There is a change in the case of uninsured drivers causing accidents.

Decree 67/2023/ND-CP stipulates compulsory insurance for vehicle owners, compulsory fire and explosion insurance, and compulsory insurance in construction investment activities. There are some new points on compulsory motorbike and car insurance compared to Decree 03/2021/ND-CP.

Amendments to the provisions on insurance liability exclusions

Currently, Clause 2, Article 7 of Decree 67/2023/ND-CP stipulates that insurance companies are not responsible for insurance compensation in the following cases:

First, intentional acts causing damage by the motor vehicle owner, driver or injured person.

Second, the driver who caused the accident intentionally fled and did not fulfill the civil liability of the owner of the motor vehicle. In case the driver who caused the accident intentionally fled but has fulfilled the civil liability of the owner of the motor vehicle, it is not a case of exclusion from insurance liability.

Third, 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 licensing of road motor vehicle drivers; 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 revoked or has his/her driving license revoked, he/she is considered to have no driving license.

Fourth, indirect damage includes: loss of commercial value, damage associated with the use and exploitation of damaged assets.

Fifth, damage to property caused by driving a motor vehicle with a blood or breath alcohol concentration exceeding the normal value according to the instructions of the Ministry of Health ; using drugs and stimulants prohibited by law.

Sixth, damage to property stolen or robbed in the accident.

Seventh, damage to special assets includes: gold, silver, precious stones, valuable papers such as money, antiques, rare paintings, corpses, and remains.

Eighth, damage caused by war, terrorism, earthquake.

Thus, Decree 67/2023/ND-CP has changed compared to before.

Specifically, damage to property caused by drivers operating motor vehicles with alcohol concentrations in their blood or breath exceeding the normal value as guided by the Ministry of Health ; using drugs and stimulants prohibited by law are excluded from insurance liability.

Currently, according to Decision 320/QD-BYT in 2014 guiding the technical process of Biochemistry, ethanol quantification (Alcohol concentration quantification) in blood <10.9 mmol/L is determined as a normal value.

Thus, a drunk driver who causes an accident can still be compensated by the insurance company for property damage if it falls under the case analyzed above. It can be seen that the scope of compulsory motorcycle and car insurance coverage has expanded compared to before.

Compulsory motorcycle and car insurance period

According to Article 9 of Decree 67/2023/ND-CP, the compulsory civil liability insurance period of motor vehicle owners is at least 1 year and at most 3 years, except for the following cases where the insurance period is less than 1 year:

Foreign motor vehicles temporarily imported and re-exported with a duration of participation in traffic in the territory of the Socialist Republic of Vietnam of less than 1 year.

Motor vehicles with a usage period of less than 1 year as prescribed by law.

Motor vehicles subject to temporary registration according to regulations of the Minister of Public Security .

Meanwhile, Decree 03/2021/ND-CP stipulates the term stated on the Insurance Certificate, specifically stipulating the insurance term as follows:

Minimum 1 year, maximum 3 years: Two-wheeled motorcycles, three-wheeled motorcycles, motorbikes, electric motorbikes and vehicles with similar structures.

Minimum 1 year, maximum corresponding to the period of periodic technical safety and environmental protection inspection with a period of over 01 year: Other motor vehicles.

Less than 1 year: Foreign motor vehicles temporarily imported and re-exported with a traffic participation time in our country of less than 01 year; usage period of less than 1 year; temporarily registered motor vehicles.

In addition, during the validity period stated on the Insurance Certificate, if there is a transfer of ownership of the motor vehicle, the old motor vehicle owner has the right to terminate the insurance contract according to the provisions of Article 11 of Decree 67/2023/ND-CP.

Meanwhile, according to Decree 03/2021/ND-CP, during the validity period stated on the Insurance Certificate, if there is a transfer of ownership of the motor vehicle, all insurance benefits related to the civil liability of the old motor vehicle owner will remain valid for the new motor vehicle owner.

Insurance compensation level in case of accident

Previously, Decree 03/2021/ND-CP did not specifically stipulate the level of compensation for damages by insurance companies when an accident occurs, but this content is guided in Article 4 of Circular 04/2021/TT-BTC:

Regarding health and life: 150 million VND/person/accident.

Regarding property: Two-wheeled motorbikes, three-wheeled motorbikes, motorbikes, electric motorbikes, and similar vehicles: 50 million VND/accident; Cars, tractors, trailers or semi-trailers pulled by cars, tractors, and specialized motorbikes: 100 million VND/accident.

Currently, this content has been included in Decree 67/2023/ND-CP and is recorded as "insurance liability limit" instead of "insurance liability level".

Advance compensation level in case the accident is not yet determined to be within the scope of compensation

According to Point b Clause 3 Article 12 Decree 67/2023/ND-CP stipulates the level of advance compensation for damage to health and life in cases where it is not yet determined that the accident is within the scope of compensation for damage as follows:

30% of the prescribed insurance liability limit for one person in an accident in case of death and estimated injury rate of 81% or more. Previously, Decree 03/2021/ND-CP stipulated the advance payment of 30% of the prescribed insurance liability limit/person/incident in case of death.

10% of the prescribed insurance liability limit for one person in an accident for cases where the estimated injury rate is from 31% to less than 81%. Previously, Decree 03/2021/ND-CP stipulated the advance payment of 10% of the prescribed insurance liability level/person/incident for cases of injury to a body part that is treated with emergency treatment.

More clearly defined scope of compulsory motorcycle and car insurance

According to Clause 1, Article 7 of Decree 67/2023/ND-CP, insurance companies are 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.

Compared to before, Decree 67/2023/ND-CP supplements and clarifies the wording on insurance liability for passengers in vehicles.

Wisdom

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