Decree No. 03/2021/ND-CP on compulsory insurance for motor vehicle owner’s civil liability

DECREE

On compulsory insurance for motor vehicle owner’s civil liability^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and Law on Organization of Local Administration;

Pursuant to the November 24, 2015 Civil Code;

Pursuant to the December 9, 2000 Law on Insurance Business; and the November 24, 2010 Law Amending and Supplementing a Number of Articles of the Law on Insurance Business;

Pursuant to the June 14, 2019 Law Amending and Supplementing a Number of Articles of the Law on Insurance Business and Law on Intellectual Property;

Pursuant to the November 13, 2008 Law on Road Traffic;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on compulsory insurance for motor vehicle owner’s civil liability.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree prescribes compulsory insurance for motor vehicle owner’s civil liability with regard to:

1. Compulsory insurance for motor vehicle owner’s civil liability.

2. Management and use of the Motor Vehicle Insurance Fund.

3. Management, operation and use of the database on compulsory insurance for motor vehicle owner’s civil liability.

4. Responsibilities of ministries, ministerial-level agencies and organizations involved in the implementation of compulsory insurance for motor vehicle owner’s civil liability.

Article 2. Subjects of application

This Decree applies to:

1. Motor vehicle owners joining traffic and operating in the territory of the Socialist Republic of Vietnam.

2. Insurance enterprises licensed to provide compulsory insurance for motor vehicle owner’s civil liability in accordance with law.

3. Agencies, organizations and individuals involved in the implementation of compulsory insurance for motor vehicle owners’ civil liability.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Motor vehicle owner means the owner of a motor vehicle or a person assigned by the owner of a motor vehicle to lawfully possess or use the latter’s motor vehicle.

2. Motor vehicles include road motor vehicles and transport construction machinery, of which:

a/ Road motor vehicles include automobiles; tractors; trailers or semi-trailers pulled by motor vehicles or tractors; two-wheeled motorcycles; three-wheeled motorcycles; mopeds (including electric motorbikes) and vehicles with similar structures as prescribed in the Law on Road Traffic.

b/ Transport construction machinery includes construction machinery, agricultural and forestry machinery and other special-type machinery used for national defense and security purposes as prescribed in the Law on Road Traffic.

3. Third party means a person suffering death or bodily injuries or property damage caused by a motor vehicle, except the following persons:

a/ The driver, persons on such vehicle.

b/ The vehicle owner, unless the owner has assigned another organization or individual to possess or use such vehicle.

4. The insured means a motor vehicle owner or a driver with civil liability covered under an insurance policy.

5. Motor vehicle in operation means a motor vehicle under the control of the operating driver, including moving, stopping or parking.

6. Joining traffic means a motor vehicle owner or a driver operating a motor vehicle on the road.

Chapter II

COMPULSORY INSURANCE FOR MOTOR VEHICLE OWNER’S CIVIL LIABILITY

Section 1

INSURANCE CONDITIONS

Article 4. Principles of insurance participation

1. Insurance enterprises and insurance buyers shall implement compulsory insurance for motor vehicle owner’s civil liability according to the insurance terms, premium rates and insurance liability levels specified in this Decree.

2. For each motor vehicle, the liability to pay compensation for motor vehicle owner’s civil liability only arises under a single insurance policy.

3. In addition to entering into a policy on compulsory insurance for motor vehicle owner’s civil liability according to the insurance terms, premium rates and insurance liability levels specified in this Decree, a motor vehicle owner and an insurance enterprise may agree in the insurance policy on the extension of the insurance terms, the increased insurance liability and the corresponding additional premium amount. In this case, the insurance enterprise shall separate the content on compulsory insurance for motor vehicle owners’ civil liability in the insurance certificate.

Article 5. Scope of compensation for damage

1. Outside-contract damage caused by a motor vehicle to a third party’s health, life and property.

2. Damage caused by a motor vehicle to passengers’ health and life.

Article 6. Certificates of compulsory insurance for motor vehicle owner’s civil liability (below referred to as insurance certificates)

1. An insurance certificate is an evidence of entry into a policy on compulsory insurance for civil liability between a motor vehicle owner and an insurance enterprise. Each motor vehicle shall be issued a single insurance certificate. When losing an insurance certificate, a motor vehicle owner shall send a written request to the insurance enterprise (the issuer of the insurance certificate) for re-issuance of the insurance certificate.

2. When buying compulsory insurance for motor vehicle owner’s civil liability, a motor vehicle owner shall be issued an insurance certificate by the insurance enterprise. An insurance enterprise shall only issue an insurance certificate to a motor vehicle owner after the latter has fully paid the insurance premium or when it has reached an agreement with the latter on a premium payment deadline according to regulations of the Ministry of Finance.

3. An insurance certificate may be designed by an insurance enterprise itself and must contain the following details:

a/ Name, address and phone number (if any) of the motor vehicle owner.

b/ License plate number or chassis number or engine number.

c/ Type of vehicle, tonnage, number of seats, and use purpose, for an automobile.

d/ Name, address and hotline number of the insurance enterprise.

dd/ Levels of civil insurance liability for third parties and passengers.

e/ Responsibilities of the motor vehicle owner and the driver in the event of an accident.

g/ Insurance term, insurance premium, and premium payment schedule.

h/ Date of issuance of the insurance certificate.

i/ Numeric codes and barcodes already registered, managed and used in accordance with regulations of the Ministry of Science and Technology to store, transmit and retrieve insurance enterprise identification information and basic contents of the insurance certificate .

4. In case of issuance of electronic insurance certificates, an insurance enterprise shall comply with the Law on E-Transactions and guiding documents; an electronic insurance certificate must comply with the current regulations and have all the contents specified in Clause 3 of this Article.

Article 7. Insurance premiums and payment of insurance premiums

1. Insurance premium is an amount of money that a motor vehicle owner must pay to an insurance enterprise when buying compulsory insurance for motor vehicle owner’s civil liability.

2. The Ministry of Finance shall stipulate insurance premiums based on statistical data, ensuring the solvency of insurance enterprises, corresponding to insurance terms, insurance liability levels and risk levels by motor vehicle type and use purpose.

3. Based on the accident history of each motor vehicle and its risk-accepting ability, an insurance enterprise may take the initiative in reviewing and increasing insurance premiums at a rate not exceeding 15% of the premium rate set by the Ministry of Finance.

