Circular No. 22/2016/TT-BTC stipulates the Rules, terms, fee schedules, and liability limits for mandatory civil liability insurance for motor vehicle owners

CIRCULAR

REGULATIONS ON RULES, TERMS, FEES AND LEVEL OF LIABILITY FOR COMPULSORY CIVIL LIABILITY INSURANCE OF MOTOR VEHICLE OWNERS

 

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

Pursuant to Decree No. 214/2013/NĐ-CP dated December 20, 2013 of the Government amending and supplementing certain articles of Decree No. 103/2008/NĐ-CP dated September 16, 2008 of the Government on compulsory civil liability insurance for motor vehicle owners;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Department of Management and Supervision of Insurance;

The Minister of Finance issues this Circular stipulating rules, terms, fees and level of liability for compulsory civil liability insurance for motor vehicle owners.

 

PART I

GENERAL PROVISIONS

 

ArticleArticle 1. Scope of Regulation

This Circular stipulates rules, terms, fees and level of liability for 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. Other organizations and individuals related to compulsory civil liability insurance for motor vehicle owners.

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 lawfully entrusted by the owner of the motor vehicle to possess, use, and operate the motor vehicle.

3. "Motor vehicle" includes automobiles, tractors, construction machinery, agricultural and forestry machinery, special vehicles used for security and defense purposes (including trailers and semi-trailers pulled by automobiles 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" is a person suffering bodily injury, death, or property damage caused by a motor vehicle, except for the following persons:

a) Drivers and assistants on the same vehicle.

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

c) Vehicle owners except where the owner has lawfully entrusted possession and use of the vehicle to another organization or individual.

6. "Day" (time limit) specified in this Circular refers to working days.

Article 4. Principles of Participation in Insurance

1. Motor vehicle owners participating in traffic on the territory of the Socialist Republic of Vietnam must participate in compulsory civil liability insurance for motor vehicle owners in accordance with this Circular and other relevant legal provisions.

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 entering into a compulsory civil liability insurance contract, motor vehicle owners may negotiate with insurance enterprises to enter into 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) Other forms in compliance with legal provisions.

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

Insurance enterprises may not use insurance agents selling civil liability insurance for motor vehicle owners from other insurance enterprises unless such other insurance enterprises consent in writing, and the insurance enterprise must train and issue agent certificates in accordance with the regulations.

Article 5. Scope of compensation for damages

1. Damages outside of contracts concerning bodily injury, 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.

 

Chapter II

SPECIFIC PROVISIONS

 

Article 6. Civil liability insurance contract of motor vehicle owners

1. The Compulsory Civil Liability Insurance Certificate (hereinafter referred to as the Insurance Certificate) is the sole evidence of the conclusion of the compulsory civil liability insurance contract between the motor vehicle owner and the insurance company. Each motor vehicle is issued one Insurance Certificate. In case the Insurance Certificate is lost, the motor vehicle owner must submit a written request to the insurance company (where the Insurance Certificate was issued) to reissue the Insurance Certificate.

2. The insurance company issues the Insurance Certificate to the motor vehicle owner when the motor vehicle owner has paid the insurance premium or committed to paying the insurance premium as stipulated in Clause 3 of this Article.

3. Payment of the insurance premium or commitment to pay the insurance premium shall be carried out as follows:

a) In cases where the insurance premium is less than VND 50 million: The motor vehicle owner pays once at the time of issuance of the Insurance Certificate.

b) In cases where the insurance premium is from VND 50 million to less than VND 100 million: The motor vehicle owner agrees in writing with the insurance company to pay once, with the payment period not exceeding ten days from the date of issuance of the Insurance Certificate.

c) In cases where the insurance premium is VND 100 million or more: The motor vehicle owner agrees in writing with the insurance company on the payment of the insurance premium as follows:

- First payment: Pay fifty percent of the total insurance premium within ten days from the date of issuance of the Insurance Certificate;

- Second payment: Pay the remaining fifty percent of the insurance premium within thirty days from the date of issuance of the Insurance Certificate.

d) Payment of the insurance premium must be confirmed by one of the following methods: Insurance premium receipt; insurance premium invoice issued by the insurance company; confirmation of payment of the insurance premium by the motor vehicle owner on the Insurance Certificate (in cases where the motor vehicle owner has fully paid the insurance premium); other lawful documentation forms as prescribed by law.

