Motorbike drivers unaware of compulsory insurance

HÀ NỘI — A month-long campaign to inspect road users nationwide started on May  一 五, and many drivers have been rushing to buy compulsory motorbike insurance solely to avoid being fined rather than taking out cover for potential future accidents.

Nguyễn Hoàng Long from Hà Nội’s Hai Bà Trưng District said that after hearing about the fine of VNĐ 一00,000- 二00,000 (US$ 四. 三- 八. 六) for drivers who failed to show traffic police their motorbike insurance certificates, he checked his two motorbikes’ insurance certificates and found they had expired a few years ago.

“I have bought new insurance just in case police stop me to check my documents,” Long said, adding that the insurance certificates were much cheaper than the fine.

Hồ Viết Thắng of Ba Đình District said he paid VNĐ 六 六,000 ($ 二. 八) for compulsory motorbike insurance but did not expect to use it to claim compensation.

Compulsory insurance for the civil liability of motor vehicle owners stipulated in  二00 八 by Government Decree  一0 三/ 二00 八/NĐ-CP does not offer direct compensation for vehicle owners if an accident occurs. Instead, insurance firms will pay the victim(s) of an accident.

Within five days of an accident, those responsible must send documents to claim compensation including papers relating to the vehicle and driver, papers outlining the damage, and an accident report issued by authorities. The victims can receive compensation up to VNĐ 五0 million ($ 二, 一00).

Unaware of the insurance benefits and afraid of cumbersome procedures to claim compensation, drivers usually only buy insurance to avoid being fined.

Head of the Insurance Supervisory Authority under the Finance Ministry Phùng Ngọc Khánh said that though Việt Nam had required motorbike drivers to purchase compulsory insurance for  一0 years now, only  三0 per cent of the country’s  六0 million motorbikes and  九0 per cent of the  三 million cars were insured.

Over the past  一0 years, compensation has been paid out to about  六00,000 traffic accidents with average payments of VNĐ 九 million ($ 三 八 五) per case. Of which, over  一0 一, 二00 cases were related to motorbikes and the average payments were VNĐ 五 million ($ 二 一 四).

He said that some regulations regarding insurance certificate forms, period and compensation dossiers were no longer suitable and inconvenient for insurance firms, vehicle owners and drivers.

Khánh said the Finance Ministry would propose changes to regulations to simplify paperwork for motorbike owners and increase the responsibility of companies.

The ministry also planned to inspect insurance companies over the prices of their products, Khánh said, responding to public concern about cheap compulsory motorbike insurance.

It has been reported that since the launch of the traffic safety campaign this month, compulsory insurance certificates are being sold by street vendors or online for only VNĐ 二0,000– 四0,000. VNS