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THE
MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
23/2007/QD-BTC
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Hanoi
, April 09, 2007
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DECISION
PROMULGATING THE REGULATION ON COMPULSORY INSURANCE FOR CIVIL
LIABILITY OF MOTOR VEHICLES' OWNERS
THE MINISTER OF FINANCE
Pursuant to the June 4, 2005
Civil Code;
Pursuant to December 9, 2000 Insurance Business Law No. 24/2000/QH10;
Pursuant to the Government's Decree No. 77/2003/ND-CP of July 1, 2003, defining
the functions, tasks, powers and organizational structure of the Ministry of
Finance;
Pursuant to the Government's Decree No. 115/1997/ND-CP of December 17, 1997, on
the compulsory insurance for civil liability of motor vehicles' owners;
Pursuant to the Government's Resolution No. 13/2002/ND-CP of November 19, 2002,
on measures to check the rise in, and proceed to gradually reduce, traffic
accidents and congestion;
At the proposal of the director of the Insurance Department,
DECIDES:
Article 1.-
To promulgate together with this Decision the rule, the table of premium rates
and the levels of compulsory insurance for civil liability of motor vehicles'
owners.
Article 2.-
Insurance enterprises licensed to deal in compulsory insurance for civil
liability of motor vehicles' owners shall deduct at least 2% of collected
premiums of compulsory insurance for civil liability of motor vehicles' owners
to contribute to the Fund for Road Traffic Safety Propaganda and Assurance
managed and used by the Vietnam Insurance Association. The Fund is used for the
following purposes:
a/ Organizing propaganda and
education about road traffic safety and compulsory insurance for civil
liability of motor vehicles' owners;
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c/ Coordinating with competent
agencies in placing road signs, building byroads and works for the purpose of
preventing accidents and reducing risks for the insured.
d/ Supporting the payment of
humanitarian compensations for damage caused to third parties and passengers
onboard vehicles when it is impossible to identify accident-causing vehicles or
the vehicles are not covered by insurance.
e/ Other activities to ensure
road traffic order and safety.
Specific levels of contributions
to, and the mechanism of management, use and settlement of the Fund for Road
Traffic Safety Propaganda and Assurance shall be agreed in advance by the
Vietnam Insurance Association and enterprises dealing in compulsory insurance
for civil liability of motor vehicles' owners.
Article 3.-
Insurance enterprises may not conduct sales promotion in any form for
compulsory insurance for civil liability of motor vehicles' owners.
Article 4.- This
Decision takes effect 15 days after its publication in "CONG BAO" and
replaces the Minister of Finance's Decision No. 23/2003/QD-BTC of February 25,
2003, promulgating the rules, table of premium rates and levels of compulsory
insurance for civil liability of motor vehicles' owners. Insurance contracts
entered into before the effective date of this Decision continue to be
performed according to the provisions of law effective at the time of their
entry.
Article 5.-
The director of the Insurance Department and heads of concerned units shall inspect
and supervise the implementation of this Decision.
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RULE
FOR COMPULSORY INSURANCE FOR CIVIL LIABILITY OF MOTOR
VEHICLES' OWNERS
(Promulgated together with the Minister of Finance's Decision No.
23/2007/QD-BTC of April 9, 2007)
Chapter I
GENERAL PROVISIONS
Article
1.- Subjects and scope of application
1. Insurance enterprises and
owners of motor vehicles (including foreigners) that use motor vehicles in the
territory of the Socialist Republic of Vietnam are obliged and responsible to
observe the regulation on compulsory insurance for civil liability for motor
vehicles' owners.
2. The compulsory insurance for
civil liability of motor vehicles' owners under this Rule covers:
- Insurance for liability to pay
compensations for human and/or property damage outside contract caused by motor
vehicles to a third party;
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Article
2.- Interpretation of terms
In this Rule, the terms below
are construed as follows:
1. Third party means persons
suffering from injuries and/or property damage caused by the use of a motor vehicle,
excluding the following persons:
- Driver and driver assistant
onboard that vehicle;
- Persons and passengers onboard
that vehicle;
- The vehicle's owner, except
when he/she has transferred the possession or use of that vehicle to another
person.
2. Passengers means persons
transported on a vehicle under a passenger transport contract in any form
specified in the Civil Code.
3. Insurance liability level
means the maximum sum of money an insurance enterprise might have to pay for
human and/or property damage in an insured accident.
4. Intentional act of causing
damage means an act taken by a person who is fully aware that his/her act will
cause damage to other persons but still takes it and lets the damage occur at
will or against will.
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An insurance certificate issued
by an insurance enterprise to an insured party constitutes an evidence of the
entry into a civil liability insurance contract between a motor vehicle's owner
and that insurance enterprise. The principal contents of an insurance
certificate are specified in Appendix 1 ' Contents of insurance
certificates, to the Minister of Finance's Decision No. 23/2007/QD-BTC.
