Decree No. 103/2008/ND-CP on Compulsory Civil Liability Insurance for Motor Vehicle Owners

DECREE

On compulsory civil liability insurance for motor vehicle owners

_________________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Civil Code dated June 14, 2005;

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

Pursuant to the Law on Road Traffic dated June 29, 2001;

Pursuant to the Ordinance on Administrative Violation Handling dated July 2, 2002 and the Ordinance amending and supplementing certain articles of the Ordinance on Administrative Violation Handling dated April 2, 2008;

Considering the proposal of the Minister of Finance.

DECREE:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates on compulsory civil liability insurance for motor vehicle owners; rights and obligations of motor vehicle owners and insurance enterprises; responsibilities of Ministries, ministerial-level agencies, governmental agencies, and People's Committees of provinces and centrally governed cities in implementing compulsory civil liability insurance for motor vehicle owners.

Article 2. Applicability

1. Motor vehicle owners participating in traffic on the territory of the Socialist Republic of Vietnam.

2. Insurance enterprises permitted to implement compulsory civil liability insurance for motor vehicle owners in accordance with the provisions of the law.

3. In cases where international treaties to which the Socialist Republic of Vietnam is a party provide different provisions from those of this Decree, the provisions of such international treaties shall be applied.

Article 3. Explanation of Terms

1. “Insurance enterprise” means an enterprise established and legally operating insurance business in Vietnam and permitted to implement compulsory civil liability insurance for motor vehicle owners.

2. “Motor vehicle owner” (organization or individual) is the owner of a motor vehicle or has been entrusted by the owner of the motor vehicle with lawful possession, use, and control of the motor vehicle.

3. “Motor vehicles” includes passenger cars, tractors, construction machines, agricultural and forestry machines, special vehicles used for security and defense purposes (including trailers and semi-trailers pulled by passenger cars or tractors), two-wheeled motorcycles, three-wheeled motorcycles, motorbikes, and similar motor vehicles (including motor vehicles for disabled persons) participating in traffic.

4. “Passenger” is a person carried on the vehicle under passenger transport contracts as prescribed in the Civil Code.

5. “Third party” refers to a person suffering bodily injury, death, or property damage caused by a motor vehicle, except for the following individuals:

a. The driver and attendant on the same vehicle;

b. Persons on the vehicle and passengers on the same vehicle;

c. The owner of the vehicle unless the owner has entrusted another organization or individual with lawful possession and use of the vehicle.

6. “Name of the Port Direction Department where the participant works.” (period) specified in this Decree refers to working days.

Article 4. Motor Vehicle Insurance Fund

1. The Motor Vehicle Insurance Fund is contributed by insurance enterprises for the following purposes:

a. Work to prevent and limit losses and road traffic accidents;

b. Organizing propaganda and education on road traffic safety and the compulsory civil liability insurance system for motor vehicle owners;

c. Providing humanitarian assistance to third parties and passengers transported on the vehicle who suffer damage caused by motor vehicles in cases where the offending vehicle cannot be identified or the vehicle was not insured;

d. Providing assistance for funeral expenses in cases excluded from insurance as provided for in Article 13 of this Decree;

e. Providing assistance for rewarding achievements of police forces in controlling, detecting, and handling administrative violations by motor vehicle owners in implementing compulsory civil liability insurance;

f. Providing assistance for building databases on compulsory civil liability insurance for motor vehicle owners;

g. Providing assistance for other purposes to coordinate and direct the implementation of compulsory civil liability insurance for motor vehicle owners.

2. Insurance enterprises have the responsibility to contribute at least 2% of their annual revenue from compulsory civil liability insurance premiums for motor vehicle owners to the Motor Vehicle Insurance Fund.

Article 5. Database on Compulsory Civil Liability Insurance for Motor Vehicle Owners

1. The database is established to compile, update, and systematize all information related to motor vehicles and their owners participating in traffic and compulsory civil liability insurance for motor vehicle owners; serving state management work, insurance company operations, and public oversight.

2. The Ministry of Finance shall take the lead and coordinate with relevant agencies to guide the Vietnam Association of Insurers and insurance companies in implementing the construction of the database on compulsory civil liability insurance for motor vehicle owners.

Chapter II

COMPULSORY CIVIL LIABILITY INSURANCE FOR MOTOR VEHICLE OWNERS

Article 6. Principles of Participation in Insurance

1. Motor vehicle owners must participate in compulsory civil liability insurance for motor vehicle owners in accordance with this Decree and the rules, terms, and premium rates for compulsory civil liability insurance for motor vehicle owners prescribed by the Ministry of Finance.

