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?
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:
 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.
 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
- EXPLORING TORT LAW – M. STUART MADDEN
- FOUNDATIONS OF TORT LAW – SAUL LEVMORE, AND CATHERINE M. SHARKEY
- TORT LAW: RESPONSIBILITIES AND REDRESS – JOHN C. P. GOLDBERG, LESLIE KENDRICK, AUTHONY J. SEBOK, AND BENJAMIN C. ZIPURSKY
- PERSONAL INJURY AND THE LAW OF TORTS FOR PARALEGALS – EMILY LYNCH MORISSETTE
- TORT LAW – J. STANLEY EDWARDS
- LEGAL NEWSLETTER NO. 33 - 01/2021: The training of bachelor of laws and experiences from some countries around the world.
- PROCEDURE TO GET MARRIED TO A FOREIGNER
- VIRTUAL CURRENCY SCHEMES (OCTOBER 2012) - EUROPEAN CENTRAL BANK
- VIRTUAL CURRENCY SCHEMES: A FURTHER ANALYSIS (FEBRUARY 2015) - EUROPEAN CENTRAL BANK
- CRIMINAL LAW – JOHN M. SCHEB, AND JOHN M. SCHEB II
- THE HANDBOOK OF COMPARATIVE CRIMINAL LAW – KEVIN JON HELLER AND MARKUS D. DUBBER
- CRIMINAL LAW & CRIMINAL JUSTICE: AN INTRODUCTION – NOEL CROSS
- CRIMINAL LAW: CASES AND MATERIALS – STEPHEN A. SALTZBURG, JOHN L. DIAMOND, AND KIT KINPORTS THOMAS, H.M
- THE PRINCIPLE OF LEGALLY IN INTERNATIONAL AND COMPARATIVE CRIMINAL LAW – KENNETH S. GALLANT
- What are documents that we need to provide to be compensated for the land recovered for road construction?
- CRITICAL THINKING SKILLS: DEVELOPING EFFECTIVE ANALYSIS AND ARGUMENT – STELLA COTTRELL