Decision No. 299/1998/QD-BTC on the issuance of Rules, Tariff, and Limit of Liability for Compulsory Civil Liability Motor Vehicle Insurance

GENERAL PROVISIONS

Article 1.

Objectives and scope of application:

1. Insurance enterprises and motor vehicle owners, including foreign owners operating motor vehicles within the territory of the Socialist Republic of Vietnam, are obligated to implement the compulsory civil liability insurance regime for motor vehicle owners.

2. The scope of civil liability insurance for motor vehicle owners under these Regulations includes:

- Civil liability insurance for compensation of damages outside contracts caused by motor vehicles to third parties;

- Civil liability insurance of motor vehicle owners for passengers under passenger transport contracts.

Article 2.

In these Regulations, the following terms are understood as follows:

1. Third party: refers to those individuals who suffer bodily injury or property damage caused by motor vehicles, excluding persons on the vehicle, co-drivers, and passengers on the same vehicle.

2. Passenger: refers to passengers on the vehicle under passenger transport contracts who suffer damage to their lives or health.

3. Insurance liability limit: is the maximum amount that an insurance enterprise may have to pay in each accident falling within the scope of insurance liability.

4. Intentional act causing damage: refers to a situation where a person recognizes that their actions will cause damage to others but still carries out such actions, whether they desire or not, and allows the damage to occur.

Article 3.

Insurance Contract:

The insurance certificate issued by the insurance enterprise at the request of the insured serves as evidence of the insurance contract between the motor vehicle owner and the insurance enterprise.

Article 4.

Premiums and insurance liability limits:

The insurance enterprise and the motor vehicle owner are responsible for implementing insurance according to the premium rates and minimum liability limits set forth in Decision No. 299/1998/QĐ-BTC of the Minister of Finance.

The insurance enterprise may negotiate with the vehicle owner to provide insurance at higher premium rates and liability limits or broader risk coverage according to the insurance regulations, premium rates, and liability limits registered with the Ministry of Finance.

Article 5.

Insurance validity:

The validity of insurance begins and ends as specified on the insurance certificate. The insurance enterprise shall issue the insurance certificate only when the motor vehicle owner has paid the full insurance premium (unless otherwise agreed).

Article 6.

Transfer of ownership:

During the validity period recorded on the insurance certificate, if there is a transfer of ownership of the vehicle and the motor vehicle owner does not request cancellation of the insurance contract, all insurance benefits related to the insured vehicle remain valid for the new owner.

Article 7.

Cancellation of the insurance contract:

If there is a request to cancel the insurance contract, the motor vehicle owner must notify the insurance enterprise in writing at least 15 days in advance. Within 15 days from receiving the cancellation notice, if the insurance enterprise does not object, the insurance contract is automatically cancelled, and the insurance enterprise must refund 80% of the insurance premium for the cancellation period, except in cases where an insurance event related to the vehicle being cancelled has occurred during the validity of the insurance contract.

Article 8.

Responsibilities of motor vehicle owners:

1. When requesting insurance, the motor vehicle owner must fully and truthfully declare the contents in the insurance application form.

2. In the event of a traffic accident, the motor vehicle owner must:

2.1. Provide rescue, minimize personal and property damage, secure the accident scene, immediately report to the nearest traffic police for joint resolution of the accident. Unless there is a justifiable reason, the motor vehicle owner must submit an accident notification to the insurance enterprise within five days from the date of the accident;

2.2. Not move, dismantle, or repair property without the consent of the insurance enterprise, except when it is necessary to ensure safety for people and property or when required by authorized authorities;

2.3. Reserve the right to claim and transfer the right to seek compensation to the insurance enterprise within the amount compensated by the insurance enterprise along with all relevant documentation in cases where the accident involves the responsibility of a third party.

3. The motor vehicle owner must be truthful in collecting and providing documents and certificates in the claim file and facilitate the insurance enterprise in verifying the authenticity of these documents and certificates.

4. In case of changing the purpose of using the vehicle, the new motor vehicle owner must promptly inform the insurance enterprise to adjust the premium rate accordingly.

If the motor vehicle owner fails to fulfill all the responsibilities prescribed above, the insurance company may refuse to pay part or all of the compensation corresponding to the damage caused by the fault of the motor vehicle owner.

Article 9.

