| THE MINISTRY OF FINANCE ------- No. 151/2012/TT-BTC | SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness --------------- Hanoi, September 12th 2012 |
CIRCULAR
ON THE AMENDMENTS TO THE CIRCULAR NO. 126/2008/TT-BTC DATED DECEMBER 22nd 2008 OF THE MINISTRY OF FINANCE, ON THE PRINCILES, TERMS AND CONDITIONS, TARIFF, AND LEVEL OF COMPULSORY INSURANCE FOR CIVIL LIABILITY OF MOTOR VEHICLE ONWERS, AND THE CIRCULAR NO. 103/2009/TT-BTC DATED MAY 25th 2009 OF THE MINISTRY OF FINANCE ON THE MANAGEMENT, USE, AND PAYMENT FOR MOTOR VEHICLE INSURANCE FUNDS
Pursuant to the Government's Decree No. 118/2008/ND-CP dated November 27th 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance ;
Pursuant to the Government's Decree No. 103/2008/ND-CP dated September 16th 2008 on compulsory insurance for civil liability of motor vehicle owners;
At the request of the Director of the Department of Insurance Management and Supervision;
The Ministry of Finance issues a Circular on the amendments to the Circular No. 126/2008/TT-BTC dated December 22nd 2008 of the Ministry of Finance, on the principles, terms and conditions, tariff, and level of compulsory insurance for civil liability of motor vehicle owners (hereinafter referred to as the Circular No. 126/2008/TT-BTC), and the Circular No. 103/2009/TT-BTC dated May 25th 2009 of the Ministry of Finance on the management, use, and payment for motor vehicle insurance funds (hereinafter referred to as the Circular No. 103/2009/TT-BTC),
Article 1. Amendments to the Circular No. 126/2008/TT-BTC
1. Point 5.1 Clause 5 of Section I is amended as follows:
“5.1. Non-contractual bodily injuries, bodily suffering and loss of property of the third party caused by motor vehicles.”
2. Point 1.2 Clause 1 of Section II is amended as follows:
“1.2. Insurers only issue Certificates of insurance to motor vehicle owners after they have paid off the insurance premium. The full payment of insurance premium shall be certified by accounting documents of the insurer (receipts or other documents ad prescribed by relevant laws). In some special cases, the insurer and the motor vehicle owner may reach a written agreement on the deadline for the insurance premium payment, in particular:
- If the motor vehicle owner is an administrative agency or public service provider of the State, the insurance premium shall be paid within 10 days from the effective date of the Certificate of insurance.
If the motor vehicle owner is not an administrative agency or public service provider of the State and buys insurance for many motor vehicles at the same time and the total insurance premium payable is at least 100 million VND, the insurance premium shall be paid in 2 installments:
+ First installment: the motor vehicle owner shall pay 50% of the total insurance premium before the effective date of the Certificate of insurance;
+ Second installment: the motor vehicle owner shall pay the remainder within 90 days from the effective date of the Certificate of insurance.
- If the motor vehicle owner fails to pay insurance premium before the deadlines above, the insurance contract shall be terminated on the day after such deadlines. Within 5 working days from the termination date of the insurance contract, the insurer shall notify the motor vehicle owner in writing of the termination of the insurance contract and refund the excess insurance premium (if any) to the motor vehicle owner, or request the motor vehicle owner to pay off the insurance premium by the termination date of the insurance contract. The insurer shall not refund the insurance premium if an insured event and a liability to provide indemnities occur before the insurance contract is terminated. The insurer is not liable to provide indemnities to the insured when an insured event occurs while the insurance contract is terminated. The insurance contract shall take effect again from the day on which the insurance premium is paid off and the insurer makes a written approval.”
3. Point 2.1 Clause 2 of Section II is amended as follows:
“2.1. The effective date of the Certificate of insurance is written on the Certificate of insurance. The Certificate of insurance shall not takes effect before the motor vehicle owner pays off the insurance premium, except for the special cases in which the insurer and the motor vehicle owner reaches a written agreement on the deadline for paying insurance premium as prescribed in Clause 2 Article 1 of this Circular.”
4. Point 2.2.d Clause 2 of Section II is added as follows:
“d) Where a motor vehicle owner buys insurance for many vehicles at various times in a year, and wishes to convert the dates of all insurance contracts into the date for management, the insurance period of these vehicles may be shorter than 01 year and equal the remaining period of the first insurance contract in that year. The insurance period of the succeeding year of all insurance contracts (converted) is 01 year”.
5. Clause 4 of Section II is amended as follows:
“Maximum liability is the maximum amount of money that an insurer shall pay for bodily injuries, bodily suffering and loss of property of a third party and passengers caused by motor vehicles in each accident covered by the insurance. In particular:
4.1. The maximum liability for a bodily suffering caused by motor vehicles is 70,000,000 VND/person/accident.
