Is it mandatory to purchase civil liability insurance when registering a vehicle?

Motor vehicle liability insurance is one of the essential requirements for drivers when operating vehicles in traffic.

The Traffic Newspaper's hotline received a question from a reader regarding the following situation: When taking a car for inspection, if the civil liability insurance has expired but the driver does not want to renew it at the inspection unit, is that possible?

Car owners bringing their vehicles for inspection are not required to purchase civil liability insurance at the inspection facility.

Regarding this issue, the head of a vehicle inspection center in Hanoi stated that, according to Circular No. 16/2021 of the Ministry of Transport on technical safety and environmental protection inspection of road motor vehicles (amended and supplemented by Circular 02/2023 and Circular 08/2023), from October 1, 2021, the requirement to present civil liability insurance of motor vehicle owners when undergoing vehicle inspection procedures has been abolished.

Accordingly, when taking a car for periodic inspection at a vehicle inspection center, the owner only needs to present the vehicle registration certificate (original or original mortgage receipt from a credit institution; or vehicle registration appointment slip) to have the vehicle accepted for inspection.

This person stated that although it is no longer a mandatory document in the vehicle registration process, car owners still need to proactively purchase new motor vehicle liability insurance when it expires or is lost, because it is a mandatory document required when driving in traffic.

If traffic police conduct a check, the vehicle owner may be fined if they present expired or are unable to present valid documents.

Currently, vehicle inspection centers still offer this insurance service; however, it is not mandatory for vehicle owners to purchase it from the inspection center.

Vehicle owners can choose to purchase insurance during the vehicle inspection at the inspection center, or they can purchase it independently through independent insurance agents, depending on their preference.

Decree 03/2021/ND-CP on mandatory motor vehicle liability insurance stipulates that: Owners of motor vehicles (including owners of road motor vehicles and specialized motor vehicles) participating in traffic and operating within the territory of the Socialist Republic of Vietnam are required to participate in motor vehicle civil liability insurance (vehicle insurance).

Article 58 of the 2008 Road Traffic Law also stipulates that one of the necessary conditions for drivers participating in traffic is to carry a Certificate of Civil Liability Insurance for motor vehicle owners.

According to Decree 123/2021, drivers of motor vehicles who do not carry their civil liability insurance certificate will be fined between 400,000 and 600,000 VND.

Source: https://www.baogiaothong.vn/co-bat-buoc-phai-mua-bao-hiem-trach-nhiem-dan-su-khi-dang-kiem-xe-19224071814255894.htm