4. In cases where the motor vehicle owner does not pay the full insurance premium as stipulated in Clause 3 of this Article, the insurance contract will terminate its effect on the day following the day the motor vehicle owner is required to pay the insurance premium. Within five working days from the date the insurance contract terminates its effect, the insurance company must notify the motor vehicle owner in writing about the termination of the insurance contract and refund the excess amount of the insurance premium already paid (if any) or request the motor vehicle owner to pay the full insurance premium up to the date of termination of the insurance contract.

The insurance company is not required to refund the insurance premium in cases where an insured event has occurred and insurance liability has arisen before the insurance contract is terminated.

The insurance company is not liable to compensate the insured party in cases where an insured event occurs during the period the insurance contract is terminated.

The insurance contract continues to be effective from the point in time when the motor vehicle owner has paid the full insurance premium and received written approval from the insurance company.

5. Issuance, management, and use of the Insurance Certificate:

a) The insurance company is permitted to print the Insurance Certificate according to the model specified by the Ministry of Finance in Appendix 1 and Appendix 2 attached to this Circular. The Compulsory Civil Liability Insurance Certificate of Motor Vehicle Owners must be printed separately and distinctly from the voluntary Insurance Certificate portion (if any). In cases where the insurance company combines the Compulsory Civil Liability Insurance Certificate of Motor Vehicle Owners and the Voluntary Insurance Certificate for Motor Vehicles, it shall follow the guidelines set forth in Appendix 3 and Appendix 4 attached to this Circular.

b) The Insurance Certificate must be numbered in a natural sequence, from small to large.

c) The Insurance Certificate must be used in accordance with the order of each booklet of Insurance Certificates, without skipping numbers (except in cases of errors requiring cancellation or where skipping numbers is consistent with specific procedures for managing printing plates as stipulated by the insurance company. Canceled Insurance Certificates must be crossed out, clearly marked as canceled, and stored completely at the insurance company).

d) The insurance company must record all information required on the Insurance Certificate. The information recorded on the Insurance Certificate issued to the motor vehicle owner must match the information retained in the insurance company's records.

đ) The insurance company is responsible for maintaining ledgers to track the issuance, use, and settlement of the use of Insurance Certificates, ensuring detailed ongoing management of each Insurance Certificate.

e) The insurance company must establish procedures for the issuance, management, and use of Insurance Certificates that comply with the above regulations.

Article 7. Duration and Effectiveness of Insurance

1. The effective date of the Insurance Certificate is specifically recorded on the Insurance Certificate but shall not be earlier than the date when the owner of the motor vehicle has fully paid the insurance premium, except for certain cases stipulated in points b and c Clause 3 Article 6 of this Circular.

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

a) Foreign motor vehicles temporarily imported and re-exported with a period of participation in traffic on the territory of the Socialist Republic of Vietnam under one year.

b) The usage period of motor vehicles is less than one year.

c) Motor vehicles subject to temporary registration according to the provisions of the law, including:

- Newly imported and domestically produced assembled automobiles circulating from warehouses, ports, factories, dealerships to the place of registration or other storage locations;

- Automobiles undergoing procedures to deregister for re-export to their home country;

- Permitted transit automobiles (excluding those covered by bilateral agreements);

- Cab-over-engine trucks and cargo trucks without bodies;

- Driving test vehicles;

- Vehicles with economic zone license plates operating within Vietnam according to government regulations;

- Newly assembled vehicles in Vietnam undergoing trial runs on public roads;

- Vehicles serving conferences and sports events at the request of the Government or the Ministry of Public Security;

- Other types of motor vehicles temporarily registered according to the provisions of the law.

d) In cases where the owner of the motor vehicle insures multiple vehicles at different times during the year but requests to consolidate all vehicles under one insurance period in the following year for management purposes, the duration of insurance for these vehicles may be less than one year and equal to the remaining validity period of the first insurance contract of that year. For the following year, the duration of insurance for all consolidated contracts will be one year.

