Circular No. 04/2021/TT-BTC detailing certain provisions of Government Decree No. 03/2021/NĐ-CP dated January 15, 2021 on mandatory civil liability insurance for motor vehicle owners

CIRCULAR

Detailed regulations on certain provisions of Decree No. 03/2021/NĐ-CP
dated January 15, 2021 of the Government on mandatory insurance
for Motor Vehicle Owners

_________________

Pursuant to the Insurance Business Law dated December 9, 2000;

Pursuant to the Law Amending and Supplementing Certain Provisions of the Insurance Business Law on 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 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. 03/2021/NĐ-CP dated January 15, 2021 of the Government on mandatory 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 promulgates this Circular detailing certain provisions of Decree No. 03/2021/NĐ-CP dated January 15, 2021 of the Government on mandatory civil liability insurance for motor vehicle owners.

Article 1. Scope of Regulation

This Circular stipulates detailed provisions of Clause 2 Article 7 regarding insurance premiums, Clause 2 Article 8 regarding the level of insurance liability, Clause 2 Article 27 regarding the ratio of each item of expenditure of the Motor Vehicle Insurance Fund, Clause 3 Article 28 regarding the organizational structure, management, and operation, budget preparation, accounting, and settlement work of the Motor Vehicle Insurance Fund, and Clause 2 Article 30 regarding procedures, formalities, and supporting documents for humanitarian assistance payments from the Motor Vehicle Insurance Fund and repayment of amounts temporarily advanced by insurance companies for compensation in accordance with Decree No. 03/2021/NĐ-CP dated January 15, 2021 of the Government on mandatory civil liability insurance for motor vehicle owners.

Article 2. Applicability

This Circular applies to:

1. Motor vehicle owners participating in traffic and operating within the territory of the Socialist Republic of Vietnam.

2. Insurance companies permitted to implement mandatory civil liability insurance for motor vehicle owners in accordance with the law.

3. Agencies, organizations, and individuals related to the implementation of mandatory civil liability insurance for motor vehicle owners.

The insurance premiums for each type of motor vehicle are specified in Appendix I attached hereto.

Article 4. Level of Insurance Liability

1. The level of insurance liability for damage to health and life caused by motor vehicles is one hundred fifty (150) million VND per person in one accident.

2. The level of insurance liability for property damage:

a) Caused by two-wheeled motorcycles; three-wheeled motorcycles; motorbikes (including electric motorbikes) and similar types of vehicles as defined by the Road Traffic Law is fifty (50) million VND in one accident.

b) Caused by automobiles; tractors; trailers or semi-trailers pulled by automobiles or tractors; special-purpose vehicles as defined by the Road Traffic Law is one hundred (100) million VND in one accident.

Article 5. Ratio of Each Item of Expenditure of the Motor Vehicle Insurance Fund (hereinafter referred to as the Fund)

1. Humanitarian support expenses: The amount of expenditure shall not be less than twenty-five percent (25%) of the total amount paid into the Fund annually and the balance of the Fund from previous years (if any).

2. Prevention and limitation of losses and road traffic accidents: The amount of expenditure shall not exceed twenty percent (20%) of the total amount paid into the Fund annually and the balance of the Fund from previous years (if any).

3. Organization of propaganda and education on road traffic safety and compulsory civil liability insurance for motor vehicle owners: The amount of expenditure shall not exceed fifteen percent (15%) of the total amount paid into the Fund annually and the balance of the Fund from previous years (if any).

4. Support for police forces in their cooperation with the Vietnam Insurance Association, the Management Board of the Motor Vehicle Insurance Fund, and non-life insurance companies in preventing and limiting losses, combating fraud in insurance business, and implementing regulations on compulsory civil liability insurance for motor vehicle owners: The amount of expenditure shall not exceed ten percent (10%) of the total amount paid into the Fund annually.

5. Rewards for achievements in the implementation of compulsory civil liability insurance for motor vehicle owners, prevention and limitation of losses and road traffic accidents, ensuring road traffic safety and order: The amount of expenditure shall not exceed five percent (5%) of the total amount paid into the Fund annually.

6. Expenses for improving and maintaining the database on compulsory civil liability insurance for motor vehicle owners: The amount of expenditure shall not exceed ten percent (10%) of the total amount paid into the Fund annually.

7. Expenses for the activities of the ASEAN Compulsory Motor Vehicle Insurance Program and the activities of the National Agency implementing Protocol No. 5 on the ASEAN Compulsory Motor Vehicle Insurance Program: The amount of expenditure shall not exceed five percent (5%) of the total amount paid into the Fund annually.

