Guide to Vietnam’s Compulsory Motorbike and Auto Insurance

Motorbike and auto insurance are mandatory in Vietnam. Many foreigners visiting the country mistakenly assume that the vehicle owner has already purchased insurance, but they may not realize that these insurance policies might not be valid according to Vietnamese law. Today, the growing demand for transportation, especially in major cities, has contributed to the strengthening of regulations surrounding motorbike and auto insurance.

For foreigners, understanding motorbike and auto insurance in Vietnam is crucial. This article provides basic to detailed information about motorbike and auto insurance in Vietnam, offering expatriates a comprehensive guide to complying with the country’s traffic regulations.

Looking for the best motorbike and auto insurance in Vietnam? Let The Nest Asia guide you!

Motorbike Insurance in Vietnam

Motorbike insurance is a type of coverage designed to protect the owner or driver of a motorbike against risks that may arise during its use. These risks include traffic accidents, vehicle theft, physical damage, or accidental injury.

When purchasing motorbike insurance, the owner pays a premium to the insurance company. In return, the company guarantees compensation if the risks specified in the policy occur. Depending on the terms of the policy, the level of protection and the cost of coverage can vary. Motorbike insurance is considered one of the mandatory requirements for vehicle owners in order to legally operate their vehicles on the road.

Types of Motorbike Insurance

In accordance with Clause 3, Article 4 of Decree 03/2021/ND-CP, there are two primary types of motorbike insurance in Vietnam:

Compulsory Civil Liability Insurance (CCLI) for Motorbikes

This is mandatory insurance for all motorbike owners in Vietnam. In the event of an accident, CCLI insurance compensates the victim of the accident, not the motorbike owner. This third-party insurance is designed to cover damage caused by the motorbike to the other party involved in the accident. The insurance covers:

• VND 100 million per person per case for personal injuries
• VND 50 million per person per case for property damage

Motorbike owners are not required to pay for the damages out of pocket in case of an accident, as the insurance company compensates the victim.

Voluntary Motorcycle Insurance

This is an optional insurance policy that motorbike owners can purchase for additional protection. It covers both the vehicle owner and passengers in the event of an accident, theft, or fire. The scope of coverage and compensation will vary depending on the terms and conditions of the contract with the insurance provider.

While voluntary insurance offers more comprehensive protection than CCLI, it’s up to the motorbike owner to decide the level of coverage they need.

Some Motorbike Insurance Companies in Vietnam?

When purchasing motorbike insurance in Vietnam, it’s important to consider factors like the insurance company’s reliability, level of protection, and price. Here are some reputable motorbike insurance providers you can refer to:

• Liberty Insurance: A well-known motorbike insurance company in Vietnam offering a range of affordable insurance packages to ensure full protection for customers.
• PVI Insurance: One of the largest insurance providers in Vietnam, offering competitive rates and a variety of motorbike insurance options for comprehensive coverage.
• Bao Viet Insurance: Known for providing a wide selection of motorbike insurance packages at reasonable prices to ensure thorough protection for your vehicle.
• PTI Insurance: A reputable provider offering diverse motorbike insurance packages with competitive premiums, ensuring complete protection for your motorcycle.
• The Nest Asia: Offers consultation services and helps expats find reliable motorbike insurance in Vietnam, assisting them in selecting the right insurance plan to suit their needs and budget.

Before choosing an insurance provider, take the time to review their policies, regulations, coverage options, and pricing to find the best fit for your needs.

Penalties for Not Having Motorbike Insurance

For compulsory motorbike insurance in Vietnam, as per Decree 100/2019/ND-CP (amended by Decree 123/2021/ND-CP), failure to have civil liability insurance can result in fines ranging from VND 100,000 to VND 200,000.

If the owner intentionally avoids purchasing insurance or fails to pay the insurance fee, the fine increases to VND 200,000 to VND 400,000, and they may face a suspension of their driver’s license for 1-3 months.

For voluntary motorbike insurance, since it’s optional, there are no fines for not having it. However, opting for voluntary insurance can enhance coverage and provide additional benefits.

Auto Insurance in Vietnam

Compulsory auto-insurance in Vietnam, regulated by Decree 67/2023/ND-CP, requires vehicle owners, including cars, motorcycles, and trucks, to purchase civil liability insurance for third-party damages in accidents. This ensures victims are compensated.

The decree sets premiums, coverage limits, and exclusions. Motorcycles are covered for up to VND 50 million (US$2,000), while cars and tractors are covered for up to VND 100 million (US$4,000). Coverage can be denied if the driver is under the influence or lacks a valid license. It also manages the Motor Vehicle Insurance Fund, compensating victims of accidents with uninsured or unidentified vehicles. Insurance periods range from one to three years, promoting road safety and compliance.

