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Auto-insurance costs to climb
The Ministry of Finance has increased auto insurance premium levels.
Under Circular No 126/2008/TT-BTC, civil liability insurance premiums for privately-owned cars and motorbikes operated for personal use will increase 10 – 20 per cent at the beginning of 2009.
All owners of motor vehicles in Viet Nam are required to carry compulsory insurance to compensate for human or property damage caused by motorvehicles to another person. The new circular aims to improve the responsibility of drivers and discourage the number of cars being operated on urban roads, according to the ministry.
The circular provides that civil liability premium for motorbikes of less than 50cc will rise from VND45,000 to VND50,000 a year, exclusive of VAT, while that for motorbikes in excess of 50cc will rise from VND55,000 to VND60,000 a year.
Premiums for autos and mini-buses of 6-11 seats will increase from VND600,000 to VND690,000 (about US$40), while premiums for 12-24 seaters will grow from VND690,000 to VND1.1 million ($64) per year. Heavy-duty trucks will have to pay the high premium from VND656,000 to 2.25 million per year.
In general, vehicles for business use will see their premiums rise by a more modest 10-15 per cent, but taxis will pay at a level 1.5 times higher than other vehicles for business use.
The maximum civil liability insurance premium – insurance for human or property damage caused by motor vehicles – will be VND50 million ($3,000).
VNS
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