Circular No. 22/2016/TT-BTC dated February 16, 2016 of the Ministry of Finance on regulations, terms, schedules of premiums and limits of liability of compulsory civil liability insurance of motor vehicle owners

CIRCULAR

On rules, terms, table of premium rates and levels of compulsory insurance for civil liability of motor vehicle owners[1]

Pursuant to the Government’s Decree No. 103/2008/ND-CP of September 16, 2008, on compulsory insurance for civil liability of motor vehicle owners;

Pursuant to the Government’s Decree No. 214/2013/ND-CP of December 20, 2013, amending and supplementing a number of articles of the Government’s Decree No. 103/2008/ND-CP of September 16, 2008, on compulsory insurance for civil liability of motor vehicle owners;

Pursuant to the Government’s Decree No. 215/2013/ND-CP of December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the Director General of the Insurance Management and Supervision Department;

The Minister of Finance promulgates the Circular on rules, terms, table of premium rates and levels of compulsory insurance for civil liability of motor vehicle owners as follows:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular prescribes rules, terms, table of premium rates and levels of liability of compulsory insurance for civil liability of motor vehicle owners.

Article 2. Subjects of application

1. Owners of motor vehicles running on the road in the territory of the Socialist Republic of Vietnam.

2. Insurers licensed to provide compulsory insurance for civil liability of motor vehicle owners under law.

3. Other organizations and individuals involved in compulsory insurance for civil liability of motor vehicle owners.

Article 3. Interpretation of terms

1. Insurer means an enterprise lawfully established and engaged in insurance business in Vietnam and licensed to provide compulsory insurance for civil liability of motor vehicle owners.

2. Motor vehicle owner (organization or individual) means the owner of a motor vehicle or a person authorized by the motor vehicle owner to legally possess, use or drive that motor vehicle.

3. Motor vehicle means an automobile, tractor, construction vehicle or machine, agricultural or forestry vehicle or machine or a special vehicle used for security or defense purpose (including trailers and semi-trailers pulled by automobiles or tractors), two-wheeled motorcycle, three-wheeled motorcycle, moped or a similar motor vehicle (including those for the disabled) which runs on the road.

4. Passenger means a person transported on a motor vehicle under a passenger transportation contract in any of the forms specified in the Civil Code.

5. Third party means a person who suffers bodily injury, loss of life, or property damage caused by a motor vehicle, other than the following persons:

a/ Driver or assistant driver of the vehicle;

b/ Persons and passengers on board the vehicle;

c/ Owner of the vehicle, unless he/she/it has authorized another organization or individual to possess or use the vehicle.

6. Day (counted in time limit) referred to in this Circular means a working day.

Article 4. Principles of insurance participation

1. Owners of motor vehicles running on the road in the territory of the Socialist Republic of Vietnam shall participate in compulsory insurance for civil liability of motor vehicle owners under this Circular and other relevant laws.

2. A motor vehicle owner may not concurrently enter into two or more policies of compulsory insurance for civil liability for the same motor vehicle.

3. Apart from the policy of compulsory insurance for civil liability, a motor vehicle owner may also reach agreement with an insurer on a voluntary insurance policy.

4. An insurer may, at its will, sell compulsory insurance for civil liability of motor vehicle owners by the following modes:

a/ Direct sale;

b/ Through insurance agents or brokers;

c/ Other modes in accordance with law.

When compulsory insurance for civil liability of motor vehicle owners is sold through an insurance agent, this agent must satisfy the criteria specified in the Law on Insurance Business and guiding documents and other relevant laws.

An insurer may not use agents of another insurer for sale of insurance for civil liability of motor vehicle owners, unless the latter so consents in writing, and shall train and issue insurance agent certificates to those agents under regulations.

