Top 5 Facts To Know About Compulsory & Voluntary Auto Insurance

In order to get a vehicle, you need to buy compulsory civil liability insurance in accordance with the provisions of the Road Traffic Law. Besides, there are other types of voluntary insurance for car owners to choose to minimize the damage to the lowest level. Do you know anything about these types of insurance? Here are the top 5 information to know about compulsory car insurance and volunteering, please refer to it.

Top 5 Facts To Know About Compulsory & Voluntary Auto Insurance

1. Distinguish between voluntary and compulsory automobile insurance

Compulsory car insurance:

• Also known as motor vehicle civil liability insurance
• An insurance package that all vehicles participating in traffic in Vietnam must be insured in accordance with the provisions of the State.
• Insurance package to ensure the benefits of a third party if unfortunately the car causes damage and damage to the 3rd party.

Voluntary auto insurance:

• Voluntary auto insurance does not require motor vehicle owners to buy it.
• This is a form of insurance according to the option of the customer, the insurance companies based on the extent of the accident, damage and the limited amount that compensates the car owner.

2. Benefits of compulsory and voluntary auto insurance

Compulsory car insurance:

• On behalf of the insurance company, you will pay compensation to the 3rd party for your life, body and property if an accident occurs.
• In particular, when you cause an accident to a third party, they will be insured for damages to property, life and body.
• The payment of damages will be within the contract limits

Voluntary auto insurance:

Auto insurance is considered a talisman for the driver and the vehicle is protected. Voluntary auto insurance has many advantages such as:

• Protect assets and the people in traffic. Estimated amounts incurred by accident.
• You are compensated with money for cases of unexpected accidents such as collisions, overturns, explosions, and hard objects.
• The level of compensation is more than 75%. If the car is stolen can be refunded 100%.
• Participating in voluntary insurance helps you to be compensated for any accidents related.

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3. Types of compulsory and voluntary automobile insurance

Currently there are 4 popular forms of insurance:

• Compulsory insurance for civil liability of motor vehicle owners.
• Insurance of vehicle owners' civil liability for goods transported on vehicles.
• Physical damage insurance, body cover for motor vehicles.
• Insurance for negligent and passengers sitting in the car.

The compulsory insurance of civil liability of motor vehicle owners is the compulsory form of law while the remaining 3 forms are voluntary.

4. Conditions to be insured

• Subjects possessing or borrowing motor vehicles that participate in traffic within the territory of Vietnam.
• You can only join 1 compulsory insurance is civil liability insurance.

5. Find out the compensation level and compensation range of insurance types

For civil liability insurance

Range of compensation

• Cash compensation for bodily or physical damage of a third person from a motor vehicle accident.
• For passenger cars with passenger transport contracts, compensation for loss of life, body and property to passengers.

Compensation level:

• If a motor vehicle causes human damage, the compensation level is VND 100.000.000 / person / accident.
• In case a motor vehicle causes damage to property, the compensation level is VND 100.000.000 / accident.

Civil liability insurance that car owners pay in case the goods on the vehicle were damaged

Range of compensation

If the traffic police determines that the Automobile Owner's fault causes damage to goods during transportation, the insurance will compensate.

Compensation level:

The amount of compensation does not exceed the insurance liability for goods carried on the vehicle, including:

• Costs to prevent loss mitigation
• Cost of storage, loading, unloading, storage of goods as a result of the accident;
• Loss assessment expense
• Value of goods lost.

• Physical damage insurance for cars

Scope of compensation:

• Crashing, collision, overturning, sinking, sinking or falling the whole vehicle, being hit by other objects
• Fire, fire, explosion
• Force majeure disasters caused by nature
• Lost the entire car by theft, robbery.

Compensation level:

Currently, the physical insurance premium usually ranges from 1,4 to 1,7% of the value of the car. There are also other items because you choose to add additional terms, the insurance applies a deduction: 500.000 VND / Department.

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Insurance for negligence, driver and passenger

Scope of compensation:

• For negligence or auxiliary driver: Compensate for damage to body and property of the auxiliary driver, neglect when sitting in the vehicle.
• For passengers: Compensate for physical damage in case the vehicle is stopped for passengers to get on or off or when sitting in a vehicle in traffic.

Compensation level:

• In case of death, neglect or extra driver, the payment will be equal to the amount agreed in the insurance contract.
• Injury cases will be paid according to the injury rate table issued by the contracting company.

Above is all the information that car owners should know in order to opt for the appropriate Insurance.

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