Decree 174/2024/ND-CP regulating sanctions for violations in the field of insurance business takes effect from February 15, 2025.
Point b, Clause 1, Article 19 of the Decree stipulates a fine of 30 million to 50 million VND for one of the following violations:
Failure to comply with the scope of insurance, exclusions of liability, premiums, deductibles, liability limits, minimum insurance amounts for compulsory insurance as prescribed by law, as prescribed in Articles 6, 7, 8, 24, 25, 26, 33, 34, 37, 42, 43, 45, Clause 2, Article 48, Article 49, Article 51, Article 55, Article 56, Article 58 of Decree No. 67/2023/ND-CP.
According to Decree No. 67/2023/ND-CP, violations of motor vehicle civil liability insurance (including motorbike insurance) are subject to fines at the following levels:
Breach of liability insurance
The insurance liability limit for damage to health and life caused by motor vehicles is 150 million VND per person in an accident.
Limits of liability for property damage:
Accidents caused by motorbikes; three-wheeled motorbikes; motorbikes (including electric motorbikes) and vehicles with similar structures as prescribed by the Law on Road Traffic are 50 million VND per accident.
Damage caused by automobiles; tractors; trailers or semi-trailers pulled by automobiles or tractors as prescribed by the Road Traffic Law is 100 million VND per accident.
Breach of coverage and exclusion of liability
The insurance company is responsible for compensating for the following damages:
Non-contractual damages to health, life and property of third parties caused by motor vehicles participating in traffic and activities.
Damage to the health and life of passengers on that vehicle caused by the motor vehicle participating in traffic and activities.
Insurance liability exclusions
Insurance companies are not responsible for insurance compensation in the following cases:
Intentional damage caused by the owner of a motor vehicle, driver or person suffering damage.
The driver who caused the accident intentionally fled and did not fulfill the civil liability of the motor vehicle owner. In case the driver who caused the accident intentionally fled but has fulfilled the civil liability of the motor vehicle owner, it is not a case of insurance liability exclusion.
The driver does not meet the age requirements as prescribed by the Law on Road Traffic; the driver does not have a driving license or uses an invalid driving license as prescribed by law on training, testing, and issuance of driving licenses for road motor vehicles, the driving license is erased or uses an expired driving license at the time of the accident or uses an inappropriate driving license for a motor vehicle that requires a driving license. In case the driver has his/her driving license temporarily revoked or his/her driving license revoked, he/she is considered to have no driving license.
Indirect damages include: reduction in commercial value, damages associated with the use and exploitation of damaged assets.
Damage to property caused by driving a motor vehicle with a blood or breath alcohol concentration exceeding the normal value as guided by the Ministry of Health; using drugs and stimulants prohibited by law.
Damage to property stolen or robbed in the accident.
Damage to special property includes: gold, silver, precious stones, valuable papers such as money, antiques, rare paintings, corpses, and remains.
Damage caused by war, terrorism, earthquake.
Violation of insurance premium
Insurance premiums for each type of motor vehicle are specified in Appendix I issued with this Decree.
Based on the insurance claim history of each motor vehicle or the accident history of the motor vehicle owner, the insurance company will proactively consider and adjust the insurance premium up or down. The maximum increase or decrease in insurance premium is 15% calculated on the insurance premium level specified in Appendix I issued with this Decree.