Article 5. Scope of indemnification

1. Loss of life, bodily injury or property damage out of contract caused by motor vehicles to third parties.

2. Loss of life or bodily injury of passengers under passenger transportation contracts caused by motor vehicles.

Chapter II

SPECIFIC PROVISIONS

Article 6. Policy of insurance for civil liability of motor vehicle owners

1. The certificate of compulsory insurance for civil liability of a motor vehicle owner (below referred to as insurance certificate) is the evidence of entry into a sole policy of compulsory insurance for civil liability between a motor vehicle owner and an insurer. Each motor vehicle shall be issued one insurance certificate. A motor vehicle owner who loses his/her insurance certificate shall request in writing the insurer (that has issued such certificate) to re-issue this certificate.

2. An insurer shall issue an insurance certificate to a motor vehicle owner only when he/she has paid premiums or commits to pay premiums under Clause 3 of this Article.

3. The payment of premiums or commitment to paying premiums is prescribed as follows:

a/ For premiums of under VND 50 million: Motor vehicle owners shall pay in a lump sum at the time of issuance of the insurance certificate.

b/ For premiums of between VND 50 million and under VND 100 million: Motor vehicle owners shall agree in writing with the insurer on lump sum payment within 10 days from the date of issuance of the insurance certificate.

c/ For premiums of VND 100 million or over: Motor vehicle owners shall agree in writing with the insurer on the payment as follows:

- First payment: 50% of total premiums within 10 days from the date of issuance of the insurance certificate;

- Second payment: remaining 50% of premiums within 30 days from the date of issuance of the insurance certificate.

d/ The payment of premiums shall be certified in one of the following forms: premiums receipt; premiums collection invoice of insurer; certification of premiums payment by motor vehicle owner on insurance certificate (for motor vehicle owners who have fully paid premiums), and other lawful documents as prescribed by law).

4. In case a motor vehicle owner fails to fully pay premiums under Clause 3 of this Article, the insurance policy will be invalidated on the date following the due date of payment of premiums by the owner. Within 5 working days from the date of invalidation of the insurance policy, the insurer shall issue a notice of the invalidation to the motor vehicle owner and refund the excessive premiums amount (if any) or ask the latter to fully pay premiums.

An insurer shall not have to refund paid premiums in case an insured event has occurred and the indemnification liability has arisen before the termination of the insurance policy.

An insurer shall not have to indemnify the insured for an insured event occurring after the termination of the insurance policy.

The insurance policy shall continue to be effective from the time the motor vehicle owner fully pays premiums and receives a written approval from the insurer.

5. Issuance, management and use of insurance certificates:

a/ An insurer may print its own insurance certificates according to the Finance Ministry’s forms in Appendices 1 and 2 to this Circular. Insurance certificates of compulsory insurance for civil liability of motor vehicle owners shall be printed separately from certificates of voluntary insurance (if any). When an insurer consolidates the certificates of compulsory insurance for civil liability of motor vehicle owners and voluntary insurance for motor vehicles into one, it shall comply with Appendices 3  and 4 to this Circular.

b/ An insurance certificate shall be printed with a number in the ascending order of natural numbers;

c/ An insurance certificate shall be used according to its assigned consecutive ordinal number in each volume (unless a certificate is voided due to wrong writing or when the non-use of a certain number conforms with the insurer’s specific rules on management of printed forms. Voided insurance certificates shall be crossed out, written with the word “void” and fully kept by the insurer);

d/ An insurer shall fully fill in every insurance certificate as required. Information written on an insurance certificate issued to a motor vehicle owner must be identical with that written on its copies filed at the insurer;

dd/ An insurer shall open a book to monitor the issuance, use and liquidation of the use of insurance certificates, ensuring constant control of every certificate;

e/ An insurer shall develop a process of issuance, management and use of insurance certificates to ensure compliance with the above regulations.

Article 7. Insurance duration and validity

1. The starting time of validity of an insurance certificate shall be stated in the insurance certificate, but must not be prior to the time the motor vehicle owner fully pays premiums, except the cases specified at Points b and c, Clause 3, Article 6 of this Circular.