4. For motor vehicles whose owners are permitted to buy insurance with a term other than 1 year, the premium shall be calculated based on the premium rate set by the Ministry of Finance and the insured period, specifically as follows:

If the insured period is 30 days or shorter, the payable premium shall be calculated by dividing the annual premium by motor vehicle type by 12 months.

5. The payment of insurance premiums must comply with regulations of the Ministry of Finance.

Article 8. Levels of insurance liability

1. Level of insurance liability is the maximum amount an insurance enterprise may pay for the death, bodily injuries and/or property damage of third parties and passengers caused by a motor vehicle in each accident falling within the scope of compensation for damage.

2. Based on actual costs of medical examination, treatment and care services and costs of property damage recovery, the Ministry of Finance shall stipulate the levels of liability compulsory insurance for motor vehicle owner’s civil liability.

Article 9. Insurance period and validity

1. Period stated in an insurance certificate:

a/ For two-wheeled motorcycles, three-wheeled motorcycles, mopeds (including electric motorbikes) and vehicles with similar structures as prescribed by the Law on Road Traffic, the insurance period is between 1 year and 3 years.

b/ For other motor vehicles, the minimum insurance period is 1 year and the maximum insurance period may correspond to the regular period of periodical technical safety and environmental protection inspection longer than 1 year.

c/ In the following cases, the insurance period may be shorter than 1 year: foreign motor vehicles temporarily imported for re-export with a period of operating on the roads in the territory of the Socialist Republic of Vietnam shorter than 1 year; motor vehicles with the remaining lifetime of under 1 year as prescribed by law; and motor vehicles subject to temporary registration according to regulations of the Ministry of Public Security.

d/ In case a motor vehicle owner has many vehicles covered by insurance at different times in a year but in the subsequent year he/she wishes to have them insured at the same point of time for easy management, the insurance period of these vehicles may be shorter than 1 year and equal to the remaining validity period of the first concluded policy of that year. For the insurance policies and insurance certificates after being brought to the same point of time, their insurance periods in the subsequent year must comply with the provisions of Point a or b, Clause 1 of this Article.

2. Insurance validity must commence and expire according to the validity period stated in the insurance certificate.

3. During the validity period stated in an insurance certificate, if there is a vehicle title transfer, all insurance benefits related to the civil liability of the old owner remain valid for the new owner.

Article 10. Termination of insurance policies

1. Termination of an insurance policy in case the vehicle registration certificate or license plate is revoked according to regulations of the Ministry of Public Security.

2. Termination of an insurance policy in case the motor vehicle owner fails to fully pay the premium as specified in Clause 5, Article 7 of this Decree.

3. Unilateral suspension of the performance of an insurance policy in case there is a change in the factors that serve as a basis for insurance premium calculation, leading to an increase or a decrease in insured risks.

Article 11. Legal consequences of termination of insurance policies

1. In case of termination of an insurance policy under Clause 1, Article 10 of this Decree:

a/ The insurance buyer or the insured shall send a written notice to the insurance enterprise together with the insurance certificate that he/she wishes to terminate and the certificate of revocation of the vehicle registration certificate and license plate or a competent agency’s decision or notice of the revocation of the vehicle registration certificate and license plate.

The insurance policy shall be terminated on the time the insurance enterprise receives the notice of termination of the insurance policy. The time of termination of an insurance policy shall be determined as follows:

- In case the insurance buyer or the insured hand-delivers the notice or sends it by post, the time of termination of the insurance policy is the time the notice is recorded in the receipt book of the insurance enterprise.

- In case the insurance buyer or the insured sends the notice by fax or email, the time of termination of the insurance policy is the time the insurance enterprise receives the fax or email.

b/ Within 5 working days after receiving the notice, the insurance enterprise shall refund the insurance buyer or the insured a premium amount corresponding to the remaining period of the insurance policy for which the latter has paid the insurance premium, after deducting all reasonable expenses related to the insurance policy. The insurance enterprise is not required to refund the insurance premium in case an insured event has occurred and the insurance compensation liability has arisen before the insurance policy is terminated.

c/ In case the insurance buyer or the insured fails to notify the termination of the insurance policy, but the insurance enterprise has specific evidence that the motor vehicle is eligible for insurance policy termination under Clause 1, Article 10 of this Decree, it shall send a written notice to the insurance buyer or the insured together with such evidence.

After 15 days from the date of receipt of the notice, if the insurance buyer or the insured fails to carry out the procedures for termination of the insurance policy specified at Point a, Clause 1 of this Article, the insurance policy shall be automatically terminated. The insurance enterprise shall refund insurance premiums according to Point b, Clause 1 of this Article. In case an insured event occurs within 15 days after the insurance enterprise sends a notice of the termination of the insurance policy to the insurance buyer or the insured, the insurance enterprise is still liable to pay compensation to the insured.

2. In case of termination of an insurance policy under Clause 2, Article 10 of this Decree:

a/ The insurance policy shall be terminated on the day following the day the insurance buyer or the insured must pay the insurance premium.

Within 5 working days from the date of termination of the insurance policy, the insurance enterprise shall send a written notice of the termination of the insurance policy and refund the overpaid insurance premium (if any) to the insurance buyer or the insured or request the latter to fully pay the insurance premium by the time of termination of the insurance policy.

b/ The insurance enterprise is not required to refund the insurance premium in case an insured event has occurred and the insurance compensation liability has arisen before the insurance policy is terminated.

c/ The insurance enterprise has no responsibility to refund the insurance premium to the insured in case an insured event has occurred. The insurance policy shall be terminated on the time the insurance buyer or the insured receives the notice of termination of the insurance policy. The time of termination of an insurance policy shall be determined as follows:

- In case the insurance enterprise hand-delivers a notice or sends it by post, the time of termination of the insurance policy is the time the insurance buyer or the insured signs on the receipt of the notice.

- In case the insurance enterprise sends a notice by fax or email, the time of termination of the insurance policy is the time the insurance buyer or the insured receives the fax or email.

d/ The insurance policy will continue to be effective from the time the motor vehicle owner fully pays the insurance premium and receives a written approval from the insurance enterprise.

