Vietnam inspects insurers for motor vehicle regulation compliance

Voters reported challenges in claiming compensation.

Four of Vietnam’s non-life insurers are under inspection by the Ministry of Finance for their adherence to mandatory motor vehicle insurance regulations, reported the Viet Nam News.

This action follows concerns raised by voters in Lâm Đồng and Lạng Sơn provinces about the effectiveness of motorcycle insurance and the difficulties in the claims process.

Voters reported challenges in claiming compensation for property damage and personal injuries from motorcycle accidents, calling for reduced bureaucratic procedures and greater transparency in how insurance funds are managed.

For the first half of 2024, motorcycle liability insurance premiums totalled US$17m, with claims amounting to nearly US$1.72m (VNĐ42b) and reserves of US$1.48m (VNĐ36b).

This represents an improved payout rate compared to previous years. In contrast, payout rates for motorcycle insurance were as low as 6% in 2019 and 2.5% in 2021.

The decree includes provisions for a 15% premium reduction for vehicles with low claims histories, higher coverage limits, and more efficient claims handling.

Premiums for motorcycles under 50cc are set at US$2.25 (VNĐ55,000), with maximum compensation per accident increased to US$6,150 (VNĐ150m), up from previous limits of US$2,870 (VNĐ70m) to US$4,100 (VNĐ100m) per person.

Insurance companies are now required to operate 24/7 hotlines for accident reports and must provide claim filing instructions within one hour.

Damage assessments must be conducted within 24 hours, and health or life damage compensation must be advanced within three working days. The decree also promotes the use of technology in claims processing and mandates collaboration with law enforcement in fatal cases.

(US$1.00 = VNĐ24,669.98)