Decision No. 299/1998/QD-BTC On the Issuance of Rules, Tariff, and Minimum Liability for Compulsory Civil Liability Motor Vehicle Insurance

DECISION OF THE MINISTER OF FINANCE

Regarding the issuance of Rules, Tariff, and Liability Limits

for Compulsory Civil Liability Motor Vehicle Insurance

 

THE MINISTER OF FINANCE

Pursuant to Decree No. 178/CP dated October 28, 1994 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to the Civil Code dated October 28, 1995;

Pursuant to Decree No. 100/CP dated December 18, 1993 of the Government on insurance business and Decree No. 74/CP dated June 14, 1997 amending and supplementing certain provisions of Decree No. 100/CP dated December 18, 1993 of the Government on insurance business;

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

At the proposal of the Director of the Department of Banking and Financial Institutions;

 

DECISION:

Article 1. The Rules, Tariff, and Liability Limits for civil liability motor vehicle insurance are hereby issued along with this Decision.

Article 2. This Decision shall take effect fifteen days from the date of signature and shall replace Decision No. 504/TCBH dated November 20, 1991 of the Minister of Finance on the issuance of Rules and Tariff for motor vehicle insurance and Decision No. 715/TC/BH dated October 19, 1993 of the Minister of Finance on the adjustment of liability limits and compulsory civil liability motor vehicle insurance premium.

Article 3. The Director of the Department of Banking and Financial Institutions, the Head of the Office of the Ministry of Finance, and the Heads of relevant units shall be responsible for supervising the implementation of this Decision./.

 

RULES ON CIVIL LIABILITY MOTOR VEHICLE INSURANCE

(Issued pursuant to Decision No. 299/1998/QĐ-BTC
dated March 16, 1998 of the Minister of Finance)

 

PART I

GENERAL PROVISIONS

Article 1. Objectives and scope of application:

1. Insurance enterprises, owners of motor vehicles, including foreign owners using motor vehicles within the territory of the Socialist Republic of Vietnam, have the obligation to implement the compulsory civil liability motor vehicle insurance system.

2. The scope of civil liability motor vehicle insurance under these Rules includes:

Insurance liability for compensation of damages outside the contract caused by motor vehicles to third parties;

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

Article 2. In these Rules, the following terms are understood as follows:

1. Third party: refers to those who suffer bodily injury and 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 and health.

3. Insurance liability limit: is the maximum amount that the 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 and either desires or does not desire, but allows the damage to occur.

Article 3. Insurance Contract:

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

Article 4. Premium and Insurance Liability Limit:

The insurance enterprise and the motor vehicle owner must implement insurance according to the Tariff and minimum insurance liability limit issued together with Decision No. 299/1998/QĐ-BTC of the Minister of Finance.

The insurance enterprise may negotiate with the owner to insure at higher tariffs and liability limits or wider risk coverage according to the Rules, Tariff, and Insurance 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 Contract:

In case of 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 the Motor Vehicle Owner:

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 be responsible for:

2.1. Providing medical treatment, limiting damage to people and property, protecting the accident scene, immediately reporting to the nearest traffic police for cooperation in handling the accident. Unless for justifiable reasons, the motor vehicle owner must submit an accident report to the insurance enterprise within five days from the date of the accident.

2.2. Not moving, dismantling, or repairing property without the consent of the insurance enterprise, except in cases where it is necessary to ensure safety for people and property or to comply with the requirements of authorized agencies;

2.3. Preserving the right to claim and transferring the right to claim compensation to the insurance enterprise within the amount compensated by the insurance enterprise, along with all relevant documents 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. If there is a change in the purpose of using the vehicle, the new owner must immediately inform the insurance enterprise to adjust the insurance premium rate accordingly.

If the motor vehicle owner fails to fulfill the above responsibilities, the insurance enterprise may refuse to compensate partially or entirely for losses caused by the fault of the motor vehicle owner.

Article 9. Responsibilities of the Insurance Enterprise:

1. The insurance enterprise is responsible for:

Provide the motor vehicle owner with the Rules, Tariff, and Insurance Liability Limits related to compulsory civil liability motor vehicle insurance;

Guide and facilitate the motor vehicle owner's participation in insurance.

2. In cases of particularly serious accidents (accidents causing death, injuring multiple people, or property damage of 20,000,000 VND (twenty million VND) or more), insurance companies must closely cooperate with the vehicle owners and relevant authorities from the outset to handle the accident. If necessary, insurance companies must immediately advance reasonable and necessary expenses within the scope of their insurance liability to mitigate the consequences of the accident as effectively as possible.

3. Insurance companies have the responsibility to cooperate with public security agencies to collect necessary documents related to accidents within the scope of their insurance liability.

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

Article 10. Duplicate Insurance:

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

In cases of duplicate insurance, the responsibility of each insurance company will be based on the corresponding ratio of the insurance amount that the company has accepted and all insurance companies will only be liable within the scope of their insurance liability as specified in the Premium Schedule and Liability Limits issued together with this Regulation.

