Vehicle Insurance in Vietnam
General information on taking out an insurance policy in Vietnam and making a claim...
All motorised vehicles driven in Vietnam are required to be insured. Having a civil liability insurance policy (bao hiem trach nhiem dan su) is compulsory and complies with the requirements of the law. Uninsured drivers may be fined and are at risk of having their vehicles confiscated.
The process of insuring a vehicle is the same for Vietnamese and foreign residents. To obtain insurance, applicants need to present their personal identification and valid documents required for the vehicle to be insured, such as their passport, visa or identity card. Many insurance companies have English-speaking staff available to assist foreigners with selecting the best policy for their needs.
Additional Car Insurance
Additional insurance coverage may be purchased to augment the compulsory civil liability insurance. Policies are available to cover the following eventualities:
- Physical damage insurance (bao hiem thiet hai vat chat) covers the damage to a vehicle in case of an accident. The cost for this coverage is generally 1.5 percent of the vehicle’s value
- Insurance to cover the medical expenses of the driver or passengers if the vehicle is involved in an accident
- Insurance that insures the goods within a vehicle in case of accident
Discounts are available for drivers who have had no accidents or claims in Vietnam in the previous year. However, having no claims or accidents while driving in other countries is not taken into consideration when calculating premiums.
In the Event of a Motor Vehicle Accident
The driver of the vehicle involved in a motor vehicle accident needs to contact the police and the insurance company immediately. If there are serious injuries, the police arranges transportation to the nearest hospital or medical centre. The driver needs to supply the name, address, driver’s licence number, vehicle type and insurance information of any drivers involved in the accident to the police and insurance company. If the accident involves damage to property, the driver should attempt to find the owner and supply that information to the insurer.
A police report is completed and given to the driver, which needs to be presented to the insurer for the claim. The insurer gathers information about the accident, examines the police report, completes the claim form and begins the process of settling the claim.
The driver of the vehicle needs to submit the following information to the insurance company:
- Driver’s licence
- Vehicle registration
- Police report
- Photographs of the accident scene
If the vehicle cannot be driven, the insurer may be able to supply a vehicle for hire.