Decision No. 23/2007/QD-BTC on the issuance of compulsory civil liability insurance for motor vehicle owners

Pursuant to …;

On the issuance of compulsory civil liability insurance for motor vehicle owners

______________________________

THE MINISTER OF FINANCE

Pursuant to the Civil Code dated June 14, 2005;

Pursuant to the Insurance Business Law No. 24/2000/QH10 dated December 9, 2000;

Pursuant to the Government's Decree No. 77/2003/NĐ-CP dated July 1, 2003 on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to the Government's Decree No. 115/1997/NĐ-CP dated December 17, 1997 on the compulsory civil liability insurance for motor vehicle owners;

Pursuant to the Government's Resolution No. 13/2002/NQ-CP dated November 19, 2002 on measures to control and reduce traffic accidents and traffic congestion;

At the proposal of the Head of the Insurance Department.

DECISION:

Article 1. The Rules, Premium Rates, and Liability Limits for Compulsory Civil Liability Insurance for Motor Vehicle Owners are hereby promulgated along with this Decision.

Article 2. Insurance enterprises permitted to operate compulsory civil liability insurance for motor vehicle owners shall be responsible for allocating at least 2% of the annual actual premium income from such compulsory insurance to contribute to the Road Traffic Safety Publicity and Assurance Fund managed and utilized by the Vietnam Insurance Association. The Fund shall be used for the following purposes:

a) Organizing publicity and education on road traffic safety and compulsory civil liability insurance for motor vehicle owners;

b) Supporting and providing materials to prevent and mitigate road traffic accidents;

c) Cooperating with competent authorities to establish traffic warning signs, escape routes, and other facilities aimed at preventing and reducing risks for insured parties;

d) Providing humanitarian compensation for damages suffered by third parties and passengers carried on vehicles caused by the use of motor vehicles in cases where the offending vehicle cannot be identified or was not insured;

đ) Other contents aimed at ensuring road traffic order and safety.

Specific contribution levels, management, utilization, payment, and settlement mechanisms of the Road Traffic Safety Publicity and Assurance Fund shall be agreed upon by the Vietnam Insurance Association and insurance enterprises operating compulsory civil liability insurance for motor vehicle owners prior to implementation.

Article 3. Insurance enterprises are not permitted to offer any form of promotion for compulsory civil liability insurance for motor vehicle owners.

Article 4. This Decision shall take effect fifteen days after its publication in the Official Gazette and shall replace the Decision No. 23/2003/QĐ-BTC dated February 25, 2003 of the Minister of Finance on the issuance of the Rules, Premium Rates, and Liability Limits for Compulsory Civil Liability Insurance for Motor Vehicle Owners. Insurance contracts concluded before the effective date of this Decision shall continue to be implemented according to the laws applicable at the time of contract conclusion.

Article 5. The Head of the Insurance Department and the Heads of related units shall be responsible for supervising the implementation of this Decision./.