 

PART II

SPECIFIC PROVISIONS

Article 11. Insurance Liability:

Within the scope of the insurance liability stated on the Insurance Certificate, the insurance company is responsible for paying to the vehicle owner the amount that the owner must compensate according to Civil Law for damages caused to third parties and passengers carried on the vehicle under a 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 a transportation contract), reasonable costs for rescue, rehabilitation, lost or reduced income, care and support for the victim before death, reasonable funeral expenses... and the degree of fault of the vehicle owner. The total compensation amount does not exceed the liability limit for persons specified in the Premium Schedule and Liability Limits issued together with Decision No. 299/1998/QĐ-BTC of the Minister of Finance.

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

3. Necessary and reasonable costs incurred by the 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 Insurance Certificate.

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 vehicle owner, third party, or legal representative of the parties involved to determine the cause and extent of the loss caused by the accident.

In case the vehicle owner disagrees with the extent of the loss 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 vehicle owner must bear the appraisal cost.

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

Article 13. Exclusions from Insurance:

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

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

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

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

4. Vehicles transporting flammable or explosive materials illegally (without a transport permit or in violation of the regulations in the transport permit);

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

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

7. War and similar causes;

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

9. Indirect losses such as: reduction in commercial value, losses associated with the use and exploitation of damaged property;

10. Losses to property stolen or looted during the accident;

11. Vehicles overloaded or carrying more passengers than allowed.

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

Gold, silver, precious stones;

Money, documents with monetary value;

Antiques, rare paintings and photographs;

Corpses, bones.

Article 14. Compensation File:

The compensation file includes the following documents:

1. Accident report; Request for compensation form of the vehicle owner;

2. Copies of the following documents:

2.1. Insurance certificate;

2.2. Driver's license (for types of vehicles required to have a driver's license);

2.3. Vehicle registration certificate;

2.4. Safety technical inspection and environmental protection certificate;

2.5. Business registration certificate for passenger transport in cases where compensation is requested for passengers injured or killed.

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

3. The investigation conclusion on traffic accidents of the police or a copy of the accident file (certified by the police handling the accident) including:

3.1. Diagram of the accident scene;

3.2. Inspection record of the accident scene;

3.3. Inspection record of vehicles related to the traffic accident;

3.4. Accident resolution record;

4. Court decision (if any);

5. Documents related to the liability of third parties (if any);

6. Damage assessment record (if any);

Article 15. Claim procedure:

When making a claim, the owner of the motor vehicle has the responsibility to transfer to the insurance company the claim file as stipulated in Article 14 and the following documents:

1. For personal injury:

1.1. In case of injury: Documents from authorized health authorities confirming the victim's injury status caused by the traffic accident such as the victim's injury certificate, discharge certificate, operation report, 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 for damaged property due to the accident;

3. Documents proving necessary and reasonable expenses incurred by the vehicle owner to reduce losses or to implement the insurer's instructions.

 

CHAPTER III

DISPUTE RESOLUTION

Article 16. Time limit for claims, payment, and complaints:

1. Time limit for the vehicle owner to make a claim: 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 the claim: fifteen (15) days from the date of receiving a complete and valid claim file, and not exceeding thirty (30) days if verification of the file is required.

If the insurance company refuses to pay the claim, it must notify the vehicle owner of the reason for refusal within the above time limit.

3. Time limit for the vehicle owner to lodge a complaint about the claim: three (3) months from the date the insurance company pays or refuses the claim. Any complaints beyond this period will lose their validity.

4. In case a third party or passenger under a transport contract suffers personal and property damage caused by a motor vehicle that has been insured and directly lodges a complaint with the insurance company for compensation, the insurance company shall be responsible for contacting the vehicle owner to resolve the compensation appropriately in accordance with the provisions of this Regulation.

Article 17. Settlement of disputes:

Any disputes arising from the insurance contract, if unresolved through negotiation between the parties, shall be brought before a court in Vietnam for resolution./.

 

TABLE OF 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. Insurance liability limit:

1.1. Personal injury: Twelve million dong per person (for third parties and passengers under a transport contract)

1.2. Property damage: Thirty million dong per incident (for third parties)

2. Insurance premium (for third parties and passengers under a transport contract)

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

3.1. For vehicles with a license for inter-provincial passenger transport, the additional fee is 30% higher than the prescribed rate; for intra-provincial buses, the additional fee is 15% higher than the prescribed rate.

3.2. For taxis, the additional fee is 30% higher than the prescribed rate.

3.3. Vehicle owners insuring fifty or more vehicles with one insurance company may have their total premiums reduced by 15%.

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

From three to six months: 60% of the annual fee

More than six to nine months: 90% of the annual fee More than nine months: 100% of the annual fee./.