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Ministry of Finance to inspect insurers for motor insurance compliance
The Ministry of Finance will inspect four non-life insurance companies in 2024 to ensure adherence to mandatory motor vehicle insurance regulations.
A point of sale for motor vehicle insurance. — Photo baotintuc.vn
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The move follows concerns from voters in Lâm Đồng and Lạng Sơn provinces about the effectiveness of motorcycle insurance and challenges in the claims process.
Voters have highlighted issues with the limited benefits from motorcycle insurance and have called for more transparency in the handling of insurance funds. Lạng Sơn voters reported difficulties in claiming compensation for property damage and personal injury from motorcycle accidents, urging a reduction in bureaucratic procedures.
In response, the Ministry has highlighted the recent Decree No. 67/2023/NĐ-CP, effective from September 6, 2023, designed to simplify the claims process and improve insurance protection. Statistics for the first half of 2024 show motorcycle liability insurance premiums generating VNĐ431.8 billion (US$17 million), with claims amounting to nearly VNĐ42 billion and reserves close to VNĐ36 billion. This reflects an improved payout rate compared to previous years.
Previously, the payout rate for motorcycle liability insurance was low, at just 6 per cent in 2019 and 2.5 per cent in 2021. Decree No. 67 allows a maximum premium reduction of 15 per cent for vehicles with low claims histories, encouraging safer driving. Coverage limits have increased significantly, with premiums for motorcycles under 50cc set at VNĐ55,000 and maximum compensation at VNĐ150 million per accident, up from previous limits of VNĐ70 million to VNĐ100 million per person.
The decree requires insurance companies to establish 24/7 hotlines for accident reports, guidance and inquiries, with calls recorded to ensure compliance. Insurers must provide claim filing instructions within one hour of notification and conduct damage assessments within 24 hours. Compensation for health and life damages must be advanced within three working days, even if the full claim amount is not yet determined.
Additionally, the decree mandates the collection of necessary documentation from law enforcement in fatal cases and encourages the use of information technology in claims processing.
The Ministry of Finance said it will continue to monitor and enforce these regulations, with inspections focusing on compliance and strict penalties for violations. The Ministry will collaborate with relevant agencies to refine policies and address any issues to enhance the effectiveness of the requirements.
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