3. In case of unilateral suspension of the performance of an insurance policy under Clause 3, Article 10 of this Decree:

a/ In case of unilateral suspension of the performance of an insurance policy when there is a change in the factors that serve as a basis for insurance premium calculation, leading to a decrease in insured risks, but the insurance enterprise refuses to reduce the insurance premium:

The insurance buyer shall send a written notice within 5 working days from the date the insurance enterprise refuses to reduce the insurance premium. The insurance policy shall be terminated on the time the insurance enterprise receives the notice of termination of the insurance policy. The legal consequences of the termination of the insurance policy comply with the provisions of Point b, Clause 1 of this Article.

b/ In case of unilateral suspension of the performance of an insurance policy when there is a change in the factors that serve as a basis for insurance premium calculation, leading to an increase in insured risks, but the insurance buyer does not accept such increase:

The insurance enterprise shall send a written notice within 5 working days from the date the insurance buyer does not accept an increase in the premium. The insurance policy shall be terminated on the time the insurance buyer receives the notice of termination of the insurance policy.

Within 5 working days from the date of termination of the insurance policy, the insurance enterprise shall refund the insurance buyer or the insured a premium amount corresponding to the remaining period of the insurance policy for which the insurance buyer or the insured has paid the insurance premium, after deducting reasonable expenses related to the insurance policy.

The insurance enterprise is not required to refund the insurance premium in case an insured event has occurred and the compensation liability has arisen.

Article 12. Assessment of damage

1. When an accident occurs, an insurance enterprise or a person authorized by the insurance enterprise shall coordinate closely with the motor vehicle owner, the driver and the third party or lawful representatives of related parties in performing damage assessment to identify the cause and extent of the damage. The assessment results shall be made in writing with the signatures of related parties. Expenses for damage assessment shall be borne by the insurance enterprise.

2. In case the motor vehicle owner or the driver disagrees to the cause and extent of the damage identified by the insurance enterprise, the two parties may solicit an independent assessor, unless otherwise agreed in the insurance policy. In case the parties cannot agree on the solicitation for an independent assessor, either of them may file a request with the court of the locality where the damage took place or of the place of residence of the insured to appoint an independent assessor. The independent assessor’s conclusion is binding on the parties.

3. In case the independent assessor’s conclusion is different from the insurance enterprise’s, the insurance enterprise shall pay the cost for the independent assessor. If the independent assessor’s conclusion is identical to the insurance enterprise’s, the motor vehicle owner or the driver shall pay the cost of the independent assessor.

4. In case of occurrence of a force majeure event or an external obstacle that makes an assessment impossible, the insurance enterprise may base itself on the minutes and conclusions of competent agencies and relevant documents to identify the cause and extent of the damage.

Article 13. Exclusion of insurance liability

An insurance enterprise may not pay damage compensation in the following cases:

1. The motor vehicle owner, the driver or the aggrieved person intentionally causes damage.

2. The driver who causes the accident intentionally flees without discharging the motor vehicle owner’s civil liability. In case the driver who causes the accident intentionally flees but has fulfilled the motor vehicle owner’s civil liability, he/she will not fall into the case of exclusion of insurance liability.

3. The driver is under age or beyond the age to drive a motor vehicle as prescribed in the law on road traffic; the driver has no driving license or uses an invalid driving license (the serial number shown on its back side does not match the serial number last issued as recorded in the driving license management information system) or uses a driving license not issued by a competent agency, a driving license containing erased information or a driving license already expired at the time of occurrence of the accident or a driving license not suitable to the  motor vehicle of which the driver is required to have a driving license. A driver who has been deprived of the right to use a driving license for a definite term or whose driving license has been revoked is considered having no driving license.

4. Damage causes indirect consequences including decrease in commercial value, or damage associated with the use and exploitation of the damaged property.

5. Damage to property is caused by the driver who has alcohol in blood or breath, or uses drugs or stimulants prohibited by law.

6. Damage is caused to property stolen or looted in an accident.

7. Damage is caused to special property such as gold, silver, precious gems, valuable papers such as money, antiques and precious and rare paintings, human corpses and remains.

8. War, terrorism, earthquake.

Article 14. Insurance compensation

1. When an accident occurs, within the scope of insurance liability levels, an insurance enterprise shall compensate the insured for the amount the insured has compensated or will have to compensate for the aggrieved person.

In case the insured dies or loses his/her civil act capacity as ruled by the court, the insurance enterprise shall pay compensation directly to the aggrieved person or the aggrieved person’s heir (in case the aggrieved person has died) or the aggrieved person’s representative (in case the aggrieved person loses his/her civil act capacity as ruled by the court or is under 6 years old).

2. Within 3 working days after receiving a notice of an accident from the insurance buyer or the insured, the insurance enterprise shall pay an advance compensation amount for the death or bodily injuries, specifically as follows:

a/ In case the accident has been determined to fall within the scope of damage compensation:

- 70% of the law-specified insurance compensation rate/person/case, for cases of death.

- 50% of the law-specified insurance compensation rate/person/case, for cases of bodily injuries receiving emergency treatment.

b/ In case it is not yet possible to determine that the accident falls within the scope of damage compensation:

- 30% of the law-specified insurance compensation rate/person/case, for cases of death.

- 10% of the law-specified insurance compensation rate/person/case, for cases of bodily injuries receiving emergency treatment.

3. Levels of insurance compensation:

a/ The specific level of compensation for bodily injuries and death shall be determined by type of injury according to the Table of payment of compensation for bodily injuries and death provided in Appendix I to this Decree or as agreed (if any) between the insured and the aggrieved person or the aggrieved person’s heir (in case the aggrieved person has died) or the aggrieved person’s representative (in case the aggrieved person loses his/her civil act capacity as ruled by the court or is under 6 years old), but must not exceed the level of compensation specified in Appendix I to this Decree. In case of a court ruling, the level of compensation shall be paid based on such ruling but must not exceed the level of compensation specified in Appendix I to this Decree.

In case an accident is caused by more than one motor vehicle, leading to death or bodily injuries, the level of compensation shall be determined depending on the extent of violation of the insured provided that the total level of compensation must not exceed the level of insurance liability.

For an accident which is determined by a competent agency to have been caused entirely by a third party, the level of compensation for death or bodily injuries for the third party is equal to 50% of the level of compensation specified in Appendix I to this Decree or as  agreed (if any) between the insured or the aggrieved person’s heir (in case the aggrieved person has died) or the aggrieved person’s representative (in case the aggrieved person loses his/her civil act capacity as ruled by the court or is under 6 years old), but must not exceed 50% of the level of compensation specified in Appendix I to this Decree.

b/ The specific level of compensation for property damage/case shall be determined according to the actual damage and the level of violation of the insured, but must not exceed the level of insurance liability.

4. An insurance enterprise is not obliged to compensate the excess of the level of insurance liability stipulated by the Ministry of Finance, unless the motor vehicle owner concerned has entered into a voluntary insurance policy.

