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THE GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
115/1997/ND-CP
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Hanoi,
December 17, 1997
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DECREE
ON
REGIME OF OBLIGATORY INSURANCE FOR CIVIL RESPONSIBILITY OF THE OWNERS OF MOTORIZED
VEHICLES
THE GOVERNMENT
Pursuant to the Law on
Organization of the Government of September 30, 1992;
Pursuant to the Civil Code of October 28, 1995;
Pursuant to the Ordinance of the Handling of Administrative Violations of July
6, 1995;
At the proposal of the Minister of Finance,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.-This Decree
provides for the regime of obligatory insurance for civil responsibility of the
owners of motorized vehicles with a view to protecting the legitimate and legal
interests of the persons who suffer physical or material damage caused by
motorized vehicles and also to helping the owners of motorized vehicles
overcome the financial consequences, thus contributing to stabilizing the
economic and social situation.
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Article 3.- In this
Decree the following terms are construed as follows:
1. An insurance enterprise is an
enterprise permitted to be founded and to carry out legal insurance business in
Vietnam allowed by the Ministry of Finance to conduct professional insurance
activities concerning motorized vehicles;
2. Owner of motorized vehicles
is an individual or organization having ownership right over a motorized
vehicle or any person allowed to use motorized vehicles or conduct passenger
transport business with motorized vehicles;
3. Motorized vehicles are all
kinds of vehicles taking part in transport on land roads by the motor of these
vehicles, except mopeds.
Article 4.- Those who
suffer physical or property damage caused by vehicles which have taken part in
the civil responsibility insurance of owners of motorized vehicles, are
entitled to file a direct complaint against the insurance enterprise and to
demand appropriate and timely indemnities as prescribed by law.
Chapter II
CONTENTS OF REGIME OF CIVIL
RESPONSIBILITY INSURANCE OF THE OWNERS OF MOTORIZED VEHICLES
Article 5.- The regime of
civil responsibility insurance of the owner of a motorized vehicle defined in
this Decree comprises insurance of responsibility of paying damages outside the
contract caused by the motorized vehicle against a third person, insurance of
civil responsibility of the owner of motorized vehicle toward the passenger
according to the passenger transport contract.
Article 6.- The
obligation of taking part in the regime of insurance of civil responsibility of
the owner of a motorized vehicle defined in this Decree shall be reflected
through the signing of the insurance contract between the owner of a motorized
vehicle and the insurance enterprise.
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The insurance certificate is the
evidence of the signing of a contract on civil responsibility insurance of the
owner of the motorized vehicle.
Article 7.- Obligation and
interests of the owner of motorized vehicle.
1. Obligation of the owner of
motorized vehicle:
a/ To buy the insurance of
responsibility for paying damages outside contract caused by the motorized
vehicle. In addition, the owner of vehicle doing passenger transport business
shall also have to buy the insurance of civil responsibility toward the
passengers under the passenger transport contract;
b/ To take along and produce
when requested by the traffic police the valid certificate of civil
responsibility insurance of the owner of the motorized vehicle issued by the
insurance enterprise while using the vehicle.
2. Interests of the owner of a
motorized vehicle:
a/ For an owner of a motorized
vehicle that is a production or business unit, the insurance fee shall be
accounted in the production cost or the transport fee; for an owner of
motorized vehicle that is an administrative or other non-productive unit, the
insurance fee is accounted in the fee supplied by the State budget;
b/ When a violation occurs within
the insurance responsibility, the insurance enterprise shall represent the
owner of the motorized vehicle to pay to the person who suffers physical and
property damages caused by the motorized vehicle which has taken part in the
insurance scheme and other necessary and reasonable expenditures which the
owner of the vehicle has made to reduce the losses or to carry out the
instructions of the insurance enterprise.
Article 8- Obligation and
interests of the insurance enterprise.
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a/ To sell insurance of
responsibility for damages outside contract caused by the motorized vehicles;
insurance of civil responsibility of the owner of a motorized vehicle toward
passengers under the passenger transport contract and at the request of the
owner of the motorized vehicle;
b/ To fully observe the rules,
fee rate and level of obligatory responsibility insurance issued by the
Ministry of Finance;
c/ When selling the obligatory
civil responsibility insurance of the owner of a motorized vehicle, the
insurance enterprise must fully explain to the owner of the motorized vehicle
the information related to the interests and obligations of the owner of the
motorized vehicle and of the insurance enterprise, and supply information about
the rules, fee rate, the level of obligatory responsibility insurance issued by
the Ministry of Finance or the fee rate and other responsibility insurance
levels which the insurance enterprise has registered with the Ministry of
Finance;
d/ Right after signing the
contract of civil responsibility insurance of the owner of the motorized
vehicle, the insurance enterprise must issue to the owner of the vehicle a
certificate of obligatory insurance of civil responsibility of the owners of
motorized vehicles with all the contents prescribed by law;
e/ To expeditiously examine and
pay appropriate and timely indemnities as prescribed by law when the owner of
the vehicle or the person who suffers physical or property damage caused by the
motorized vehicle which has taken part in the insurance scheme.