Article 6. Organizational Structure and Management of the Fund

1. The Management Board of the Fund includes:

a) Chairman of the Management Board: The Chairman of the Vietnam Insurance Association.

b) Members:

- Representative of the Insurance Supervision Department - Ministry of Finance.

- Representative of the Traffic Police Corps - Ministry of Public Security.

- Secretary General of the Vietnam Insurance Association.

- General Director or Deputy General Director of at least three non-life insurance companies authorized to implement compulsory civil liability insurance for motor vehicle owners, having the largest market share in compulsory civil liability insurance for motor vehicle owners.

2. The Executive Board of the Fund includes:

a) Head of the Executive Board: Secretary General of the Vietnam Insurance Association.

b) Members: Representatives of at least three non-life insurance companies authorized to implement compulsory civil liability insurance for motor vehicle owners, having the largest market share in compulsory civil liability insurance for motor vehicle owners.

3. The Audit Board of the Fund includes:

a) At least three members representing three non-life insurance companies authorized to implement compulsory civil liability insurance for motor vehicle owners.

b) The Head of the Audit Board is appointed by the Chairman of the Management Board from among the members of the Audit Board.

Non-life insurance companies with members participating in the Audit Board must be independent from non-life insurance companies with members participating in the Executive Board to ensure timely identification and assessment of risks that may affect the effectiveness and principles of managing and using the Motor Vehicle Insurance Fund.

Article 7. Tasks and Authorities of the Fund's Organizations and Machinery

1. Tasks and Authorities of the Management Board of the Fund:

a) To be responsible before the law and the Minister of Finance for the management and operation of the Fund.

b) To issue the Rules of Operation of the Management Board, the Executive Board, and the Audit Board.

c) Issue specific regulations on the management and use of the Fund; approve the budget and final accounts of the Fund.

d) Issue a Decision to establish the Management Board and the Supervisory Board of the Fund.

đ) Report to the Ministry of Finance the approved budget and final accounts of the Fund.

2. Duties and powers of the Management Board of the Fund:

a) Be responsible under the law and before the Management Council of the Fund for managing, using, settling payments, and preparing final accounts of the Fund.

b) Comply with regulations on the management and use of the Fund according to the plan approved by the Management Council of the Fund, in accordance with this Circular, and not use the Fund for activities other than its intended purpose.

3. Duties and powers of the Supervisory Board of the Fund:

a) Monitor the operations of the Fund to ensure compliance with the laws and regulations set forth in this Circular.

b) Summarize and evaluate the financial situation of the Fund quarterly and annually, and make recommendations to the Management Council of the Fund.

c) Conduct inspections of the management and use of the Fund upon request of the Management Council of the Fund.

Article 8. Budget preparation, accounting, and final accounts of the Fund

1. Budget preparation work:

a) Before December 15 each year, the Management Board of the Fund prepares the budget for income and expenditure of the Fund, including the following contents:

- The current year's income and expenditure situation of the Fund.

- The next year's income and expenditure plan of the Fund.

b) The Management Board of the Fund reports the budget for income and expenditure of the Fund to the Management Council of the Fund for approval. The budget for income and expenditure of the Fund must be notified to the Ministry of Finance (Insurance Management and Supervision Department) and non-life insurance companies immediately after approval.

c) Except for the contents of expenditures at Clause 6, Clause 7, and Clause 8 Article 5 of this Circular, plans for expenditures within the annual budget that have not been implemented or fully expended by December 31 each year may continue to be implemented in the following year.

d) In necessary cases, the Management Council of the Fund may adjust the approved annual budget and notify the Ministry of Finance and non-life insurance companies.

2. Accounting of the Fund: The Management Board of the Fund must:

a) Organize accounting and statistical work in accordance with the Accounting Law, Statistics Law, and guiding documents.

b) Adhere to accounting voucher regulations; record all income and expenditure items of the Fund in the accounting books.

c) Maintain accounting ledgers to record, systematize, and store all transactions related to the Fund.

d) Quarterly prepare reports on income and expenditure of the Fund to report to the Management Council of the Fund for approval and notify the Ministry of Finance through direct delivery, postal service, or electronic mail.

Quarterly Report: The data closing period runs from the first day of the first month of the reporting quarter to the last day of the third month of the quarter. The deadline for submitting the report is thirty days from the end of the quarter.

3. Final Accounts of the Fund:

Annually, the Management Board of the Fund is responsible for preparing the final accounts report to report to the Management Council of the Fund for approval.

