Joint Circular No. 2292/TT-GTVT-TC guiding the implementation of passenger accident insurance regime

CIRCULAR

OF THE JOINT MINISTRIES OF TRANSPORT AND FINANCE
NO. 2292/TT-GTVT-TC AUGUST 8, 1983 GUIDELINES FOR IMPLEMENTATION
OF PASSENGER ACCIDENT INSURANCE REGIME.

Pursuant to Decision No. 314-CP dated October 1, 1980 of the Council of Ministers, the Ministry of Transport and the Ministry of Finance have coordinated to direct the implementation of passenger accident insurance throughout the country. Initially, passenger accident insurance has achieved some results. In many major accidents, passengers affected have been promptly and appropriately compensated for their insurance benefits. Through this, the general public gradually recognizes the concern and care of the Party and State for human life.

However, at times and in certain places, the implementation has not been consistent with the principles of the passenger accident insurance regime. To ensure uniformity and better results, the Joint Ministries of Transport and Finance issue this circular to provide specific guidance on the following points.

I. UNDERSTANDING THE RESPONSIBILITIES OF THE INSURANCE AGENCY
AND TRANSPORT ENTERPRISES

1. According to the spirit of the passenger accident insurance rules issued pursuant to Decision No. 284-TC dated December 22, 1980 of the Ministry of Finance, passenger accident insurance is a regime established based on contributions from passengers aimed at building a national insurance fund to compensate for part of the losses suffered by passengers, thereby creating additional conditions to stabilize their lives, while also contributing to enhancing preventive measures and reducing accidents, protecting the lives of passengers. Therefore, the right to claim insurance compensation for passenger accidents is a benefit that passengers who have contributed to insurance can enjoy when they suffer an accident during travel, in addition to other current policies such as civil liability compensation from the vehicle owner, social insurance, social relief, etc.

2. When passengers suffer an accident, the compensation by the insurance agency and transport units must be handled concurrently. It is important to recognize that the compensation by the insurance agency and the civil liability compensation by transport units are two separate and independent issues. One regime cannot replace the other because each is based on entirely different principles. The insurance agency's compensation to passengers who have participated in insurance is based on the established insurance rules, while the compensation by transport units for damages to passengers is based on the principles of civil liability.

II. COLLECTION OF INSURANCE FEES

Although the insurance agency is responsible for managing and using the insurance fund for compensating passengers, it does not directly collect insurance fees from passengers. The collection of national insurance fees has been assigned to the transport sector. Transport units are responsible for collecting insurance fees included in ticket prices along with fares, then separating the insurance fee from the ticket price and transferring it to the insurance agency to be included in the insurance fund. Thus, the passenger insurance fee is money contributed by passengers through transport units into the insurance fund, rather than being the money of the transport units. Transport companies, enterprises, and cooperatives have the responsibility to collect and timely submit passenger insurance fees to the insurance agency according to the provisions in Circular No. 3270-TV dated December 9, 1980 of the Ministry of Transport.

The level of insurance fees is implemented according to Decision No. 603-BH/TC dated November 26, 1982 of the Ministry of Finance and Circulars No. 150-TT/VTGC dated November 18, 1982 guiding the implementation of passenger transport fare rates for buses and river vessels, and Circular No. 151-TT/VTGC dated November 18, 1982 guiding the implementation of railway fare rates, and Decision No. 1232-QĐ/VTGC dated August 26, 1982 of the Ministry of Transport regarding sea vessel fare rates. The rate of 0.10 dong per trip stipulated in Circular No. 150-TT/VTGC applies to all types of short-distance city, town, or suburban passenger vehicles such as buses, lambs, taxis, etc.

After receiving the insurance fees, local insurance agencies are responsible for paying commission for collecting insurance fees to transport units according to the ratio agreed upon by the Ministry of Transport and the Ministry of Finance in Document No. 3270-TV dated December 9, 1980 of the Ministry of Transport, specifically as follows:

- Rail transport: 1% of the collected insurance fees.

- Road transport: 1.5% of the collected insurance fees.

- River and sea transport: 2% of the collected fees.

To strictly implement the insurance regime and financial management principles of the State, the Joint Ministries stipulate:

- If a transport unit fails to fully pay the insurance fees or pays late, starting from the eleventh day of delay, they must pay a daily fine of 0.08% of the unpaid or underpaid amount. Similarly, if an insurance agency delays or underpays the commission to transport units, they must also pay the fine as prescribed above.

- In cases of serious violations or repeated offenses concerning the collection and payment of insurance fees, in addition to paying the fines as prescribed above, the heads of the units and those responsible may face administrative disciplinary actions or may have bonuses deducted from their enterprises, treating such actions as breaches of the State's general policies.

