5 Notes To Know About Oto Civil Liability Insurance

With many people think that Civil liability insurance cars It is compulsory to collect the profit sharing of related persons. Is this thinking correct? Why does the state law require car users to buy automobile civil liability insurance? And what to note when car liability insurance, let's find out the following.

What is car civil liability insurance?

Car civil liability insurance is mandatory for all car owners in Vietnam to participate in. The purpose is to provide financial support to the car owner and ensure the rights of third parties in case of an accident.

The principle of insurance is "Compensating for the unlucky few" by the many. When an accident occurs, insurance companies will use the insurance money collected from the many to compensate the few. accident victims.

Automobile civil liability insurance will help road users pay and compensate for losses when accidents occur with third parties.

>>> Suggestions: Distinguish between compulsory insurance and voluntary auto insurance

Scope of coverage of cars civil liability insurance

Civil liability insurance for cars will help you pay damages to third parties for loss of life, body and property. Or for passenger cars, they will pay for bodily and life losses of passengers under motorized passenger transport contracts.

Liability level of compulsory civil liability insurance

The level of insurance liability will be the maximum amount that insurance companies can pay for personal and third party damage in each accident that occurs within the scope of insurance liability. Maximum level of compensation liability According to Circular No. 22/2016/TT-BTC of the Ministry of Finance applicable from April 1, 4.

• Regarding people: 100 million VND / person / case (for the third person and passengers on the car if it is a transport business vehicle)
• About assets: 100 million VND / crop
• Voluntary insurance for driver accidents and people sitting in the car: 10 million VND / person / case

Some cases are not covered

• The third party intentionally causes additional damage.
• If you drive after causing an accident, intentionally flee.
• Or the driver does not have a valid Driving License.
• And the damage has other indirect consequences such as damage to trees and houses, damage to property stolen or robbed in an accident.
• And civil liability insurance for cars is only liable to pay damages to the third party, not to compensate for the damage of the car or the people sitting on the car to buy insurance. The amount of compensation is based on the level of fault of the driver. To be compensated for both people and their cars, they must buy additional car insurance and accident insurance for the occupants

Time and validity of insurance

The effective date of compulsory civil liability insurance for automobiles is specifically stated on the Insurance Certificate. But not before the motor vehicle owner has paid the full insurance premium.

The normal insurance period is 01 year. During the valid period stated on the Insurance Certificate, if there is a transfer of motor vehicle ownership, all insurance benefits related to the owner's civil liability The old car is still valid for the new car owner.

However, the automobile civil liability insurance contract will be canceled in the following cases:

• Motor vehicles have their registration and number plates revoked as prescribed by law.
• Motor vehicles expire as prescribed by law.
• Motor vehicle lost police certification.
• Damaged or unusable motor vehicle will be certified by the traffic authority.

>>> Suggestions for reference: Experience in buying car insurance

Why should you buy civil insurance for cars?

• Protecting yourself and your family when you encounter a crash, also helps you have a more comfortable driving mentality, without stress. The cost of insurance is your cost of protection.
• Satisfying humanitarian goals when traffic accidents are covered by insurance companies.
• Required to complete registration procedure

With 5 notes when Automobile civil liability insurance We present above in the hope of gaining more knowledge to help you realize the importance of civil car insurance. And also learn more about the benefits of this type of insurance.