Why am I still fined for buying motorcycle insurance that costs only 20,000 VND per year?

According to Circular 22/2016/TT-BTC regulating the rules, terms, fee schedule and liability limits of mandatory civil liability insurance for motor vehicle owners, there are two types of motorcycle insurance: mandatory civil liability insurance and voluntary insurance.

In addition to mandatory civil liability insurance, vehicle owners can negotiate with insurance companies to participate in voluntary insurance policies.

The minimum fee for voluntary insurance is 10,000 VND/person/year, and since motorbikes can carry a maximum of 2 people, the price is 20,000 VND/2 people/year.

This type of insurance is voluntary, so people have the right to use it or not. The insurance aims to protect against accidents and other risks that may occur to the driver.

According to regulations, in addition to compensation from mandatory insurance, traffic participants will receive an additional amount of compensation from voluntary insurance.

Following the traffic police's comprehensive inspection of vehicles, many people have started looking to buy car and motorbike insurance. Photo: HNT

Vehicle owners are not required to present voluntary insurance when traffic police check their documents. However, if a road user does not have or does not carry a valid Civil Liability Insurance Certificate, even if they have voluntary insurance, they will still be fined 80,000 - 120,000 VND, according to Decree 46/2016/ND-CP on administrative penalties in the field of road and rail transport.

Voluntary insurance policies are widely sold on sidewalks in Hanoi and Ho Chi Minh City. However, insurance experts say that this type of insurance is unreliable because it is not inspected by the authorities and may be counterfeit or non-compliant.

People should go to authorized dealers or motorcycle insurance companies to buy insurance, to avoid situations where they will not be compensated in case of an accident.

Meanwhile, mandatory motorcycle insurance aims to help policyholders compensate third parties for damages. In the event of an accident covered by the insurance, the driver of a motorcycle or scooter with a valid license will not have to compensate the person involved in the collision or the passenger.car.

Instead, the insurance company will pay this civil liability portion on behalf of the vehicle owner. Specifically, the insurance company's liability limit for personal injury caused by motor vehicles is 100 million VND per person per accident.

In addition to compensating the vehicle owner, a portion of the insurance money will be used to support victims of traffic accidents. Even if the vehicle causing the accident cannot be identified or the accident is not covered by insurance, humanitarian compensation of up to 20 million VND per person will still be provided to the victims.