Circular No. 151/2012/TT-BTC amending and supplementing Circular No. 126/2008/TT-BTC dated December 22, 2008 of the Ministry of Finance on Rules, terms, fee tables, and mandatory civil liability insurance coverage for motor vehicle owners and Circular No. 103/2009/TT-BTC dated May 25, 2009 of the Ministry of Finance on management, use, payment, and settlement of the Motor Vehicle Insurance Fund.

CIRCULAR

AMENDING AND SUPPLEMENTING Circular No. 126/2008/TT-BTC dated December 22, 2008 of the Ministry of Finance on rules, clauses, fee schedules, and liability limits for mandatory civil liability insurance for motor vehicles and Circular No. 103/2009/TT-BTC

dated May 25, 2009 of the Ministry of Finance on management, utilization, payment, and settlement of the motor vehicle insurance fund CONSIDERING the proposal of the Director of the Insurance Management and Supervision Department;

THE MINISTER OF FINANCE issues this Circular to amend and supplement Circular No. 126/2008/TT-BTC dated December 22, 2008 of the Ministry of Finance on Rules, Clauses, Fee Schedules, and Liability Limits for Mandatory Civil Liability Insurance for Motor Vehicle Owners (hereinafter referred to as "Circular No. 126/2008/TT-BTC") and Circular No. 103/2009/TT-BTC dated May 25, 2009 of the Ministry of Finance on Management, Utilization, Payment, and Settlement of the Motor Vehicle Insurance Fund (hereinafter referred to as "Circular No. 103/2009/TT-BTC"),

Article 1. Amending and Supplementing Circular No. 126/2008/TT-BTC1. Amending Point 5.1, Clause 5, Section I as follows:

“5.1. Damage outside of contracts concerning the body, life, and property of third parties caused by motor vehicles.”

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Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 103/2008/NĐ-CP dated September 16, 2008 of the Government on compulsory civil liability insurance for motor vehicle owners;

2. Amending and Supplementing Point 1.2, Clause 1, Section II as follows:

“1.2. The insurance company shall issue an Insurance Certificate to the motor vehicle owner only when the owner has paid the full insurance premium. The payment of the full insurance premium must be confirmed by accounting vouchers of the insurance company (receipts, invoices issued by the insurance company, or other forms of vouchers as prescribed by relevant laws). In certain special cases, the insurance company and the motor vehicle owner may agree (in writing) on the payment period for the insurance premium, specifically as follows:

- For motor vehicle owners who are administrative agencies or state-run organizations, the insurance premium must be fully paid within ten days from the date the Insurance Certificate becomes effective.

For motor vehicle owners who are not administrative agencies or state-run organizations and have multiple vehicles participating in insurance simultaneously with a total insurance premium of 100 million VND or more, the insurance premium will be paid in two installments:

+ First installment: The motor vehicle owner pays 50% of the total insurance premium before the Insurance Certificate becomes effective.

+ Second installment: The motor vehicle owner pays the remaining insurance premium within ninety days from the date the Insurance Certificate becomes effective.

- If the motor vehicle owner fails to pay the insurance premium according to the agreed period, the insurance contract will terminate on the day following the due date for payment of the insurance premium. Within five working days from the date the insurance contract terminates, the insurance company must notify the motor vehicle owner in writing about the termination of the insurance contract and refund any overpaid insurance premium (if any) or request the motor vehicle owner to pay the full insurance premium up to the termination date of the insurance contract. The insurance company is not required to refund the insurance premium if an insured event occurs and results in an insurance claim before the insurance contract is terminated. The insurance company is not liable to compensate the insured party for losses arising from an insured event during the period the insurance contract is terminated. The insurance contract resumes its effectiveness upon the motor vehicle owner paying the full insurance premium and receiving written approval from the insurance company.”

3. Amending Point 2.1, Clause 2, Section II as follows:

“2.1. The effective date of the Insurance Certificate must be clearly stated on the Insurance Certificate but cannot precede the date the motor vehicle owner pays the full insurance premium, except for special cases where the insurance company and the motor vehicle owner agree in writing on the payment period for the insurance premium as stipulated in Clause 2, Article 1 of this Circular.”

4. Supplementing Subpoint d, Point 2.2, Clause 2, Section II as follows:

“d) In cases where the motor vehicle owner insures multiple vehicles at different times throughout the year but wishes to consolidate all vehicles under a single insurance period in the following year for management purposes, the insurance period for these vehicles can be less than one year and equal to the remaining validity period of the first insurance contract of that year. The insurance period for the following year for all consolidated insurance contracts is one year.”