5. In case multiple policies on compulsory insurance for civil liability are entered into for the same motor vehicle, the compensation amount shall be settled only according to the first entered one. The insurance enterprise shall refund to the insurance buyer 100% of the paid insurance premiums for the remaining insurance policies.

Article 15. Insurance compensation dossiers

An insurance enterprise shall coordinate with the insurance buyer and related parties to compile 1 set of insurance compensation dossier and take responsibility before law for the accuracy, completeness and validity of the dossier. An insurance compensation dossier must comprise:

1. Documents related to the vehicle and the driver (notarized copies or copies certified by the insurance enterprise after comparing with the originals) provided by the insurance buyer or the insured:

a/ The vehicle registration certificate (or a certified copy of the vehicle registration certificate together with the primary-source document of the valid receipt of the credit institution in replacement of the original vehicle registration certificate during the period the credit institution keeps the original vehicle registration certificate) or the document on vehicle title transfer and document on the vehicle origin (if no vehicle registration certificate is available).

b/ The driving license.

c/ The people’s identity card or citizen identity card or passport or other identification paper of the driver.

d/ The insurance certificate.

2. Documents evidencing the bodily injuries or death (a copy of the health establishment or a copy certified by the insurance enterprise after comparing with the original) provided by the insurance buyer:

a/ The injury certificate.

b/ Medical records.

c/ An extract of the death certificate or the death notice or written certification of a public security agency or assessment results of a forensic examination agency, in case the victim dies on a vehicle or dies in an accident.

3. Documents evidencing the property damage provided by the insurance buyer or the insured:

a/ Valid invoices and documents on repair or replacement of the damaged property caused by a traffic accident (to be collected by the insurance enterprise in case it repairs the damaged property or remediates the damage).

b/ Papers, invoices and documents related to expenses incurred by the motor vehicle owner to minimize the losses or to comply with the instructions of the insurance enterprise.

4. Copies of relevant documents of the public security agency, collected by the insurance enterprise in accidents causing the death of third parties and passengers, including: notice of results of investigation, verification and handling of traffic accidents or notice of conclusions on investigation and handling of traffic accidents.

5. An assessment record determining the cause and extent of the damage, made by the insurance enterprise and agreed upon by the insurance enterprise and the insurance buyer or the insured.

Article 16. Time limit for compensation claim and payment

1. The time limit for compensation claim is 1 year from the date an accident occurs, except cases of delay for objective or force majeure reasons as specified by law.

2. Within 5 working days from the date an accident occurs (except force majeure cases), the insurance buyer or the insured shall send a written notice or an electronic notice of the accident to the insurance enterprise.

3. The time limit for the insurance enterprise to pay compensation is 15 days from the date of receipt of a complete and valid insurance claim dossier or 30 days from the date of receipt of a complete and valid insurance claim dossier in case it needs to verify the dossier.

4. In case of refusal to pay compensation, within 30 days from the date of receipt of a complete and valid insurance claim dossier, the insurance enterprise shall notify in writing the insurance buyer or the insured of the reason for refusal.

Article 17. Rights of insurance buyers and the insured

In addition to the rights specified in the Law on Insurance Business, an insurance buyer and the insured have the right to include insurance premiums in the cost of business operations in case the insurance buyer is a production and business unit; or to include insurance premiums in its regular operation funds in case the insurance buyer is a state administrative agency or state non-business unit.

Article 18. Obligations of insurance buyers and the insured

In addition to the obligations specified in the Law on Insurance Business, an insurance buyer and the insured have the following obligations:

1. To coordinate with the insurance enterprise in examining the vehicle’s conditions prior to issuance of the insurance certificate.

2. To promptly notify the insurance enterprise for the latter to apply an appropriate insurance premium for the remaining period of the insurance policy in case there is any change in the factors that serve as a basis for insurance premium calculation, leading to an increase in insured risks.

3. To always bring a valid insurance certificate (hard copy or soft copy) when joining traffic, present this certificate at the request of the traffic police and other competent agencies in accordance with law.

4. To comply with the regulations on assurance of road traffic safety.

5. When a traffic accident occurs:

a/ To immediately notify it to the insurance enterprise for coordination in dealing with the situation and actively providing remedies to minimize deaths, bodily injuries and property damage, and protecting the accident scene; to immediately notify the nearest public security agency or local administration for coordination in handling the traffic accident according to regulations and coordinate with competent agencies in investigating and verifying the cause of the traffic accident.

b/ Not to move, dismantle or repair property without obtaining the insurance enterprise’s approval, except cases in which it is necessary to do so to ensure safety, prevent and limit deaths, bodily injuries and property damage, or it is required to comply with the instructions of competent agencies.

c/ To proactively collect and provide documents required in the insurance compensation dossier that falls under the responsibility of the insurance buyer and the insured to the insurance enterprise as specified in Article 15 of this Decree.

d/ To create favorable conditions for the insurance enterprise in the process of verifying the documents they provide.

6. To notify and pay compensation to the aggrieved person or his/her heir or representative the amount to be paid by the insurance enterprise for each case of death or bodily injury according to Point a, Clause 3, Article 14 of this Decree.

7. To notify in writing the insurance enterprise according to Point a, Clause 1, or Point a, Clause 3, Article 11 of this Decree.

Article 19. Rights of insurance enterprises

In addition to the rights specified in the Law on Insurance Business, an insurance enterprise has the following rights:

1. To request the insurance buyer or the insured to fully and truthfully provide the contents specified in the insurance certificate; to check the motor vehicle’s conditions before issuing an insurance certificate.

2. To reduce a maximum of 5% of the amount of compensation for property damage in case the insurance buyer or the insured fails to notify the accident to the insurance enterprise under Clause 2, Article 16 of the Decree or, after an insured event occurs, the insurance enterprise discovers that during the performance of an insurance policy, the insurance buyer or the insured fails to perform the notification obligation when there is a change in the factors that serve as a basis for insurance premium calculation, leading to an increase in insured risks.

3. After making an advance compensation payment as specified at Point b, Clause 2, Article 14 of this Decree, to request the Executive Board of the Motor Vehicle Insurance Fund to refund the advanced amount in case the accident is determined to be excluded from insurance liability or the advanced amount exceeds the law-specified insurance compensation level in case the accident falls within the scope of compensation.

4. To request the public security agency to provide copies of the documents related to the accident according to Clause 4, Article 15 of this Decree.

