Legal document newsletter week 29/09/2023

REGULATIONS ON COMPULSORY INSURANCE FOR CIVIL LIABILITY OF MOTOR VEHICLE OWNERS, COMPULSORY FIRE AND EXPLOSION INSURANCE, COMPULSORY INSURANCE IN CONSTRUCTION INVESTMENT ACTIVITIES 

On September 6, 2023 , the Government issued Decree No. 67/2023/ND-CP (Decree 67) regulating compulsory insurance for civil liability of motor vehicle owners, compulsory fire and explosion insurance. , compulsory insurance in construction investment activities. Some notable new regulations that are favorable for insurance participants are as follows: 

New regulations on motor vehicle insurance 

Decree 67 supplements the principle that insurance enterprises have the right to refuse to sell compulsory insurance in cases where a motor vehicle has expired in accordance with the law. 

Based on the insurance compensation history of each motor vehicle or the accident history of the motor vehicle owner, the insurance company proactively considers and adjusts the increase or decrease in insurance premiums within the margin of increase or decrease. Maximum insurance is 15% calculated on the mandatory insurance premium of motor vehicle owners specified in the Decree. 

Decree 67 has narrowed the exclusion of insurance liability for alcohol concentration in the direction of only excluding insurance liability in the case of damage to property caused by a driver operating a motor vehicle with alcohol concentration in his blood or breath. Alcohol content exceeds the normal value according to the instructions of the Ministry of Health. 

Regarding the insurance period, Decree 67 stipulates a minimum insurance period of 1 year and a maximum of 3 years for all types of motor vehicles (except for some specific cases). 

In addition, Decree 67 also provides many regulations to simplify insurance compensation settlement documents, adjust some regulations on the content of insurance certificates to ensure compliance with regulations of the Ministry of Public Security. on issuance and management of vehicle registration certificates based on personal identification codes and facilitating the deployment, management and use of codes and barcodes according to legal regulations. 

Adjust the scope and level of humanitarian assistance spending 

Decree 67 expands the management and use of the Motor Vehicle Insurance Fund in the payment of humanitarian assistance in cases where the vehicle causing the accident cannot be identified, the vehicle is not insured, and is not within the scope of insurance. insurance and cases excluding insurance liability as prescribed in Clause 2, Article 7 of this Decree (except for intentional actions of the damaged person causing damage). 

In addition, the Decree also adjusts the rate of spending on humanitarian assistance to not exceed 30% and reduces the rate of spending on prevention and damage reduction to not exceed 15% of the total amount contributed. into the Fund every year and the Fund’s balance from previous years (if any). 

Regulations on humanitarian assistance spending are: 30% of the prescribed liability limit/person/case for death and disability rate of 81% or higher; 10% limit of liability according to regulations/1 person/1 incident in cases where the injury rate is from 31% to less than 81%. 

Adjust regulations on mandatory fire and explosion insurance fees 

Regarding compulsory fire and explosion insurance and compulsory insurance in investment and construction activities, Article 26 of Decree 67 has added regulations on increasing and reducing insurance fees by a maximum of 25% for fire and explosion insurance. It is mandatory for insurance companies to proactively assess the risk level of the insured object, ensuring the interests of the insurance buyer.