Article 9. Procedures, formalities, and documents for humanitarian support payments and repayment of amounts temporarily advanced by insurance companies for compensation

1. Procedures, formalities, and documents for humanitarian support payments:

a) Procedures and formalities for humanitarian support payments:

- The victim or their heir (in case of death of the victim) or representative of the victim (in case of the victim losing civil capacity according to court decision or being under six years old) (hereinafter referred to as the victim) contacts the Motor Vehicle Insurance Fund to be guided in preparing the humanitarian support payment application form.

- Within one working day from receiving the victim's request, the Motor Vehicle Insurance Fund has the responsibility to guide the humanitarian support payment application form as stipulated in Point b Clause 1 Article 9 of this Circular.

- Within two working days after receiving a complete and valid application form, the Motor Vehicle Insurance Fund has the responsibility to pay the victim. If humanitarian support is refused, the Motor Vehicle Insurance Fund must provide a clear explanation of the reasons.

b) Documents for humanitarian support payments:

The victim is responsible for collecting one set of humanitarian support payment application documents and bears legal responsibility for the accuracy, completeness, and validity of the documents. The humanitarian support payment documents include the following materials:

b.1) In case the vehicle causing the accident cannot be identified:

- Original application for humanitarian support payment according to the model prescribed in Appendix II attached to this Circular.

- Copy of Death Certificate or Death Notice or confirmation document from the police authority or forensic medical examination results for cases where the victim dies on a means of transportation or due to an accident (in case of death).

- Medical records for cases involving bodily injury.

- Notarized copy of the traffic accident resolution notice stating that the vehicle causing the accident could not be identified.

b.2) In case the vehicle is not insured:

- Original application for humanitarian support payment according to the model prescribed in Appendix II attached to this Circular.

- Copy of Death Certificate or Death Notice or confirmation document from the police authority or forensic medical examination results for cases where the victim dies on a means of transportation or due to an accident (in case of death).

- Medical records for cases involving bodily injury.

- Notarized copy of the traffic accident resolution notice.

b.3) In case of exclusion of insurance liability:

- Original application for humanitarian support payment according to the model prescribed in Appendix II attached to this Circular.

- Copy of Death Certificate or Death Notice or confirmation document from the police authority or forensic medical examination results for cases where the victim dies on a means of transportation or due to an accident (in case of death).

- Medical records for cases involving bodily injury.

- Original document refusing compensation from the insurance company.

- Notarized copy of the traffic accident resolution notice.

2. Procedures, formalities, and documents for repayment of amounts temporarily advanced for compensation:

a) Procedures and formalities for repayment of temporary advances for compensation:

- The insurance company submits one set of documents to the Motor Vehicle Insurance Fund including the materials specified in Point b Clause 2 Article 9 of this Circular.

- Within five working days after receiving a complete and valid set of documents, the Motor Vehicle Insurance Fund has the responsibility to repay the amounts temporarily advanced for compensation according to Point a Clause 1 Article 27 Decree No. 03/2021/NĐ-CP. If repayment is refused, the Motor Vehicle Insurance Fund must provide a clear explanation of the reasons.

b) Application documents for repayment of temporary advances for compensation:

The insurance company shall be responsible for collecting a set of documents to request repayment of advance compensation and shall bear legal responsibility for the accuracy, completeness, and validity of the documents. The set of documents to request repayment of advance compensation includes the following:

- A request form for repayment of advance compensation signed by the insurance company according to the model prescribed in Appendix III attached hereto.

- Notarized copy of the document resolving insurance compensation or refusing to resolve insurance compensation issued by the insurance company.

- A detailed list of accident cases for which the insurance company requests repayment of advance compensation.

Article 10. Effectiveness

1. This Circular takes effect from March 1, 2021.

2. This Circular replaces the following Circulars: Circular No. 22/2016/TT-BTC dated February 16, 2016 on Rules, Terms, Premium Rates, and Liability Limits for Compulsory Civil Liability Insurance for Motor Vehicles; Circular No. 103/2009/TT-BTC dated May 25, 2009 on Management, Usage, Payment, and Settlement of the Motor Vehicle Insurance Fund; Circular No. 43/2014/TT-BTC dated April 11, 2014 amending and supplementing certain provisions of Circular No. 126/2008/TT-BTC dated December 22, 2008 of the Ministry of Finance on Rules, Terms, Premium Rates, and Liability Limits for Compulsory Civil Liability Insurance for Motor Vehicles, Circular No. 103/2009/TT-BTC dated May 25, 2009 of the Ministry of Finance on Management, Usage, Payment, and Settlement of the Motor Vehicle Insurance Fund, and Circular No. 151/2012/TT-BTC dated September 12, 2012 of the Ministry of Finance amending and supplementing Circular No. 126/2008/TT-BTC and Circular No. 103/2009/TT-BTC.

