Motorcycle insurance collected 431 billion, compensation nearly 42 billion: Ministry stated the reason why it is still mandatory to buy

According to the Ministry of Finance , motorbikes are still the biggest cause of accidents in Vietnam; in the coming time, inspections will be strengthened and cases of violations of regulations on compulsory civil liability insurance of motor vehicle owners will be strictly handled.

Voters in many localities have proposed reviewing and adjusting regulations on purchasing insurance for two-wheeled vehicles in the direction of switching to a voluntary, non-compulsory form to ensure people's rights.

Because in reality, when an accident occurs, people encounter many difficulties in carrying out insurance procedures, are harassed by insurance companies, and are given a series of cumbersome procedures, leading to difficulty in getting paid.

In the first 6 months of 2024, the whole country only had about 6.5 million motorbikes participating in compulsory civil liability insurance for motor vehicle owners, accounting for about 9% of the number of vehicles in circulation. Photo: Dao Phuong

In response to the above issue, the Ministry of Finance informed: Currently, in the world , most countries apply compulsory civil liability insurance for car, motorbike and scooter owners. Some countries even apply it to electric bicycles, including developed countries with low numbers of motorbikes and scooters such as the US, EU, Japan, Korea, or developing countries with large numbers of motorbikes and scooters participating in traffic such as India, China, ASEAN countries...

Compulsory civil liability insurance for motor vehicle owners (including cars and motorbikes) has been implemented in Vietnam since 1988 under Decree No. 30-HDBT of the Council of Ministers.

“Currently, motorbikes are still the main means of motorized transport and the source of pollution. accident largest in Vietnam, accounting for 63.48%. However, in the first 6 months of 2024, the whole country only had about 6.5 million motorbikes participating in compulsory civil liability insurance for motor vehicle owners, accounting for about 9% of the number of vehicles in circulation (the total number of motorbikes in Vietnam is about 72 million)", the Ministry of Finance emphasized.

According to data provided by insurance companies, the Ministry of Finance said: In the first 6 months of 2024, revenue from civil liability insurance premiums for motorbike and scooter owners reached more than 431.78 billion VND, compensation expenses were 41.9 billion VND, and compensation reserves were 35.86 billion VND. The above expenses do not include commission expenses, management expenses, sales expenses... as well as compensation liabilities arising in the future.

With an insurance premium of 55,000 VND or 60,000 VND, if you unfortunately cause an accident to a third party regarding health or life, the insurance will pay the third party a maximum of 150 million VND/person/accident; for property, the insurance will pay a maximum of 50 million VND/accident.

Decree No. 67/2023/ND-CP dated September 6, 2023 of the Government has inherited and supplemented many new regulations to simplify compensation procedures and ensure the rights of insurance buyers.

The Ministry of Finance said that in the coming time, it will strengthen inspection and strictly handle violations of regulations on compulsory civil liability insurance of motor vehicle owners.

Source: https://baoquangninh.vn/bao-hiem-xe-may-thu-431-ty-boi-thuong-gan-42-ty-bo-neu-ly-do-van-bat-buoc-mua-3340225.html