2. Motor vehicle owners may not simultaneously enter into more than one compulsory civil liability insurance contract for the same motor vehicle.

3. In addition to participating in compulsory civil liability insurance contracts, motor vehicle owners may negotiate with insurance companies to participate in voluntary insurance contracts.

4. Insurance enterprises have the right to proactively sell compulsory civil liability insurance for motor vehicle owners through the following forms:

a. Directly;

b. Through insurance agents, insurance brokers;

c. Through bidding;

d. Other forms consistent with the provisions of the law.

In cases where compulsory civil liability insurance for motor vehicle owners is sold through insurance agents, such agents must meet the standards stipulated in the Law on Insurance Business and guiding documents, and other relevant legal regulations.

An insurance company may not use agents to sell civil liability insurance for motor vehicle owners from another insurance company unless that insurance company consents in writing.

Article 7. Scope of Compensation for Damages

1. Damage to the body, life, and property of third parties caused by motor vehicles.

2. Damages concerning bodily injury and life of passengers under passenger transport contracts caused by motor vehicles.

Article 8. Civil Liability Insurance Contract for Motor Vehicle Owners

1. The Certificate of Compulsory Civil Liability Insurance for Motor Vehicle Owners (hereinafter referred to as the Insurance Certificate) is evidence of the conclusion of a civil liability insurance contract between motor vehicle owners and insurance companies.

2. When purchasing compulsory civil liability insurance for motor vehicle owners, motor vehicle owners shall be issued an Insurance Certificate by the insurance company. The insurance company shall issue an Insurance Certificate to motor vehicle owners only when they have fully paid the insurance premium. Special cases shall be regulated by the Ministry of Finance.

3. The Ministry of Finance shall specify the format of the Insurance Certificate for uniform application and management throughout the country.

Article 9. Insurance Premium and Insurance Liability Limit

1. The insurance premium is the amount of money that motor vehicle owners must pay to insurance companies when purchasing compulsory civil liability insurance for motor vehicle owners.

2. The insurance liability limit is the maximum amount that an insurance company may have to pay for damage to the body, life, and property of third parties and passengers caused by motor vehicles in each accident within the scope of insurance liability.

3. The Ministry of Finance shall prescribe the insurance premium rate and insurance liability limit.

Article 10. Duration and Effectiveness of Insurance

1. The duration recorded on the Insurance Certificate is one year. In the following cases, the insurance period may be less than one year:

a. Foreign motor vehicles temporarily imported for re-exportation have a participation period in traffic on the territory of the Socialist Republic of Vietnam under one year;

b. The usage period of small motor vehicles is less than one year according to the provisions of the law.

2. The effectiveness of insurance begins and ends according to the duration recorded on the Insurance Certificate.

3. During the validity period recorded on the Insurance Certificate, if there is a transfer of ownership of the motor vehicle, all insurance benefits related to the civil liability of the previous owner of the motor vehicle remain effective for the new owner of the motor vehicle.

Article 11. Cancellation of Insurance Contract

a) The motor vehicle is revoked of its registration and license plate according to the law.

a. Motor vehicles are withdrawn from registration and license plates according to the provisions of the law;

b. Motor vehicles exceed their usage period according to the provisions of the law;

c. Motor vehicles that are lost and confirmed by the police;

d. Motor vehicles that are damaged and unusable or destroyed due to traffic accidents and confirmed by the police; temporary importation and re-exportation.

2. The owner of the motor vehicle wishing to cancel the insurance contract must notify the insurance company in writing along with the Insurance Certificate to be canceled and evidence regarding the vehicle being subject to cancellation of the insurance contract as stipulated in Clause 1 of this Article.

The insurance contract terminates from the date the insurance company receives the notification of cancellation of the insurance contract.

3. Within five days from the date of receipt of the notification, the insurance company must refund seventy percent of the insurance premium for the period of cancellation to the owner of the motor vehicle. The insurance company is not required to refund the insurance premium when the insurance contract is still valid but the owner of the motor vehicle requests cancellation of the insurance contract after an insured event has occurred and resulted in an insurance liability.

4. If the owner of the motor vehicle does not notify about the cancellation of the insurance contract, but the insurance company has specific evidence that the motor vehicle falls within the scope of cancellation of the insurance contract as stipulated in Clause 1 of this Article, then the insurance company must notify the owner of the motor vehicle to carry out the procedures for cancellation of the insurance contract. After fifteen days from the date of receipt of the notification, if the owner of the motor vehicle does not carry out the procedures for cancellation of the insurance contract, the insurance contract will be automatically canceled.