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 remain valid for the new owner.

Article 8. Insurance Premium

1. The insurance premium is the amount of money that the owner of the motor vehicle must pay to the insurance company when purchasing mandatory civil liability insurance for the owner of the motor vehicle. The level of insurance premium for each type of motor vehicle is specified in Appendix 5 issued together with this Circular.

2. For motor vehicles permitted to purchase insurance for a term of less than one year according to Clause 2 Article 7 of this Circular, the insurance premium will be calculated based on the insurance premium level specified in Appendix 5 issued according to this Circular and corresponding to the insurance term recorded on the Insurance Certificate. The specific calculation method is as follows:

 

 

If the insurance term is thirty days or less, the insurance premium to be paid will be calculated by dividing the annual insurance premium according to the type of motor vehicle by twelve months.

ArticleArticle 9. Limit of Insurance LiabilitybudgetThe limit of insurance liability is the maximum amount that the insurance company may have to pay for bodily injury, life, and property damage caused by motor vehicles to third parties and passengers in each accident falling within the scope of insurance liability. Specifically as follows:

1. The limit of insurance liability for personal injury caused by motor vehicles is 100 million VND/person/accident.

2. The limit of insurance liability for property damage caused by two-wheeled motorcycles, three-wheeled motorcycles, motorbikes, and similar motor vehicles (including motor vehicles for disabled persons) is 50 million VND/accident.

3. The limit of insurance liability for property damage caused by automobiles, tractors, construction machinery, agricultural and forestry machinery, and special purpose vehicles used for security and defense purposes (including trailers and semi-trailers pulled by automobiles or tractors) is 100 million VND/accident.

Cancellation of Insurance Contract

Article 10. 1. The insurance contract can only be canceled in the following cases:

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

b) The motor vehicle has reached its usage period according to the law.

c) The motor vehicle is lost and confirmed by the police.

d) The motor vehicle is damaged beyond repair or destroyed due to a traffic accident and confirmed by the police.

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 and evidence that the motor vehicle falls under the category eligible for 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 notice of cancellation of the insurance contract.

3. Within five days from the date of receipt of the notice, 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 does not have to refund the insurance premium in cases where the insurance contract is still in effect, but the owner of the motor vehicle requests cancellation of the insurance contract after an insured event has occurred and resulted in insurance liability.

4. In cases where the owner of the motor vehicle does not provide notification of cancellation of the insurance contract, but the insurance company has concrete evidence that the motor vehicle falls under the category eligible for 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 proceed with the cancellation procedures. If the owner of the motor vehicle does not complete the cancellation procedures within fifteen days from the date of receipt of the notice, the insurance contract will be automatically canceled.

4. In the case where the owner of a motor vehicle does not notify about the cancellation of the insurance contract, but the insurance company has specific evidence that the motor vehicle falls under the category subject to the 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 canceling the contract. If, within fifteen days from the date of receipt of the notification, the owner of the motor vehicle does not perform the procedures to cancel the insurance contract, the insurance contract shall be deemed canceled automatically.

Article 11. Damage Assessment

1. In the event of an accident, the insurance company or the person authorized by the insurance company must closely cooperate with the owner of the motor vehicle, the third party, or the legal representative of the relevant parties to conduct damage assessment to determine the cause and extent of the damage. The results of the assessment must be documented in writing and signed by all relevant parties. The insurance company is responsible for the costs of the assessment.

2. If the owner of the motor vehicle disagrees with the cause and extent of the damage determined by the insurance company, both parties may agree to select an independent assessment agency to conduct the assessment. In cases where the parties cannot agree on requesting an independent assessment, either party may request the court at the location of the damage or the residence of the owner of the motor vehicle to designate an independent assessment. The written conclusion of the independent assessment has binding force on all parties.

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

4. In special cases where it is impossible to conduct an assessment, the insurance company may rely on records, conclusions of competent authorities, and related documents to determine the cause and extent of the damage.

