Binh Phuoc voters requested to assess and clarify the necessity of requiring the purchase of compulsory civil liability insurance for motorbike - motorbike owners (motorbike insurance), to avoid waste.
According to voters today, many units sell insurance. Do competent authorities strictly manage this issue?
The process of handling and resolving the incident has been effective, ensuring the rights and interests of insurance participants?
Minister of Finance Nguyen Van Thang signed a document responding to this issue as follows:
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 reached about 72 million units).
With an insurance premium of VND 55,000 or VND 60,000, when an accident is caused to a third person in terms of health or life, insurance will pay a third person a maximum of VND 150 million per person in an accident, and insurance will pay a maximum of VND 50 million in an accident in terms of property.
The Ministry of Finance also said that compulsory motorbike insurance is regulated by most countries in the world. Typically, the US, EU, Japan, South Korea and developing countries have a large number of motorbikes such as India, China, ASEAN countries... Some countries even apply them to electric bicycles.
In Vietnam, compulsory civil liability insurance for motor vehicle owners (including cars and motorbikes) has been implemented since 1988 according to Decree No. 30-HDBT of the Council of Ministers.
To date, motorbikes are still the main source of motor vehicles and the largest cause of accidents in Vietnam, accounting for 63.48% of causes of accidents.
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 (effective from January 1, 2025); Decree 67/2023/ND-CP on compulsory insurance, including compulsory civil liability insurance for motor vehicle owners.
The legal documents have inherited and supplemented many new regulations to increase benefits for motor vehicle owners regarding insurance fees; insurance amount; simplify records and compensation procedures.
On December 30, 2024, the Government issued Decree No. 174/2024/ND-CP regulating administrative sanctions in the field of insurance business, effective from February 15, 2025.
The Decree stipulates additional penalties for violations of compulsory civil liability insurance by motor vehicle owners such as partial suspension of content and scope directly related to administrative violations in the establishment and operation license for violations of regulations on scope of insurance, exclusion of insurance liability, insurance premium, insurance deduction, insurance liability limit, minimum insurance amount for compulsory insurance...
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 propagate and disseminate the role, significance and content of this type of insurance so that people as well as motor vehicle owners have a better understanding of insurance benefits, risks covered when an insurance event occurs, contact methods and require insurance companies to compensate (currently, insurance companies all have to print hotlines and instructions on insurance certificates).
From December 1, 2024, the Vietnam Insurance Association has also established a common 24/7 hotline for the entire insurance market (1900.633.880), in parallel with the separate hotline of insurance companies to promptly record, guide, answer... for people and businesses about this insurance regime.
The Ministry of Finance will strengthen inspection and examination, and strictly handle violations of regulations on compulsory civil liability insurance for motor vehicle owners.
The Ministry of Finance coordinates with relevant agencies to continue researching and simplifying insurance compensation procedures and records, humanitarian support payments, ensuring insurance compensation takes place quickly and in accordance with regulations, avoiding insurance fraud, contributing positively to the implementation of social security.