3. During implementation, if any difficulties arise, please promptly report them to the Ministry of Finance for consideration and resolution./.

Appendix I

COMPULSORY CIVIL LIABILITY INSURANCE FEE
FOR MOTOR VEHICLE OWNERS

(Annexed to Circular No. 04/2021/TT-BTC
dated January 15, 2021 of the Minister of Finance)

VII. INSURANCE FEES IN CERTAIN OTHER CASES

1. Driving school vehicles

Calculated at 120% of the insurance fee for the same type of vehicle specified in Sections IV and VI.

1. Taxis

Calculated at 170% of the insurance fee for commercial vehicles with the same number of seats specified in Section V.

1. Special purpose vehicles

• The insurance fee for ambulances is calculated at 120% of the insurance fee for passenger-cargo vehicles (pickup, minivan) engaged in transportation.

• The insurance fee for money transport vehicles is calculated at 120% of the insurance fee for vehicles with fewer than 6 seats specified in Section IV.

• The insurance fee for other special purpose vehicles with a designed carrying capacity is calculated at 120% of the insurance fee for cargo vehicles with the same carrying capacity specified in Section VI; in cases where there is no specified carrying capacity, the insurance fee is 120% of the insurance fee for cargo vehicles under 3 tons.

1. Tractor-trailer combinations

Calculated at 150% of the insurance fee for cargo vehicles over 15 tons. The insurance fee for tractor-trailer combinations is the sum of the fees for both the tractor and trailer.

1. Tractors, special purpose vehicles

Calculated at 120% of the insurance fee for cargo vehicles under 3 tons specified in Section VI (the insurance fee for tractors includes both the tractor and trailer).

1. Buses

Calculated at the insurance fee for non-commercial vehicles with the same number of seats specified in Section IV.

(The above insurance fees do not include 10% VAT).

Seal Registration Certificate
APPLICATION FOR HUMANITARIAN ASSISTANCE
(Annexed to Circular No. 04/2021/TT-BTC
dated January 15, 2021 of the Minister of Finance)

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness

Respectfully submitted to: Motor Vehicle Insurance Fund

Name of applicant for humanitarian assistance:

Permanent domicile:

Contact phone number:

Identity card number/Citizen identification card number/Passport number or other personal identification documents: Issued date: Issuing authority

Relationship to victim:

Victim's name:

Permanent residence address of the victim:

Time of accident:

Location of accident:

Summary of accident:

Conditions for humanitarian support □ Unable to identify the vehicle causing the accident

• The vehicle is not insured

• Exclusion from insurance liability

I undertake to be responsible under the law for the accuracy and truthfulness of this Application and the attached documents.

Attached documents: , on the...day of the...month of the...year

List clearly the humanitarian support expense documentsAPPLICANT

(Signature, full name)

ANNEX III

APPLICATION FOR TEMPORARY ADVANCE PAYMENT REIMBURSEMENT

(Annexed to Circular No. 04/2021/TT-BTC
dated January 15, 2021 of the Minister of Finance)

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness

Respectfully submitted to: Motor Vehicle Insurance Fund

Pursuant to Decree No. 03/2021/ND-CP dated January 15, 2021 of the Government on Compulsory Civil Liability Insurance for Motor Vehicles.

Pursuant to Circular No. 04/2021/TT-BTC dated January 15, 2021 of the Minister of Finance detailing certain provisions of Decree No. 03/2021/ND-CP dated January 15, 2021 of the Government on Compulsory Civil Liability Insurance for Motor Vehicles.

We are:

• (Full and official name of the insurance company)

• License for establishment and operation number...issued by the Ministry of Finance on...day of...month of...year...

• Main office address:

• Contact telephone:

We request the Motor Vehicle Insurance Fund to reimburse the amount we have temporarily advanced for compensation in cases where the accident is determined to fall within the exclusion of insurance liability or exceeds the compensation limit stipulated in cases where the accident falls within the scope of damage compensation totaling...VND, specifically:

• The amount requested for reimbursement of temporary advance compensation in cases where the accident is determined to fall within the exclusion of insurance liability...VND, corresponding to...accidents.

• The amount requested for reimbursement of temporary advance compensation exceeding the insurance compensation limit stipulated in cases where the accident falls within the scope of damage compensation...VND, corresponding to...accidents.

We undertake to be responsible under the law for the accuracy and truthfulness of this Application and the attached documents.

..., day...month...year...

REPRESENTATIVE
ACCORDING TO LAW 4. If the above measures are still insufficient to offset losses, the remaining losses shall be covered by the reserve fund according to the decision of the General Assembly of Members, the Charter, or the Financial Management Regulations of the cooperative.

