehicles as per regulations in the Law on Road Traffic; operators who do not carry legitimate, proper driving licenses according to regulations of laws on training, testing and granting driving licences, or carry damaged driving licences or use expired driver's licences at the points of time when accidents occur or carry inappropriate driving licenses when operating motor vehicles which require specific driving license.

In case driving licenses of operators are revoked or suspended, the operators are considered not carrying driving licenses.

- Damage that causes indirect consequences including: reduced commercial value, damage related to use and utilization of damaged property.

- Damage to property caused by operators whose blood/breath alcohol concentrations (BACs) exceed the maximum permitted BAC under guidance of the Ministry of Health; or use narcotics or other prohibited stimulants as per the law.

- Damage to property due to thievery or robbery as a result of an accident.

- Damage to special property including: gold, silver, precious stones, financial instruments namely money, antiques, precious fine arts, and cadavers.

- War, acts of terrorism, earthquake.

3. Period of compulsory civil liability insurance by motor vehicle owners in Vietnam

- Period of compulsory civil liability insurance by motor vehicle owners shall be from 1 to 3 years, except for the following cases where insurance period shall be less than 1 year:

+ Foreign motor vehicles which were temporarily imported for re-export participate in traffic within Socialist Republic of Vietnam territory for less than 1 year.

+ Service life of motor vehicles is less than 1 year as per the law.

+ Temporarily registered motor vehicles according to regulations of Ministry of Public Security.

- In case a motor vehicle owner has multiple vehicles covered by insurance at different times in a specific year and wishes to unify insurance coverage time in the following year in order to manage, insurance period of these vehicles may be less than 1 year and equal to remaining effective period of the first insurance policy concluded in that year.

For policies and certificates of insurance which have been unified in terms of coverage time, insurance period of the following year shall conform to Clause 1 of Article 9 of Decree 67/2023/ND-CP.

- In case a vehicle title transfer takes place within the effective period specified on a certificate of insurance, the former motor vehicle owner has the power to terminate the policy as prescribed in Article 11 of Decree 67/2023/ND-CP.

(Article 9 of Decree 67/2023/ND-CP)

Nguyen Ngoc Que Anh

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