Article 12. Damage Appraisal

1. When an accident occurs, the insurance company or a person authorized by the insurance company must closely cooperate with the owner of the motor vehicle, third parties, or legal representatives of the relevant parties to conduct an appraisal of losses to determine the cause and extent of the damage. The results of the appraisal must be documented in writing and signed by the relevant parties. The insurance company is responsible for the costs of the appraisal.

2. If the owner of the motor vehicle disagrees with the cause and extent of the damage determined by the insurance company, both parties agree to select an independent appraisal agency to conduct the appraisal. In case the parties cannot agree on requesting an independent appraisal, one of the parties may request the court where the loss occurred or where the owner of the motor vehicle resides to designate an independent appraisal. The written conclusion of the independent appraisal has binding force on the parties.

3. If the conclusion of the independent appraisal differs from the conclusion of the insurance company's appraisal, the insurance company must pay for the costs of the independent appraisal. If the conclusion of the independent appraisal matches the conclusion of the insurance company's appraisal, the owner of the motor vehicle must pay for the costs of the independent appraisal.

4. In special cases where an appraisal cannot be conducted, the insurance company may rely on records, conclusions of competent authorities, and related documents to determine the cause and extent of the damage.

Article 13. Exclusion of Insurance

The insurance company shall not compensate for damages in the following cases:

1. Intentional actions causing damage by the vehicle owner, driver, or the person suffering damage.

2. The driver intentionally causes an accident and flees without fulfilling the civil liability of the owner of the vehicle or the driver of the motor vehicle.

3. Driving without a Driver's License or with an inappropriate Driver's License for the type of motor vehicle that requires a Driver's License.

4. Indirect losses such as: reduction in commercial value, damage associated with the use and exploitation of damaged property.

5. Damage to property stolen or robbed during the accident.

6. War, terrorism, earthquake.

7. Damage to special property including: gold, silver, precious stones, money, documents with monetary value, antiques, rare paintings and photographs, corpses, and bones.

Article 14. Principles of Compensation

1. When an accident occurs, within the scope of insurance liability, the insurance company must compensate the motor vehicle owner the amount that the owner has compensated or will have to compensate to the person suffering damage.

In cases where the owner of the motor vehicle dies or suffers permanent total disability, the insurance company directly compensates the person suffering damage.

2. If necessary, the insurance company must immediately advance reasonable and necessary expenses within the scope of insurance liability to mitigate the consequences of the accident.

3. The level of insurance compensation:

a. The level of insurance compensation for persons: determined based on the Table of Compensation for Personal Injury Damages as prescribed by the Ministry of Finance;

b. The level of compensation for property damage: determined based on actual damage and the degree of fault of the motor vehicle owner.

4. The insurance company is not responsible for compensating amounts exceeding the insurance liability limit as prescribed by the Ministry of Finance.

5. In cases where the motor vehicle owner simultaneously participates in multiple compulsory civil liability insurance contracts for the same motor vehicle, the compensation amount is only calculated according to the first insurance contract.

Article 15. Claim Documents

1. Claim documents prepared by the insurance company include the following documents:

a. Documents related to the vehicle and driver;

b. Documents proving personal injury and property damage;

c. Documents from authorized agencies regarding the accident.

2. The insurance company and the motor vehicle owner are responsible for collecting and providing relevant documents in the claim file.

3. The Ministry of Finance provides detailed guidance on claim documents.

Article 16. Time Limits for Requesting, Paying, and Complaining about Compensation

1. The time limit for the owner of the motor vehicle to claim compensation is one year from the date of the accident, except in cases of delay due to objective and force majeure reasons as prescribed by law.

2. Within five days from the date of the accident (excluding force majeure cases), the motor vehicle owner must submit a written notice to the insurance company along with the documents specified in the claim request file that are the responsibility of the motor vehicle owner;

3. The payment deadline for compensation by the insurance company is fifteen days from the date of receiving the motor vehicle owner's liability claim file and not more than thirty days if verification of the file is required.

4. In cases of refusal to compensate, the insurance company must notify the motor vehicle owner in writing of the reasons for refusing compensation within thirty days from the date of receiving the insurance claim request file.

5. The statute of limitations for initiating a lawsuit regarding insurance compensation is three years from the date the insurance company pays compensation or refuses compensation. Beyond this period, the right to initiate a lawsuit ceases to be valid.

Article 17. Rights of Motor Vehicle Owners

1. The right to choose an insurance company to participate in mandatory civil liability insurance for the owner of a motor vehicle.

2. Request the insurance company to explain and provide information related to the conclusion, performance, and cancellation of the insurance contract.

3. In cases where factors serving as the basis for calculating insurance premiums change, leading to a reduction in insured risks, the right to request the insurance company to reduce the insurance premium appropriately for the remaining term of the insurance contract.

