Decision No. 504-TC/BH on the issuance of Rules and insurance fees for motor vehicles

Scope of Insurance: With this type of insurance, BAOVIET will compensate the owner for physical damage to the insured vehicle occurring in the following circumstances:

1. Accidents caused by collisions or overturning.

2. Fires, explosions, storms, floods, lightning, earthquakes, hail.

3. Total theft of the vehicle.

4. Accidents caused by other unexpected risks.

Additionally, BAOVIET will cover necessary and reasonable expenses aimed at:

a. Preventing or limiting additional losses when the vehicle is involved in an accident.

b. Towing the damaged vehicle to the nearest repair location or ensuring its safety.

c. Appraising the loss if it falls within the scope of insurance liability.

However, in all cases, the total amount of compensation shall not exceed the sum insured stated on the insurance certificate.

Exclusions from Coverage: BAOVIET will not be liable for compensation for physical damage to the vehicle caused by the following reasons:

1. Natural wear and tear. Decrease in quality, defects or additional damage due to repairs.

2. Damage to electrical systems or machinery parts, including radio receivers, air conditioners, tires, which are not caused by accidents.

3. Theft of parts of the vehicle.

4. Intentional acts of sabotage by the owner or driver.

Provisions applicable to Part I (Physical Damage Insurance for Motor Vehicles):

1. The value of the insurance for the vehicle is agreed upon between BAOVIET and the owner based on the actual value at the time of joining the insurance.

2. If the owner requests cancellation of the insurance contract before the term, they must notify BAOVIET ten days in advance. BAOVIET will refund 90% of the remaining premium. If the insured vehicle has been involved in an accident and compensated by BAOVIET prior to cancellation, the owner will not be refunded the remaining premium.

3. Accident appraisal: For accidents estimated at 500,000 dong or more, BAOVIET will conduct an appraisal with the presence of the owner to determine the cause and extent of the damage. In case both parties cannot reach an agreement, they will select a professional technical appraiser to conduct the appraisal. For minor accidents (under 500,000 dong) without conditions for appraisal or traffic police reports, the owner must report the accident details truthfully and collect full documentation for BAOVIET to review and compensate.

4. In case of theft, the owner or driver must immediately report to the nearest police station, BAOVIET office, and local authorities where the vehicle was stolen to record and plan the investigation. Within five days from the date of theft, the owner must confirm in writing to BAOVIET.

5. Compensation for partial loss:

a. When the insured vehicle suffers partial loss, BAOVIET will compensate the owner up to the maximum amount not exceeding the percentage of the part's value relative to the total value of the vehicle and the ratio between the insurance amount and the actual value of the vehicle (with a table of component ratios attached).

b. During the repair process, if new parts need to be replaced, BAOVIET will only compensate the actual value of the part before the loss occurred and according to the ratio between the insurance amount and the actual value of the part.

c. BAOVIET will fully cover the cost of repainting the vehicle if over 50% of the painted surface is damaged by the accident.

6. Compensation for total actual or estimated loss:

a. If the insurance amount equals the actual value of the vehicle, BAOVIET will compensate the owner the full insurance amount stated on the insurance certificate.

b. If the insured vehicle is valued below its actual value, BAOVIET will compensate the loss according to the ratio between the insurance amount and the actual value of the vehicle at the time of insurance.

c. If the insured vehicle is valued above its actual value, BAOVIET will compensate based on the actual value of the vehicle at the time of the accident.

d. When the insured vehicle suffers total loss and BAOVIET compensates the owner, BAOVIET has the right to recover or dispose of the vehicle. If the vehicle is insured below its value, BAOVIET will recover the remaining value (the wrecked vehicle according to the ratio between the insurance amount and the actual value of the vehicle).

e. If the motor vehicle is missing or lost for more than two months, BAOVIET will compensate the owner the full insurance amount stated on the insurance certificate. If the vehicle is found after compensation, it will belong to BAOVIET.

7. BAOVIET applies a deductible-free compensation limit for estimated losses up to 100,000 dong.

8. When requesting compensation, the owner must provide BAOVIET with the following documents:

- Claim form,

- Copy of the insurance certificate,

- Vehicle appraisal report,

- Documents and invoices related to repairs or purchases of new vehicles, - Reports on theft or disappearance of the vehicle (in cases of theft or disappearance),

- Documents related to third-party liability, if any.

9. The deadline for claiming compensation is four months from the date of the accident.

(Compulsory insurance under Decree No. 30-HĐBT dated March 10, 1988 of the Council of Ministers).

