5 Things to Know About Automobile Civil Liability Insurance

- 5 Things to Know About Automobile Civil Liability Insurance
Latest update date: February 12, 07

In the context of the increasing number of cars participating in traffic, the issue of car civil liability insurance becomes extremely important.

Civil liability insurance for cars is one of the mandatory types of insurance for all vehicle owners participating in road traffic. It plays a key role in protecting the rights of both car owners and those involved in the event of an accident, helping to pay compensation for property damage, injury or death.

Reputable insurance companies provide car civil liability insurance packages at reasonable fees, while ensuring a quick and transparent process for resolving and paying compensation claims. In addition, they also advise and guide customers on the conditions, rights and obligations of related parties when participating in insurance. So what should you keep in mind when buying car civil liability insurance? Let's refer to the article!

Vehicle civil liability insurance is required
Vehicle civil liability insurance is required

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.

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.

- 5 Things to Know About Automobile Civil Liability Insurance
Scope of coverage of cars civil liability insurance

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

- 5 Things to Know About Automobile Civil Liability Insurance

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
Compulsory civil insurance cars will help pay damages to third parties
Compulsory civil insurance cars will help pay damages to third parties

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.

Why should you buy civil insurance for cars?

3 main reasons to buy civil car insurance:

  • 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
The cost of insurance is your cost of protection.
The cost of insurance is your cost of protection.

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.

Frequently asked questions (FAQ)

1. How is the car civil liability insurance premium calculated?

Charges Civil car insurance is calculated based on many factors such as vehicle type, purpose of use, number of seats and cylinder capacity. For example, a car with less than 6 seats has a fee from 437.000 to 873.000 VND/year, while a car with 6-11 seats has a fee from 794.000 to 1.752.000 VND/year.

2. How does the car civil liability insurance claim process work?

The compensation process usually includes 5 main steps:

  • Report the accident to the insurance company
  • Collect relevant documents and records
  • Submit a claim
  • Appraisal and assessment of damage
  • Compensation payment
  • Average processing time is about 15-30 business days.

3. Can I buy car civil liability insurance online?

Yes, many insurance companies now offer online insurance purchasing services. The process usually includes 4 steps: choose an insurance package, fill in information, pay and receive e-policy. Completion time is only about 5-10 minutes.

4. Can a car civil liability insurance contract be transferred?

Can be transferred when transferring vehicle ownership. Insurance benefits remain valid for new car owners for the remaining term of the contract. Transfer procedures need to be carried out within 15 days from the date of transfer of ownership.

5. Does car civil liability insurance include insurance for vehicle occupants?

No, this insurance only covers third party liability. To protect people sitting in the car, it is necessary to buy additional accident insurance for people sitting in the car with a minimum insurance level of 10 million VND/person/case.

6. Does car civil liability insurance cover damage caused by natural disasters?

No, this insurance only covers damage caused by traffic accidents. Damage caused by natural disasters such as storms, floods, and earthquakes is covered by vehicle physical insurance and needs to be purchased separately.

7. How to compare car civil liability insurance packages from different companies?

You can use online comparison tools or refer to comparison tables from insurance agents. Factors to consider include:

  • Insurance fee level
  • Compensation limit
  • Customer support service
  • Complaint resolution rate
  • Compensation process

Read the article now: Top 7 Auto insurance company Most reputable and professional today, chosen by many car owners.

8. Can car civil liability insurance premiums be reduced if there were no claims in the previous year?

Some insurance companies have fee reduction programs for customers with no claims. The reduction is usually from 10-20% of insurance premiums for the following year. However, this program is not universal and depends on each company's policy.

9. How to handle when the insurance company refuses to compensate?

If compensation is denied, the following steps can be taken:

  • Request a written explanation from the insurance company
  • Review the contract and insurance terms
  • Submit a complaint to customer service
  • Contact Vietnam Insurance Association for advice
  • If necessary, a lawsuit can be filed in court
  • The statute of limitations for filing a lawsuit is 3 years from the date the dispute arises.

10. Can I cancel my car civil liability insurance contract and get a refund?

The contract can be canceled in certain cases such as the vehicle being stolen, completely damaged or transfer of ownership. The insurance fee will be refunded according to the remaining time of the contract, minus 20% management fee. Request to cancel the contract must be sent in writing with relevant documents.

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