The latest figures on compulsory civil liability insurance for motorcycles, mopeds and similar motor vehicles show that in the 11 months of 2024, the compensation rate reached only 4% of total revenue.
Compensation rate is only about 4%
The Department of Insurance Management and Supervision (Ministry of Finance) has just announced updated data according to business reports of insurance companies on compulsory civil liability insurance for motorbikes, motorbikes and similar motor vehicles.
Accordingly, in 11 months of 2024, total revenue is 736.9 billion VND; estimated compensation cost is 28.5 billion VND; compensation rate is only about 4%.
Figures previously released by the Ministry of Finance show that: In the first 6 months of 2024, revenue from civil liability insurance premiums for motorbike and scooter owners reached more than VND 431.78 billion, compensation expenses were VND 41.9 billion, and compensation reserves were VND 35.86 billion. The above expenses do not include commission expenses, management expenses, sales expenses... as well as arising compensation liabilities.
According to the Ministry of Finance, with an insurance premium of VND55,000 or VND60,000, if an accident occurs to a third party in terms of health or life, the insurance will pay the third party a maximum of VND150 million/person/accident; for property, the insurance will pay a maximum of VND50 million/accident.
"Decree No. 67/2023/ND-CP 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 emphasized.
In mid-January 2025, VietNamNet Newspaper published an article "Motorcycle insurance collected 431 billion, compensation of nearly 42 billion: Ministry stated the reason why it is still mandatory to buy".
The article reflects the current situation, many opinions suggest reviewing and adjusting regulations on purchasing insurance for two-wheeled vehicles in the direction of switching to a voluntary form, not forced, to ensure the rights of the people. 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.
However, 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.
In Vietnam, motorbikes are still the main means of motor transport and the largest source of accidents, 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 9% of the number of vehicles in circulation (the total number of motorbikes in Vietnam is about 72 million).
“In the world, most countries apply compulsory civil liability insurance for car, motorbike and scooter owners. Some countries even apply it to electric bicycles,” said the Ministry of Finance.
The reason given is not convincing.
After the above article, many readers of VietNamNet expressed a series of noteworthy views and opinions.
Reader Hao Chau Vu suggested that when people are required to buy insurance, there should be a corresponding law to avoid harassment by the insurance company and clearly stipulate the maximum time limit for completion. Or, there should be a hotline for people to report harassment when accidents occur.
“I myself had an accident, all procedures were met, but it has been 9 years and I still have not received any compensation, so the law needs to be made to gain people's trust to be satisfactory,” this reader wondered.
Reader Tran Trung Thanh said: “For many years I have bought insurance and have been hit by other people many times, but I have never claimed insurance money. People are always required to buy insurance without any instructions on how to enjoy any benefits.”
Reader Phuc Dam suggested that insurance companies provide a list and specific addresses of motorbike owners who have received insurance money in the past 5 years so that people can monitor civil liability insurance activities for motorbikes. If necessary, they can propose to replace compulsory insurance with voluntary insurance.
Reader Tqlonghuy is concerned that now the traffic police force checks and fines if you don't have motorbike insurance, making it difficult for people, forcing them to buy something they don't know how to use and don't need.
Reader Truongthanhson1988 noted that only 9% of motorbikes in circulation buy insurance, proving that insurance is not practical and people do not need it. Therefore, it should only be encouraged to buy, not required.
According to reader Binh , enacting insurance laws without clear policies for buyers will benefit insurance companies a lot. When something happens, insurance companies will refuse in every way, and if you don't buy, you will be fined. The law should be changed to voluntary because after all, there is already personal insurance!
Many people think that we cannot use the excuse that everyone else in the world does it so we do it too. If the people's interests are guaranteed, even if it is not forced, people will still respond.
Reader Trien Tran analyzed that people in many countries are willing to buy insurance because when there is an accident, they do not have to go through many procedures. Insurance is only based on the police report, whichever party is at fault, the insurance of the at-fault party will pay the injured party. The compensation level is also very simple: The car owner only needs to ask for a quote from the repair unit and the insurance will pay according to the quote.
Source: https://vietnamnet.vn/mua-bao-hiem-xe-may-bat-buoc-thu-gan-740-ty-chi-tra-hon-28-ty-dong-2368473.html
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