Key Auto Insurance Providers in Vietnam

In Vietnam, both local and international insurance companies offer a range of auto insurance products, including mandatory civil liability coverage and optional comprehensive policies. Here are some of the key providers:

• Bao Viet Insurance
  One of the oldest and largest insurers in Vietnam, Bao Viet offers a wide selection of auto-insurance options, from compulsory civil liability to full coverage. They are known for their nationwide network and strong customer service.
• PTI Insurance
  PTI, a major non-life insurer, provides a variety of motor insurance products, including coverage for vehicle damage, theft, and personal accidents for drivers and passengers.
• PVI Insurance
  PVI offers comprehensive auto-insurance policies, covering accidents, theft, and natural disasters. They are recognized for their fast claims process and extensive network of repair services.
• Liberty Insurance
  A foreign-owned insurer, Liberty specializes in comprehensive car insurance with additional services like roadside assistance and premium repair options. They also offer easy management of policies and claims via their digital platform.
• MIC (Military Insurance Company)
  Originally catering to military personnel and their families, MIC’s motor insurance policies are now available to the general public. They offer both compulsory and optional coverage with competitive premiums.

Main Motor Auto Insurance Products in Vietnam

The motor auto insurance market in Vietnam is primarily driven by three main product categories:

• Compulsory Civil Liability Insurance
  This insurance is required by law for all vehicle owners. It covers third-party damages and injuries caused by the insured vehicle in an accident. Even if the at-fault driver cannot pay, the victims will still be compensated. This insurance is a mandatory condition for vehicle registration and must be renewed annually.
• Voluntary Vehicle Insurance
  These are optional insurance products offering broader coverage than the mandatory civil liability insurance. Voluntary insurance often covers damages to the insured vehicle, theft, natural disasters, and personal accidents for both the driver and passengers. Comprehensive car insurance, a popular choice within this segment, offers extensive protection for vehicle owners.
• Personal Accident Insurance for Passengers
  This insurance covers medical expenses and compensation for accidental injuries or death of passengers in the insured vehicle. Often bundled with other motor insurance policies, it provides extra protection for both the driver and passengers.

Types of Auto-Insurance Products in Vietnam

• Third-party Liability Insurance
  Covers damages or injuries caused to third parties, required by law but does not cover damage to the insured vehicle.
• Comprehensive Insurance
  Covers third-party liabilities and damages to the insured vehicle, including accidents, theft, fire, and natural disasters.
• Collision Insurance
  Covers damages to the insured vehicle from collisions, regardless of fault, often included in comprehensive plans.
• Theft and Fire Insurance
  Covers loss or damage from theft, attempted theft, or fire, typically an add-on or part of comprehensive insurance.
• Personal Accident Insurance
  Covers injuries or death of the driver and passengers in the event of an accident, often included in comprehensive insurance.
• Motorcycle Insurance
  Covers motorcycles, including both third-party liability and comprehensive coverage, tailored to the risks of motorcycle ownership.
• Tractor and Agricultural Vehicle Insurance
  Covers tractors and agricultural machinery, including protection against accidents, damage, theft, and fire.
• Roadside Assistance Insurance
  Provides emergency services like towing, battery jump-starts, and tyre repairs, typically offered as an optional add-on.

How Much Does Auto Insurance Cost in Vietnam?

The cost of car insurance in Vietnam varies depending on factors such as the type of vehicle and its year of manufacture. Circular 04/2021/TT-BTC, which regulates civil liability insurance for road motor vehicle owners, sets the prices for motorcycle insurance based on the vehicle’s value and cylinder capacity.

Here is how the pricing works for motorcycle insurance in Vietnam:

1. For vehicles with a cylinder capacity of less than 50cc:
   • Vehicles manufactured in 2019 or earlier: 2.5% of the vehicle’s value
   • Vehicles manufactured from 2020 onwards: 1.5% of the vehicle’s value
2. For vehicles with a cylinder capacity from 50cc to under 175cc:
   • Vehicles manufactured in 2019 or earlier: 1.5% of the vehicle’s value
   • Vehicles manufactured from 2020 onwards: 0.75% of the vehicle’s value
3. For vehicles with a cylinder capacity of 175cc or more:
   • Vehicles manufactured in 2019 or earlier: 1% of the vehicle’s value
   • Vehicles manufactured from 2020 onwards: 0.5% of the vehicle’s value

Why Choose The Nest Asia for Your Insurance Needs?

At The Nest Asia, we understand the challenges expats face when navigating the insurance landscape in Vietnam. Our team of experts is dedicated to helping you find the best motorbike and auto insurance options that fit your specific needs and budget. Whether you need compulsory insurance or additional coverage for peace of mind, we offer personalized guidance to ensure you’re fully protected.

We partner with reputable local and international insurance providers, ensuring you access the most reliable and competitive insurance plans available in the market. With The Nest Asia, you’ll save time, avoid confusion, and make informed decisions regarding your insurance needs.

Let us help you secure the right coverage for your vehicle and enjoy your time in Vietnam worry-free!

About Us

The Nest Asia is a one-stop resource offering comprehensive information, practical relocation advice, cultural insights, valuable connections, and trusted services to help expatriates living in Vietnam navigate the transition, overcome challenges, and build a fulfilling life abroad. Starting your journey in a new country can often feel overwhelming. The Nest Asia is your trusted partner – we’re here to simplify that process and ultimately make Vietnam feel like home for you and your loved ones.