Recently, a number of voters have petitioned the Ministry of Finance to clarify the necessity of compulsory insurance for motorcycle and scooter owners. They argued that making this type of insurance compulsory leads to unnecessary expenses and proposed to make it voluntary instead.
However, the Ministry of Finance has responded with justifications for the necessity of compulsory insurance. They asserted that insurance for motor vehicle owners, including motorcycles, has been mandatory since 1988 and serves as a crucial tool for protecting road users’ rights.
According to the ministry, most countries worldwide mandate compulsory insurance for car, motorcycle, and even electric bicycle owners. This includes developed nations with lower motorcycle ownership, such as the US, EU, Japan, and South Korea, as well as developing countries with higher rates like India, China, and ASEAN members.
In Vietnam, motorcycles are the primary mode of transportation and, unfortunately, a leading cause of road accidents, accounting for 63.48% of all accidents. Hence, compulsory insurance for motorcycles not only safeguards road users but also protects those who may inadvertently cause accidents.
Since 1988, Vietnam has implemented compulsory insurance for motor vehicles under Decree No. 30-HDBT to mitigate losses from road accidents, especially those involving motorcycles. The insurance fee ranges from VND 55,000 to VND 60,000, and in the event of an accident, the insurance company will provide a maximum coverage of VND 150 million for health and life and VND 50 million for third-party property damage.
As a result, compulsory motorcycle insurance remains mandatory. Voluntary motorcycle insurance is an additional option for road users but is not a requirement for vehicle registration and road legality.
Therefore, the information stating that, from April 30, 2025, compulsory motorcycle insurance is no longer necessary is incorrect.
According to Clause 18 of Decree No. 168/2024/ND-CP, those who drive motorcycles without valid compulsory insurance certificates will be fined between VND 200,000 and VND 300,000.
