Ministry of Finance speaks out on proposal to abolish motorbike insurance

Xuyên Đông |

The Ministry of Finance has just officially responded to voters that motorbike insurance is currently only formalistic, so it should be abolished.

Voters in Lam Dong province reflected that motorbike insurance purchases are currently still formalistic, not highly effective, and complicated procedures for resolution.

From that reality, voters propose that functional agencies consider amending or abolishing the mandatory motorbike insurance regulation if it is no longer suitable for reality.

Answering this question, the Ministry of Finance provided specific information on legal regulations, the current situation of implementation and solutions in the coming time as follows:

Regarding legal basis: Currently, compulsory civil liability insurance (CLI) for motor vehicle owners (including motorbike owners) is regulated in the Law on Insurance Business 2022; Law on Road Traffic Order and Safety 2024 (effective from January 1, 2025); Decree No. 67/2023/ND-CP of the Government and Decree No. 174/2024/ND-CP amended and supplemented by Decree No. 78/2026/ND-CP.

The Ministry of Finance said that this document system has been completed, inherited and supplemented with many new regulations to increase benefits for vehicle owners regarding insurance premiums, insurance amounts and simplify dossiers and compensation procedures.

Regarding practical implementation: The application of compulsory civil liability insurance for car, motorbike, and motorcycle owners is being strongly implemented in many countries around the world, including developed countries (USA, EU, Japan, South Korea) and developing countries with large number of motorbikes (India, China, ASEAN countries).

In Vietnam, the total number of motorbikes reached about 72 million, the accident rate from motorbikes and mopeds accounted for 63.48%.

However, as of 2025, the number of motorbikes participating in compulsory CI insurance only accounts for about 17% of the total number of vehicles in circulation.

Many motorbike owners do not clearly understand the importance and humanistic meaning of this insurance product when property, health, and life damage occurs to a third party, leading to only buying insurance for coping purposes when inspected by competent authorities.

The Ministry of Finance said that from December 1, 2024, the Vietnam Insurance Association has established a 24/7 hotline for the entire market, which is 1900.633.880, operating in parallel with the hotline of each insurance company to promptly guide and answer questions for people.

The Ministry of Finance will strengthen inspection and strictly handle cases of violations of legal regulations on compulsory civil liability insurance for motor vehicle owners.

In the coming time, the Ministry of Finance will coordinate with the Vietnam Insurance Association, insurance companies and relevant agencies to establish a Research Group on compulsory civil liability insurance for motor vehicle owners.

This team will review the implementation of the provisions of Decree No. 67/2023/ND-CP, assess the results of separate implementation for motorbikes and motorcycles and summarize difficulties to propose a roadmap for appropriate amendments.

The revised research contents aim to further simplify procedures and compensation dossiers; review the level of compensation liability for people; improve regulations on product supply to minimize operating costs, ensuring balance of interests of all parties.

Xuyên Đông
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