2. The validity duration of an insurance certificate is one year. In the following cases, the insurance duration may be less than one year:

a/ Foreign motor vehicles are temporarily imported for re-export and have run on the road in the territory of the Socialist Republic of Vietnam for less than one year;

b/ The use life of motor vehicles is less than one year;

c/ Motor vehicles are temporarily registered under law, including:

- New automobiles, imported or locally manufactured or assembled, running from warehouses, ports, factories or sale agents to places of registration or other sale agents or warehouses;

- Automobiles under deregistration procedures for re-export;

- Automobiles permitted for transit (other than those under agreements concluded by the State);

- Chassis with cabs and open trucks;

- Automobiles for driving test;

- Vehicles with number plates of trade-economic zones under the Government’s regulations and operating in inland Vietnam;

- New vehicles assembled in Vietnam on trial run on public roads;

- Vehicles to be used for conferences or sports events at the request of the Government or the Ministry of Public Security;

- Other motor vehicles permitted for temporary registration under law.

d/ In case a motor vehicle owner has many vehicles for which insurance is bought at different points of time in a year, and he/she wishes to change to the same point of time of insurance for management, the duration of insurance of these vehicles may be less than one year and the same as the remaining duration of validity of the first insurance policy of that year. The duration of insurance in the following year of all of these insurance policies (already changed to the same point of time) must be one year.

3. Within the duration of validity specified in an insurance certificate, if a motor vehicle changes hands, all insurance benefits related to the civil liability of the old motor vehicle owner remain valid for the new one.

Article 8. Premium

1. Premium means a sum of money a motor vehicle owner shall pay to an insurer for compulsory insurance for civil liability of motor vehicle owners. The premium rates for each type of motor vehicle are provided in Appendix 5 to this Circular.

2. For motor vehicles permitted for an insurance term of less than one year under Clause 2, Article 7 of this Circular, premium rates shall be calculated based on the rates provided in Appendix 5 to this Circular corresponding to the insurance duration specified in the insurance certificate, specifically as follows:

When the insurance duration is 30 days or less, the payable premium shall be calculated by dividing the annual premium by type of motor vehicle by 12 months.

Article 9. Insurance liability levels

Insurance liability level means the maximum sum of money an insurer may be obliged to pay for bodily injury, loss of life and property damage caused by a motor vehicle to a third party and passengers in an insured accident, specifically as follows:

1. The insurance liability level for human damage caused by a motor vehicle is VND 100 million/person/accident.

2. The insurance liability level for property damage caused by a two-wheeled or three-wheeled motorcycle, moped or a similar motor vehicle (including motor vehicles used for the disabled) is VND 50 million/accident.

3. The insurance liability level for property damage caused by an automobile, a tractor, a construction vehicle or machine, an agricultural or forestry vehicle or machine or a special vehicle used for security and defense purposes (including trailers and semi-trailers pulled by automobiles or tractors) is VND 100 million/accident.

Article 10. Cancellation of insurance policy

1. An insurance policy may be cancelled only in the following cases:

a/ The registration and number plate of the motor vehicle are withdrawn under law;

b/ The motor vehicle’s use life expires under law;

c/ The motor vehicle is lost as certified by a police office;

d/ The motor vehicle breaks down and is no longer usable or is damaged in a traffic accident as certified by a police office.

2. When wishing to cancel an insurance policy, a motor vehicle owner shall notify in writing the insurer thereof and furnish the latter with the insurance certificate and evidence proving that the motor vehicle is eligible for insurance policy cancellation under Clause 1 of this Article.

An insurance policy shall terminate when the insurer receives a cancellation notice.

3. Within five days after receiving a notice, an insurer shall refund the motor vehicle owner 70% of the premium paid for the cancelled duration. An insurer is not obliged to refund the premium when an insurance policy remains valid and an insured event has occurred to a motor vehicle owner requesting cancellation of such insurance policy and the insurance indemnity liability has arisen.