4. The right to demand prompt, full, and timely compensation from the insurance company according to the insurance contract.

5. If the motor vehicle owner is a production and business unit, the insurance premium is included in operating costs; if the motor vehicle owner is an administrative agency or state-run institution, the insurance premium is allocated in the regular operating budget of the agency or institution.

6. Other rights as prescribed by law

Article 18. Obligations of the Motor Vehicle Owner

1. Must participate and pay fully the compulsory civil liability insurance premium for motor vehicles in accordance with this Decree. When purchasing insurance, the motor vehicle owner must provide all necessary and truthful information as stipulated in the Insurance Certificate.

2. To create favorable conditions for the insurance company to examine the condition of the vehicle before issuing the Insurance Certificate.

3. In case there is a change in factors that serve as the basis for calculating insurance premiums, leading to an increase in risks covered by the insurance, the motor vehicle owner must promptly notify the insurance company to apply appropriate insurance premiums for the remaining period of the insurance contract.

4. The motor vehicle owner must always carry the valid Insurance Certificate when participating in traffic and present it upon request by traffic police forces and other competent authorities as prescribed by law.

5. To comply with regulations on ensuring road traffic safety.

6. In the event of a traffic accident, the owner of a motor vehicle must have the responsibility to:

a. Immediately notify the insurance company to cooperate in resolving issues, actively rescue and treat injuries, limit damage to persons and property, protect the accident scene; and simultaneously report to the nearest public security agency or local authority.

b. Shall not move, dismantle, or repair property without the approval of the insurance company; except in cases where it is necessary to ensure safety, to prevent further damage to persons and property, or to comply with the requirements of authorized agencies.

c. The motor vehicle owner must provide documents in the claim file and facilitate the insurance company during the verification process.

7. The motor vehicle owner must notify the insurance company in writing in cases where the motor vehicle falls under the category of contracts that can be terminated according to Clause 1, Article 11 of this Decree.

8. Other responsibilities as prescribed by law.

Article 19. Rights of the Insurance Company

1. Collect compulsory civil liability insurance premiums for motor vehicle owners in accordance with the Ministry of Finance's regulations. In case there is a change in factors that serve as the basis for calculating insurance premiums, leading to an increase in risks covered by the insurance, the insurance company has the right to request the motor vehicle owner to pay additional insurance premiums for the remaining period of the insurance contract.

2. Request motor vehicle owners to provide complete and truthful information as stipulated in the Certificate of Insurance; examine the condition of motor vehicles before issuing the Certificate of Insurance.

3. Request the Public Security Agency to provide copies of relevant documents related to accidents as prescribed in Clause 3, Article 22 of this Decree.

4. Refuse to process compensation claims for cases not covered under the insurance liability.

5. Recommend amendments and supplements to the rules, terms, and premium rates for compulsory civil liability insurance for motor vehicle owners in accordance with the actual implementation of this type of insurance.

6. Other rights as prescribed by law.

Article 20. Obligations of the Insurance Company

1. Must sell compulsory civil liability insurance for motor vehicle owners in accordance with the Rules, premium rates, and coverage limits as prescribed by the Ministry of Finance. In case the insurance company receives notification from the motor vehicle owner about changes in factors that serve as the basis for calculating insurance premiums, leading to a reduction in risks covered by the insurance, the insurance company must reduce the insurance premiums for the remaining period of the insurance contract and refund the difference to the motor vehicle owner.

2. Provide full information related to the insurance contract and clearly explain the Rules, terms, and premium rates for compulsory civil liability insurance for motor vehicle owners to the motor vehicle owner.

3. Must use the Insurance Certificate format prescribed by the Ministry of Finance to issue to the motor vehicle owner;

4. Shall not provide support to insurance agents selling civil liability insurance for motor vehicle owners in any form beyond the insurance agent commission rate as prescribed by the Ministry of Finance.

5. Shall not promote compulsory civil liability insurance for motor vehicle owners in any form;

6. Pay the Public Security Agency the costs for copying accident files and records provided and have the responsibility to maintain confidentiality during the investigation process.

7. Compensate claims quickly and accurately in accordance with this Decree.

8. Notify the motor vehicle owner at least 15 days before the end of the insurance period regarding the expiration of the insurance contract.

9. Dedicate a minimum of 2% of annual compulsory civil liability insurance premium income of motor vehicle owners to the Motor Vehicle Insurance Fund. The annual contribution rate is as prescribed by the Ministry of Finance.