Article 12. Exclusions from Insurance Coverage

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

1. Intentional actions causing damage by the owner of the vehicle, the 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. 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 cases where the driver's Driver's License has been revoked for a limited or unlimited period, it is considered as not having 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, valuable documents like money, antique items, rare paintings and photographs, corpses, and remains.

Article 13. Principles of Compensation

1. When an accident occurs, within the scope of the insurance liability limit, the insurance company must compensate the owner of the motor vehicle for the amount 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 specific level of compensation for each type of injury or personal damage is determined according to the Table of Personal Injury Compensation Payment Amounts as stipulated in Appendix 6 issued together with this Circular or agreed upon (if any) between the owner of the motor vehicle and the person suffering damage or their legal representative (in case the person suffering damage has died), but not exceeding the compensation level specified in Appendix 6 issued together with this Circular. In cases with a court decision, the court decision shall be the basis, but not exceeding the compensation level specified in Appendix 6 issued together with this Circular.

In cases where multiple motor vehicles cause an accident leading to personal injuries, the level of compensation is determined based on the fault of the owner of the motor vehicle, but the total level of compensation shall not exceed the insurance liability limit.

For accidents determined by competent authorities to be caused entirely by the fault of a third party, the level of compensation for personal injury for objects belonging to the third party is fifty percent of the compensation level specified in Appendix 6 issued together with this Circular.

b) The specific level of compensation for property damage per accident is determined based on actual damage and the fault of the owner of the motor vehicle, but not exceeding the insurance liability limit.

4. The insurance company is not liable for compensation for amounts exceeding the insurance liability limit as stipulated in Appendix 6 issued together with this Circular.

5. In cases where the owner of the motor vehicle simultaneously participates in multiple compulsory civil liability insurance contracts for the same motor vehicle, the amount of compensation is only calculated based on the insurance contract with the earlier effective date.

Article 14. Compensation File

The insurance company shall cooperate with the owner of the motor vehicle, the person suffering damage, the public security agency, and other relevant organizations and individuals to collect documents related to the traffic accident for the purpose of establishing the Compensation File. The Compensation File includes the following documents:

1. Documents related to the vehicle and driver (certified copies by the insurance company after comparing with the originals):

a) Vehicle registration certificate.

b) Driver's license.

c) Identity card or passport or other personal identification documents of the driver.

d) Insurance certificate.

2. Documents proving damage to persons (certified copies from healthcare facilities or certified copies by the insurance company), depending on the extent of damage to persons, may include one or more of the following documents:

a) Injury certificate.

b) Discharge certificate.

c) Surgical certificate.

d) Medical record.

đ) Death certificate (in case of death of the victim).

3. Documents proving damage to property:

a) Valid invoices and receipts for repairs or replacement of damaged property caused by the traffic accident carried out at facilities designated by the insurance company or with the consent of the insurance company.

b) Documents proving necessary and reasonable expenses incurred by the owner to minimize loss or to comply with instructions from the insurance company.

4. Certified copies of relevant documents from competent authorities regarding the accident (except in cases provided for in Clause 5 of this Article):

a) Inspection report of the accident scene.

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

c) Inspection report of vehicles involved in the accident.

d) Preliminary investigation results notification of the traffic accident.

đ) Other relevant documents concerning the accident (if available).

5. In cases where the competent authority does not have the documents specified in Clause 4 of this Article and the damage is estimated to be under VND 10 million, the compensation file must include the documents specified in Clauses 1, 2, and 3 of this Article and the following documents:

a) Accident verification report between the insurance company and the owner of the motor vehicle, confirmed by the competent authority at the location of the accident. The accident verification report must include the following contents:

- Time and place of the accident;

- Information provided by the owner of the motor vehicle or the driver causing the accident, the victim or the representative of the victim, and witnesses at the accident site (if any). Those providing information must clearly state their names, ID numbers, and addresses;

- Description of the accident scene and damage to the affected vehicle (with attached drawings and photographs).

b) Appraisal report determining the cause and extent of damage prepared by the insurance company or a person authorized by the insurance company.

c) Other relevant documents concerning the accident (if available).

