Minister of Finance states reason for not abolishing compulsory insurance for motorbikes

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Minister of Finance answers questions of National Assembly delegates. Quochoi.vn

Delegate Huynh Thi Phuc said that compulsory civil liability insurance for motor vehicle owners has contributed to financial recovery for organizations and individuals who meet with an accident.

However, according to delegates, voters have repeatedly reported that purchasing compulsory civil liability insurance for cars and motorbikes has not brought practical benefits because compensation procedures are too cumbersome and extremely complicated. This insurance is mainly to avoid being punished by authorities when driving vehicles on the road.

Responding to this opinion of the National Assembly delegate, Minister of Finance Ho Duc Phoc said that motor vehicle insurance is regulated by the Road Traffic Law and the Insurance Business Law. This is a form of compulsory insurance.

According to the Minister, 64% of motorbike accidents have occurred and from 2021 to September 2023, insurance companies have paid nearly VND2,300 billion to victims.

“This shows that the Insurance Business Law and the Road Traffic Law have protected users of motorbike insurance packages because the majority of motorbike users are poor people. When there is an accident, if life is affected, the maximum insurance payout is VND150 million, if the vehicle is damaged, the maximum insurance limit is VND50 million," said the Minister.

Regarding how to facilitate payment, Minister Ho Duc Phoc said that Decree 67/2023/ND-CP on compulsory civil liability insurance of motor vehicle owners has stipulated: that the insurance company must pay insurance to accident victims within three days. If your life is affected, a record is needed, which means making a record in the police file; If your life is not affected, you only need a photo file and provide electronic records, then within three days the insurance company must pay the insured person who suffered an accident.

Previously, the Ministry of Finance had many times written responses to petitions from voters in localities on this issue. The Ministry of Finance clearly stated that motorbikes and mopeds are still the main means of transport and the largest cause of accidents in Vietnam.

Overcoming the crisis, insurance companies must enhance their quality

At the end of 2022, the Ministry of Finance reported to the Government on assessments of the impact of the policy on compulsory civil responsibility insurance for motorbike owners. In the case where prescribed solutions are implemented but motorbike insurance compensation still does not improve, the Ministry of Finance will submit to the Government to propose to the competent authority to revise this policy.