10. Must separately account for insurance premium income, commissions, compensation, and related expenses for compulsory civil liability insurance for motor vehicle owners;

11. Establish and operate an information technology system to ensure statistics and updates on the implementation of compulsory civil liability insurance for motor vehicle owners, ensuring connectivity to the compulsory civil liability insurance database for motor vehicle owners as guided by the Ministry of Finance.

12. Report to the Ministry of Finance on the implementation of compulsory civil liability insurance for motor vehicle owners periodically or upon request.

13. Be subject to inspection and supervision by state agencies with authority in the implementation of compulsory civil liability insurance for motor vehicle owners.

14. Other responsibilities as prescribed by law.

Chapter III

RESPONSIBILITIES OF MINISTRIES, SECTORS AND PROVINCE AND CITY PEOPLE'S COMMITTEES UNDER THE CENTRAL GOVERNMENT

Article 21. Responsibilities of the Ministry of Finance

1. Take the lead and coordinate with the Ministry of Public Security, relevant ministries, sectors, and provincial and municipal people's committees under the central government to guide and promote the implementation of compulsory civil liability insurance for motor vehicle owners;

2. Issue rules, terms, and premium rates for compulsory civil liability insurance for motor vehicle owners;

3. Specify the issuance, management, and use of the Insurance Certificate format.

4. Guide claim documentation.

5. Specify annual contribution levels and issue mechanisms for managing, using, paying, and settling the Motor Vehicle Insurance Fund.

6. Directly or take the lead and coordinate with relevant agencies to inspect and supervise insurance companies in the implementation of compulsory civil liability insurance for motor vehicle owners;

7. Direct functional forces to impose administrative penalties on insurance companies violating regulations on compulsory civil liability insurance for motor vehicle owners as prescribed in this Decree and other related laws.

8. Take the lead and coordinate with relevant agencies to guide the Vietnam Insurance Association and insurance companies in building a database on compulsory civil liability insurance for motor vehicle owners;

1. To direct local public security units to implement:

1. Coordinate with the Ministry of Finance and relevant ministries and sectors to guide and promote the implementation of compulsory civil liability insurance for motor vehicle owners;

2. Direct traffic police forces and other related police forces to monitor and inspect motor vehicle owners in the following areas:

a. Require the owner of a motor vehicle to present a valid Motor Vehicle Liability Insurance Certificate when applying for vehicle registration procedures;

b. Through patrol and control, detect and handle administrative violations by owners of motor vehicles participating in traffic without a valid Motor Vehicle Liability Insurance Certificate or failing to carry it along; require the owner to purchase insurance.

3. Direct traffic police forces and criminal investigation police forces to provide copies of relevant documents related to traffic accidents to insurance companies for compensation purposes, including:

a. The on-site inspection report of the accident;

b. Diagrams of the scene and photographs (if available);

c. The inspection report of the involved vehicles;

d. Preliminary notification of the initial investigation results of the traffic accident;

đ. Other relevant documents related to the accident (if available).

4. Direct traffic police forces and other related police forces to cooperate with units under the Ministry of Finance in inspecting and supervising insurance companies in implementing mandatory civil liability insurance for motor vehicle owners;

5. Direct traffic police forces and other related police forces to implement the sharing and connection of their own vehicle databases with the database on mandatory civil liability insurance for motor vehicle owners;

Article 23. Responsibilities of the Ministry of Transport

1. Coordinate with the Ministry of Finance and relevant ministries and sectors to guide and promote the implementation of compulsory civil liability insurance for motor vehicle owners;

2. Direct inspection agencies to require motor vehicle owners to present a valid Motor Vehicle Liability Insurance Certificate during safety and technical inspections. Inspection agencies shall only issue safety and technical inspection stickers and books to motor vehicles when the owner has a valid Motor Vehicle Liability Insurance Certificate.

3. Coordinate with the Ministry of Finance in inspecting and supervising insurance companies in implementing mandatory civil liability insurance for motor vehicle owners;

4. Implement the sharing and connection of their own vehicle databases managed by the industry into the database on mandatory civil liability insurance for motor vehicle owners;

5. Coordinate with competent authorities to apply measures for prevention and limitation of losses in road traffic in accordance with the provisions of the law.

Article 24. Responsibilities of the Ministry of Health

Direct central and local medical facilities to provide copies of medical records and relevant documents related to emergency treatment and care of traffic accident victims to facilitate insurance companies in quickly completing compensation files and ensuring the rights of insured individuals.

Article 25. Responsibilities of the Ministry of Information and Communications

1. Direct central and local information agencies and press to regularly publicize and disseminate information about mandatory civil liability insurance for motor vehicle owners;

2. Vietnam Television and Voice of Vietnam allocate broadcasting time to regularly publicize and disseminate information about mandatory civil liability insurance for motor vehicle owners.

