Enterprises must set aside motor vehicle insurance funds.

Specifically, Decree No. 67/2023/ND-CP of the Government regulating compulsory civil liability insurance of motor vehicle owners, effective from September 6, 2023, stipulates the principles of management and use of the motor vehicle insurance fund as follows:

The motor vehicle insurance fund is a fund established to carry out humanitarian support activities; prevention and limitation of losses and road traffic accidents; propaganda and education on road traffic safety, compulsory civil liability insurance of motor vehicle owners and related activities to contribute to protecting public interests and ensuring social security.

The motor vehicle insurance fund is implemented by insurance companies. Compulsory civil liability insurance of motor vehicle owners is contributed by them and is centrally managed by the Vietnam Insurance Association, has its own account at a commercial bank operating in Vietnam and uses the seal of the Vietnam Insurance Association.

The motor vehicle insurance fund is managed and used transparently, effectively and for the right purposes as prescribed in this Decree.

Regarding the source of formation of motor vehicle insurance fund, it is stipulated that:

Contributions from insurance companies licensed to implement compulsory civil liability insurance for motor vehicle owners. Sources from deposit interest. Sources of funding and support from organizations and individuals.

Decree No. 67/2023/ND-CP of the Government also stipulates contributions to the motor vehicle insurance fund as follows: Insurance enterprises are responsible for deducting a maximum of 1% of the total compulsory civil liability insurance premiums of motor vehicle owners actually collected from original insurance contracts in the previous fiscal year to contribute to the Motor Vehicle Insurance Fund.

Before April 30 of each year, the Motor Vehicle Insurance Fund Management Board shall decide on the contribution rate to the Motor Vehicle Insurance Fund and notify insurance companies and the Ministry of Finance.

Insurance companies implementing compulsory civil liability insurance for motor vehicle owners shall make contributions to the Motor Vehicle Insurance Fund account within the following time limit:

Before June 30 of each year, pay 50% of the total prescribed amount.

Before December 31 of each year, the unit must pay the remaining prescribed amount.

Source