5. To propose amendments to the rules, terms, premium schedule, levels of compulsory insurance for motor vehicle owner’s civil liability in accordance with the reality of implementing this type of insurance.

Article 20. Obligations of insurance enterprises

In addition to the obligations specified in the Law on Insurance Business, an insurance enterprise has the following obligations:

1. To sell compulsory insurance for motor vehicle owner’s civil liability in accordance with the insurance terms, premium rates and insurance liability levels specified in this Decree and issue insurance certificates with the contents specified in Clause 3, Article 6 of this Decree to insurance buyers.

2. To set up and operate a hotline 24 hours a day and 7 days a week to timely receive accident information, provide instructions and answers to insurance buyers, the insured and related parties about matters related to compulsory insurance for motor vehicle owner’s civil liability.

3. To integrate the function of search for insurance certificates on its website or portal enabling agencies competent to inspect, examine or supervise and insurance buyers and the insured to search and verify the duration and validity of insurance certificates.

4. Within 1 hour after receiving an accident notice, to provide guidance to the insurance buyer or the insured and the motor vehicle owner on measures to ensure safety and prevent and limit deaths, bodily injuries and property damage, and on insurance compensation claim dossiers and procedures; to closely coordinate with the insurance buyer, the insured, the third party and related parties within 24 hours to conduct a damage assessment to identify the cause and extent of the damage as a basis for insurance compensation settlement.

5. To notify the insurance buyer, the insured and the accident victim of the amount of compensation for deaths and bodily injuries and pay the compensation amount according to Point a, Clause 3, Article 14 of the Decree.

6. To clearly explain the rules, terms and premium schedule of compulsory insurance for motor vehicle owner’s civil liability, ensuring that insurance buyers and the insured clearly distinguish between compulsory insurance for motor vehicle owner’s civil liability with other types of voluntary insurance.

7. To take the initiative in collecting documents required in the insurance compensation dossier falling under its responsibility specified in Article 15 of this Decree.

8. To pay advance compensation amounts and promptly and accurately pay compensation amounts in accordance with this Decree.

9. To notify in writing insurance buyers according to Point c, Clause 1, Point a, Clause 2, or Point b, Clause 3, Article 11 of this Decree.

10. To pay to the public security agencies the cost of photocopying the provided dossiers and records of the accident in accordance with law and keep them secret during the investigation process.

11. Within 15 days before the expiration of the insurance period, to notify insurance buyers and the insured of the expiration of the insurance policies.

12. To contribute to the Motor Vehicle Insurance Fund according to Article 26 of this Decree.

13. To separately account insurance premiums, commissions, compensation amounts and expenses related to compulsory insurance for motor vehicle owner’s civil liability. Expenses related to compulsory insurance for motor vehicle owner’s civil liability do not include agency support expenses other than insurance commissions enjoyed by agents according to regulations of the Ministry of Finance, promotional expenses and payment discounts in any form.

14. To formulate, implement, and assign staffs to control the implementation of, regulations and processes on professional operations, risk control, internal control and fraud prevention and control in insurance business related to compulsory insurance for motor vehicle owner’s civil liability.

15. To subject to the inspection and supervision by competent state agencies in the implementation of compulsory insurance for motor vehicle owner’s civil liability.

16. To organize the implementation of the regime of compulsory insurance for motor vehicle owner’s civil liability.

Article 21. Responsibility for making and submitting reports

Insurance enterprises shall make and submit reports on compulsory insurance for motor vehicle owner’s civil liability according to the following provisions:

1. Reports on professional operations:

An insurance enterprise shall prepare and send quarterly and annual reports on professional operations to the Ministry of Finance by hand delivery or by post and email, made according to the forms provided in Appendix II on the Report on the implementation of compulsory insurance for motor vehicle owner’s civil liability and Appendix III on the Report on results of compulsory insurance for motor vehicle owner’s civil liability to this Decree, specifically as follows:

a/ Quarterly reports: The data cut-off period shall be counted from the 1^st of the first month of the reporting period to the 30^th  or 31^st of the last month of the quarter in the reporting period. The time limit for submitting a quarterly report is 30 days counted from the end of the quarter.

b/ Annual reports: The data cut-off period shall be counted from January 1 to December 31 of the reporting period. The time limit for submitting an annual report is 90 days counted from the end of the year.

2. In addition to the reports specified in Clause 1 of this Article, an insurance enterprise shall make unscheduled reports at the request of the Ministry of Finance and send them by hand delivery or by post and email.

Article 22. Dispute settlement

All disputes arising from insurance policies shall be first of all settled on the basis of negotiation; in case of negotiation failure, the parties may choose to settle disputes through commercial mediation, commercial arbitration or court.

Section 2

PREVENTION AND COMBAT OF INSURANCE BUSINESS FRAUDS

Article 23. Responsibilities in preventing and combating insurance business frauds

1. Preventing and combating insurance business frauds in compulsory insurance for motor vehicle owner’s civil liability means applying measures to prevent and limit fraudulent acts in the course of conclusion and implementation of policies on compulsory insurance for motor vehicle owner’s civil liability in order to appropriate a sum of money from insurance enterprises.

2. Insurance enterprises shall proactively formulate processes and regulations and organize the implementation of measures to prevent, detect and minimize fraudulent acts in insurance business; organize public information campaigns to prevent and combat insurance business frauds, and closely coordinate with competent agencies in detecting, preventing and promptly handling fraudulent acts to illegally earn money from insurance.

3. Insurance buyers and the insured have the responsibility to proactively participate in the prevention and combat of insurance business frauds. In case of detecting fraudulent acts in insurance business, they shall promptly notify them to insurance enterprises and competent agencies.

4. Relevant competent agencies shall coordinate with insurance enterprises, insurance buyers and the insured in organizing the prevention and combat of insurance business frauds in the localities, ensuring social stability and order in the process of implementing compulsory insurance for motor vehicle owner’s civil liability.

Chapter III

MANAGEMENT AND USE OF THE MOTOR VEHICLE INSURANCE FUND

Article 24. Principles of management and use of the Motor Vehicle Insurance Fund

1. Motor Vehicle Insurance Fund means a fund established to provide humanitarian assistance payments; carry out activities to prevent and reduce road traffic injuries and accidents; and provide public information and education on road traffic safety, the regime of compulsory insurance for motor vehicle owner’s civil liability and related activities to contribute to protecting public interests and ensuring social safety.