List clearly the documents for reimbursement of temporary advance compensation

(Signature and stamp)

Detailed regulations on certain provisions of Decree No. 03/2021/ND-CP
dated January 15, 2021 of the Government on compulsory civil liability insurance for motor vehicles
of the owner

Pursuant to Law on Business of Insurance dated December 9, 2000;

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

Pursuant to Law Amending and Supplementing Certain Provisions of the Law on Business of Insurance, Law on Credit Institutions dated June 14, 2019;

Pursuant to Decree No. 87/2017/ND-CP dated July 26, 2017 of the Government regulating functions, tasks, powers, and responsibilities of the Ministry of Finance;

Pursuant to Decree No. 03/2021/ND-CP dated January 15, 2021 of the Government on Compulsory Civil Liability Insurance for Motor Vehicles;

At the request of the Chairman of the Council of Supervisors, Insurance Inspection Authority;

The Ministry of Finance issued Circular detailing certain provisions of Decree No. 03/2021/ND-CP dated January 15, 2021 of the Government on Compulsory Civil Liability Insurance for Motor Vehicles.

Article 1. Scope of Regulation

This Circular details Clause 2 of Article 7 on insurance premium, Clause 2 of Article 8 on liability limit of insurance, Clause 2 of Article 27 on the proportion of expenses not included in the insurance policy, Clause 3 of Article 28 on the organizational structure and management of operations, accounting, and settlement of the insurance fund for motor vehicles, and Clause 2 of Article 30 on the process and implementation of handling documents for the insurance fund for motor vehicles to reimburse amounts that insurance companies have temporarily advanced for compensation as prescribed in Decree No. 03/2021/ND-CP dated January 15, 2021 of the Government on Compulsory Civil Liability Insurance for Motor Vehicles.

Article 2. Scope of Application

This Circular applies to:

1. Owners of motor vehicles participating in traffic and operating within the territory of the Socialist Republic of Vietnam.

2. Insurance companies licensed to operate Compulsory Civil Liability Insurance for owners of motor vehicles according to the provisions of the law.

3. Authorities, organizations, and individuals related to the implementation of Compulsory Civil Liability Insurance for owners of motor vehicles.

Article 3. Insurance Premium

The insurance premium for each type of motor vehicle is detailed in Appendix I pursuant to this Circular.

Article 4. Liability Limit of Insurance

1. The liability limit of insurance for personal injury and death caused by motor vehicles is one hundred fifty million VND per person per accident.

2. The liability limit of insurance for property damage:

a) Caused by two-wheeled motorcycles; three-wheeled motorcycles; and all types of motorcycles (including electric motorcycles), as defined in the Road Traffic Law, is fifty million VND per accident.

b) Caused by passenger cars; trucks; trailers; or semi-trailers towed by passenger cars or trucks; and special-purpose motorcycles, as defined in the Road Traffic Law, is one hundred million VND per accident.

Article 5. Proportion of Expenses Not Included in the Insurance Policy (hereinafter referred to as the Fund)

1. Humanitarian aid expenses: The proportion shall not be less than twenty-five percent of the total amount paid into the Fund annually and the balance of the Fund from previous years (if any).

2. Prevention and reduction of traffic accidents and road safety expenses: The proportion shall not exceed twenty percent of the total amount paid into the Fund annually and the balance of the Fund from previous years (if any).

3. Propaganda, education, and road traffic safety expenses for Compulsory Civil Liability Insurance for owners of motor vehicles: The proportion shall not exceed fifteen percent of the total amount paid into the Fund annually and the balance of the Fund from previous years (if any).

4. Expenses for cooperation with the Police in performing tasks related to the Vietnam Insurance Association, the Board of Directors of the Fund for Compulsory Civil Liability Insurance for owners of motor vehicles, and other non-state insurance companies in preventing and reducing traffic accidents, combating fraud in insurance business, and implementing regulations on Compulsory Civil Liability Insurance for owners of motor vehicles: The proportion shall not exceed ten percent of the total amount paid into the Fund annually.

5. Rewards for outstanding achievements in the implementation of Compulsory Civil Liability Insurance for owners of motor vehicles, prevention and reduction of traffic accidents, and ensuring road traffic safety: The proportion shall not exceed five percent of the total amount paid into the Fund annually.

6. Expenses for perfecting, maintaining the operation of the compulsory liability insurance program for passenger vehicles: The total expenses shall not exceed 10% of the total amount paid into the Insurance Fund in that year.

7. Expenses for operating the ASEAN Compulsory Passenger Vehicle Liability Insurance Program and the activities of the State Management Agency implementing Decree No. 5 on the Program: The total expenses shall not exceed 5% of the total amount paid into the Insurance Fund in that year.