Scope of Insurance: Depending on the limit of liability, BAOVIET is responsible for compensating losses caused by the use of motor vehicles owned by the insured to third parties, including:

1. Losses to persons.

2. Losses to property.

In addition, BAOVIET will pay necessary and reasonable expenses related to the accident (if any). In all cases, the total amount of compensation shall not exceed the limit of liability stated on the insurance certificate.

Third parties here do not include passengers, people present on the vehicle, and their property.

Exclusions from Liability:

BAOVIET is not liable for compensation for:

1. Personal belongings, luggage, goods, and property carried on the vehicle.

2. Drivers, passengers, and people present on the vehicle.

3. People whom the driver must support such as parents, spouse, children.

4. BAOVIET is not liable for compensation in cases where the owner (driver) causes an accident and flees to avoid responsibility.

Provisions applicable to Part II (Regarding civil liability insurance for vehicle owners).

1. Insurance amount: The owner is responsible for participating in insurance at the minimum level of liability specified by the Ministry of Finance in the premium schedule.

Additionally, the owner may participate in insurance above the minimum level if required.

2. When the vehicle is involved in an accident within the scope of insurance, BAOVIET and relevant departments (Police, Court, Public Prosecution) will negotiate and mediate civil compensation with the owner. If civil compensation must be resolved through the court, BAOVIET will participate as an interested party.

3. When requesting compensation, the owner is responsible for transferring all claims from the aggrieved party and relevant documents and papers related to the accident to BAOVIET, including:

a. Accident investigation and handling documents:

- The owner's accident report.

- On-site inspection report.

- Vehicle and damaged property inspection report.

- Accident investigation conclusion (if available).

- Mediation report (if mediation occurs).

- Court decision (if available).

b. Documents and invoices serving as the basis for compensation:

- Losses to persons include medical bills for prosthetics, transportation costs, funeral expenses, certificates from local authorities or the workplace of the aggrieved party, income certification of the victim, and other related documents.

- Losses to property: documents and invoices related to repairs or purchases of new property.

c. Documents related to third-party liability (if any).

4. The deadline for claiming compensation is six months from the date of the accident. In cases where the accident cannot be negotiated and must be resolved through the court, it is seven days from the date the judgment becomes effective.

Provisions applicable to both Parts I and II:

1. The owner's insurance application and BAOVIET's insurance certificate issued to the owner are considered as the insurance contract and regulated by these Rules.

2. Premiums are calculated based on the premium schedule issued by the Ministry of Finance.

3. BAOVIET will issue an insurance certificate only when the owner has paid the insurance premium.

4. The validity period of the insurance is indicated on the insurance certificate.

5. While driving, the driver must carry the insurance certificate and present it upon request by authorized authorities.

6. During the insurance period, if there is a change in ownership of the vehicle, the insurance benefits remain valid for the new owner. If the previous owner does not transfer the insurance benefits to the new owner, BAOVIET will refund the premium to the previous owner and process the new owner according to the short-term premium schedule.

7. In case of an accident, the owner (or driver) must take every effort to rescue victims, minimize damage, and immediately report to the nearest police station and BAOVIET. Within five days from the date of the accident, the owner must confirm in writing and send it to BAOVIET.

The owner may not move, dismantle, or repair the vehicle without BAOVIET's consent. Exceptions apply if such actions are necessary to ensure safety or comply with directives from authorized authorities (Traffic Police, Local Authorities).

8. In cases involving third-party liability, the owner must retain the right to claim and transfer the right to seek compensation to BAOVIET, along with all necessary files and documents. If the owner fails to comply fully with this provision, BAOVIET may refuse part or all of the compensation amount.

9. In case of disputes between the owner and BAOVIET that cannot be resolved through negotiation, they will be referred to the People's Court or Economic Arbitration for resolution.

All disputes related to these Rules shall be resolved in accordance with the laws of the Socialist Republic of Vietnam.

Exclusions applicable to both Parts I and II:

BAOVIET is not liable for compensation for losses occurring due to:

1. Vehicles not meeting technical conditions for operation as stipulated in the Road Traffic Safety Regulations of the Ministry of Transport and the Ministry of Home Affairs.

2. Violations of serious traffic regulations by the owner (driver), such as:

- Lack of registration for operation,

- Driving without a valid license or having one but it is invalid,

- Driving under the influence of alcohol, drugs, or other stimulants,

- Illegally transporting flammable or explosive materials,

- Overloading or exceeding the number of passengers allowed.

- Entering prohibited roads or driving at night without lights,

- Vehicles with right-hand steering.

3. Vehicles used for training, sports racing, or testing after repairs.

4. Indirect damages such as those caused by the disruption of production and business operations or the reduction in the commercial value of damaged property due to the accident involving the vehicle.

5. Damages caused by war.

6. Accidents occurring outside the territory of the Socialist Republic of Vietnam, except where there are separate agreements.