Article
4.- Insurance premiums and insurance liability levels
Insurance enterprises and motor
vehicles' owners shall provide insurance according to the table of premium
rates and levels of liability to insure the civil liability of motor vehicles'
owners promulgated together with the Minister of Finance's Decision No.
23/2007/QD-BTC.
Insurance enterprises may
negotiate with motor vehicles' owners on insurance according to a table of
premium rates and liability levels higher or on a scope of insured risks wider
than the insurance rule, table of premium rates and insurance liability levels
promulgated together with the Minister of Finance's Decision No.
23/2007/QD-BTC.
Article
5.- Insurance duration and validity
1. The duration of compulsory
insurance for civil liability of motor vehicles' owners is at least one (1)
year.
2. Insurance validity shall begin
and expire according to the provisions of insurance certificates. Insurance
enterprises shall issue insurance certificates only after motor vehicles'
owners fully pay insurance premiums (unless otherwise agreed upon in writing).
3. During the validity duration
stated in an insurance certificate, if the ownership of the motor vehicle is
transferred and the motor vehicle's owner does not request revocation of the
insurance policy, all insurance benefits related to the civil liability of the
vehicle's owner remain effective for the new owner of the motor vehicle.
Article 6.-
Revocation of insurance policies
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Article 7.-
Responsibilities of motor vehicles' owners and drivers
1. When requesting insurance,
motor vehicles' owners shall declare fully and honestly the contents of their
insurance certificates as specified in the Minister of Finance's Decision No.
23/2007/QD-BTC.
2. When a traffic accident
occurs, motor vehicles' owners or drivers shall:
2.1. Actively rescue and render
first aid to victims, thereby limiting human and property damage, protect the
accident scene and promptly report the accident to the insurance enterprise for
coordinated solution and to the nearest local police office or administration.
2.2. Within five days after the
occurrence of the accident (unless there exists a justifiable reason) the motor
vehicle's owner shall send to the insurance enterprise an accident notice as
defined in Appendix 2 ' Notification of accidents and request for
compensations, to the Minister of Finance's Decision No. 23/2007/QD-BTC;
2.3. Not remove, disassemble or
repair the damaged property without the consent of the insurance enterprise,
except when it is necessary to do so to ensure the safety for, prevent and
limit damage to, humans and property, or it is so requested by a competent
agency;
2.4. Reserve the right to lodge
complaints and transfer to the insurance enterprise the right to claim
compensations within the sum of money the insurance enterprise has indemnified,
enclosed with all necessary relevant documents.
3. Motor vehicles' owners or
drivers shall honestly collect and supply documents and papers in the
compensation claim dossiers and create favorable conditions for the insurance
enterprise to verify the authenticity of those documents and papers.
4. In case of change in the use
purpose of a motor vehicle as defined in the table of premium rates and the
levels of liability to insure the civil liability of motor vehicles' owners
promulgated together with the Minister of Finance's Decision No.
23/2007/QD-BTC, the motor vehicle's owner shall promptly notify the change to
the insurance enterprise for adjustment of insurance premium as appropriate.
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Article 8.-
Responsibilities of insurance enterprises
1. To guide and create favorable
conditions for motor vehicles' owners to buy insurance.
2. To fully supply information
on insurance policies and clearly explain the rule for compulsory insurance for
civil liability of motor vehicles' owners, promulgated together with the
Minister of Finance's Decision No. 23/2007/QD-BTC, to motor vehicles' owners.
3. Upon the occurrence of an
accident, to closely coordinate with involved motor vehicles' owners or drivers
and functional agencies right from the beginning to remedy the accident. In
case of necessity, the insurance enterprise shall promptly pay in advance
necessary and reasonable expenses within the scope of its insurance liability
in order to remedy consequences of the accident.
4. To coordinate with local
police offices and administrations as well as involved parties in gathering
necessary relevant papers in order to identify the cause of the accident and
the extent of damage caused by the accident within the scope of the insurance
liability.
5. If accident-causing motor
vehicles are insured and their owners are dead, to pay compensations directly
to third parties on behalf of motor vehicles' owners within the scope of the
insurance liability defined in this insurance rule.
6. To consider and pay
compensations within the time limit specified in Article 13 below upon
receiving complete and valid compensation claim dossiers.
Chapter II
SPECIFIC PROVISIONS
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Within the scope of insurance
liability level stated in an insurance certificate, an insurance enterprise
shall pay to a motor vehicle's owner the sum of money that owner has paid as
compensation to the third party and passengers for damage caused by the use of
the motor vehicle. Specific compensation levels are as follows:
1. For human damage:
1.1. The compensation level
shall be determined based on a court ruling.
1.2. If no court ruling is available,
the compensation level shall be determined based on the table of compensation
levels for human damage specified in Appendix 3 to the Minister of Finance's
Decision No. 23/2007/QD-BTC.
