Motorcycle liability insurance premiums totalled VND431.8bn ($17.6m) in the first half of 2024, with claims amounting to nearly VND42bn, according to official statistics. This reflects an improved payout rate compared to previous years.
Previously, the payout rate for motorcycle liability insurance was lower, at just 6% in 2019 and 2.5% in 2021, reported the Vietnam News Agency.
Responding to the low claim payout rate, the authorities issued Decree No. 67/2023/ND-CP, effective from 6 September 2023, aimed at simplifying the claims process and improving insurance protection.
Decree No. 67 allows a maximum premium reduction of 15% for vehicles with low claims histories, encouraging safer driving. The maximum compensation was set at VND150m per accident, up from the previous VND70m-VND100m per person.
In addition, the decree requires insurance companies to establish 24/7 hotlines for accident reports, guidance and inquiries, with calls recorded to ensure compliance. Insurers must provide claim filing instructions within one hour of notification and conduct damage assessments within 24 hours. Compensation for health and life damages must be advanced within three working days, even if the full claim amount is not yet determined.
Additionally, the decree mandates the collection of necessary documentation from law enforcement in fatal cases and encourages the use of information technology in claims processing.