5. Amending and Supplementing Clause 4, Section II as follows:

“The insurance liability limit is the maximum amount the insurance company may have to pay for damage to the body, life, and property of third parties and passengers caused by motor vehicles within each accident falling within the scope of insurance liability. Specifically as follows:

4.1. The insurance liability limit for damage to persons caused by motor vehicles is 70,000,000 VND/person/accident.

4.2. The insurance liability limit for damage to property caused by two-wheeled motorcycles, three-wheeled motorcycles, motorized bicycles, and similar motor vehicles (including motor vehicles for disabled persons) is 40,000,000 VND/accident.

4.3. The insurance liability limit for damage to property caused by passenger cars, tractors, construction machinery, agricultural and forestry machinery, and other special purpose vehicles used for security and defense purposes (including trailers and semi-trailers towed by passenger cars or tractors) is 70,000,000 VND/accident.”

6. Amending and Supplementing Point 7.3, Clause 7, Section II as follows:

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

7.3. Driving without a Driver's License or with an inappropriate Driver's License for the type of motor vehicle requiring a Driver's License. In cases where the driver's Driver's License has been suspended for a limited or unlimited period, it is considered as not having a Driver's License.”

7. Amending and Supplementing Points 8.3 and 8.4, Section II as follows:

“8.3. The amount of insurance compensation:

6. Amend and supplement Point 7.3, Clause 7, Section II as follows:

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

7.3. The driver does not have a Driver's License or the Driver's License is not appropriate for the type of motor vehicle that requires a Driver's License. In the case where the driver's Driver's License has been suspended for a period of time or indefinitely, it shall be considered as not having a Driver's License."

7. Amend and supplement Points 8.3 and 8.4, Section II as follows:

"8.3. The level of insurance compensation:"

a) The specific amount of compensation for each type of injury or damage to persons shall be determined according to the Table on Compensation for Damage to Persons prescribed in Appendix 2 attached hereto or by agreement (if any) between the motor vehicle owner and the person suffering damage or the lawful representative of such person (in case the person suffering damage has died), but shall not exceed the compensation level prescribed in Appendix 2 attached hereto. In cases where there is a court decision, the compensation amount shall be based on such decision but shall not exceed the compensation level prescribed in Appendix 2 attached hereto.

Where multiple motor vehicles cause an accident resulting in damage to persons, the amount of compensation shall be determined according to the degree of fault of the motor vehicle owners, but the total amount of compensation shall not exceed the limit of liability insurance.

For accidents determined by competent authorities to be caused entirely by the fault of the person suffering damage, the amount of compensation for damage to persons shall be fifty percent of the compensation level prescribed in Appendix 2 attached hereto.

b) The specific amount of compensation for property damage per accident shall be determined according to actual damage and the degree of fault of the motor vehicle owner, but shall not exceed the insurance limit.

8.4. The insurance company shall not be liable for compensation for amounts exceeding the limit of liability insurance as prescribed in Appendix 2 attached hereto.”

8. Issuing Appendix 1 on the Compulsory Civil Liability Motor Vehicle Insurance Premium Schedule accompanying this Circular to replace Appendix 5 issued together with Circular No. 126/2008/TT-BTC.

9. Issuing Appendix 2 on the Table on Compensation for Damage to Persons accompanying this Circular to replace Appendix 6 issued together with Circular No. 126/2008/TT-BTC.

10. Issuing Appendices 3, 4, and 5 on the model Certificate of Compulsory Civil Liability Motor Vehicle Insurance accompanying this Circular to replace Appendices 1, 2, and 3 issued together with Circular No. 126/2008/TT-BTC.

11. Issuing Appendix 6 on the Report on Compulsory Civil Liability Motor Vehicle Insurance accompanying this Circular to replace Appendix 7 issued together with Circular No. 126/2008/TT-BTC.

Article 2. Amend and supplement Clause 3 of Article 6 of Circular No. 103/2009/TT-BTC regarding the level of support and the supported subjects as follows:

"3. Humanitarian aid expenses: The expenditure level shall not exceed fifteen percent of the total annual contribution to the Fund, specifically:

Funeral expenses for damage to life and permanent total disability assistance for third parties and passengers carried on the vehicle caused by motor vehicles in cases where the offending motor vehicle cannot be identified, the vehicle is not insured, or excluded from insurance as stipulated in Article 13 of Decree No. 103/2008/NĐ-CP. The funeral expense and permanent total disability assistance level is twenty million VND per person per incident.”

Article 3. Implementation Organization

1. This Circular takes effect from November 1, 2012.

- People's Councils, People's Committees of provinces and centrally administered cities directly related;