Are you aware of the consequences of driving without car insurance? The Road Safety Act requires vehicle owners to have car insurance while on the road and report to authorities when requested. This not only ensures your own rights but also protects the rights of other vehicles in the event of an accident or collision. Let’s dive into the details to understand the importance of having car insurance and the penalties for not having it.
What is Car Insurance?
Car insurance is a type of compulsory third-party liability insurance that vehicle owners must have when traveling in Vietnam. In accordance with Decree 03/2021/ND-CP, the insurance company represents the vehicle owner and compensates the injured party for material and personal losses. The compensation limits are as follows:
- Compensation for bodily injury: 150,000,000 VND/person/case.
- Compensation for material damage: 100,000,000 VND/case.
What are the Penalties for Not Having Car Insurance?
According to clause 11 of article 21 of Decree 123/2021/ND-CP, drivers of cars or similar vehicles without compulsory motor third-party liability insurance will face administrative sanctions. The penalty for not having car insurance ranges from 400,000 VND to 600,000 VND.
The Benefits of Having Car Insurance
Why should you get car insurance as soon as possible? Let’s explore the benefits of participating in this insurance package:
- In case your vehicle causes material damage to a third party, the insurance company will pay compensation of 100,000,000 VND per accident.
- In case your vehicle causes bodily harm to a third party, the insurance company will pay compensation of 150,000,000 VND/person/case.
It’s important to note that the compensation limit should not exceed the coverage provided in the insurance contract.
How Much Does Car Insurance Cost?
The price of compulsory automobile liability insurance is set by Decree No. 03/2021/ND-CP, ranging from 480,700 VND to 1,026,300 VND as of January 15, 2021. Insurance companies are not allowed to adjust or change the purchase price.
How Long Does Car Insurance Last?
The minimum period of validity for compulsory motor vehicle liability insurance is 1 year. However, there are certain cases where the insurance duration may be less than 1 year, such as for cars with a shelf life of less than 1 year, cars under temporary registration, or foreign cars temporarily imported or re-exported for a period of less than 1 year.
Now that you have a better understanding of the penalties for not having car insurance, it’s crucial to comply with the Road Safety Act and ensure your own protection as well as that of others on the road. To make an informed decision, you can compare car insurance packages from leading insurance companies in Vietnam, such as Bao Viet, Bao Minh, PVI, PTI, on EZChoice. Visit Truth and Hope for more informative articles on various topics.