2. Interests of the insurance
enterprise:
The insurance enterprise is
protected by the State for its legitimate and lawful interests in the process
of the business activities of obligatory civil responsibility insurance of the
owner of the motorized vehicle.
Chapter III
RESPONSIBILITY OF THE
MINISTRIES AND THE PEOPLE'S COMMITTEES OF THE PROVINCES AND CITIES DIRECTLY
UNDER THE CENTRAL GOVERNMENT IN ENSURING IMPLEMENTATION OF THE REGIME OF CIVIL
RESPONSIBILITY OF THE OWNERS OF MOTORIZED VEHICLES
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1. To lay down the conditions
and criteria of the insurance enterprises engaged in the business of insurance
of motorized vehicles;
2. To issue rules, fee rates and
levels of obligatory insurance of civil responsibility of the owners of
motorized vehicles;
3. To organize the guidance of
the supervision and inspection of the insurance enterprises in the
implementation of the regime of obligatory insurance of civil responsibility of
the owners of motorized vehicles and the good discharge of the task of paying
indemnities to the persons who suffer damage and the task of prevention against
and limitation of losses;
4. To penalize the insurance
enterprises which violate the regime of obligatory insurance of civil
responsibility of the owners of motorized vehicles.
Article 10.- The Ministry
of the Interior has the responsibility:
1. To organize the guidance of
the supervision and inspection of the owners of motorized vehicles in the implementation
of the regime of obligatory insurance of civil responsibility of the owners of
motorized vehicles;
2. To penalize the owners of the
motorized vehicles who violate the regime of obligatory insurance of civil
responsibility of the owners of motorized vehicles;
3. To assume the main
responsibility in investigating and handling the traffic accidents on land
roads;
4. To assume the main
responsibility and coordinate with the Ministry of Finance, the Ministry of
Communications and Transport and the People's Committees of the provinces and
cities directly under the Central Government in carrying out well the
provisions of this Decree;
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Article 11.- The Ministry
of Communications and Transport has the responsibility:
1. To issue the technical norms
and the processes and rules and economic and technical targets under the
authority of the branch aimed at ensuring the safety of the operation of
motorized vehicles in the transportation of passengers;
2. To coordinate with the
Ministry of the Interior in analyzing the causes and in handling the traffic
accidents on land roads and create conditions for the insurance enterprises to
implement well the regime of obligatory insurance of civil responsibility of
the owners of motorized vehicles;
3. To coordinate with the
Ministry of Finance in using measures to prevent and limit the losses in land
traffic.
Article 12.- The Ministry
of Culture and Information has the responsibility to direct the cultural and
information agencies, the press at the center and in the localities to campaign
among the population and to popularize to the population the regime of
obligatory insurance on the civil responsibility of the owners of motorized
vehicles, and to encourage the latter and the insurance enterprises to carry
out this Decree seriously.
Article 13.- The People's
Committees of the provinces and cities directly under the Central Government
shall have to popularize this Decree and coordinate with the People's Police,
the transport service and the Ministry of Finance in applying measures to
prevent and limit losses, creating conditions for the insurance enterprises
taking part in the settlement of the accidents to help the owners of vehicles
and the victimized persons quickly overcome the financial consequences and
stabilize quickly the economic and social life.
Chapter IV
HANDLING OF VIOLATIONS
Article 14.-
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2. The owner of a motorized
vehicle who violates the obligation defined in Clause 1 of Article 7 of this
Decree shall, depending on the seriousness of the violation, be sanctioned
administratively as provided for in current legislation concerning the
violations of land road traffic and urban traffic order and safety.
Article 15.- An insurance
enterprise which violates the obligations prescribed in Clause 1 of Article 8
of this Decree shall, depending on the seriousness of the violation, be handled
according to the current legislation on the management of activities in
insurance business.
Chapter V
IMPLEMENTATION PROVISIONS
Article 16.- All
complaints and denunciations about the implementation of the regime of
obligatory insurance of civil responsibility of the owners of motorized
vehicles defined in this Decree shall be settled according to the order and
procedures of the Ordinance on Complaints and Denunciations by Citizens and the
Ordinance on the Handling of Administrative Violations.
Article 17.- This Decree
takes effect 15 days after its signing and replaces Decree No.30-HDBT of March
10, 1988 of the Council of Ministers (now the Government) on the regime of obligatory
insurance for civil responsibility of the owners of motorized vehicles and the
documents guiding its implementation.
Article 18.- The Minister
of Finance, the Minister of the Interior and the Minister of Communications and
Transport shall, depending on their functions and tasks, have to guide and
organize the implementation of this Decree.
Article 19.- The
Ministers, the Heads of the ministerial-level agencies, the Heads of the
agencies attached to the Government and the Presidents of the People's Committees
of the provinces and cities directly under the Central Government shall have to
implement this Decree.
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ON
BEHALF OF THE GOVERNMENT
FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER
Nguyen Tan Dung