Decree No. 03/2021/NĐ-CP On Compulsory Civil Liability Motor Vehicle Insurance

CIRCULAR

AMENDMENTS AND SUPPLEMENTS TO CERTAIN ARTICLES OF CIRCULAR NO. 50/2017/TT-BTC DATED MAY 15, 2017 OF THE MINISTRY OF FINANCE GUIDING THE IMPLEMENTATION OF DECREE NO. 73/2016/NĐ-CP DATED JULY 1, 2016 OF THE GOVERNMENT PROVIDING DETAILED GUIDELINES FOR THE IMPLEMENTATION OF THE INSURANCE BUSINESS LAW AND THE LAW AMENDING AND COMPLEMENTING CERTAIN PROVISIONS OF THE INSURANCE BUSINESS LAW AND CIRCULAR NO. 04/2021/TT-BTC DATED JANUARY 15, 2021 OF THE MINISTRY OF FINANCE PROVIDING DETAILED GUIDELINES FOR CERTAIN PROVISIONS OF DECREE NO. 03/2021/NĐ-CP DATED JANUARY 15, 2021 OF THE GOVERNMENT ON COMPULSORY CIVIL LIABILITY INSURANCE FOR MOTOR VEHICLE OWNERS

Pursuant to the Law on Insurance Business dated December 9, 2000; the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business dated November 24, 2010;

Pursuant to the Law amending and supplementing certain articles of the Law on Insurance Business and the Law on Intellectual Property dated June 14, 2019;

Pursuant to Resolution No. 30/2021/QH15 dated July 28, 2021 of the National Assembly, assigning the Government and the Prime Minister to implement urgent measures in preventing and controlling the COVID-19 pandemic;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 73/2016/NĐ-CP dated July 1, 2016 of the Government providing detailed guidelines for the implementation of the Insurance Business Law and the Law Amending and Complementing Certain Provisions of the Insurance Business Law;

Pursuant to Decree No. 03/2021/NĐ-CP dated January 15, 2021 of the Government on compulsory civil liability insurance for motor vehicle owners;

At the proposal of the Director of the Department of Management and Supervision of Insurance;

The Minister of Finance issues this Circular amending and supplementing certain articles of Circular No. 50/2017/TT-BTC dated May 15, 2017 of the Ministry of Finance guiding the implementation of Decree No. 73/2016/NĐ-CP dated July 1, 2016 of the Government providing detailed guidelines for the implementation of the Insurance Business Law and the Law Amending and Complementing Certain Provisions of the Insurance Business Law and Circular No. 04/2021/TT-BTC dated January 15, 2021 of the Ministry of Finance providing detailed guidelines for certain provisions of Decree No. 03/2021/NĐ-CP dated January 15, 2021 of the Government on compulsory civil liability insurance for motor vehicle owners.

Article 1. Amending and supplementing certain provisions of Circular number

Add sub-clause e following sub-clause d point 1.1 Clause 1 Article 21 as follows:

"e. The insured party and the insurance company may agree to change the payment term of the insurance premium or agree to owe the insurance premium without collateral or guarantee for the payment of the insurance premium when meeting the following conditions:

- The insured party or the insurance company (including headquarters, branches, representative offices, business locations) in localities implementing social distancing according to Directive No. 15/CT-TTg dated March 27, 2020 of the Prime Minister on resolutely implementing the peak period of prevention and control of the COVID-19 pandemic, Directive No. 16/CT-TTg dated March 31, 2020 of the Prime Minister on implementing urgent measures to prevent and control the COVID-19 pandemic, or areas under quarantine or lockdown to control the COVID-19 outbreak as determined by competent authorities or localities at very high or high risk levels according to Resolution No. 128/NQ-CP dated October 11, 2021 of the Government promulgating temporary regulations on "Adapting safely, flexibly, and effectively controlling the COVID-19 pandemic".

- The insured party incurs the obligation to pay the insurance premium during the period from January 1, 2021 until the Prime Minister announces the end of the COVID-19 pandemic. In all cases, the payment term of the insurance premium shall not exceed the insurance term stipulated in the insurance contract."

Article 2. Amending and supplementing certain articles of Circular No.

1. AMENDING AND SUPPLEMENTING ARTICLE 3 AS FOLLOWS:

Article 3. Insurance premium

1. The insurance premium for each type of motor vehicle is specified in Appendix I attached to Circular No. 04/2021/TT-BTC.

2. Motor vehicle owners and insurance companies may agree to extend the insurance term corresponding to the time the motor vehicle does not participate in traffic or operate due to the application of measures to prevent and control the COVID-19 pandemic, ensuring compliance with insurance business laws, civil laws, and related laws when meeting the following condition:

Motor vehicle owners in localities implementing social distancing according to Directive No. 15/CT-TTg, Directive No. 16/CT-TTg, or areas under quarantine or lockdown to control the COVID-19 outbreak as determined by competent authorities or localities at very high or high risk levels according to Resolution No. 128/NQ-CP during the period from January 1, 2021 until the Prime Minister announces the end of the COVID-19 pandemic."

2. Supplement Clause 9 after Clause 8 of Article 5 as follows:

"9. During the period from March 1, 2021 until the Prime Minister announces the end of the COVID-19 pandemic, the Management Board of the Fund may propose the Vietnam Insurance Association to report to the Ministry of Finance for consideration and permission to use the surplus of the Fund from previous years for the purposes specified in Clause 4, Clause 5, Clause 6, Clause 7, and Clause 8 of this Article; the amount spent on each purpose shall not exceed the ratio prescribed in Clause 4, Clause 5, Clause 6, Clause 7, and Clause 8 of this Article, up to a maximum of 1% as stipulated in Clause 1 of Article 26 of Decree No. 03/2021/NĐ-CP."

This Circular takes effect from December 25, 2025/.

Non-life insurance companies, branches of foreign non-life insurance companies in Vietnam, and other relevant organizations and individuals are responsible for implementing this Circular.

Article 4. Implementation provisions

This Circular takes effect from the date of issuance./.