Decree No. 115/1997/NĐ-CP on Compulsory Civil Liability Insurance for Motor Vehicle Owners

DECREE OF THE GOVERNMENT

On compulsory civil liability insurance for motor vehicle owners

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Based on the Civil Code dated October 28, 1995;

Pursuant to the Ordinance on Handling Administrative Violations dated July 6, 1995;

At the proposal of the Minister of Finance,

DECREE:

PART I
GENERAL PROVISIONS

Article 1. This Decree stipulates the regime of compulsory civil liability insurance for motor vehicle owners to protect the legitimate rights and interests of those who suffer bodily injury or property damage caused by motor vehicles, while helping motor vehicle owners mitigate financial consequences and contribute to economic and social stability.

Article 2. Insurance enterprises and motor vehicle owners, including foreign individuals or organizations using motor vehicles on the territory of the Socialist Republic of Vietnam, have the obligation to implement the compulsory civil liability insurance regime for motor vehicle owners as prescribed in this Decree.

Article 3. 2. Self-generated and self-consumed electricity is electricity produced and consumed by an organization or individual to serve their own needs.

1. Insurance enterprise: is a business legally established and operating insurance activities in Vietnam, permitted by the Ministry of Finance to conduct motor vehicle insurance operations.

2. Motor vehicle owner: is an individual or organization that has ownership rights over a vehicle or any person authorized to use a motor vehicle, engaged in passenger transport business with motor vehicles.

3. Motor vehicle: includes all types of vehicles participating in road traffic powered by their own engines, excluding motorbikes.

Article 4. Those who suffer bodily injury or property damage caused by motor vehicles that have participated in compulsory civil liability insurance for motor vehicle owners have the right to directly lodge complaints against the insurance enterprise and demand timely and adequate compensation in accordance with the provisions of the law.

PART II
CONTENT OF THE COMPULSORY CIVIL LIABILITY INSURANCE REGIME FOR MOTOR VEHICLE OWNERS

Article 5. The compulsory civil liability insurance regime for motor vehicle owners prescribed in this Decree includes insurance for damages outside contracts caused by motor vehicles to third parties, and civil liability insurance for motor vehicle owners towards passengers under passenger transport contracts.

Article 6. The obligation to participate in the compulsory civil liability insurance regime for motor vehicle owners prescribed in this Decree is reflected through the signing of insurance contracts between motor vehicle owners and insurance enterprises based on rules, premium rates, and mandatory insurance liability limits issued by the Ministry of Finance.

The insurance certificate is evidence of the signing of the compulsory civil liability insurance contract for motor vehicle owners.

Article 7. Obligations and benefits of motor vehicle owners.

1. Obligations of motor vehicle owners:

a) Purchase insurance for damages outside contracts caused by motor vehicles. In addition, motor vehicle owners engaged in passenger transport must also purchase additional civil liability insurance for passengers under passenger transport contracts.

b) Carry and present the valid compulsory civil liability insurance certificate for motor vehicle owners issued by the insurance enterprise when requested by traffic police during the use of the vehicle.

2. Benefits of motor vehicle owners:

a) For motor vehicle owners who are production and business units, insurance premiums are included in production costs or circulation fees; for motor vehicle owners who are administrative and public service units, insurance premiums are included in the budget allocated by the state.

b) When an event falls within the scope of insurance liability, the motor vehicle owner will be represented by the insurance enterprise to compensate the person suffering bodily injury or property damage caused by the insured motor vehicle and reasonable necessary expenses incurred by the owner to minimize losses or to comply with the instructions of the insurance enterprise.

Article 8. Obligations and benefits of insurance enterprises.

1. Obligations of insurance enterprises:

a) Sell insurance for damages outside contracts caused by motor vehicles; civil liability insurance for motor vehicle owners towards passengers under passenger transport contracts at the request of motor vehicle owners.

b) Adhere strictly to the rules, premium rates, and mandatory insurance liability limits issued by the Ministry of Finance.

c) When selling compulsory civil liability insurance for motor vehicle owners, the insurance enterprise must fully explain to the motor vehicle owner relevant information about the rights and obligations of the motor vehicle owner, the insurance enterprise, and provide the rules, premium rates, and mandatory civil liability insurance liability limits for motor vehicle owners issued by the Ministry of Finance or other premium rates and liability limits registered with the Ministry of Finance.

d) Immediately after signing the compulsory civil liability insurance contract for motor vehicle owners, the insurance enterprise must issue a valid compulsory civil liability insurance certificate for motor vehicle owners with complete contents as prescribed by law.

e) Promptly examine and settle claims adequately and promptly in accordance with the provisions of the law when requested by the motor vehicle owner or the person suffering bodily injury or property damage caused by the insured motor vehicle.

