Why do I still get fined for buying motorbike insurance for 20,000 VND/year?

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

In addition to participating in compulsory civil liability insurance contracts, vehicle owners can negotiate with insurance companies to participate in voluntary insurance contracts.

The minimum fee for voluntary insurance is 10,000 VND/person/year. A motorbike can carry a maximum of 2 people, so 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. Insurance is intended to prevent accidents and risks for drivers.

According to regulations, in addition to compensation from compulsory insurance, traffic participants will receive additional compensation from voluntary insurance.

After the traffic police launched a general traffic control campaign, many people began looking to buy car and motorbike insurance. Photo: HNT

Vehicle owners do not have to present voluntary insurance when traffic police check documents. In case a traffic participant does not have or does not carry a valid civil liability insurance certificate, while having voluntary insurance, he/she will still be fined 80,000 - 120,000 VND, according to Decree 46/2016/ND-CP regulating administrative sanctions in the field of road and rail traffic.

Voluntary insurance is widely sold on sidewalks in Hanoi and Ho Chi Minh City. However, insurance experts say that this type of insurance is not guaranteed because it is not inspected by authorities, so it may be fake or illegal.

People should go to authorized distributors or motorcycle insurance companies to buy, to avoid not being compensated in case of an accident.

Meanwhile, compulsory motorbike insurance aims to help the insured compensate for damages to third parties. In cases of risks and accidents within the scope of insurance, the driver of a motorbike or scooter with a legal driving license will not have to compensate the person in the collision and the person sitting directly on the vehicle.car.

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

In addition to compensation for the vehicle owner, a portion of the insurance amount will be used to support traffic accident victims. In cases where the vehicle causing the accident cannot be identified or the accident is not covered by insurance, victims will also be supported with humanitarian compensation of up to VND 20 million/person.