Article 26. Responsibilities of other Ministries, agencies at the level of ministries, and government agencies

1. Coordinate with the Ministry of Finance in inspecting and supervising the implementation of mandatory civil liability insurance for motor vehicle owners;

2. Perform other tasks within their authority as prescribed by law.

Article 27. Responsibilities of the People's Committee of Provinces and Central Cities

1. Direct competent agencies and levels of authority to organize the implementation of compulsory civil liability insurance for motor vehicle owners within their jurisdiction.

2. Direct local news agencies and media to regularly promote and disseminate information about compulsory civil liability insurance for motor vehicle owners;

3. Direct traffic police forces and other related police forces within their jurisdiction to organize inspections and handle motor vehicle owners who fail to participate in compulsory civil liability insurance;

4. Perform other tasks within their authority.

Article 28. Responsibilities of the National Agency Implementing the ASEAN Compulsory Motor Vehicle Insurance Program

1. The National Agency Implementing the ASEAN Compulsory Motor Vehicle Insurance Program (referred to as the National Motor Insurance Agency) is the permanent agency assisting relevant ministries and sectors in directing and supervising the implementation of compulsory civil liability insurance for motor vehicle owners;

2. The Ministry of Finance shall stipulate the functions, tasks, and organizational activities of the National Motor Insurance Agency.

Chapter IV

HANDLING VIOLATIONS

Briefly describe technical improvements, production processes, raw materials, designs; new technology applications such as automation, digitalization, clean technology; management, marketing, distribution solutions; products winning awards or certifications related to innovation…):…ục 1

 VIOLATIONS, FORMS OF AND AMOUNTS OF PENALTIES

Article 29. Penalties for Violations Regarding Participation in Insurance by Motor Vehicle Drivers

1. A fine of 100,000 VND for drivers of motorcycles, motorbikes, three-wheeled motorcycles, and similar motor vehicles who do not have or do not carry the valid Certificate of Insurance.

2. A fine of 500,000 VND for drivers of automobiles, tractors, and similar motor vehicles who do not have or do not carry the valid Certificate of Insurance.

Article 30. Penalties for Violations Regarding Refusal to Sell Insurance

1. A fine of 50,000,000 VND for insurance companies; a fine of 10,000,000 VND for General Directors (Directors) and related individuals of insurance companies that refuse to sell compulsory civil liability insurance for motor vehicle owners;

2. In cases of repeated violations of the provisions set forth in Clause 1 of this Article, insurance companies and individuals subject to fines under Clause 1 of this Article will be penalized; at the same time, insurance companies may also be considered for measures such as suspension of operations for a period of time or reduction in the scope, content, and geographical area of operations in the license for establishment and operation for motor vehicle insurance business.

Article 31. Penalties for Violations Regarding the Format of the Certificate of Insurance

1. A fine of 50,000,000 VND for insurance companies; a fine of 50,000,000 VND for General Directors (Directors) and related individuals of insurance companies using Certificates of Insurance issued to motor vehicle owners that do not comply with the regulations of the Ministry of Finance;

2. Within ten days from the date of receipt of the penalty decision, insurance companies must compulsorily recall the issued Certificate of Insurance and issue a new Certificate of Insurance in compliance with the regulations of the Ministry of Finance to motor vehicle owners.

3. In cases of repeated violations of the provisions set forth in Clause 1 of this Article, insurance companies and individuals subject to fines under Clause 1 of this Article will be penalized; at the same time, insurance companies may also be considered for measures such as suspension of operations for a period of time or reduction in the scope, content, and geographical area of operations in the license for establishment and operation for motor vehicle insurance business.

Article 32. Penalty for violation of insurance term regulations

1. A fine of VND 30,000,000 shall be imposed on the insurance company; a fine of VND 30,000,000 shall be imposed on the General Director (Director) and related individuals of the insurance company that fail to comply with the insurance term as stipulated in Clause 1, Article 10 of this Decree.

2. Within ten days from the date of receipt of the penalty decision, the insurance company must compulsorily recover the Insurance Certificate already issued and reissue a new Insurance Certificate to the owner of the motor vehicle in accordance with the prescribed term and apply the appropriate premium rate.

3. In case of repeated violation of the provisions set forth in Clause 1 of this Article, the insurance company and the individuals subject to fines under Clause 1 of this Article shall be penalized; at the same time, the insurance company may also be considered for the application of measures to suspend operations for a period of time or narrow down the scope, range, and geographical area of operation in the business license for motor vehicle insurance.