1.3. If a motor vehicle's owner
enters into many insurance policies for the same motor vehicle, the level of
compensation shall be the total of human damage compensation levels of those
insurance policies. The total compensation level of policies must not exceed
the sum of money actually paid by the vehicle's owner to the victim and shall
be equally divided to those insurance policies.
2. For property damage:
2.1. The compensation level
shall be determined according to actual damage and the degree of fault of the
motor vehicle's owner.
2.2. If a motor vehicle's owner
enters into many insurance policies for the same motor vehicle, the
compensation amount shall be calculated on only one insurance policy. The
insurance enterprise that issues the first insurance policy shall pay the
compensation and recover the compensation amount equally divided to the
insurance policies.
3. Necessary and reasonable
expenses already paid by the vehicle's owner for preventing and limiting the
accident-related damage.
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All property damage covered by
the insurance liability shall be assessed by insurance enterprises or
assessment companies hired by insurance enterprises (unless otherwise agreed)
to the witness of motor vehicles' owners, third parties or lawful
representatives of involved parties in order to determine the causes of
accidents and the extent of the damage.
If a motor vehicle's owner
disagrees with the cause of the accident and the extent of the damage
determined by an insurance enterprise, the two parties shall agree to choose a
professional technical assessor to conduct the assessment. Conclusions made by
the professional technical assessor will serve as a basis for determination of
damage. If these conclusions are different from those made by the insurance
assessor, the insurance enterprise shall bear assessment expenses. If these
conclusions are similar to those made by the insurance assessor, the motor
vehicle's owner shall bear assessment expenses.
In special cases where the
insurance enterprise is unable to make to a written record of assessment, it
may base itself on reports or conclusions of competent functional agencies and
gathered material evidence (photos, declarations of involved parties) to
determine the cause of the accident and the extent of damage.
Article
11.- Insurance exemption
An insurance enterprise is not
liable to pay compensations for damage caused in the following cases:
1. Acts of deliberately causing
damage by vehicles' owners or drivers or victims;
2. Drivers of accident-causing
vehicles deliberately escape and shirk civil liability of motor vehicles'
owners or drivers;
3. Drivers have no valid driver
licenses for types of motor vehicles that require driver licenses;
4. Damage entails indirect
consequences such as decrease in commercial value, damage associated with the use
and exploitation of the damaged property;
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6. War and warlike circumstances
occur;
7. Damage is caused to special
properties, including gold, silver, gems, money, papers of monetary value,
antiques, precious and rare paintings and pictures, human corpses and remains.
Article
12.- Compensation claim dossiers
A compensation claim dossier
comprises the following documents:
1. Documents to be collected and
supplied by the motor vehicle's owner:
1.1. The accident report and
compensation claim specified in Appendix 2 promulgated together with the
Minister of Finance's Decision No. 23/2007/QD-BTC;
1.2. Documents related to the
vehicle and driver;
1.3. Papers proving human
damage, such as the victim's injury certification, hospital discharge paper,
surgery certification or death certificate;
1.4. Papers proving property
damage, such as invoices of repair or replacement of property damaged; papers
proving the necessary and reasonable expenses paid by the vehicle owner to
minimize damage or comply with the insurance enterprise's instructions.
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2.1. The written record of the
accident scene investigation, the accident scene plan and photos;
2.2. The written record of the
inspection of vehicles related to the accident;
2.3. The preliminary report on
initial results of investigation of the accident;
2.4. When it is impossible to
collect all above documents, the payable compensation shall be based on the written
record of assessment of the insurance enterprise or conclusions of the
specialized technical assessors defined in Article 10 of this Rule.
3. Documents specified in
Clauses 1 and 2 of this Article must be originals. If it is possible to keep
the originals, the insurance enterprise shall verify copies against their
originals.
Chapter
III
DISPUTE SETTLEMENT
Article
13.- Time limit for claiming, paying and complaining about compensation
1. The time limit for a motor
vehicle's owner to claim compensation is one (1) year from the date of
occurrence of the accident, except for delay due to objective reasons and force
majeure circumstances specified by law.
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In case of refusal to pay a
compensation, the insurance enterprise shall notify in writing the motor
vehicle's owner of the reason therefor within thirty days (30) days from the
date of receipt of the compensation claim dossier.
3. The statute of limitations
for instituting a lawsuit about insurance compensation is three (3) years from
the date the insurance enterprise pays or refuses to pay the compensation.
After the expiration of that time limit, all complaints are invalid.
4. If a third party or a
passenger transported under a transport contract, who suffers injuries and
property damage caused by an insured vehicle, lodges a complaint directly
demanding the involved insurance enterprise pay the compensation, that
insurance enterprise shall contact the motor vehicle's owner in order to pay
the compensation according to the provisions of this Rule.
Article
14.- Settlement of disputes
Any dispute arising from an
insurance policy which cannot be settled through negotiation between involved
parties may be brought to a court in Vietnam for settlement.