The reasons to buy motorbike insurance

I was caught by the police and fined for not having motorbike insurance. Since riding a motorbike, I have not bought motorbike insurance before. Therefore, I would like to know why I should buy motorbike insurance. I hope FDVN Lawyer can respond soon. Thank you very much.

FDVN’s opinion:

Thank you for concerning FDVN’s legal services. Regarding your consulting requests, after studying the relevant legal documents, FDVN Law Firm would like to give you the following advice:

[1] Principles of participating in social insurance

Pursuant to Clause 2 Article 58 of the Law on 2008, the driver shall carry the following papers when operating a vehicle:

1. Vehicle registration paper;
2. Driver license, for motor vehicle operators;
3. Technical safety and environmental protection inspection certificate, for motor vehicles.
4. Motor vehicle owner civil liability insurance certificate.

In addition, according to Article 4 of Circular No. 22/2016/TT-BTC stipulating regulations, terms, schedules of premiums and limits of liability of the compulsory civil liability insurance of motor vehicle owners:

“Article 4. Rules for purchase of insurances

1. Motor vehicle owners traveling on road within the territory of Vietnam shall buy compulsory insurances under provisions hereof and other relevant regulations of laws.

2. A motor vehicle owner must not enter into more than one compulsory civil liability insurance contract (hereinafter referred to as “compulsory insurance contract”) for the same motor vehicle.

3. Besides compulsory insurance contracts, motor vehicle owners may enter into voluntary insurance contracts.”

With the above provisions, when in traffic, motor vehicle owners need to have a certificate of civil liability insurance of the motor vehicle owner.

[2] Rights and obligations when participating in compulsory insurance for motor vehicle owner's civil liability:

Firstly, regarding the rights of motor vehicle owners: Article 16 of Circular No. 22/2016/TT-BTC stipulates:

“1. Select insurers for their compulsory insurance.

2. Request insurers to clarify and provide information related to the conclusion, performance or termination of compulsory insurance contracts.

3. Request insurers to reduce premiums for the remaining period of compulsory insurance contracts where any factor varies leading to the decrease in risks of occurrences.

4. Request insurers to fully and promptly indemnify for damage under insurance contracts

5. Be entitled to include premiums in operating costs (for vehicle owners are businesses); or regular operating expenses (for vehicles owners are administrative units or public service providers).

6. Others rights under regulations of laws.”

Secondly, regarding the obligations of motor vehicle owners, Article 17 of Circular No. 22/2016/TT-BTC stipulates:

“1. Purchase compulsory insurances and fully pay premiums under this Circular and other relevant regulations of laws. Provide accurate and reliable information stipulated in Certificates of compulsory insurance.

2. Facilitate the examination of vehicle conditions prior to the issuance of Certificates of civil liability insurance by insurers.

3. Promptly notify the insurers of motor vehicle repurposing resulting in the decrease or increase in occurrences.

4. Bring a valid Certificate of compulsory insurance with them when traveling on road, and present such certificate if requested by traffic policies and competent authority under regulations of laws.

5. Obey laws on road traffic safety.

6. In case of traffic accidents, vehicle owners shall:

a) Promptly notify insurers and cooperate to rescue victims, resolve issues and mitigate property damage and injuries; protect accident scenes and report to the nearest local police authority or local government.

b) Do not move, dismantle or restore the property until it is approved by insurers; unless where it is necessary to mitigate the damage to people and property or carry out upon requests of competent authorities.

c) Provide document required in applications for indemnity specified in clauses 1, 2, and 3 and point c, clause 5. Article 14 hereof (where vehicle owners repairing or recovering property from damage by their own may not provide documents specified in point a, clause 3, Article 14 hereof) and facilitate the verification by insurers of such documents. Cooperate with insurers to collect documents specified in point a, clause 5, Article 14 hereof.

7. Notify insurers in writing if the vehicles are eligible for the termination of insurance contracts prescribed in clause 1, Article 10 hereof.

8. Notify and give indemnities that are paid by insurers as prescribed in Annex 06 hereof to each victim.

9. Others obligations under regulations of laws.”

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.

Nguyen Thi Thanh Thanh Tra - FDVN Law Firm

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