Enterprises must set aside motor vehicle insurance funds.

Specifically, Government Decree No. 67/2023/ND-CP, effective from September 6, 2023, on mandatory civil liability insurance for owners of motor vehicles, stipulates the following principles for managing and using the motor vehicle insurance fund:

The Motor Vehicle Insurance Fund is a fund established to carry out activities such as humanitarian aid; prevention and mitigation of road traffic accidents; dissemination and education on road safety; mandatory civil liability insurance for motor vehicle owners; and related activities aimed at protecting public interests and ensuring social safety.

Motor vehicle insurance funds are implemented by insurance companies. Compulsory civil liability insurance contributions from motor vehicle owners are centrally managed by the Vietnam Insurance Association, which maintains a separate account at a commercial bank operating in Vietnam and uses the seal of the Vietnam Insurance Association.

The motor vehicle insurance fund shall be managed and used transparently, efficiently, and for the intended purpose as stipulated in this Decree.

Regarding the sources of funding for motor vehicle insurance funds, the regulations stipulate:

Contributions from insurance companies authorized to implement mandatory civil liability insurance for motor vehicle owners. Sources include interest income from deposits, and funding and support from organizations and individuals.

Government Decree No. 67/2023/ND-CP also stipulates contributions to the motor vehicle insurance fund as follows: Insurance companies are responsible for allocating a maximum of 1% of the total actual mandatory civil liability insurance premiums collected from original insurance contracts in the immediately preceding fiscal year to the Motor Vehicle Insurance Fund.

Before April 30th of each year, the Motor Vehicle Insurance Fund Management Council decides on the contribution rate to the Motor Vehicle Insurance Fund, and notifies insurance companies and the Ministry of Finance .

Insurance companies that provide mandatory civil liability insurance for motor vehicle owners shall contribute to the Motor Vehicle Insurance Fund account according to the following schedule:

Before June 30th of each year, pay 50% of the total amount stipulated.

The unit must pay the remaining amount as stipulated before December 31st of each year.

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