Distinguishing between compulsory motorcycle insurance and voluntary motorcycle insurance

Mandatory insurance: Safety for both the driver and third parties.

According to Article 56 of the Law on Road Traffic Order and Safety, effective from January 1, 2025, motorcyclists participating in traffic are required to have civil liability insurance. This is a type of insurance that all citizens must possess to ensure the rights of third parties in the event of an accident.

This mandatory insurance refers to the civil liability insurance for owners of motor vehicles, including motorcycles. In the event of an accident caused by the driver's fault, the insurance will pay compensation to the injured party. Failure to have this type of insurance will result in penalties according to the law.

Mandatory motorcycle insurance is civil liability insurance for motorcycle owners.

Voluntary insurance: Protecting individual interests

Besides mandatory insurance, people can also purchase voluntary insurance. This type of insurance is not mandatory, but it offers many important benefits for motorcycle riders. Voluntary insurance will provide financial compensation in cases such as property damage, accidents involving passengers (including the owner and passengers), or in unexpected situations such as fire, explosion, or theft.

Although there are no penalties for not purchasing voluntary insurance, owning this type of insurance will give people greater peace of mind when participating in traffic. Especially in cases of risk, voluntary insurance will provide significant support, reducing the financial burden for road users.

According to Decree 67/2023/ND-CP, although voluntary insurance is not mandatory, the government still encourages people to participate. This aims to ensure maximum benefits for vehicle operators. In addition, insurance companies are responsible for separating mandatory and voluntary insurance in contracts so that buyers can easily choose.

Source: https://www.congluan.vn/phan-biet-giua-bao-hiem-xe-may-bat-buoc-va-bao-hiem-xe-may-tu-nguyen-post307751.html