Scope of the compensation for damage of compulsory automobiles insurance and the amount of compensat

Dear Lawyer,

On May, 7, 2021 while I was driving a truck, unfortunately, I caused an accident with a tractor truck. The damage to asset of the tractor was VND 200,000,000, and there was no damage to health and life. After that, the insurance company validated for compensation. I paid the amount of insurance with my own money, but now another person enjoys it, I want to know the provisions of the law on this case?

Answer:

Thank you for concerning and trusting in FDVN’s legal services. We have studied the law provisions to provide you with our advice. Please kindly see the answer below:

[1] Scope of the compensation for damage of compulsory automobiles insurance

The provisions in Article 5 of the Decree No.03/2021/ND-CP specified clearly on the scope of compensation of compulsory civil liability insurance of motor vehicle users, specifically as follows:

“1. Non-contract damage such as health, life and assets done to a third party by motor vehicles.

2. Damage to health and lives of passengers done by motor vehicles.”

Thus, compulsory automobiles insurance only compensates for damage to health, life and assets of third party and passengers caused by automobiles per accident.

However, pursuant to Article 13 of the Decree No.03/2021/ND-CP, the insurance enterprises won’t have to compensate for damage in one of the following cases: 

• Damage done intentionally by users, motor vehicle operators or victims of the accidents.
• Vehicle operators intentionally fleeing the scene after committing accidents without exercising civil responsibilities or motor vehicle users.
• Operators who are not within the adequate age range to operate motor vehicles; operators who do not carry legitimate, proper driving license…
• Damage that causes indirect consequences including: reduced commercial value, damage related to use and utilization of damaged assets.
• Damages to assets caused by operators who have alcohol in breath or blood, or use narcotics or other prohibited stimulants.
• Damage to assets which are lost or stolen as a result of the accidents.
• Damage to special assets including: gold, silver, precious stones, financial instruments namely money, antiques, precious fine arts, and cadavers.

- War, acts of terrorism, earthquake.

[2] Regarding the amount of compensation

According to Clause 1 Article 14 of the Decree No.03/2021/ND-CP, in case an accident occurs, within insurance liabilities, the insurance enterprises must reimburse the motor vehicle user or operator whose civil liability is insured for the payment that has been made or will be made to the accident victims. The amount of compensation specifically prescribed in Clause 3 of this Article is as follows: “Specific asset compensation of an accident is determined based on practical damage and levels of the fault of insurance beneficiaries but must not exceed insurance liabilities”.

In addition, levels of insurance liabilities for the asset damage are clearly guided in Clause 2 Article 4 of the Circular No.04/2021/TT-BTC as follows:

“2. Insurance liability for asset damage:

a) Insurance liability for accidents caused by motorbikes, motorized tricycles, mopeds (including electric mopeds), and vehicles with similar structures according to Law on Road Traffic shall be VND 50 million per accident.

b) Insurance liability for accidents caused by automobiles, tractors, trailers or semi-trailers towed by automobiles, tractors or specialized vehicles according to Law on Road Traffic shall be VND 100 million per accident.”

Thus, insurance enterprises only compensate for asset damage caused by automobiles based on practical damage and levels of the fault of insurance beneficiaries but must not exceed VND 100 million per accident.

Above is FDVN LAW FIRM’s opinion for your consulting requests based on studying the relevant legal provisions. Hopefully, FDVN’s advice would be helpful to you.

Ho Thi Thuong – FDVN LAW FIRM

CONTACT US

FDVN Lawyers in Da Nang:

99 Nguyen Huu Tho, Quan Hai Chau, Da Nang city

FDVN Lawyers in Ha Noi

Room 501, 5th Floor, No. 11, Lane No. 183, Dang Tien Dong Street, Trung Liet Ward, Dong Da District, Ha Noi

FDVN Lawyers in Nghe An

Office No.1: No. 19 V.I Lenin street, Vinh City, Nghe An Province

Office No.2: Quynh Xuan Ward, Hoan Mai Town, Nghe An Province

FDVN Lawyers in Hue:

56A Dien Bien Phu, Hue City, Thua Thien Hue

Lawyers in Quang Ngai:

359 Nguyen Du, Quang Ngai City, Quang Ngai Province.

Website: www.fdvn.vn www.fdvnlawfirm.vn

Email: fdvnlawfirm@gmail.com

Phone number: 0935 643 666 – 0906 499 446

Fanpage LUẬT SƯ FDVN: https://www.facebook.com/fdvnlawfirm/

Legal Service For Expat: https://www.facebook.com/fdvnlawfirmvietnam/

Fanpage DIỄN ĐÀN NGHỀ LUẬT: https://www.facebook.com/SayMeNgheLuat/

Group DIỄN ĐÀN NGHỀ LUẬT: https://www.facebook.com/groups/saymengheluat/

Youtube channel: https://www.youtube.com/c/luatsufdvn

FDVN on Tik Tok: https://www.tiktok.com/@luatsufdvn

Telegram of FDVN: https://t.me/luatsufdvn

Group “Legal forum for foreigners in Vietnam”: https://www.facebook.com/groups/legalforeignersinvietnam