4. When a motor vehicle owner does not notify the insurer of the insurance policy cancellation, but the insurer has specific evidence of the motor vehicle’s eligibility for insurance policy cancellation under Clause 1 of this Article, the insurer shall notify such to the motor vehicle owner for carrying out insurance policy cancellation procedures. If the motor vehicle owner fails to carry out these procedures within 15 days from the date of receiving the notice, the insurance policy is automatically cancelled.

Article 11. Assessment of damage

1. When an accident occurs, the insurer or a person authorized by the insurer shall closely collaborate with the motor vehicle owner, the third party or lawful representatives of involved parties in conducting assessment to identify the cause and level of damage. An assessment result report shall be made and signed by involved parties. The insurer shall bear all assessment costs.

2. When the motor vehicle owner disagrees with the cause and level of damage identified by the insurer, the two parties may reach agreement on another assessment to be conducted by an independent assessor. When the parties fail to reach such agreement, either of them may request the court of the locality where the loss occurs or where the motor vehicle owner resides to designate an independent assessor. The independent assessor’s written award is binding on the parties.

3. When an independent assessor’s award is different from that of the insurer, the insurer shall pay the cost of the independent assessment. When the independent assessor’s award matches that of the insurer, the motor vehicle owner shall pay the cost of the independent assessment.

4. When it is impossible to conduct an assessment in a special case, the insurer may base itself on written records and conclusions of competent functional agencies and relevant documents to identify the cause and level of damage.

Article 12. Insurance exemption

An insurer is not obliged to indemnify in the following cases:

1. The motor vehicle owner, driver or victim intentionally causes damage.

2. The driver causing the accident intentionally flees away, shirking the civil liability of motor vehicle owners or drivers.

3. The driver has no valid driving license or inappropriate driving license for motor vehicles for which driving license is required. The driver who has been deprived of the right to use driving license for a definite or an indefinite term shall be regarded as having no driving license.

4. The damage entails such circumstantial consequences as decrease in commercial value, or loss associated with the use and exploitation of the damaged property.

5. The damage is property stolen or robbed in the accident.

6. War, terrorism or earthquake.  

7. The damage is caused to such special property as gold, silver, gem, money, papers of monetary value, antiques, precious and rare paintings and pictures, corpses and remains.

Article 13. Principles of indemnification   

1. When an accident occurs, an insurer shall, within the scope of his/her/its insurance liability, indemnify the motor vehicle owner for the sum the latter has compensated or is supposed to compensate for damage to a victim.

When the motor vehicle owner dies or suffers permanent total disability, the insurer shall directly indemnify the victim.

2. When necessary, an insurer shall promptly advance necessary and reasonable costs within the scope of his/her/its insurance liability to remedy accident consequences.

3. Levels of insurance indemnity:

a/ Levels of insurance indemnity for each type of injury and human damage shall be determined according to the table of indemnities for human damage in Appendix 6 to this Circular or the agreement (if any) between the motor vehicle owner and the victim or a lawful representative of the deceased victim not higher than the level prescribed in Appendix 6 to this Circular. When a court ruling is available, indemnity shall be based on such ruling, but must not exceed the level prescribed in Appendix 6 to this Circular.

When many motor vehicles cause an accident leading to human damage, the levels of indemnity shall be determined based on the degree of fault of each motor vehicle owner, but the aggregate amount must not exceed the insurance liability level.

For an accident in which the cause is determined by a competent agency as totally due to the fault of a third party, the level of indemnity for human damage for the third party’s people shall equal 50% of the level prescribed in Appendix 6 to this Circular.

b/ The specific level of indemnity for property damage for an accident shall be determined according to the actual damage and the degree of fault of the motor vehicle owner, but must not exceed the insurance liability level.

4. An insurer is not obliged to indemnify for the damage beyond the insurance liability level prescribed in Appendix 6 to this Circular.

5. When a motor vehicle owner concurrently enters into several policies of compulsory insurance for civil liability for the same motor vehicle, the receivable indemnity shall be only calculated according to the insurance policy that takes effect first.

