New regulations on compulsory motorbike insurance from September 6, 2023

Could you please clarify some of the new regulations regarding mandatory motorcycle insurance effective from September 6, 2023, as stipulated in Decree 67/2023/ND-CP? - Reader Hoa Binh

Quy định mới về bảo hiểm xe máy bắt buộc từ ngày 6/9/2023

New regulations on mandatory motorcycle insurance, effective from September 6, 2023, are stipulated in Decree 67/2023/ND-CP. (Source: TVPL)

On September 6, 2023, the Government issued Decree 67/2023/ND-CP regulating mandatory insurance for vehicle owners, mandatory fire and explosion insurance, and mandatory insurance in investment and construction activities.

These include several new regulations related to mandatory insurance for owners of motorcycles and scooters (commonly referred to as mandatory motorcycle insurance), for example:

The validity of mandatory motorcycle insurance when transferring vehicle ownership.

- New regulation: Within the validity period stated on the insurance certificate, if there is a transfer of vehicle ownership, the previous owner has the right to terminate the insurance contract in accordance with Article 11 of Decree 67/2023/ND-CP.

- Old regulation: During the validity period stated on the insurance certificate, if there is a transfer of vehicle ownership, all insurance benefits related to the civil liability of the previous owner remain valid for the new owner.

Regulations regarding advance compensation when it has not yet been determined whether the accident falls within the scope of damage compensation.

Point b, Clause 3, Article 12 of Decree 67/2023/ND-CP stipulates the amount of advance compensation for health and life damages in cases where the accident has not yet been determined to fall within the scope of compensation as follows:

- 30% of the insurance liability limit for a person in an accident in the case of death and an estimated injury rate of 81% or higher.

(Previously, the provisional amount was 30% of the insurance liability as stipulated per person per incident in the case of death.)

- 10% of the insurance liability limit for a person in an accident, for cases where the estimated injury rate is between 31% and less than 81%.

(Previously, the provisional amount was 10% of the insurance liability as stipulated/per person/per incident for cases of body part injury requiring emergency treatment.)

After making an advance payment of compensation, the insurance company has the right to request the Motor Vehicle Insurance Fund to reimburse the advanced amount if the accident is determined to be outside the scope of insurance coverage or excluded from the insurance policy.

New regulations regarding insurance claim documents.

According to Article 13 of Decree 67/2023/ND-CP, the claim file for mandatory civil liability insurance for vehicle owners includes the following documents:

(1) Claim for compensation document. (Previously not required)

(2) Documents relating to motor vehicles and drivers (Certified copies from the original or copies certified by the insurance company after comparison with the original or photocopies):

- Vehicle registration certificate (or a certified copy of the original vehicle registration certificate along with the original receipt from the credit institution that is still valid, in place of the original vehicle registration certificate during the period the credit institution holds the original vehicle registration certificate) or vehicle ownership transfer documents and vehicle origin documents (in case there is no vehicle registration certificate).

- Driving license.

- The driver's identity card, citizen identification card, passport, or other personal identification documents.

- Insurance certificate.

(3) Documents proving health and life damage (Copies from medical facilities or certified copies from insurance companies after comparison with the original or photographic copies). Depending on the extent of personal injury, one or more of the following documents may be included:

- Certificate of injury.

- Medical records.

- A copy of the death certificate or death notice or confirmation document from the police or the results of a forensic examination by a forensic examination agency in cases where the victim died on a vehicle or died as a result of an accident.

(4) Documents proving damage to property:

- Valid invoices, receipts, or evidence proving the repair or replacement of property damaged in the accident (in cases where the insurance company carries out the repair or remediation of the damage, the insurance company is responsible for collecting this documentation).

- Documents, invoices, and receipts related to expenses incurred by the vehicle owner to mitigate losses or to comply with the insurance company's instructions.

(5) Copies of relevant documents from the Police agency in cases of fatal accidents involving third parties and passengers or cases requiring verification of accidents caused entirely by the fault of a third party, including: Notification of investigation results, verification and resolution of the accident or Notification of conclusion of investigation and resolution of the accident.

(6) Assessment report of the insurance company or a person authorized by the insurance company.

(7) Court decision (if any). (Previously not specified)

The insurance buyer and the insured are responsible for collecting and submitting to the insurance company the documents specified in sections (1), (2), (3), (4), and (7) above. The insurance company is responsible for collecting the documents specified in sections (5) and (6) above.

See the detailed content in Decree 67/2023/ND-CP, which takes effect from September 6, 2023.

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