The total administrative expenses of the Insurance Fund: Shall not exceed 8% of the total amount paid into the Insurance Fund in that year.

Article 6. Composition, management structure of the Insurance Fund.

1. The Management Board of the Insurance Fund consists of:

a) Chairman of the Management Board: Chairman of the Vietnam Insurance Association.

b) Members:

- Representative of the Ministry of Finance, Insurance Supervision Department.

- Representative of the Traffic Police - Ministry of Public Security.

- General Secretary of the Vietnam Insurance Association.

- General Director or Deputy General Director of at least three non-life insurance enterprises permitted to operate compulsory liability insurance for passenger vehicles, with the largest share in compulsory liability insurance for passenger vehicle owners.

2. The Management Board of the Insurance Fund consists of:

a) Head of the Management Board: General Secretary of the Vietnam Insurance Association.

b) Members: Representatives of at least three non-life insurance enterprises permitted to operate compulsory liability insurance for passenger vehicles, with the largest share in compulsory liability insurance for passenger vehicle owners.

3. The Audit Board of the Insurance Fund

a) At least three members representing three non-life insurance enterprises permitted to operate compulsory liability insurance for passenger vehicles.

b) The Head of the Audit Board is appointed by the Management Board from among its members.

c) The non-life insurance enterprises represented in the Audit Board must be independent from those represented in the Management Board to ensure timely identification and assessment of risks potentially affecting the effectiveness, principles of management, and use of the Insurance Fund for compulsory liability insurance for passenger vehicles.

Article 7. Duties, powers of the organizational bodies of the Insurance Fund.

1. Duties, powers of the Management Board:

a) Bear legal responsibility before the Ministry of Finance for managing the Insurance Fund.

b) Issue regulations governing the operations of the Management Board, the Management Board of the Insurance Fund, and the Audit Board.

c) Issue specific regulations on the management and use of the Insurance Fund; approve the annual budget and final accounts of the Insurance Fund.

d) Issue decisions to establish the Management Board and the Audit Board.

d) Report to the Ministry of Finance on the approved final accounts and budget of the Insurance Fund.

2. Duties, powers of the Management Board of the Insurance Fund:

a) Bear legal responsibility before the Management Board for managing, using, settling, and approving the Insurance Fund.

b) Implement regulations on managing and using the Insurance Fund according to plans approved by the Management Board, in accordance with this Circular, without using the Insurance Fund for other purposes.

3. Duties, powers of the Audit Board:

a) Monitor the activities of the Insurance Fund to ensure compliance with legal regulations and this Circular.

b) Summarize and evaluate the financial status of the Insurance Fund annually and report to the Management Board.

c) Conduct audits upon request of the Management Board regarding the management and use of the Insurance Fund.

Article 8. Tasks of preparing, accounting, and finalizing the Insurance Fund.

1. Task of preparing the draft budget:

a) By December 15th each year, the Management Board prepares the draft budget for income and expenditure of the Insurance Fund, including the following items:

- The current year's income and expenditure situation of the Insurance Fund.

- The next year's income and expenditure plan.

b) The Management Board reports the draft budget for income and expenditure of the Insurance Fund to the Management Board for approval. The approved budget for income and expenditure of the Insurance Fund must be reported to the Ministry of Finance (Insurance Supervision Department) and non-life insurance enterprises immediately after approval.

c) Any expenditure plans within the approved budget for the current year that have not been implemented or fully expended by December 31st may be carried over to the next year.

d) In necessary cases, the Management Board may adjust the approved budget for the current year and notify the Ministry of Finance and non-life insurance enterprises.

2. Accounting of the Insurance Fund: The Management Board must:

a) Organize accounting work and record-keeping in accordance with the Accounting Law, Statistics Law, and guiding documents.

b) Implement regulations on accounting standards; reconcile all income and expenditure items of the Insurance Fund.

c) Maintain accounting records, systems, and methods of accounting for related business operations.

d) Submit quarterly financial statements for income and expenditure of the Insurance Fund for approval by the Management Board and report to the Ministry of Finance through direct delivery, postal service, or electronic transmission.

Quarterly report: The reporting period covers from the first day of the first month of the quarter to the last day of the last month of the quarter. The latest submission deadline is 30 days after the end of the quarter.

3. Finalization of the Insurance Fund:

Annually, the Management Board is responsible for submitting the finalized report of the Insurance Fund for approval by the Management Board.

Article 9. Procedures and documents for processing, paying out, and refunding amounts temporarily deposited by insurance enterprises.