2. The Motor Vehicle Insurance Fund shall be contributed by non-life insurance enterprises implementing compulsory insurance for motor vehicle owner’s civil liabilities, and centrally managed at the Association of Vietnamese Insurers, has its own accounts at commercial banks and may use the seal of the Association of Vietnamese Insurers.

3. The Motor Vehicle Insurance Fund shall be managed and used transparently, effectively and properly in accordance with this Decree.

Article 25. Sources forming the Motor Vehicle Insurance Fund

1. Contributions of insurance enterprises licensed to implement compulsory insurance for motor vehicle owner’s civil liability.

2. Deposit interests.

3. The Fund’s balance in the previous year carried forward to the following year for use.

4. Sources of funding and support from organizations and individuals.

5. Other lawful revenues (if any).

Article 26. Contribution to the Motor Vehicle Insurance Fund

1. Insurance enterprises shall deduct at most 1% of the total premiums of compulsory insurance for motor vehicle owner’s civil liability actually earned from original insurance policies in the preceding fiscal year for contribution to the Motor Vehicle Insurance Fund.

2. Before April 30 every year, the Ministry of Finance shall announce the contribution rate to the Motor Vehicle Insurance Fund at the proposal of the Association of Vietnamese Insurers.

3. Insurance enterprises that implement compulsory insurance for motor vehicle owner’s civil liability shall contribute to the account of the Motor Vehicle Insurance Fund according to the following deadlines:

a/ Before June 30 every year: 50% of the total amount as prescribed.

b/ Before December 31 every year: The remainder as prescribed.

4. Within 90 days from the end of a year, an insurance enterprise shall prepare a report on its turnover of premiums of compulsory insurance for motor vehicle owner’s civil liability (both hard copy and soft copy) according to the form provided in Appendix I to this Decree and submit it to the Association of Vietnamese Insurers.

Article 27. Expenditures of the Motor Vehicle Insurance Fund

1. The Motor Vehicle Insurance Fund shall be used for the following purposes:

a/ Expenses for humanitarian assistance at the following specific levels:

In case accident-causing vehicles are unidentifiable or are not covered by insurance or are eligible for exclusion of insurance liability as specified in Article 13 of this Decree (except intentional damage-causing acts of motor vehicle owners or drivers or aggrieved persons): 30% of the law-specified level of insurance liability/person/case, for cases of death; 10% of the law-specified level of insurance liability/person/case, for cases of bodily injuries receiving emergency treatment.

After an insurance enterprise has paid an advance compensation amount as specified at Point b, Clause 2, Article 14 of this Decree, the Executive Board of the Motor Vehicle Insurance Fund shall refund the advance amount in case the accident is determined to be excluded from insurance liability or the advanced amount exceeds the law-specified insurance compensation level in case the accident falls within the scope of damage compensation.

b/ Prevention and reduction of losses and road traffic accidents.

c/ Public information and education about road traffic safety and compulsory insurance for motor vehicle’s civil liability.

d/ Support for the public security force coordinating with the Association of Vietnamese Insurers, the Management Council of the Motor Vehicle Insurance Fund and non-life insurance enterprises in the prevention and reduction of losses and prevention and combat of insurance business frauds and the implementation of regulations on compulsory insurance for motor vehicle owner’s civil liability.

dd/ Support for commending and rewarding organizations and individuals that record achievements in implementing compulsory insurance for motor vehicle owner’s civil liability, preventing and limiting losses and traffic accidents, and ensuring road traffic order and safety.

e/ Expenses for completing and maintaining the database on compulsory insurance of motor vehicle owner’s civil liability.

g/ Expenses for the operation of the ASEAN Scheme of Compulsory Motor Vehicle Insurance and the operation of the Vietnamese National Bureau to implement Protocol 5 on the ASEAN Scheme of Compulsory Motor Vehicle Insurance.

h/ Expenses for the management of the Motor Vehicle Insurance Fund, including: salaries, allowances, salary-based deductions (social insurance, health insurance and unemployment insurance premiums, trade union funds) and bonus and welfare payments for employees of the Motor Vehicle Insurance Fund’s Office; responsibility-based allowances for the Motor Vehicle Insurance Fund’s management and administration apparatus and part-time employees of the Motor Vehicle Insurance Fund’s Office; expenses for office rental, equipment procurement, banking and postal services; hiring of auditors; expenses for working trips and organizing meetings of the Motor Vehicle Insurance Fund.

2. The Ministry of Finance shall guide in detail each expense item specified in Clause 1 of this Article, prioritizing the implementation of expenses for humanitarian assistance, prevention and reduction of losses and road traffic accidents, and public information and education in conformity with the objective of establishing the Motor Vehicle Insurance Fund.

Article 28. Administration and operation of the Motor Vehicle Insurance Fund

1. The organizational structure for the management and administration of the Motor Vehicle Insurance Fund consists of the Management Council of the Motor Vehicle Insurance Fund; Executive Board of the Motor Vehicle Insurance Fund; and Supervisory Board of the Motor Vehicle Insurance Fund. The Motor Vehicle Insurance Fund’s Office is the assisting body for the management and administration apparatus of the Fund, and located at the standing agency of the Association of Vietnamese Insurers. The Management Council of the Motor Vehicle Insurance Fund shall be established under a decision of the Minister of Finance at the proposal of the Association of Vietnamese Insurers.

2. The Fund’s annual account-finalization reports (certified by an independent audit firm) shall be sent to the Ministry of Finance (the Insurance Supervisory Authority) and non-life insurance enterprises before March 31 of the following year and fully posted together with the opinion of the independent audit firm on the website of the Association of Vietnamese Insurers.

3. The Ministry of Finance shall prescribe in detail the organizational structure for the administration and operation and the estimation, accounting and account-finalization of the Motor Vehicle Insurance Fund.

Article 29. Establishment of the Management Council of the Motor Vehicle Insurance Fund, change of members of the Management Board of the Motor Vehicle Insurance Fund

1. Procedures for requesting establishment of the Management Board or change of members of the Management Board of the Motor Vehicle Insurance Fund:

a/ The Association of Vietnamese Insurers (in case of establishment of the Management Council of the Motor Vehicle Insurance Fund), or the Management Board of the Motor Vehicle Insurance Fund (in case of change of members of the Management Board of the motor vehicle insurance fund) shall send 1 set of dossier by post or by hand-delivery to the Ministry of Finance for approval.

b/ Within 14 working days after receiving a complete and valid dossier, the Minister of Finance shall issue a decision on the establishment of the Fund’s Management Board or the change of members of the Members’ Council of the Fund’s Management Board. In case of disapproval, the Ministry of Finance shall issue a document clearly stating the reason.