Responsibilities of the insurance company:

1. The insurance enterprise is responsible for:

- Provide the motor vehicle owner with the Rules, Premium Rates, and liability levels related to the compulsory third-party liability insurance for motor vehicles;

- Guide and facilitate conditions for the motor vehicle owner to participate in insurance.

2. In cases of particularly serious accidents (causing death or injuring multiple people or causing property damage of 20,000,000 VND (twenty million dong) or more), the insurance company must closely cooperate with the motor vehicle owner and relevant authorities from the beginning to handle the accident. 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 as effectively as possible.

3. The insurance company has the responsibility to cooperate with the public security agency to collect necessary documents related to the accident within the scope of insurance liability.

4. When the compensation file is complete and valid, the insurance company must examine and process compensation within the time limit stipulated in Article 16 below.

Article 10.

Duplicate Insurance:

In cases of duplicate insurance for the same motor vehicle, the motor vehicle owner must immediately inform the insurance company of the names of other insurance companies and the insurance amounts of each contract, unless otherwise specified in the insurance contract.

In cases of duplicate insurance, the responsibility of each insurance company will be based on the ratio corresponding to the insurance amount that the company has accepted and all insurance companies will only be responsible within the scope of the insurance liability level as specified in the Premium Rates and Liability Levels issued together with these Rules.

SPECIFIC PROVISIONS

Article 11.

Insurance Liability:

Within the scope of the insurance liability stated on the Certificate of Insurance, the insurance company is responsible for paying to the motor vehicle owner the amount of money that the motor vehicle owner must compensate according to the Civil Code for damages caused to third parties and passengers carried on the vehicle under the transportation contract due to the use of the motor vehicle specifically:

1. For persons: Calculated based on the provisions of the transportation contract - if applicable (for passengers carried on the vehicle under the transportation contract), reasonable costs for rescue, rehabilitation, lost or reduced income, care for the victim before death, reasonable funeral expenses... and the degree of fault of the motor vehicle owner. The total compensation amount does not exceed the liability limit for persons as specified in the Premium Rates and Liability Levels issued together with Decision No. 299/1998/QĐ-BTC of the Minister of Finance.

2. For property: Calculated based on actual loss and the degree of fault of the motor vehicle owner. The total compensation amount does not exceed the liability limit for property as specified in the Premium Rates and Liability Levels issued together with Decision No. 299/1998/QĐ-BTC of the Minister of Finance.

3. Necessary and reasonable costs incurred by the motor vehicle owner to prevent or limit losses related to the accident.

The total of the above expenses shall not exceed the total liability limit stated in the Certificate of Insurance.

Article 12.

Loss Assessment:

All property losses within the scope of insurance liability will be assessed by the insurance company (unless otherwise agreed) with the presence of the motor vehicle owner, third party, or legal representative of the parties involved to determine the cause and extent of the damage caused by the accident.

In case the motor vehicle owner disagrees with the extent of damage determined by the insurance company, both parties will agree to select a professional technical appraiser to conduct the assessment. The conclusion of the professional technical appraiser is considered final. In case the conclusion of the professional technical appraiser differs from the conclusion of the insurance appraiser, the insurance company must bear the appraisal cost. In case the conclusion of the professional technical appraiser matches the conclusion of the insurance appraiser, the motor vehicle owner must bear the appraisal cost.

In special cases, if the insurance company cannot carry out the loss assessment record, it may rely on records and conclusions of competent authorities and obtained evidence (photographs, statements of the parties involved...) to determine the extent of the damage.

Article 13.

Exclusions from Insurance:

The insurance company is not liable for compensation for damages caused in the following cases:

1. Intentional actions causing damage by the motor vehicle owner or the person suffering damage;

2. Vehicles without a certificate of technical safety and environmental inspection;

3. Drivers without a valid license (for types of motor vehicles required to have a driver's license); drivers with alcohol, wine, or beer concentration exceeding current legal regulations, as confirmed in writing by a competent state authority;

4. Vehicles transporting flammable or explosive materials illegally (without a transport permit or transporting contrary to the provisions in the transport permit);

5. Vehicles used for training, sports racing, illegal racing, or test runs after repair (unless otherwise agreed);

6. Vehicles entering prohibited roads or areas; vehicles driving at night without sufficient lighting as required;

7. War and similar causes;

8. Accidents occurring outside the territory of the Socialist Republic of Vietnam (unless otherwise agreed);

9. Indirect consequences such as: reduction in commercial value, damage linked to the use and exploitation of damaged property;

10. Damage to property stolen or robbed during the accident;

11. Vehicles overloaded or carrying more passengers than allowed.

Additionally, the insurance company is also not liable for compensation for damages to special properties including:

- Gold, silver, precious stones;

- Money, valuable papers like money;

- Antiques, rare paintings and photographs;

- Corpses, bones.

