Recently, a number of voters have petitioned the Ministry of Finance to clarify the necessity of compulsory motor vehicle liability insurance for motorcycle owners to prevent wastefulness.
The voters proposed adjusting the regulation, shifting from a compulsory to a voluntary insurance framework. This would mean that citizens are not mandated to purchase compulsory motorcycle insurance but can opt for voluntary insurance if they wish to.
However, in response to this proposal, the Ministry of Finance has provided justifications emphasizing the importance of compulsory insurance. They also stated that they will continue to collaborate with relevant agencies to simplify insurance compensation procedures and provide humanitarian support to ensure a swift and accurate compensation process while preventing insurance fraud.
The Ministry of Finance affirmed that motor vehicle liability insurance, including motorcycle insurance, has been in place since 1988 and is a crucial tool for protecting road users’ rights.
“Most countries worldwide currently mandate compulsory liability insurance for car, motorcycle, and even electric bicycle owners. Developed nations with lower motorcycle and motor scooter numbers, such as the US, EU, Japan, and South Korea, and developing nations with higher ratios, including India, China, and ASEAN countries, enforce this regulation,” the Ministry of Finance stated in a document.
In Vietnam, motorbikes are the primary mode of transportation and the leading cause of road accidents, accounting for 63.48% of all accidents. Hence, compulsory motorcycle insurance not only safeguards road users but also ensures the rights of those who unintentionally cause accidents.
Since 1988, Vietnam has implemented compulsory motor vehicle liability insurance under Decree No. 30-HDBT to mitigate losses from road accidents, especially those involving motorcycles. Motorcycle insurance fees range from VND 55,000 to VND 60,000, and in the event of an accident, the insurance company will provide a maximum payout of VND 150 million for health and life damages and VND 50 million for third-party property damages.
Therefore, purchasing compulsory motorcycle insurance remains mandatory. Voluntary motorcycle insurance is an additional option for road users but is not a requirement for traffic participation.
Thus, the information claiming that, from April 30, 2025, citizens need not purchase compulsory motorcycle insurance is entirely false.
According to Clause 18, Decree No. 168/2024/ND-CP, those operating motorcycles or scooters without compulsory liability insurance certificates will be fined between VND 200,000 and VND 300,000.
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