Article 15. Time Limit for Claiming, Payment, and Complaints 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 cases of force majeure), the owner of the motor vehicle must submit a written notice according to the form prescribed in Appendix 7 issued together with this Circular and the documents required in the claim file within the responsibility of the owner of the motor vehicle to the insurance company.

3. The payment time limit of the insurance company is fifteen days from the date of receipt of the compensation file within the responsibility of the owner of the motor vehicle and not exceeding thirty days in cases requiring verification of the file.

4. In cases of refusal to compensate, the insurance company must notify the owner of the motor vehicle in writing of the reasons for refusing compensation within thirty days from the date of receipt of the insurance claim 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 16. Rights of the owner of a motor vehicle

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

2. The right to request the insurance company to explain and provide information related to the conclusion, implementation, and cancellation of the insurance contract.

3. In case there is a change in factors serving as the basis for calculating insurance premiums leading to a reduction in risks covered by the insurance, the right to request the insurance company to reduce the insurance premium level appropriately for the remaining period 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 owner of a motor vehicle is a production and business unit, the insurance premium will be included in the operating costs of the business; if the owner of a motor vehicle is an administrative agency or a state-owned institution, the insurance premium will be allocated within the regular operating budget of the agency or institution.

6. Other rights as prescribed by law.

Article 17. Obligations of the owner of a motor vehicle

1. Must participate in and fully pay the mandatory civil liability insurance premium for the owner of a motor vehicle as stipulated in this Circular and relevant laws. When purchasing insurance, the owner of a motor vehicle must provide complete and truthful information as specified 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 the purpose of using the vehicle leading to an increase or decrease in risks covered by the insurance, the owner of a motor vehicle must promptly notify the insurance company to apply an appropriate insurance premium level for the remaining period of the insurance contract.

4. The owner of a motor vehicle 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 the situation, actively rescue and treat, limit damage to people and property, protect the accident scene, and simultaneously report to the nearest public security agency or local authority.

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

c) Provide documents in the Claim File as stipulated in Clause 1, Clause 2, Clause 3, and point c Clause 5 Article 14 (in case the insurance company performs repairs or damage mitigation, the owner of a motor vehicle does not need to provide documents as stipulated in point a Clause 3 Article 14 of this Circular) and facilitate the insurance company's verification process. Cooperate with the insurance company to collect documents as stipulated in point a Clause 5 Article 14 of this Circular.

7. The owner of a motor vehicle must notify the insurance company in writing in cases where the motor vehicle falls under the category eligible for cancellation of the insurance contract as stipulated in Clause 1 Article 10 of this Circular.

8. Notify and pay compensation to the injured party the amount they are entitled to receive from the insurance company for each case of personal injury according to the compensation levels prescribed in Appendix 6 issued together with this Circular.

9. Other responsibilities as prescribed by law.

Article 18. Rights of Insurance Enterprises

1. Collect compulsory civil liability insurance premiums for motor vehicle owners as prescribed by the Ministry of Finance. In cases where there are changes to factors that serve as the basis for calculating insurance premiums, leading to an increase in insured risks, they have the right to request motor vehicle owners to pay additional insurance premiums for the remaining term 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. Propose traffic police forces and criminal investigation units to provide copies of documents related to accidents as prescribed in Clause 3, Article 22 of Decree No. 103/2008/NĐ-CP.

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 19. Obligations of Insurance Enterprises

1. Must sell compulsory civil liability insurance for motor vehicle owners strictly according to the Rules, premium rates, and liability limits as prescribed in this Circular. In cases where insurance enterprises receive notifications from motor vehicle owners about changes to factors serving as the basis for calculating insurance premiums, leading to a reduction in insured risks, insurance enterprises must reduce insurance premiums for the remaining term of the insurance contract and refund the difference to motor vehicle owners.

2. Must organize extensive publicity on the compulsory civil liability insurance system for motor vehicle owners; provide full information related to insurance contracts and clearly explain the Rules, terms, and premium rates for compulsory civil liability insurance for motor vehicle owners to motor vehicle owners.