Article 14.

Compensation File:

The compensation file includes the following documents:

1. Notice of accident; Claim for compensation request from the owner of the motor vehicle;

2. Copies of the following documents:

2.1. Insurance certificate;

2.2. Driver's license (for types of motor vehicles that must have a driver's license);

2.3. Vehicle registration certificate;

2.4. Safety and technical inspection certificate;

2.5. Business registration permit for passenger transport in cases where compensation is requested for passengers who have suffered damage to life and health;

3. Investigation conclusion on the accident by the police or a copy of the Accident File (with confirmation from the police handling the accident) including:

3.1. Diagram of the accident scene;

3.2. Record of the scene investigation;

3.3. Record of vehicle examination related to the traffic accident;

3.4. Traffic accident resolution record;

4. Court decision (if applicable);

5. Documents related to the responsibility of third parties (if applicable);

6. Damage assessment record (if applicable);

Procedure for requesting compensation:

Article 15.

When requesting compensation, the owner of the motor vehicle is responsible for transferring the claim file to the insurance company according to Article 14 and the following documents:

1. For personal injury:

1.1. In case of injury: Documents from authorized healthcare authorities confirming the victim's condition due to the traffic accident such as the victim's injury certificate, discharge papers, operation records, and other documents related to care and treatment costs...

1.2. In case of death: Death certificate of the victim;

2. For property damage: Evidence proving the damage such as repair invoices, replacement bills for damaged property due to the accident;

3. Documents proving necessary and reasonable expenses incurred by the owner of the vehicle to reduce losses or to implement instructions from the insurance company.

Time limit for requesting, paying, and appealing compensation:

DISPUTE RESOLUTION

Article 16.

1. Time limit for the owner of the motor vehicle to request compensation: six (6) months from the date of the accident, except in cases of delay due to objective and force majeure reasons as provided by law.

2. Time limit for the insurance company to pay compensation: fifteen (15) days from the date of receiving a complete and valid compensation file, and not exceeding thirty (30) days if verification of the file is required.

If compensation is refused, the insurance company must notify the owner of the motor vehicle of the reasons for refusal within the above time limit.

3. Time limit for the owner of the motor vehicle to appeal compensation: three (3) months from the date the insurance company pays or refuses compensation. Any appeals beyond this period will be invalid.

4. In cases where third parties or passengers under transportation contracts suffer personal and property damage caused by motor vehicles that have been insured and directly claim compensation from the insurance company, the insurance company shall be responsible for contacting the owner of the motor vehicle to resolve compensation in accordance with the provisions of these Rules.

Any disputes arising from insurance contracts, if unresolved through negotiation between the parties involved, shall be resolved by the courts in Vietnam.

Article 17.

Settlement of disputes:

FEES AND LIMITS OF CIVIL LIABILITY INSURANCE FOR MOTOR VEHICLE OWNERS

Issued pursuant to Decision No. 299/1998/QĐ-BTC of the Minister of Finance

1.1. Regarding persons: Twelve million dong per person (for third parties and passengers under transportation contracts)

1.2. Regarding property: Thirty million dong per incident (for third parties)

2. Insurance premium (for third parties and passengers under transportation contracts)

Annual fee (dong)

Two-wheeled motorcycles:

- Up to 50CC

Single axle: 10 tons Double axle depending on the distance between the centers of the axles d: + d< 1.0 meters: 11 tons + 1.0 ≤ d < 1.3 meters: 16 tons + d≥ 1.3 meters: 18 tons Triple axle depending on the distance between the centers of adjacent axles d: + d≤ 1.3 meters: 21 tons + d> 1.3 meters: 24 tons

3.4. Short-term insurance premium: Less than three months: 30% annual fee

From three to six months: 60% annual fee

From six to nine months: 90% annual fee

Over nine months: 100% annual fee

From 3 to 6 months: 60% annual fee

Over 6 to 9 months: 90% annual fee Over 9 months: 100% annual fee