Voters in Tan Phu district, Dong Nai province, have requested to review the regulation on traffic police fining traffic participants who do not purchase motorbike insurance.
Voters in this district also proposed to study the change from compulsory motorbike insurance to voluntary, non-coercive form, to ensure the rights of the people. Because in reality, although motorbike and scooter owners are required to buy motorbike insurance, when an accident occurs and insurance payment is requested, the insurance company harasses, causes difficulties, and cumbersome procedures make it difficult for insurance buyers to request public and transparent insurance payment.
Responding to the above issue, the Ministry of Finance said that the regulation on penalizing traffic participants who do not purchase compulsory civil liability insurance for motorbike and motorbike owners is currently stipulated in the Government's Decree.
It is known that the Government issued Decree No. 168/2024/ND-CP, effective from January 1, 2025. Point a, Point b, Clause 2, Article 18 of Decree 168 stipulates as follows:
A fine of 200,000 VND to 300,000 VND shall be imposed for one of the following violations:
Drivers of motorbikes, mopeds (motorbikes), and other types of vehicles similar to motorbikes and other types of vehicles similar to mopeds engaged in transport business do not carry a valid certificate of compulsory civil liability insurance for motor vehicle owners.
Drivers of motorcycles, mopeds, vehicles similar to motorcycles and vehicles similar to mopeds do not have a valid certificate of compulsory civil liability insurance for motor vehicle owners.
Thus, according to the new regulations on administrative penalties for traffic violations from 2025, the violation of not having compulsory motorbike insurance (or expired motorbike insurance) will be fined from 200,000 to 300,000 VND instead of 100,000 to 200,000 VND as before.
Regarding the proposal to adjust regulations on purchasing motorbike insurance to be voluntary and simplify compensation procedures, the Ministry of Finance said as follows:
In the world today, most countries apply compulsory civil liability insurance for car, motorbike, and scooter owners, and some countries even apply it to electric bicycles, including developed countries with low numbers of motorbikes and scooters such as the US, EU, Japan, and Korea, or developing countries with large numbers of motorbikes and scooters participating in traffic such as India, China, and ASEAN countries.
Compulsory civil liability insurance for motor vehicle owners (including cars and motorbikes) has been implemented in Vietnam since 1988 according to Decree No. 30-HDBT dated March 10, 1988 of the Council of Ministers.
Currently, motorbikes are still the main means of motor transport and the largest source of accidents in Vietnam, accounting for 63.48% of causes of accidents.
According to statistics, the number of motorbikes participating in compulsory civil liability insurance for motor vehicle owners in the first 6 months of 2024 was only about 6.5 million, accounting for about 9% of the number of vehicles in circulation (the total number of motorbikes in Vietnam is about 72 million).
With an insurance premium of 55,000 VND or 60,000 VND, if you unfortunately cause an accident to a third party regarding health or life, the insurance will only pay the third party a maximum of 150 million VND for one person in an accident, and for property, the insurance will pay a maximum of 50 million VND in an accident.
Currently, compulsory civil liability insurance for motor vehicle owners (including motorbike owners) is regulated in the Law on Insurance Business 2022; Law on Road Traffic Order and Safety 2024; Decree 67/2023/ND-CP on compulsory insurance, including compulsory civil liability insurance for motor vehicle owners. Accordingly, many new regulations have been inherited and supplemented to increase the rights of motor vehicle owners regarding: Insurance premiums; insurance amounts; simplification of documents and compensation procedures...
In the coming time, in order to improve the effectiveness of implementing this type of insurance, the Ministry of Finance will continue to coordinate with the Vietnam Insurance Association, insurance companies and relevant agencies to promote and disseminate the role, meaning and content of this type of insurance so that people as well as motor vehicle owners can better understand the insurance benefits, the risks covered when an insurance event occurs, how to contact and request compensation from the insurance company (currently, insurance companies must print hotline numbers and instructions on the Insurance Certificate)...
In line with the above solutions, the Ministry of Finance will strengthen inspection, examination and strictly handle violations of regulations on compulsory civil liability insurance of motor vehicle owners.
At the same time, the Ministry of Finance will coordinate with relevant agencies to continue researching and simplifying procedures and records for insurance compensation and humanitarian aid payments, ensuring that insurance compensation is carried out quickly and in accordance with regulations, avoiding insurance fraud, and actively contributing to the implementation of social security.