Article 14. Indemnity dossier

The insurer shall collaborate with the motor vehicle owner, victim, police office and other concerned organizations and individuals in gathering documents related to the traffic accident to prepare an indemnity dossier. Such a dossier must comprise:

1. Documents related to the vehicle and driver (copies certified by the insurer after comparing with the originals):

a/ Vehicle registration certificate;

b/ Driving license;

c/ Driver’s identity card, passport or another personal identification paper;

d/ Insurance certificate.

2. Documents proving human damage (copies issued by a health establishment or copies certified by the insurer), which, depending on the severity of human damage, may be one or more of the following documents:

a/ Injury certificate;

b/ Hospital discharge slip;

c/ Surgery certificate;

d/ Medical record;

dd/ Death certificate (for a dead victim).

3. Documents proving property damage:

a/ Valid invoices and documents for the vehicle owner’s repair or replacement of damaged property caused by the traffic accident at an establishment designated or approved by the insurer;

b/ Papers proving necessary and reasonable costs paid by the vehicle owner to minimize loss or under the insurer’s instructions.

4. Copies of accident-related documents issued by a competent agency (except the case specified in Clause 5 of this Article):

a/ Written record of the examination of the accident scene;

b/ Plan of the accident scene, photos (if any);

c/ Written record of the examination of the vehicle related to the accident;

d/ Report on the results of initial investigation of the accident;

dd/ Other documents related to the accident (if any).

5. In case there are no documents prescribed in Clause 4 of this Article and the damage is estimated at below VND 10 million, an indemnity dossier must comprise the documents specified in Clauses 1, 2, and 3 of this Article and the following documents:

a/ The written record confirming the accident, made by the insurer and motor vehicle owner and containing the certification of a competent agency of the place where the accident occurs. This record must contain the following details:

- Time and place of occurrence of the accident;

- Information supplied by the vehicle owner or driver causing the accident, victim or a representative of the victim, and witnesses present at the place of occurrence of the accident (if any). Information suppliers must have full names, identity card numbers and addresses;

- Description of the accident scene and damage to the vehicle in the accident (enclosed with drawings and photos).

b/ The assessment report specifying the cause and level of damage, made by the insurer or a person authorized by the insurer;

c/ Other documents related to the accident (if any).

Article 15. Time limits for claiming, paying and lodging complaints about indemnity

1. The time limit for claiming indemnity by a motor vehicle owner is one year counting from the date of occurrence of the accident, except claims made beyond this time limit due to objective causes and in force majeure circumstances under law.

2. Within five days from the date of occurrence of an accident (except in force majeure circumstances), the motor vehicle owner shall send to the insurer a notice made according to the form provided in Appendix 7 to this Circular, enclosed with documents constituting a dossier of request for indemnity within his/her/its liability.

3. The time limit for an insurer to pay an indemnity is 15 days after receiving an indemnity dossier within the motor vehicle owner’s liability, or 30 days when verification of the dossier is required.

4. When rejecting indemnification, an insurer shall notify in writing the motor vehicle owner of the reason for rejection within 30 days after receiving the indemnity dossier.

5. The statute of limitations for instituting a lawsuit about insurance indemnity is three years counting from the date an insurer pays or refuses to pay an indemnity. Past this time limit, the right to institute a lawsuit is invalidated.

Article 16. Rights of a motor vehicle owner

1. To select an insurer to buy compulsory insurance for civil liability of motor vehicle owners.

2. To request the insurer to explain and supply information relating to the entry into, performance and cancellation of insurance policy.

3. To request the insurer to reduce the premium rate as appropriate for the remaining validity duration of the insurance policy when there is a change in factors serving as bases for premium calculation, which leads to fewer insured risks.

4. To request the insurer to pay indemnity quickly, fully and timely under the insurance policy.

5. To account insurance premiums as business expenses, for motor vehicle owners being production and business units; or to include insurance premiums in regular operation expenses, for motor vehicle owners being administrative agencies and non-business units of the State.