III. SETTLEMENT OF ACCIDENT CONSEQUENCES AND COMPENSATION.

When passengers suffer an accident, both transport units and insurance agencies have the responsibility to settle the consequences of the accident and compensate the passengers. To clearly define responsibilities, road, rail, waterway transport units, and insurance agencies need to pay attention to implementing the following principles:

1. Reporting:

With the responsibility of the transporter, when an accident occurs, transport units must proactively fulfill their obligations as stipulated, such as immediately reporting to the police or local authorities, organizing rescue operations for victims, securing the scene, and protecting passengers' luggage. At the same time, transport units must inform the local insurance agency as quickly as possible.

2. Handling emergency medical care and burial of victims:

In the event of an accident, the immediate requirement is to organize timely and thorough rescue and burial of the victims. The driver or representative of the transport unit, being the earliest person present at the accident site, is responsible for resolving the consequences and contacting local authorities to organize rescue or burial of the victims. If the driver or assistant driver is injured or killed, passengers on the vehicle have the responsibility to find every means to inform the nearest local authority to come and help resolve the accident aftermath.

The settlement of expenses for rescue and burial shall be handled as follows:

- First, it is necessary to clearly determine that these costs must fall within the scope of necessity and reasonableness.

- If the vehicle owner is at fault (speeding, reckless overtaking, unsafe vehicle...), then the expenses incurred for rescue and burial shall be borne by the vehicle owner.

- If the vehicle owner is not at fault but the accident falls within the scope covered by insurance (natural disasters, passengers attacked by criminals, thrown stones...), the insurance agency must reimburse the expenses for rescue and burial to the transport units or agencies that have prepaid these costs.

- If the vehicle owner is not at fault and the accident is also not within the scope of insurance compensation (passenger suicide, jumping off trains or vehicles...), the vehicle owner or local authority must still handle the rescue and burial initially. The settlement of these expenses will be resolved through negotiation and agreement between the insurance agency, the transport vehicle owner, and the local authority.

3. Compensation:

The compensation provided by transport units is based on the principles of civil liability as stipulated by law. The compensation provided by the insurance agency is based on insurance rules. Therefore, there may be cases where passengers receive compensation from both transport units and insurance agencies. However, there are also cases where passengers only receive compensation from the insurance agency and not from the transport unit, or do not receive compensation from either party. The level and content of the two types of compensation are completely different. Specifically, as follows:

a) Receiving compensation from both the transport unit and the insurance agency:

This is the case where the transport unit is at fault and has caused an accident to the passenger (speeding, reckless overtaking, unsafe vehicle...).

b) Only receiving compensation from the insurance agency:

Generally, this involves accidents caused by natural disasters or by others (passengers attacked, thrown stones...) for which the transport unit is not responsible.

c) Not receiving compensation from either the insurance agency or the transport unit:

This is the case where the passenger commits suicide, dies due to illness, or intentionally violates safety regulations severely (jumping off trains or vehicles...).

IV. STRENGTHENING ORGANIZATIONAL MANAGEMENT MEASURES TO PREVENT AND LIMIT TRAFFIC ACCIDENTS.

Preventing and preventing traffic accidents is a very important task for all sectors and levels. This is also one of the top priorities for the transportation sector and the insurance sector. The cooperation among transportation, insurance, police, and other sectors from central to local levels in ensuring traffic safety and preventing accidents is essential and long-term.

To ensure traffic safety, leaders at all levels and units in the transportation sector have the responsibility to educate drivers to strictly comply with traffic laws, strengthen technical safety inspections of transportation vehicles, communication devices, roads, bridges, ferries... Collaborate with the police to enhance inspections and supervision of traffic law compliance on the road, organize people's travel well, and regularly review and summarize traffic safety work.

Insurance units have the responsibility to closely cooperate with transportation units in traffic safety inspections and propose measures to ensure traffic safety to relevant sectors and levels.

- Widely publicize traffic laws to the masses through various forms such as posters, exhibitions...

- Encourage and support the movement to maintain traffic safety, reward units and individuals with outstanding achievements in traffic safety work.

Contribute part of the funds to assist transportation units in purchasing necessary equipment to ensure passenger safety, or propose small projects with practical benefits to increase traffic safety.

Upon receipt of this circular, the general administrations, bureaus, departments of transportation, finance departments, insurance companies, and branches need to organize exchanges to thoroughly understand the significance, purpose, and principles of the passenger accident insurance system, recognize their specific responsibilities, and widely disseminate them to their staff.

At the local level, where difficulties arise in implementing the passenger insurance system, the local transportation and insurance sectors need to discuss and promptly address these issues. Difficulties that cannot be resolved locally should be reported to the Ministry of Transportation and the Ministry of Finance for resolution.

Annually, the two sectors need to summarize the implementation of the passenger accident insurance system to quickly establish a regular system and contribute to serving the people's travel needs better.

This circular takes effect from the date of issuance. Previous regulations by the Joint Ministries that conflict with this circular are hereby abolished.