Causing a traffic accident is bad enough — but many vehicle owners suffer double when they have no compulsory liability insurance, or do not know the compensation levels they are entitled to. Decree 67/2023/ND-CP (effective 06/9/2023) sets the maximum compensation levels directly — this is the latest regulation in force.
1. Current maximum compensation (Article 6)
Personal injury and death: the insurance liability limit is VND 150 million per person per accident — covering both third parties and passengers on the vehicle.
Property damage:
- VND 50 million per accident — damage caused by two- or three-wheeled motorbikes and mopeds (including electric motorbikes);
- VND 100 million per accident — damage caused by cars, tractors, trailers or semi-trailers.
2. Coverage scope: what does the insurance pay for?
The insurer must compensate:
- Non-contractual personal injury, death, and property damage to third parties caused by the motor vehicle in traffic;
- Personal injury and death of passengers on that vehicle.
Note: this is civil liability insurance — it protects the victim, not damage to the at-fault vehicle itself (to protect your own vehicle, buy separate own-damage cover).
3. Obligations of vehicle owners
- Compulsory purchase: every motor vehicle owner in traffic must buy compulsory liability insurance; term from 01 to 03 years;
- Carry the insurance certificate while driving — traffic police may inspect it;
- No insurance means administrative fines and, in an accident, paying the victim’s full damages out of pocket.
4. Reference premiums and the ±15% adjustment mechanism
Premiums under Appendix 1 of Decree 67/2023: motorbikes under 50cc VND 55,000/year; 50cc and above VND 60,000/year; electric motorbikes VND 55,000/year; non-commercial cars under 6 seats VND 437,000/year, 6–11 seats VND 794,000/year.
Notably, based on each vehicle’s claims history or the owner’s accident record, insurers may adjust premiums up or down by up to 15% — safe drivers with few accidents pay less.
5. Frequently asked questions
Q: Do electric motorbikes need compulsory insurance?
A: Yes — Decree 67/2023 covers electric motorbikes, at VND 55,000/year.
Q: What if I cause an accident after my insurance expired?
A: The insurer has no liability; the owner bears all victim compensation personally and faces fines for driving uninsured.
Q: Is VND 150 million enough when actual damage is higher?
A: 150 million is the insurer’s liability cap; the owner remains liable for the excess under civil law. Many owners buy additional voluntary cover to raise the limit.
Need advice on motor vehicle insurance compensation or disputes with insurers? Contact us.
This article was prepared by the FLAW AI Legal Council. The content is pending QA Council review prior to approval; the information is for reference only and does not replace legal advice for your specific circumstances.