6. To have other rights as prescribed by law.

Article 17. Obligations of a motor vehicle owner         

1. To participate in compulsory insurance for civil liability of motor vehicle owners and fully pay premiums under this Circular and other relevant laws. When buying insurance, to provide full and truthful information to be written in insurance certificates.

2. To create favorable conditions for the insurer to inspect the actual conditions of motor vehicles before issuing insurance certificates.

3. To promptly notify the insurer of any change in vehicle use purposes which leads to more or fewer insured risks in order to enjoy appropriate insurance premium rates for the remaining validity duration of insurance policies.

4. While on roads, always to bring along their valid insurance certificates and produce such certificates at the request of the traffic police and other competent functional agencies under law.

5. To observe road traffic safety rules.

6. When an accident occurs, to:

a/ Promptly notify the insurer of the accident for coordinated settlement, actively rescue and treat victims, mitigate human and property damage and protect the accident scene; and at the same time, report on the accident to the nearest police office or local administration;

b/ Refrain from displacing, disassembling or repairing property without the insurer’s consent, unless it is necessary to ensure safety and prevent and mitigate human and property damage or at the request of a competent agency;

c/ Supply documents in the dossier of request for indemnity specified in Clauses 1, 2 and 3 and at Point c, Clause 5, Article 14 (in case the insurer redresses and remedies damage, the motor vehicle owner is not required to supply the documents specified at Point a, Clause 3, Article 14 of this Circular) and create favorable conditions for the insurer to verify these documents. Coordinate with the insurer in collecting documents prescribed at Point a, Clause 5, Article 14 of this Circular.

7. To notify in writing the insurer when his/her motor vehicle becomes eligible for insurance policy cancellation under Clause 1, Article 10 of this Circular.

8. To notify and pay victims the indemnities paid by the insurer in each case of human damage according to the levels set in Appendix 6 to this Circular.

9. To perform other obligations as prescribed by law.

Article 18. Rights of an insurer

1. To collect premiums for compulsory insurance for civil liability of motor vehicle owners under the Finance Ministry’s regulations. To request motor vehicle owners to additionally pay premiums for the remaining validity duration of insurance policies when there is a change in factors serving as bases for insurance premium calculation, which leads to more insured risks.

2. To request motor vehicle owners to provide full and truthful information written in insurance certificates; to inspect the actual conditions of motor vehicles before issuing insurance certificates.

3. To request traffic and investigation police offices to supply copies of documents related to accidents under Clause 3, Article 22 of Decree No. 103/2008/ND-CP.

4. To refuse to pay indemnities for cases falling beyond their insurance liability.

5. To propose amendments and supplements to rules, terms and table of premium rates of compulsory insurance for civil liability of motor vehicle owners to suit the practical implementation of this type of insurance.

6. To have other rights under law.

Article 19. Obligations of an insurer

1. To sell compulsory insurance for civil liability of motor vehicle owners in conformity with the rules, the table of premium rates and insurance liability levels prescribed in this Circular. When receiving motor vehicle owners’ notices of a change in factors serving as bases for insurance premium calculation which leads to fewer insured risks, to reduce premiums for the remaining validity duration of insurance policies and refund the difference to motor vehicle owners.

2. To widely propagate the regime on compulsory insurance for civil liability of motor vehicle owners; to fully provide motor vehicle owners with information relating to insurance policies and clearly explain the rules, terms and table of premium rates of compulsory insurance for civil liability of motor vehicle owners.

3. To issue to motor vehicle owners insurance certificates made according to the forms provided in Appendices 1 and 2, Appendix 3 (if applicable) and Appendix 4 (if applicable) to this Circular.

4. To refrain from providing financial support in any form other than commissions for agents selling insurance for civil liability of motor vehicle owners under the Finance Ministry’s regulations.

5. To refrain from conducting sale promotion in any form for compulsory insurance for civil liability of motor vehicle owners.

6. To pay traffic and investigation police offices expenses for copying dossiers and records of accidents supplied to them, and keep confidential these dossiers and records throughout the investigation.

