Important Rules and Benefits to Know About Motorcycle Insurance

1. Concept and purpose of motorcycle insurance

Motorcycle insurance, more precisely, compulsory third-party liability insurance (TNDS) of vehicle owners, is one of the important types of insurance to protect the rights of those affected by traffic accidents. This type of insurance ensures that when an accident occurs, the motorcyclist will have the financial ability to compensate for property damage and injuries to the victim.

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The main purpose of TNDS insurance is to protect the interests of third parties by providing reasonable compensation for the damages they suffer. This helps to reduce the financial burden on the parties involved, while ensuring that the consequences of traffic accidents are remedied fairly and effectively.

In addition, this insurance also benefits the car owner. The insurance company will compensate the victim on behalf of the car owner, helping them avoid a large financial burden if an accident occurs. In particular, this insurance will pay for all damages related to the victim's body, regardless of who is at fault, ensuring that the rights of third parties are protected fairly.

2. Legal regulations on motorbike insurance

According to Decree 67/2023/ND-CP, there are two types of motorbike insurance: compulsory insurance and voluntary insurance.

Compulsory motorcycle insurance, or TNDS insurance, is a type of insurance that all motorcycle and motorbike owners must participate in. In the event of an accident, this insurance does not compensate the vehicle owner but only compensates for damages to third parties. This is a legal measure to protect public interests, maintain traffic safety and society.

Voluntary motorcycle insurance is not mandatory, but vehicle owners can participate to get additional protection for property and injury to themselves and their passengers in case of accidents, fires, or theft. The premium and compensation scope of voluntary insurance are agreed upon depending on each contract between the participant and the insurance company.

Regarding compulsory insurance premiums, Decree 67/2023/ND-CP clearly stipulates: for motorbikes under 50cc and electric motorbikes, the premium is VND 55,000/year; motorbikes over 50cc have a premium of VND 60,000/year, and other special types of vehicles are VND 290,000/year (excluding VAT). For voluntary insurance, the premium is not fixed and depends on the content of the contract between the parties.

3. Motorcycle insurance market and insurance purchasing methods

Currently, the motorbike insurance market in Vietnam is very diverse with the participation of many reputable units such as Bao Viet, MIC, PVI, BIC, PTI and VNI. This brings many options for consumers when buying insurance.

Car owners can easily buy insurance at insurance company headquarters, branches, or through agents, banks, and even at gas stations. In particular, thanks to the development of technology, buying insurance online through applications such as Momo, Zalopay, Viettelpay is becoming more and more popular, bringing convenience and saving time for users.

4. Legal regulations on carrying motorcycle insurance

Motorcyclists are required to carry a Civil Liability Insurance Certificate when participating in traffic. According to Decree 100/2019/ND-CP (amended by Decree 123/2021/ND-CP), if the driver is checked by the Traffic Police and does not have insurance, the driver will be fined from 100,000 to 200,000 VND. Therefore, in addition to purchasing insurance to protect their rights, traffic participants need to comply with the regulations on carrying insurance to avoid being fined.

5. Information on maintaining motorcycle insurance in 2024

Currently, motor vehicle liability insurance is still a mandatory insurance under Decree 67/2023/ND-CP, applicable to all motor vehicles operating in Vietnam. This means that in 2024, compulsory motor vehicle insurance will continue to be maintained. This policy reflects the government 's efforts to protect the interests of stakeholders in traffic, while contributing to ensuring safety and fairness for all traffic participants.

Source: https://www.congluan.vn/nhung-quy-dinh-va-loi-ich-quan-trong-can-biet-ve-bao-hiem-xe-may-post313116.html