Compulsory Car Insurance in Hanoi: What You Need to Know

The saying goes, “A durable possession depends on its owner, a good car relies on insurance,” but do you truly understand compulsory car insurance? Are you missing crucial information that could cost you dearly in case of an accident?

The Importance of Compulsory Car Insurance

Compulsory car insurance, also known as compulsory third-party liability (TPL) insurance, is mandatory for all motor vehicles operating on roads in Vietnam. This insurance plays a vital role:

• Protecting the vehicle owner’s rights: It compensates for property damage or bodily injury to a third party in the event of an accident caused by the owner’s fault.
• Protecting the rights of the third party: The third party who suffers damage due to an accident caused by the vehicle owner’s fault is entitled to claim compensation from the insurance company.
• Minimizing financial risks for the vehicle owner: It helps car owners avoid enormous expenses if they have to compensate for damages to a third party.
• Promoting road safety: Because car owners are responsible for compensating third parties in case of accidents, participating in insurance encourages safer driving.

What is Compulsory Car Insurance?

Compulsory car insurance is an insurance contract between the vehicle owner and the insurance company, in which the insurance company commits to compensating the third party who suffers damage due to the fault of the vehicle owner in the event of a traffic accident.

Compensation Levels:

Compensation levels for compulsory car insurance are specified in the Road Traffic Law and the Insurance Law. The level of compensation depends on the extent of the damage, the type of vehicle, and various other factors.

Insurance Premiums:

Compulsory car insurance premiums are calculated based on the type of vehicle, tonnage, insurance period, and several other factors.

Frequently Asked Questions:

1. Do I need to buy compulsory car insurance?

Answer: You are required to purchase compulsory car insurance when participating in road traffic. Failure to participate in compulsory car insurance will result in administrative penalties according to the law.

2. Where can I buy compulsory car insurance?

Answer: You can purchase compulsory car insurance from reputable insurance companies nationwide.

3. How long is the compulsory car insurance valid for?

Answer: Compulsory car insurance is valid for one year.

4. Can I renew my compulsory car insurance?

Answer: You can renew your compulsory car insurance before the current insurance period expires.

5. Can I change insurance companies?

Answer: You can change insurance companies when the current insurance period expires.

Important Notes:

• Choose a reputable insurance company: Select a reputable insurance company with a transparent and professional claims history to ensure your rights are best protected.
• Carefully read the insurance contract: Read the insurance contract thoroughly before signing to understand your rights and obligations.
• Keep your insurance documents safe: Keep your insurance documents carefully for use when needed.
• Report any changes in information: Notify the insurance company of any changes to your personal information, vehicle, or contact address.

Related Products

In addition to compulsory car insurance, you can consider other types of car insurance such as:

• Physical Damage Insurance: Protects your car from risks such as accidents, fire, theft…
• Voluntary Third-Party Liability Insurance: Increases the compensation limit for third parties in the event of a traffic accident.
• Safe Driving Insurance: Compensates the driver for injuries or death in the event of a traffic accident.

Conclusion:

Compulsory car insurance is a crucial part of participating in road traffic. Ensure you have compulsory car insurance and understand your rights and obligations to protect yourself and others. If you have any questions, please contact us for advice and support.