Article 33. Penalty for violation of insurance premium regulations

1. A fine ranging from VND 50,000,000 to VND 70,000,000 shall be imposed on the insurance company; a fine ranging from VND 50,000,000 to VND 70,000,000 shall be imposed on the General Director (Director) and related individuals of the insurance company that fail to comply with the insurance premium as prescribed by the Ministry of Finance.

2. Within ten days from the date of receipt of the penalty decision, the insurance company must compulsorily adjust the civil liability insurance premium for the owner of the motor vehicle in accordance with the regulations.

3. In case of repeated violation of the provisions set forth in Clause 1 of this Article, the insurance company and the individuals subject to fines under Clause 1 of this Article shall be penalized; at the same time, the insurance company may also be considered for the application of measures to suspend operations for a period of time or narrow down the scope, range, and geographical area of operation in the business license for motor vehicle insurance.

Article 34. Penalty for violation of insurance liability limit regulations

1. A fine ranging from VND 30,000,000 to VND 50,000,000 shall be imposed on the insurance company; a fine ranging from VND 30,000,000 to VND 50,000,000 shall be imposed on the General Director (Director) and related individuals of the insurance company that fail to comply with the insurance liability limit as prescribed by the Ministry of Finance.

2. Within ten days from the date of receipt of the penalty decision, the insurance company must compulsorily adjust the insurance liability limit in accordance with the regulations.

3. In case of repeated violation of the provisions set forth in Clause 1 of this Article, the insurance company and the individuals subject to fines under Clause 1 of this Article shall be penalized; at the same time, the insurance company may also be considered for the application of measures to suspend operations for a period of time or narrow down the scope, range, and geographical area of operation in the business license for motor vehicle insurance.

Article 35. Penalties for violations of insurance commission payment and agency support expenditure regulations

1. A fine ranging from VND 50,000,000 to VND 70,000,000 shall be imposed on the insurance company; a fine ranging from VND 50,000,000 to VND 70,000,000 shall be imposed on the General Director (Director), Chief Accountant, and related individuals of the insurance company that pay insurance commissions not in accordance with the rates prescribed by the Ministry of Finance.

2. A fine of VND 70,000,000 shall be imposed on the insurance company; a fine of VND 70,000,000 shall be imposed on the General Director (Director), Chief Accountant, and related individuals of the insurance company that commit any of the following violations:

a. Paying insurance commissions to unauthorized recipients;

b. Expenditure on supporting compulsory civil liability insurance agents for motor vehicle owners as stipulated in Clause 4, Article 20 of this Decree.

3. Within thirty days from the date of receipt of the penalty decision, the insurance company must compulsorily recover all funds improperly paid due to violations of the provisions set forth in Clauses 1 and 2 of this Article.

4. In case of repeated violation of the provisions set forth in Clauses 1 and 2 of this Article, the insurance company and the individuals subject to fines under Clause 1 or Clause 2 of this Article shall be penalized; at the same time, the insurance company may also be considered for the application of measures to suspend operations for a period of time or narrow down the scope, range, and geographical area of operation in the business license for motor vehicle insurance.

Article 36. Sanctions for violations of promotional activity regulations

1. A fine of VND 50,000,000 shall be imposed on insurance enterprises, General Directors (Directors), Chief Accountants, and related persons of insurance enterprises who violate the provisions stipulated in Clause 5, Article 20 of this Decree.

2. In cases where there is a repeat offense of the violation stipulated in Clause 1 of this Article, the insurance enterprise and individuals subject to fines under Clause 1 of this Article shall also be considered for the application of measures to suspend operations for a period of time or narrow down the scope, range, and geographical area of operation in the License for Establishment and Operation concerning motor vehicle insurance business.

Article 37. Sanctions for violations of regulations on canceling insurance contracts

1. A fine of VND 20,000,000 shall be imposed on insurance enterprises that unilaterally cancel civil liability insurance contracts for motor vehicle owners not falling within the circumstances for canceling insurance contracts specified in Clause 1, Article 11 of this Decree.

2. Within ten days from the date of receipt of the penalty decision, the insurance enterprise must restore the canceled insurance contract.

Article 38. Sanctions for violations of regulations on settling insurance claims

1. A fine of VND 10,000,000 shall be imposed on insurance enterprises, General Directors (Directors), and related persons who settle claims in violation of regulations.

2. A fine ranging from VND 30,000,000 to VND 70,000,000 shall be imposed on any of the following acts:

a. Insurance enterprises, General Directors (Directors), and related persons request beneficiaries of insurance benefits to pay remuneration or other material benefits contrary to the law during the process of settling claims and paying insurance money;

b. Individuals and organizations engage in fraudulent activities to receive claim payments and insurance money;

c. Employees of insurance enterprises collude with beneficiaries of insurance benefits to settle insurance claims and pay insurance money contrary to the law for personal gain;

d. Insurance enterprises refuse to fulfill their obligation to settle insurance claims that have been agreed upon.

