What is the effect of motorbike insurance?
Ms. Pham Mai Lan (Cau Giay, Hanoi), an office worker, drives her motorbike to work every day. On the afternoon of September 15, 2024, on her way home from work, she accidentally collided with a car at an intersection when both sides were not paying attention. After the accident, both Ms. Lan's motorbike and the car were damaged, and the car driver asked her to pay for the large damages. Ms. Lan was worried because the compensation amount was far beyond her financial capacity.
Having purchased motorcycle insurance in advance, Ms. Lan immediately contacted the insurance company and was guided through the claim process. However, when the dispute over liability between the two parties began to escalate, Ms. Lan sought the help of a lawyer. Her lawyer advised her on her legal rights and obligations, and coordinated with the insurance company to ensure that Ms. Lan received financial support and was not held fully responsible.
According to the lawyer, according to Article 7 of Decree 67/2023/ND-CP, the purchase of compulsory motorbike insurance is effective in compensating for non-contractual damages to the health and property of third parties and passengers caused by motorbikes in each accident, except for some cases that are not compensated.
With the help of a lawyer and an insurance company, Ms. Lan only had to pay a small portion of the costs, the rest was covered by insurance. Furthermore, the lawyer also helped her successfully negotiate the division of responsibility between the two parties in the accident.
Motorcycle insurance compensation level
Compensation level for health and life: According to Point a, Clause 6, Article 12, Decree 67/2023/ND-CP, the specific insurance compensation amount is determined according to each type of injury or damage or according to the agreement of the parties or according to the decision of the Court (if any) but does not exceed the prescribed insurance liability level.
Currently, the insurance liability for damage to health and life caused by motorbikes is 150 million VND/person/accident.
Pursuant to Appendix VI issued with Decree 67, the compensation level is specifically determined as follows: Maximum compensation: 150 million VND/person in case the injured person dies or suffers brain damage causing vegetative state.
Compensation according to the level of disability:
| Amount of compensation | = | Damage rate | x | Insurance liability level |
For example: Loss of outer bone at a rate of 18%, then compensation: 18% x 150 million VND = 27 million VND
Note: If the fault is entirely due to a third party, the insurance company will only compensate up to 50% of the prescribed level.
Property compensation level: Pursuant to Point b Clause 6 Article 12 Decree 67, the insurance compensation level for property damage/accident is determined based on actual damage and the level of fault of the insured person but does not exceed the insurance liability level.
In particular, the liability level for motorbike insurance for property caused by motorbikes is 50 million VND/accident (according to Clause 2, Article 6, Decree 67/2023/ND-CP).
