Motorcycle Accident Insurance Claims: A Step-by-Step Guide to Navigating the Process

Motorcycle accident insurance has captured the attention of many, and we are here to present to you the latest and most comprehensive guide on the claim procedure.

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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

Step 1 Notify the insurance company about the accident

– Time limit: Within 05 days from the date of the accident (unless there are force majeure circumstances).

– Method: In writing or electronically.

Step 2 Cooperate with the insurance company in loss assessment

The loss assessment must be in writing and signed by all relevant parties.

Step 3 Receive interim compensation (applicable to health and life damages)

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

Step 4 Submit the insurance compensation claim

The time limit for claiming compensation is 01 year from the date of the accident, unless there are objective and force majeure reasons.

Step 5 Receive the insurance compensation

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.

Frequently asked questions

First, ensure your safety and well-being, and that of any passengers or bystanders. Seek medical attention if needed. Then, call the police to file a report, and document the scene with photos and videos if possible. Exchange information with the other driver(s) involved, including insurance details.

Contact your insurance company as soon as possible to initiate the claims process. Provide them with the details of the accident, including the police report and any relevant documentation. They will guide you through the next steps, which may include repairing or replacing your motorcycle, and seeking compensation for any injuries or damages.

It is important to gather as much information as possible, including the contact and insurance details of the other driver(s), witness accounts, and photos/videos of the scene. Note the date, time, and location of the accident, as well as weather conditions and any relevant traffic signs or signals.

If the other driver is uninsured or their insurance coverage is insufficient to cover the damages, you may need to rely on your own insurance policy’s uninsured/underinsured motorist coverage. This will help protect you financially in the event of an accident with a driver who has little or no insurance.

Be proactive and organized throughout the process. Keep detailed records of all communication with your insurance company, and provide them with any requested documentation in a timely manner. Understand your policy and what is covered, and don’t be afraid to ask questions or seek clarification if needed.