2. Benefits of insurance enterprises.

To be protected by the state in the lawful and legitimate rights and interests during the operation of compulsory civil liability insurance for motor vehicle owners.

CHAPTER III
RESPONSIBILITIES OF MINISTRIES AND PROVINCE PEOPLE'S COMMITTEES,

CITY PEOPLE'S COMMITTEES DIRECTLY UNDER THE CENTRAL GOVERNMENT IN ENSURING THE IMPLEMENTATION OF THE COMPULSORY CIVIL LIABILITY REGIME FOR MOTOR VEHICLE OWNERS

Article 9. The Ministry of Finance shall have the responsibility:

1. Prescribe conditions and standards for insurance enterprises operating motor vehicle insurance businesses.

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

3. Organize and direct supervision and inspection of insurance enterprises in implementing the compulsory civil liability insurance regime for motor vehicle owners, effectively carry out compensation work for victims, and implement preventive measures to limit losses.

4. Handle insurance enterprises violating the compulsory civil liability insurance regime for motor vehicle owners.

Article 10. The Ministry of Home Affairs shall be responsible for:

1. Organizing and directing supervision and inspection of motor vehicle owners in implementing the compulsory civil liability insurance regime for motor vehicle owners.

2. Handling motor vehicle owners violating the compulsory civil liability insurance regime for motor vehicle owners.

3. Taking the lead in investigating and handling traffic accidents on roads.

4. To take the lead in coordinating with the Ministry of Finance, the Ministry of Transport, and the People's Committees of provinces and centrally governed cities to implement effectively the provisions of this Decree;

5. To provide necessary documents to determine the fault and responsibility of the parties involved and the results of traffic accident investigations to insurance companies if there is a legitimate request for prompt, fair, and timely consideration and resolution of compensation claims for vehicle owners or those who have suffered losses;

Article 11. The Ministry of Transport is responsible for:

1. To promulgate technical standards, procedures, and economic and technical norms within its jurisdiction to ensure that motor vehicles operating and transporting passengers are safe;

2. To cooperate with the Ministry of Home Affairs to analyze causes and handle traffic accidents on roads to create favorable conditions for insurance companies to implement the compulsory civil liability insurance regime for motor vehicle owners;

3. To cooperate with the Ministry of Finance to apply preventive measures and limit losses in road traffic;

Article 12. The Ministry of Culture, Sports and Tourism shall be responsible for directing cultural information agencies, central and local press to publicize and disseminate the compulsory civil liability insurance regime for motor vehicle owners to the public, encouraging vehicle owners and insurance companies to strictly comply with this Decree;

Article 13. The People's Committees of provinces and centrally governed cities shall be responsible for organizing the dissemination of this Decree, cooperating with the people's police force, the transport sector, and the Ministry of Finance to apply preventive measures and limit losses, creating conditions for insurance companies to participate in resolving accidents to help vehicle owners and those who have suffered losses quickly overcome financial consequences and stabilize their economic and social lives;

PART IV
HANDLING VIOLATIONS

Article 14.

1. The certificate of compulsory civil liability insurance for motor vehicle owners shall be considered one of the types of documents that vehicle owners must possess and carry regularly when using vehicles according to current laws on ensuring traffic order and safety on roads and urban traffic order and safety, and must be presented upon request by traffic police;

2. Motor vehicle owners who violate the obligations stipulated in Clause 1 of Article 7 of this Decree shall be subject to administrative penalties according to the current laws on violations of traffic order and safety on roads and urban traffic order and safety, depending on the severity of the violation;

Article 15. Insurance companies that violate the obligations stipulated in Clause 1 of Article 8 of this Decree shall be subject to handling according to the current laws on managing insurance business operations, depending on the severity of the violation;

CHAPTER V
IMPLEMENTING PROVISIONS

Article 16. Complaints and reports regarding the implementation of the compulsory civil liability insurance regime for motor vehicle owners prescribed in this Decree shall be resolved according to the procedures and formalities set forth in the Ordinance on Citizens' Complaints and Reports and the Ordinance on Administrative Violation Handling;

Article 17. This Decree takes effect 15 days from the date of signature and replaces Decree No. 30/HĐBT dated March 10, 1988 of the Council of Ministers (now the Government) on the compulsory civil liability insurance regime for motor vehicle owners and guiding documents for its implementation;

Article 18. The Ministers of the Ministries of Finance, Home Affairs, and Transport shall be responsible for guiding and organizing the implementation of this Decree within their respective functions and duties;

Article 19. The Ministers, Heads of ministries equivalent to ministries, agencies under the Government, and Chairmen of the People's Committees of provinces and centrally governed cities shall be responsible for implementing this Decree./.