1. Procedures and documents for processing payments:

a) Procedures and documents for processing payments:

- The person injured or their representative (if the injured person is deceased) or the representative of the deceased person (if the deceased person was under the age of majority or incapacitated according to court decision) (hereinafter referred to as the injured person) should contact the Insurance Fund for compulsory passenger vehicle liability insurance to receive guidance on the application process for payment.

- Within one working day from the time of receiving notice of damage, the insurer shall be responsible for guiding the completion of the claim form in accordance with the provisions at point b, Clause 1, Article 9 of this Circular.

- Within two working days after receiving a complete, valid insurance claim form, the insurer shall be responsible for paying compensation to the injured party. In case of rejection, the insurer must provide a clear explanation for the reasons.

b) From 1-19 insurance claim forms:

The injured party bears the responsibility to collect 1 copy of the insurance claim form according to the regulations stipulated in Appendix II of this Circular and bears legal responsibility for the accuracy, completeness, and validity of the file. The insurance claim file includes the following documents:

b.1) In case the vehicle causing the accident cannot be identified:

- Original application for insurance claim according to the model prescribed in Appendix II of this Circular.

- Copy of the accident report or traffic police report; or confirmation document from the competent public security agency or forensic medical examination results regarding the death of a person on a means of transportation due to the accident (in case of death).

- Medical records for serious injuries.

- Copy of the traffic accident resolution notice, clearly stating that the vehicle causing the accident could not be identified.

b.2) In case the vehicle is not insured:

- Original application for insurance claim according to the model prescribed in Appendix II of this Circular.

- Copy of the accident report or traffic police report; or confirmation document from the competent public security agency or forensic medical examination results regarding the death of a person on a means of transportation due to the accident (in case of death).

- Medical records for serious injuries.

- Copy of the traffic accident resolution notice.

b.3) In case of liability insurance type:

- Original application for insurance claim according to the model prescribed in Appendix II of this Circular.

- Copy of the accident report or traffic police report; or confirmation document from the competent public security agency or forensic medical examination results regarding the death of a person on a means of transportation due to the accident (in case of death).

- Medical records for serious injuries.

- Original notice of payment issued by the insurance company.

- Copy of the traffic accident resolution notice.

2. Procedure, steps, and files for refunding amounts temporarily paid by the insurance company:

a) Procedure, steps for refunding temporary payments:

- The insurance company submits the claim file containing the documents prescribed in Clause 2, Article 9 of this Circular.

- Within five working days after receiving a complete, valid claim file, the insurer has the responsibility to refund the temporarily paid amounts according to the provisions of Clause 1, Article 27 of Decree No. 03/2021/ND-CP. In case of refusal to refund, the insurer must provide a clear explanation for the reasons.

b) File for requesting refund of temporary payments:

The insurance company bears the responsibility to collect 1 set of the request for refund of temporary payments bearing legal responsibility for the accuracy, completeness, and validity of the file. The file for requesting refund of temporary payments includes the following documents:

- Request for refund of temporary payments made by the insurance company according to the model prescribed in Appendix III of this Circular.

- Copy of the notice of settlement of insurance claims or decision resolving the insurance claims issued by the insurance company.

- Detailed list of accidents for which the insurance company requests refund of temporary payments.

Article 10. Effective Date

1. This Circular takes effect from March 1, 2021.

2. This Circular replaces the following Circulars: Circular No. 22/2016/TT-BTC dated February 16, 2016, prescribing Rules, Conditions, Tariffs, and Responsibilities for Compulsory Liability Insurance for Motor Vehicles; Circular No. 103/2009/TT-BTC dated May 25, 2009, prescribing Management, Payment, and Settlement of Compulsory Liability Insurance for Motor Vehicles; Circular No. 43/2014/TT-BTC dated April 11, 2014, amending and supplementing some articles of Circular No. 126/2008/TT-BTC dated December 22, 2008, of the Ministry of Finance prescribing Rules, Conditions, Tariffs, and Responsibilities for Compulsory Liability Insurance for Motor Vehicles; Circular No. 103/2009/TT-BTC dated May 25, 2009, of the Ministry of Finance prescribing Management, Payment, and Settlement of Compulsory Liability Insurance for Motor Vehicles; and Circular No. 151/2012/TT-BTC dated September 12, 2012, amending and supplementing Circular No. 126/2008/TT-BTC and Circular No. 103/2009/TT-BTC.

3. During implementation, if conflicts arise, suggestions for prompt resolution should be reported to the Ministry of Finance for consideration and resolution.

