Responding to a petition from voters in Binh Thuan province regarding the abolition of motorcycle insurance, the Ministry of Finance stated: Currently, motorcycles and scooters remain the primary means of motorized transport and the biggest source of accidents in Vietnam.
Specifically, according to statistics from the National Traffic Safety Committee, the total number of registered motorcycles as of October 14, 2020 was 72 million, accounting for 63.48% of the causes of traffic accidents.
On December 30, 2022, the Ministry of Finance submitted a report to the Government in Proposal No. 325/TTr-BTC. Accordingly, the Ministry of Finance proposed to the Government that it would continue to assess the impact of the policy on mandatory civil liability insurance for motorcycle owners.
"If implementing all the solutions stipulated in the draft mandatory decree does not improve motorcycle insurance compensation, the Ministry of Finance will submit a proposal to the Government to request the competent authority to adjust this policy," the Ministry of Finance stated.
In order to further simplify the procedures for claiming compensation in traffic accidents, the draft Decree on compulsory insurance, currently being submitted to the Government for consideration, includes several additional regulations.
Regarding compensation procedures, motor vehicle owners can provide photocopies of documents related to the vehicle and driver, and can provide evidence of repairs or replacements of damaged property in cases where invoices or receipts are unavailable (previously, these regulations did not exist).
Regarding the responsibilities of insurance companies, they must record calls to hotlines to ensure the rights of policyholders and insured parties; and enhance the application of information technology in settling claims for mandatory civil liability insurance for motor vehicle owners, specifically for motorcycles and scooters.
Previously, the Vietnam Chamber of Commerce and Industry (VCCI) also proposed abolishing the mandatory civil liability insurance requirement for motorcycles.
The Vietnam Chamber of Commerce and Industry (VCCI) argues that, after more than 10 years of implementing Decree 103, the payout rate for mandatory civil liability insurance for motorcycles remains very low, at nearly 6% in 2019 (45 billion VND paid out of 765 billion VND in insurance premiums), while for cars the payout rate is as high as 33%. Looking at the overall benefit to society, mandatory insurance for motorcycles does not ensure the principle of benefits exceeding costs.
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