3. Must use the Certificate of Insurance forms as prescribed in Appendices 1, 2, 3 (if applicable), and 4 (if applicable) issued together with this Circular to issue to motor vehicle owners.

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 traffic police forces and criminal investigation units the costs of copying accident files and records provided and bear the responsibility to maintain confidentiality during the investigation process.

7. Collect documents in the Compensation File as prescribed at point a of Clause 3 (in cases where the insurance enterprise carries out repairs and damage mitigation), Clause 4, point b, and point c of Clause 5 of Article 14 of this Circular. Coordinate with motor vehicle owners to collect documents as prescribed at point a of Clause 5 of Article 14 of this Circular.

8. Notify the injured person and motor vehicle owner of the amount of compensation for personal injury losses and make payment of the compensation amount according to the compensation limit prescribed in Appendix 6 issued together with this Circular.

9. Make prompt and accurate compensation payments in accordance with this Circular and other relevant laws.

10. At least 15 days before the end of the insurance period, notify the motor vehicle owner of the expiration of the insurance contract.

11. Deduct 1% of annual compulsory civil liability insurance premium income from motor vehicle owners and contribute it to the Motor Vehicle Insurance Fund.

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

13. Develop and operate an information technology system ensuring statistical and updating of the implementation of compulsory civil liability insurance for motor vehicle owners, ensuring connectivity to the database on compulsory civil liability insurance for motor vehicle owners. The minimum database must provide the following information:

a) Information on motor vehicle owners:

· Name of the motor vehicle owner;

· Identity card number of the motor vehicle owner or passport number (for individual motor vehicle owners);

· Contact address.

b) Information on motor vehicles:

· Registration plate number;

· Brand;

· Type of vehicle;

· Engine capacity;

· Color;

· Year of manufacture;

· Engine number;

· Frame number;

· Load capacity (for trucks);

· Number of seats (for trucks);

· Purpose of use: business or non-business (for trucks);

· Insurance certificate number;

· Effective date of insurance;

· Expiry date of insurance;

· Insurance premium;

· Date of premium payment;

· Issuing date;

· Place of issuance;

· Issuer.

c) Information recorded on the number of accidents caused, the number of times penalized for violating the Road Traffic Law by motor vehicle drivers:

- Number of accidents caused (details of time, location, level of violation as determined by the police);

- Number of times compensation received, amount of compensation per accident (details per accident);

- Number of times penalized for violating the Road Traffic Law by drivers (if any).

14. Report to the Ministry of Finance on the implementation of compulsory civil liability motor vehicle insurance periodically or upon request, specifically:

a) Periodic reports prepared in accordance with Appendix 8 and Appendix 9 issued together with this Circular.

b) Reports on the implementation of compulsory civil liability motor vehicle insurance when requested by the Ministry of Finance.

15. Subject to inspection and supervision by competent state agencies in the implementation of compulsory civil liability motor vehicle insurance.

16. Other responsibilities as prescribed by law.

Article 20. Dispute Resolution

Any disputes arising from insurance contracts, if not resolved through negotiation between the parties, shall be referred to the courts in Vietnam for resolution.

 

Chapter III

IMPLEMENTATION

 

Article 21. Effective Date

1. This Circular takes effect from April 1, 2016.

2. Compulsory civil liability motor vehicle insurance certificates issued before the date this Circular takes effect shall continue to be valid and implemented according to the laws in force at the time of issuance of the insurance certificate.

3. This Circular replaces Circular No. 126/2008/TT-BTC dated December 22, 2008 stipulating Rules, Terms, Premium Rates, and Liability Limits for Compulsory Civil Liability Motor Vehicle Insurance; Article 1 of Circular No. 151/2012/TT-BTC dated September 12, 2012 amending and supplementing Circular No. 126/2008/TT-BTC dated December 22, 2008 and Circular No. 103/2009/TT-BTC dated May 25, 2009; Article 1 of 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, Circular No. 103/2009/TT-BTC dated May 25, 2009, and Circular No. 151/2012/TT-BTC dated September 12, 2012 of the Ministry of Finance.

4. In the course of implementation, any difficulties encountered should be promptly reported to the Ministry of Finance for consideration and resolution./.