2. A dossier of request for establishment of the Management Board of the Motor Vehicle Insurance Fund must comprise:

a/ One original of the written request for establishment of the Management Board of the Motor Vehicle Insurance Fund, made according to the form provided in Appendix V to this Decree.

b/ One copy of the resolution of the Executive Board of the Association of Vietnamese Insurers sector approving the request for establishment of the Management Board of the Motor Vehicle Insurance Fund.

3. A dossier of request for change of a member of the Managing Board of the Motor Vehicle Insurance Fund must comprise:

a/ One original of the written request for change of a member of the Management Board of the Motor Vehicle Insurance Fund, made according to the form provided in Appendix VI to this Decree.

b/ One copy of the resolution of the Management Board of the Motor Vehicle Insurance Fund approving the request of the concerned non-life insurance enterprise for change of a member of the Management Board of the Motor Vehicle Insurance Fund.

Article 30. Process, procedures and dossiers for payment for humanitarian assistance

1. The payment for humanitarian assistance must ensure the proper purposes and the eligible subjects.

2. The Ministry of Finance shall guide the process, procedures and dossiers for making payment for humanitarian assistance from the Motor Vehicle Insurance Fund, and refund the compensation amounts that insurance enterprises have paid in advance according to Point a, Clause 1, Article 27 of this Decree.

Chapter IV

MANAGEMENT, OPERATION AND EXPLOITATION OF THE DATABASE ON COMPULSORY INSURANCE FOR MOTOR VEHICLE OWNER’S CIVIL LIABILITY

Article 31. Principles of management, operation and exploitation of the database

1. Database on compulsory insurance for motor vehicle owner’s civil liability is a database that makes statistics of, updates and systematizes all information relating to motor vehicles and motor vehicle owners covered by compulsory insurance for motor vehicle owner’s civil liability as prescribed in this Decree (below referred to as the database) to serve the State’s management and supervision and the operation of insurance enterprises. The database must not violate the rights of insurance buyers and the insured and does not include the scope and list of state secrets.

2. The database shall be connected to the system of databases on technical safety and environmental protection inspection, motor vehicle registration, road traffic safety violations, and traffic accidents, and other related databases, enabling it to be upgraded and integrated with the common database system of the entire insurance market.

3. The Management Board of the Motor Vehicle Insurance Fund shall manage, administer, operate, exploit, develop and maintain the database. Insurance enterprises shall provide and update information and data and, at the same time, benefit from, exploit and use the database.

4. The Ministry of Finance shall supervise the management, administration, operation, exploitation and development of the database prescribed in this Decree.

5. Information and data shall be kept in a safe and secure manner, preventing possible incidents and catastrophes, and preventing external intrusion and illegal access.

Article 32. Tasks and powers of the Management Board of the Motor Vehicle Insurance Fund

1. To develop and implement policies on data management, access authorization, administration and updating, and exploitation, use and confidentiality of the database.

2. To coordinate with insurance enterprises in summarizing proposals on upgrading and improving the database for reporting to the Ministry of Finance; to adjust and  complete the system configuration and implement projects on connection and upgrading of the database; to report on implementation progress and results to the Ministry of Finance.

3. To regularly check and monitor the periodical updating of information and data by insurance enterprises; to receive and sum up difficulties, problems and proposals of insurance enterprises and resolve them according to their competence. To report matters falling beyond its competence to the Ministry of Finance for consideration and settlement.

4. Before the 20^th of the month following the end of a quarter, to sum up and report on the data updating by insurance enterprises to the Ministry of Finance.

Article 33. Tasks and powers of insurance enterprises

1. To build and operate the information technology system to ensure statistics and updating of the implementation of compulsory insurance for motor vehicle owner’s civil liability and ensure connection to the database. An insurance enterprise shall provide to the database at least the following information:

a/ Information about motor vehicle owner: name, address, phone number (if any), serial number of people’s identity card/citizen identity card or passport (for motor vehicle owners being individuals);

b/ Information about motor vehicle: license plate number or chassis number, engine number, vehicle type, tonnage (for cars), number of seats (for cars), vehicle use purpose (for cars), brand, capacity, paint color, year of manufacture;

c/ Information about insurance enterprise: name, address, hotline phone number;

d/ Levels of civil insurance liability for third parties and passengers;

dd/ Responsibilities of the motor vehicle owner and the driver when an accident occurs;

e/ Period of insurance, serial number of insurance certificate, insurance premium, deadline for premium payment, date and place of issuance of issuance certificate; issuer (if any) of insurance certificate;

g/ Information about compensation for compulsory insurance for motor vehicle owner’s civil liability; information on accidents, administrative sanctions, registration and technical inspection related to motor vehicle collected through the connection with the databases of the Ministry of Public Security and Ministry of Transport.

2. To periodically connect and input data into the database before the 15^th of every month, ensuring the timeliness, accuracy and completeness of data according to the provisions of this Decree. An insurance enterprise that fails to perform this task may have its right to exploit and use the database restricted.

3. To be entitled to exploit their own data and general and aggregate data of the whole insurance market on the situation of implementation of compulsory insurance for motor vehicle owner’s civil liability.

4. To notify problems arising in the process of exploitation and use of the database and propose solutions to the Motor Vehicle Insurance Fund.

5. To coordinate with the Motor Vehicle Insurance Fund in adjusting and improving the system configuration and carrying out projects on connection and upgrading of the database.

6. Other tasks and powers as prescribed by law.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 34. Responsibilities of the Ministry of Finance

1. To organize public information activities for the implementation of compulsory insurance for motor vehicle owner’s civil liability according to its state management functions and tasks.

2. To promulgate a circular providing insurance premium rates, insurance liability levels, and specific rate of each expenditure item of the Motor Vehicle Insurance Fund, specifying the organizational structure of management and administration, and the estimation, accounting and account-finalization of the Motor Vehicle Insurance Fund, processes, procedures and dossiers for payment for humanitarian assistance from the Motor Vehicle Insurance Fund, and refund of compensation amounts that insurance enterprises have paid in advance according to Clause 3, Article 19 of this Decree.

3. To notify the annual rate of contribution to the Motor Vehicle Insurance Fund at the proposal of the Association of Vietnamese Insurers.

4. To inspect and supervise the management, use, payment and account-finalization of the Motor Vehicle Insurance Fund; to supervise the management, administration, operation, exploitation and development of the database.

