Truck auto liability insurance is mandatory in Vietnam. This article provides details about it, helping you understand and use it effectively.
Mandatory auto liability insurance
What is Truck Auto Liability Insurance?
Truck auto liability insurance is a type of insurance where the insurance company, on behalf of the insured truck owner, covers damages to the body and property of third parties when participating in traffic. Third parties include other vehicle owners, pedestrians, or anyone injured by the insured truck, excluding the driver, assistant driver, and passengers in the accident vehicle.
The mandatory nature of this insurance is stated in Decree 03/2021/ND-CP on mandatory auto liability insurance for vehicle owners, effective from March 1, 2021. Truck owners who cannot present a truck auto liability insurance certificate during inspection will be fined and required to purchase it immediately.
Truck Auto Liability Insurance Certificate
A truck auto liability insurance certificate serves as proof of an insurance contract with the insurance company. This certificate can be either a paper or electronic version. The information on the certificate must include:
- Vehicle owner information: Name, address.
- Vehicle information: License plate, vehicle type, tonnage.
- Insurance information: Insurance company name, liability level, insurance period, premium.
Significance of Truck Auto Liability Insurance
Truck auto liability insurance not only helps vehicle owners comply with the law but also plays an important role in social stability. In the event of an accident, insurance will help compensate third-party damages, reduce the financial burden on vehicle owners and victims, and ensure social security. Without truck auto liability insurance, many vehicle owners may evade responsibility or be unable to pay compensation, causing social instability.
PVI's mandatory auto liability insurance fee schedule
Scope of Risks and Exclusions
Truck auto liability insurance compensates for personal injury and property damage to third parties caused by the truck. However, there are some cases that are not covered, including:
- Intentional acts causing damage.
- Drivers fleeing after an accident.
- Drivers without a driver’s license or with an invalid license.
- Indirect damages (e.g., reduced commercial value).
- Drivers using drugs or alcohol when causing an accident.
- Property stolen during the accident.
Insurance Premiums and Benefits
The premium for truck auto liability insurance is regulated according to each vehicle type and tonnage. Insurance benefits include:
- Liability limit: 150 million VND/person/accident for personal injury; 100 million VND/accident for property damage.
- Insurance company’s responsibility: Compensation for damages to third parties as regulated.
- Advance compensation: The insurance company is responsible for providing advance compensation to victims in the shortest time possible.
Purchase and Compensation Procedures
The procedure to purchase truck auto liability insurance is very simple. You can buy it directly at insurance agencies or online. When an accident occurs, the vehicle owner needs to immediately notify the insurance company and the police, collect all necessary documents as instructed to complete the compensation procedure.
Conclusion
Truck auto liability insurance is a mandatory and important type of insurance, benefiting both vehicle owners and society. Understanding this type of insurance will help you feel more secure when participating in traffic and protect your rights.