7. To collect required documents for indemnity dossiers specified at Point a, Clause 3 (when insurers redress and remedy damage) and in Clause 4 and at Points b and c, Clause 5, Article 14 of this Circular. To coordinate with motor vehicle owners in collecting documents prescribed at Point a, Clause 5, Article 14 of this Circular.

8. To notify victims and motor vehicle owners of indemnities for human damage and pay these indemnities at the levels set in Appendix 6 to this Circular.

9. To quickly and accurately pay indemnities under this Circular and other relevant laws.

10. To notify motor vehicle owners of the expiration of insurance policies at least 15 days in advance.

11. To deduct and contribute 1% of annually collected premiums of compulsory insurance for civil liability of motor vehicle owners to the Motor Vehicle Insurance Fund.

12. To account separately premium sales, commissions, indemnities and other expenses related to compulsory insurance for civil liability of motor vehicle owners.

13. To establish and operate information technology systems to ensure adequate statistics and updated information on the actual implementation of compulsory insurance for civil liability of motor vehicle owners to be linked with the database on compulsory insurance for civil liability of motor vehicle owners. Such database must at least supply the following information:

a/ Information on motor vehicle owner:

- Name;

- Identity card or passport number (for individual vehicle owners);

- Contact address.

b/ Information on motor vehicle:

- Registered number plate;

- Mark;

- Type;

- Capacity;

- Color;

- Year of manufacture;

- Engine number;

- Frame number;

- Load (for automobiles);

- Number of seats (for automobiles);

- Use purpose: business or non-business (for automobiles);

- Insurance certificate number;

- Starting time of insurance validity;

- Ending time of insurance validity;

- Premium;

- Date of premium payment;

- Date of policy issuance;

- Place of policy issuance;

- Policy issuer.

c/ Information on driver’s times of causing accidents and times of being handled for violations of the Road Traffic Law:

- Times of causing accidents (time, place, severity of violation as determined by the police);

- Times of receiving indemnity, indemnity sum for each accident (details by accident);

- Times of being handled for violations of the Road Traffic Law (if any).

14. To report to the Ministry of Finance on the implementation of compulsory insurance for civil liability of motor vehicle owners periodically or upon request, specifically:

a/ Periodical report as prescribed in Appendices 8 and 9 to this Circular.

b/ Report on compulsory insurance for civil liability of motor vehicle owners when requested by the Ministry of Finance.

15. To submit to competent state agencies’ inspection and supervision of compulsory insurance for civil liability of motor vehicle owners.

16. To perform other obligations under law.

Article 20. Dispute settlement

All disputes arising out of insurance policies shall be brought to courts in Vietnam for settlement if involved parties fail to negotiate on their own.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 21. Effect

1. This Circular takes effect on April 1, 2016.

2. Certificates of compulsory insurance for civil liability of motor vehicle owners granted before the effective date of this Circular will continue to comply with regulations effective at the time of grant of these certificates.

3. This Circular replaces the Ministry of Finance’s Circular No. 126/2008/TT-BTC of December 22, 2008, on rules, terms, table of premium rates and levels of compulsory insurance for civil liability of motor vehicle owners; Article 1 of Circular No. 151/2012/TT-BTC of September 12, 2012, amending and supplementing Circular No. 126/2008/TT-BTC of December 22, 2008, and Circular No. 103/2009/TT-BTC of May 25, 2009; and Article 1 of Circular No. 43/2014/TT-BTC of April 11, 2014, amending and supplementing a number of articles of Circular No. 126/2008/TT-BTC of December 22, 2008, Circular No. 103/2009/TT-BTC of May 25, 2009, and Circular No. 151/2012/TT-BTC of September 12, 2012.

4. Any problems arising in the implementation of this Circular should be promptly reported to the Ministry of Finance for consideration and settlement.-

For the Minister of Finance
Deputy Minister
TRAN XUAN HA

* All appendices to this Circular are not translated.-