3. Within thirty days from the date of receipt of the penalty decision, the insurance enterprise must settle claims in accordance with the regulations. Individuals and organizations must return the entire amount received due to violations stipulated in Points a, b, and c of Clause 2 of this Article.

4. For violations stipulated in Points a, c, and d of Clause 2 of this Article, in addition to being fined, insurance enterprises may also be considered for the application of measures to suspend operations for a period of time or narrow down the scope, range, and geographical area of operation in the License for Establishment and Operation concerning motor vehicle insurance business.

Article 39. Sanctions for violations of accounting records

1. A fine of VND 30,000,000 shall be imposed on insurance enterprises; a fine of VND 10,000,000 shall be imposed on General Directors (Directors), Chief Accountants, and related persons of insurance enterprises who violate Clause 10, Article 20 of this Decree.

2. Within thirty days from the date of receipt of the penalty decision, the insurance enterprise must comply with the provisions stipulated in Clause 10, Article 20 of this Decree.

Article 40. Imposing penalties for violations concerning contributions to the Motor Vehicle Insurance Fund

1. A fine of twenty million VND shall be imposed on insurance enterprises; a fine of twenty million VND shall be imposed on the General Director (Director) of the insurance enterprise implementing any of the following acts:

a. Contributing to the Motor Vehicle Insurance Fund not in accordance with the prescribed deadlines;

b. Contributing to the Motor Vehicle Insurance Fund in an amount less than that stipulated.

2. Within thirty days from the date of receipt of the penalty decision, the insurance enterprise must pay the full amount into the Motor Vehicle Insurance Fund in accordance with the regulations.

Article 41. Imposing penalties for violations concerning reporting and statistical systems

1. A fine of twenty million VND shall be imposed on insurance enterprises; a fine of twenty million VND shall be imposed on the General Director (Director), Chief Accountant of the insurance enterprise implementing any of the following violations:

a. Reporting statistics and business reports lacking in content, forms, or not submitted within the prescribed deadlines;

b. Not establishing and operating information technology systems and compulsory civil liability motor vehicle owner databases within the time limit specified by the Ministry of Finance.

2. Within thirty days from the date of receipt of the penalty decision, the insurance enterprise must complete the submission of statistical reports and business reports in accordance with the content and forms prescribed; implement plans to establish and operate information technology systems and compulsory civil liability motor vehicle owner databases within the time limit specified by the Ministry of Finance.

3. In cases of repeated violations of the provisions set forth in Clause 1 of this Article, the insurance enterprise and individuals subject to fines under Clause 1 of this Article may also have their operations suspended for a period of time or their scope and geographical area of operation reduced in the license for establishment and operation of motor vehicle insurance business.

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AUTHORITY AND PROCEDURES FOR IMPOSING ADMINISTRATIVE PENALTIES FOR VIOLATIONS

Article 42. Competence to impose penalties

1. Financial inspectors and relevant specialized inspectors under the Ministry of Finance shall impose administrative penalties on insurance enterprises for violations concerning compulsory civil liability motor vehicle owner insurance in accordance with Article 38 of the Administrative Violation Handling Ordinance and Article 1 of the Ordinance amending and supplementing certain articles of the Administrative Violation Handling Ordinance, and in accordance with the provisions of this Decree.

2. The People's Public Security has the authority to impose administrative penalties on motor vehicle owners for violations concerning compulsory civil liability motor vehicle owner insurance in accordance with Clause 6 of Article 1 of the Ordinance amending and supplementing certain articles of the Administrative Violation Handling Ordinance, and in accordance with the provisions of this Decree.

Article 43. Application of related laws on administrative violation handling

1. Principles of imposing penalties; statute of limitations for imposing penalties; procedures for imposing penalties; collection and payment of fines shall be carried out in accordance with the provisions of the Administrative Violation Handling Ordinance and guiding documents.

2. Acts of administrative violations in the field of insurance business that have been penalized according to this Decree shall not be penalized according to other laws on administrative penalties.

Chapter V

IMPLEMENTING PROVISIONS

Article 44. Effective date of implementation

This Decree takes effect fifteen days after its publication in the Official Gazette and replaces Government Decree No. 115/1997/NĐ-CP dated December 17, 1997 on the compulsory civil liability motor vehicle owner insurance system.

Article 45. Implementation Organization

1. The Ministry of Finance shall take the lead and coordinate with the Ministry of Public Security and relevant agencies to guide the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the central government shall be responsible for enforcing this Decree./.