JOINT CIRCULAR No. 06 TC/GTVT/BĐ guiding the implementation of passenger accident insurance regime

JOINT CIRCULAR

Guidelines for Implementing Passenger Accident Insurance Regime.

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In the process of implementing the passenger accident insurance regime pursuant to Decision No. 314/CP dated October 1, 1980 of the Council of Ministers, units under the Ministry of Transport - Posts and Telecommunications and the Ministry of Finance have closely cooperated and achieved prompt and comprehensive resolution of insurance benefits. Through this, the people have seen the Party and State's concern for human life and health. However, under current conditions, due to the shift in mechanisms, various economic entities have entered the passenger transport sector, with most transport units adopting revenue-sharing schemes for drivers. Additionally, the State does not centrally manage fare rates but leaves it to localities to balance. Therefore, to implement the passenger accident insurance regime uniformly and achieve better results, the Joint Ministries of Transport - Posts and Telecommunications and Finance issue these guidelines on specific points as follows:

I. IMPLEMENTATION OF PASSENGER ACCIDENT INSURANCE REGIME:

1. The passenger accident insurance regime is established based on contributions from passengers through passenger transport units to build a national insurance fund to compensate for part of the losses suffered by passengers who unfortunately encounter accidents while traveling by train or bus. Thus, the insurance premium is not the money of passenger transport units.

2. Passenger transport units collect insurance premiums together with transportation fares and transfer the insurance premiums to insurance units based on the actual number of transported passengers or transportation quotas to be included in the insurance fund. The insurance fund is used by insurance units to compensate passengers when they suffer accidents according to the provisions set out in the Passenger Accident Insurance Rules issued by the Minister of Finance.

3. The level of insurance premium for each type of passenger transport vehicle shall be implemented in accordance with the Decision of the Minister of Finance.

4. Insurance units shall be responsible for:

a. Paying commission to passenger transport units or agents after receiving passenger accident insurance premiums according to the ratio prescribed by the Ministry of Finance. Specifically:

- For passenger accident insurance via rail, the maximum commission shall not exceed 05% of the total premium collected.

- For passenger accident insurance via other means of transport, the maximum commission shall not exceed 07% of the total premium collected.

b. Organizing a wide network of agents to facilitate the collection and transfer of insurance premiums.

c. Providing passenger transport units with relevant legal documents related to the passenger accident insurance regime.

d. Cooperating with other passenger transport units and agencies in promoting the content, significance, and purpose of the passenger accident insurance regime.

5. Departments of Transport must require vehicle owners to present confirmation documents from BẢO VIỆT proving that they have passenger accident insurance (payment receipts or passenger accident insurance contracts) before issuing a business license for passenger transport.

6. Traffic inspectors must combine their duties with checking compliance with the passenger accident insurance regime by vehicle owners.

II. COORDINATION IN HANDLING ACCIDENTS:

1. When an accident occurs causing bodily harm to passengers, transport units or vehicle owners must promptly organize rescue efforts, report the incident to the police or local authorities at the accident site, and inform the local insurance agency to participate in resolving the aftermath.

2. The insurance agency at the accident site is responsible for directly paying insurance compensation to injured passengers according to current regulations. If the victim or their relatives request payment in another province, the insurance agency in that province is responsible for making the payment.

3. In cases of serious accidents resulting in deaths or injuries to two or more people, the insurance agency must immediately dispatch staff to the scene to cooperate with transport units and relevant agencies in handling the aftermath. If necessary, advance funds can be provided for medical treatment of the injured and burial of the deceased, but the total amount advanced should not exceed 70% of the reasonable payment by BẢO VIỆT.

4. When passengers suffer accidents, the insurance agency's compensation according to the passenger accident insurance regime and the compensation according to civil liability by transport units to passengers are independent of each other.

III. PREVENTION AND LIMITATION OF LOSSES:

Preventing and mitigating traffic accidents is a crucial task for all levels and sectors, particularly the transport and insurance sectors.

1. Leaders and units within the transport sector are responsible for educating crew members and drivers to strictly adhere to traffic safety laws. Strengthen inspections of the technical safety of transport vehicles, communication devices, signals, roads, bridges, ferries, etc. Collaborate with the police to enhance inspections and enforcement of traffic safety laws on the road.

2. Insurance units are responsible for closely coordinating with transport units in traffic safety inspections and proposing measures to ensure traffic safety to relevant sectors and levels, such as:

- Widely publicizing traffic safety laws among the masses through posters, billboards, and mass media.

- Monitoring and encouraging traffic safety campaigns, promptly rewarding units and individuals with outstanding achievements in prevention and limitation of accidents.

- Allocating a portion of their budget to support transport units to ensure passenger safety or to construct preventive facilities against accidents when there are specific plans or proposals.

IV. IMPLEMENTATION ORGANIZATION:

1. Transport units and insurance agencies need to organize exchanges and thoroughly understand the contents of this Circular, clearly recognizing the specific responsibilities of each sector in ensuring passenger safety.

2. In case issues arise during the implementation of the passenger accident insurance regime, the transportation sector and local insurance authorities need to discuss and take measures to resolve them promptly. If grassroots units cannot resolve the issues, they are advised to report to the Ministry of Transport - Posts and Telecommunications and the Ministry of Finance for research and resolution.

3. When necessary, the transportation sector and the insurance sector may organize a conference to review and evaluate the results of their cooperation in implementing the passenger accident insurance regime.

4. This Circular replaces Circular Joint No. TT/2292/TT/GTVT-TC dated July 30, 1983, guiding the implementation of the passenger accident insurance regime and shall take effect from the date of signature.