Motorcycle insurance is a mandatory document for all road users in Vietnam. It helps mitigate compensation for accident-related damages. Below is an updated guide on the procedures for claiming motorcycle accident insurance.
1. What is Compulsory Motorcycle Insurance?
Definition
Compulsory motorcycle insurance is a type of civil liability insurance that all motorcycle and motorbike owners are required to purchase under Vietnamese law. This insurance covers the owner’s civil liability for any accidents or incidents involving their vehicle.
When driving, individuals and businesses must always carry the vehicle registration certificate (“cà vẹt xe”), a valid driver’s license, and this civil liability insurance certificate.
The primary purpose of this insurance is to provide compensation to accident victims and ensure that the driver takes responsibility for any road incidents.
How Much Does Motorcycle Insurance Cost?
According to Circular No. 04/2021/TT-BTC, the fees for compulsory motorcycle insurance are as follows (excluding 10% VAT):
- Motorcycles with an engine capacity of less than 50cc and electric motorcycles: VND 60,500 per year (including VAT)
- Motorcycles with an engine capacity of more than 50cc: VND 66,000 per year (including VAT)
- Other types of motorcycles: VND 319,000 per year (including VAT)
Reputable insurance companies in Vietnam include Bảo Việt, Quân đội MIC, PVI, BIC, and PTI. It is recommended to purchase insurance from these companies’ offices, authorized distributors, banks, or even gas stations to ensure quality and authenticity.
2. Compensation Coverage of Compulsory Motorcycle Insurance
Scope of Compensation
According to Article 5 of Decree No. 03/2021/ND-CP, compulsory motorcycle insurance covers extra-contractual damages to the health, life, and property of third parties caused by the insured vehicle. It also covers health and life damages to passengers in the vehicle.
Beneficiaries of the Compensation
Based on Clause 1, Article 14 of Decree No. 03, the beneficiaries of the insurance compensation are:
In the event of an accident, the insurance company will compensate the insured for the amount that the insured has paid or will have to pay to the damaged party, up to the insured’s liability limit.
If the insured person dies or is declared incapable of civil acts by a court, the insurance company will compensate the damaged party, the heir of the damaged party (in case of death), or the representative of the damaged party (in case of incapacity or if the damaged party is under six years old).
Compensation Amounts for Motorcycle Insurance
Health and Life Damages
According to Point a, Clause 3, Article 14 of Decree No. 03/2021, the specific compensation amount is determined based on the type of injury or damage, or by agreement between the parties or a court decision (if any), without exceeding the insured’s liability limit.
The liability limit for health and life damages caused by a motorcycle is VND 150 million per person per accident.
Referring to Appendix I issued together with Decree No. 03, the compensation amounts are as follows:
– Maximum compensation: VND 150 million per person in case of death or brain damage resulting in a vegetative state.
– Compensation based on the degree of injury:
Compensation amount = Percentage of injury x Liability limit
The percentage of injury is determined as follows:
- Skull and nervous system injuries:
- Concussion: 6% – 10%
- Skull fracture with a diameter or length of less than 3 cm, and corresponding brain damage: 11% – 15%
- Skull fracture with a diameter or length of 3 cm or more, and corresponding brain damage: 16% – 20%
- Loss of outer bone with an area of less than 3 cm2, and corresponding brain damage: 16% – 20%
- Loss of outer bone with an area of 3 cm2 or more, and corresponding brain damage: 21% – 25%
- Basilar skull fracture with an area of less than 3 cm2, and corresponding brain damage: 21% – 25%
- Basilar skull fracture with an area between 3 and 5 cm2, and corresponding brain damage: 26% – 30%
– Property Damages:
According to Point b, Clause 3, Article 14 of Decree No. 03, the insurance compensation for property damage per accident is determined based on the actual damage and the degree of fault of the insured, without exceeding the liability limit.
The liability limit for property damage caused by a motorcycle is VND 50 million per accident, as stipulated in Clause 2, Article 4 of Circular No. 04/2021/TT-BTC.
3. Procedures for Claiming Compulsory Motorcycle Insurance Compensation
Documents Required for Claiming Motorcycle Insurance
Documents related to the vehicle and the driver (including notarized copies or copies verified by the insurance company against the originals):
- Vehicle registration certificate or proof of vehicle ownership transfer, along with proof of vehicle origin
- Driver’s license
- Identity card, citizen identification card, passport, or other valid identification documents of the driver
- Insurance certificate
Documents proving health and life damages (copies issued by medical facilities or copies verified by the insurance company against the originals):
- Certificate of injury.
- Medical records.
- Death certificate, police report, or forensic examination results in case of death due to a traffic accident.
Documents proving property damages:
- Invoices or valid documents for repairing or replacing damaged property due to a traffic accident
- Documents, invoices, or receipts related to expenses incurred by the vehicle owner to mitigate losses or follow the insurance company’s instructions
- Other valid documents required by the insurance company
Steps to Claim Compensation from the Insurance Company
– Time limit: Within 05 days from the date of the accident (unless there are force majeure circumstances).
– Method: In writing or electronically.
The loss assessment must be in writing and signed by all relevant parties.
The insurance company must pay the interim compensation within 03 working days from receiving the accident notification.
If it is determined that the accident is within the scope of compensation:
- In case of death: 70% of the compensation limit per person per accident
- In case of emergency treatment for injuries: 50% of the compensation limit per person per accident
If it is not yet determined whether the accident is within the scope of compensation:
- In case of death: 30% of the liability limit
- In case of emergency treatment for injuries: 10% of the liability limit per person per accident
The time limit for claiming compensation is 01 year from the date of the accident, unless there are objective and force majeure reasons.
Time Limit for Insurance Payment
– The insurance company must pay the compensation within 15 days from receiving all valid claim documents (or within 30 days if document verification is required).
If the insurance company refuses to compensate, it must provide a written explanation for the refusal within 30 days from receiving all valid documents.
We hope this article has provided individuals and businesses with a better understanding of motorcycle accident insurance-related matters.