- Provincial Departments of Finance

- Central Office and Branches of the Party

- Central Office of the National Assembly

- Central Office of the State President

- Central Office of the Government

- Supreme People's Procuracy

- Supreme People's Court

- State Audit Agency

- Ministries, ministerial-level agencies, and government-affiliated agencies

- People's Committees of provinces and centrally-administered cities

- Central Office of the Anti-Corruption Steering Committee

- Central Agencies of Political Parties and Social Organizations

- Legal Drafting Department (Ministry of Justice)

- Agencies under the Ministry of Finance

- Official Gazette, Government Website

- Ministry of Finance Website

- Vietnam Insurance Association, Vietnam National Reinsurance Corporation, Vietnam National Insurance Corporation

; - Archive: VT, QLBH. 4 copies (Issued pursuant to Circular No. 04/2021/TT-BTC dated January 15, 2021 of the Ministry of Finance)

Appendix I

INSURANCE POLICY FOR COMPULSORY THIRD-PARTY LIABILITY INSURANCE
FOR MOTOR VEHICLES WITH LICENSE PLATES
1. School buses

Premium rate 120% of the premium rate for passenger vehicles with up to 16 seats as prescribed in Section IV and Section VI.

2. Taxis

Premium rate 170% of the premium rate for commercial passenger vehicles with up to 16 seats as prescribed in Section V.

3. Passenger cars

- Premium rate for used cars equivalent to 120% of the premium rate for new pickup or minivan commercial passenger vehicles.

- Premium rate for used cars equivalent to 120% of the premium rate for passenger vehicles with up to 6 seats as prescribed in Section IV.

- The insurance premium for a vehicle with more than six seats is calculated at 120% of the insurance premium for a vehicle with up to six seats as stipulated in Section IV.

- The insurance premium for trucks with six axles and other uses as specified in the design, equivalent to 120% of the insurance premium for a cargo truck as defined in Article VI; for trucks as specified in the design, the insurance premium is 120% of the insurance premium for a cargo truck weighing up to three tons.

4. Tractor trailers

Calculated at 150% of the vehicle's premium, over fifteen tons. The insurance premium for the tractor pulling a trailer is the sum of the premiums for the tractor and the trailer.

5. Tractors, motorcycles for commercial use

Calculated at 120% of the insurance premium for a cargo truck weighing up to three tons as defined in Article VI (the insurance premium for the tractor is the sum of the premiums for the tractor and the trailer).

6. Buses

Calculated at the insurance premium for a non-commercial passenger vehicle seating sixty-six passengers as defined in Article IV.

(The above insurance premiums are subject to a reduction of 10% based on the increase in value).

ANNEX II
APPLICATION FOR ADVANCE PAYMENT OF CLAIMS

(Issued pursuant to Circular No. 04/2021/TT-BTC dated January 15, 2021, issued by the Ministry of Finance)

SOCIALIST REPUBLIC OF VIET NAM
INDEPENDENT - FREE - DEMOCRATIC

LIMITATION ON MOTOR VEHICLE INSURANCE

K. Vehicle not participating in insurance

K. Exclusion from liability under insurance

We solemnly undertake our legal responsibility for the accuracy and truthfulness of this application and the attached documents.

List clearly all attached documents

(Signature) (Issued pursuant to Circular No. 04/2021/TT-BTC dated January 15, 2021, issued by the Ministry of Finance)

ANNEX III
APPLICATION FOR REFUND OF ADVANCE PAYMENTS

SOCIALIST REPUBLIC OF VIET NAM
INDEPENDENT - FREE - DEMOCRATIC

LIMITATION ON MOTOR VEHICLE INSURANCE

BASED ON Decree No. 03/2021/ND-CP dated January 15, 2021, issued by the Government regarding mandatory liability insurance for motor vehicles

BASED ON Circular No. 04/2021/TT-BTC dated January 15, 2021, issued by the Ministry of Finance detailing certain provisions of Decree No. 03/2021/ND-CP dated January 15, 2021, issued by the Government regarding mandatory liability insurance for motor vehicles.

WE ARE:

- (Full and correct name of the insurance company)

- License number...issued by the Ministry of Finance in Month Year

- Legal address

- Contact phone number:

We request the insurance company to refund the amount paid in advance up to the maximum advance payment within the scope of liability under insurance or exceeding the limit of insurance compensation, according to the regulations in the case of damage caused by the accident, totaling...VND, as follows:

- The amount requested for refund of advance payment in the case of the accident determined to be within the scope of liability under insurance is...VND.

- The amount requested for refund of advance payment exceeding the limit of insurance compensation in the case of damage within the scope of liability under insurance is...VND.

We solemnly undertake our legal responsibility for the accuracy and truthfulness of this application and the attached documents.

List clearly all attached refund documents

(Signature) (Seal)