5. To assume the prime responsibility for inspecting, examining and supervising insurance enterprises in the implementation of compulsory insurance for motor vehicle owner’s civil liability.

6. To assume the prime responsibility for guiding the Association of Vietnamese Insurers and insurance enterprises to develop the database.

7. The Ministry of Finance shall promulgate a decision on the establishment and appointment of members of the Vietnamese National Bureau to implement Protocol 5 on the ASEAN Scheme of Compulsory Motor Vehicle Insurance.

Article 35. Responsibilities of the Ministry of Public Security

1. To organize public information activities for the implementation of compulsory insurance for motor vehicle owner’s civil liability according to its state management functions and tasks.

2. To direct the traffic police and other related police forces to supervise, inspect, detect and handle administratively handle motor vehicle owners and drivers joining traffic that violate regulations on compulsory insurance for motor vehicle owner’s civil liability.

3. To direct the traffic police and investigation police forces to provide copies of documents related to traffic accidents according to Clause 4, Article 15 of this Decree within 5 working days from the date investigation results are available.

4. To direct the traffic police and other related police forces to combat crimes in the field of compulsory insurance for motor vehicle owner’s civil liability; to coordinate with units of the Ministry of Finance in inspecting and supervising insurance enterprises in the implementation of compulsory insurance for motor vehicle owner’s civil liability.

5. To share and provide information managed by the public security sector to the database serving the management of compulsory insurance for motor vehicle owner’s civil liability in accordance with the law on management of the connection and sharing of digital data among state agencies.

Article 36. Responsibilities of the Ministry of Transport

1. To coordinate with the Ministry of Finance, Ministry of Public Security and related ministries and sectors in guiding and promoting the implementation of compulsory insurance for motor vehicle owner’s civil liability.

2. To coordinate with the Ministry of Finance in inspecting and supervising insurance enterprises in the implementation of compulsory insurance for motor vehicle owner’s civil liability.

3. To share and provide information managed by the transport sector to the database.

4. To coordinate with competent agencies in applying measures to prevent and limit road traffic losses in accordance with law.

Article 37. Responsibilities of the Ministry of Health

To direct and instruct central and local health establishments to provide copies of medical records, injury certificates, death notices or written certifications related to first aid and treatment of road traffic accident victims in order to create conditions for insurance enterprises to quickly complete compensation dossiers and guarantee the interests of the insured.

Article 38. Responsibilities of the Ministry of Information and Communications

To direct central and local communications and press agencies to regularly disseminate information about compulsory insurance for motor vehicle owner’s civil liability.

Article 39. Responsibilities of ministries, ministerial-level agencies and government-attached agencies

1. To coordinate with the Ministry of Finance in inspecting and supervising the implementation of compulsory insurance for motor vehicle owner’s civil liability.

2. To coordinate with the Ministry of Information and Communications in organizing public information activities on the implementation of compulsory insurance for motor vehicle owners’ civil liability according to their state management functions and tasks.

3. The Vietnam Television and Voice of Vietnam shall spend a certain amount of broadcasting time to regularly disseminate information about compulsory insurance for motor vehicle owner’s civil liability.

4. To perform other tasks within their competence as prescribed by law.

Article 40. Responsibilities of provincial-level People’s Committees

1. To direct competent agencies and administrations at all levels to organize the implementation of compulsory insurance for motor vehicle owner’s civil liability in their localities.

2. To direct local news and press agencies to regularly disseminate information about compulsory insurance for motor vehicle owner’s civil liability.

3. To coordinate with the Ministry of Public Security in directing the traffic police and other related police forces in the localities to inspect and handle motor vehicle owners not participating in compulsory insurance for motor vehicle owner’s civil liability.

4. To perform other tasks within their competence as prescribed by law.

Article 41. Responsibilities of the High Command of the Vietnam Border Guard

1. To coordinate with the Ministry of Finance and related agencies in organizing the implementation of Protocol 5 on the ASEAN Scheme of Compulsory Motor Vehicle Insurance.

2. To direct the land border guards to inspect and control the observance of the implementation of compulsory insurance for civil liability by owners of motor vehicles in transit.

Article 42. Responsibilities of the National Committee for Traffic Safety

1. To coordinate with the Ministry of Finance, Ministry of Public Security and related ministries and sectors in guiding and promoting the implementation of compulsory insurance for motor vehicle owner’s civil liability.

2. To coordinate with the Motor Vehicle Insurance Fund in organizing public information and education activities; to prevent and limit losses; to spend on humanitarian assistance in accordance with this Decree.

Article 43. Responsibilities of the Vietnamese National Bureau to implement Protocol 5 on the ASEAN Scheme of Compulsory Motor Vehicle Insurance

1. Vietnamese National Bureau to implement Protocol 5 on the ASEAN Scheme of Compulsory Motor Vehicle Insurance is the standing body assisting related ministries and agencies in implementing Protocol 5.

2. To study and propose to the Ministry of Finance to report to competent agencies on the completion of regulations on compulsory insurance for motor vehicle owner’s civil liability, facilitating the implementation of the ASEAN Scheme of Compulsory Motor Vehicle Insurance.

Article 44. Responsibilities of the Vietnam Automobile Transportation Association

1. To coordinate with the Ministry of Finance, Ministry of Public Security and related ministries and sectors in guiding and promoting the implementation of compulsory insurance for motor vehicle owner’s civil liability.

2. To direct and guide provincial and regional grassroots associations to coordinate with provincial-level People’s Committees in guiding and promoting the implementation of compulsory insurance for motor vehicle owner’s civil liability.

Article 45. Responsibilities of the Association of Vietnamese Insurers

1. Before March 31 every year, to propose to the Ministry of Finance the rate of contribution to the Motor Vehicle Insurance Fund according to Clause 2, Article 26 of this Decree.

2. To organize public information activities for the implementation of the motor vehicle owner’s civil liability insurance.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 46. Transitional provisions

Motor vehicle owners’ civil liability insurance policies entered into before the effective date of this Decree must continue to comply with the regulations effective at the time of their entry. Any amendments thereto after the effective date of this Decree must comply with the provisions of this Decree.

Article 47. Effect

1. This Decree takes effect on March 1, 2021.

2. This Decree replaces the Government’s Decree No. 103/2008/ND-CP of September 16, 2008, on compulsory insurance for motor vehicle owner’s civil liability, and 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 motor vehicle owner’s civil liability.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and subjects of application of the Decree shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* The appendices to this Decree are not translated.