Nghị định 103/2008/NĐ-CP bảo hiểm bắt buộc trách nhiệm dân sự chủ xe cơ giới

DECREE

ON COMPULSORY INSURANCE FOR CIVIL LIABILITY OF MOTOR VEHICLE OWNERS

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 14, 2005 Civil Code;

Pursuant to the December 9, 200V Law on Insurance Business;

Pursuant to the June 29, 2001 Law on Road Traffic;

Pursuant to the July 2, 2002 Ordinance on Handling of Administrative Violations and the April 2, 2008 Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Handling of Administrative Violations;

At the proposal of the Minister of Finance,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation

This Decree provides for compulsory insurance for civil liability of motor vehicle owners: rights and obligations of motor vehicle owners and insurance enterprises: responsibilities of ministries, ministerial-level agencies, government-attached agencies and provincial/municipal People's Committees for implementing compulsory insurance for civil liability of motor vehicle owners.

Article 2.- Subjects of application

1. Motor vehicle owners who join traffic in the territory of the Socialist Republic of Vietnam

2. Insurance enterprises licensed to organize compulsory insurance for civil liability of motor vehicle owners under law.

3. In case a treaty to which the Socialist Republic of Vietnam is a contracting party contain provisions different from those of this Decree that treaty prevails.

Article 3.- Interpretation of terms

1. Insurance enterprise means an enterprise lawfully established and conducting insurance business in Vietnam and licensed to implement compulsory insurance for civil liability of motor vehicle owners.

2. Motor vehicle owner (organization or individual) means the owner of a motor vehicle or a person authorized by the owner of a motor vehicle to lawfully possess or use or drive that motor vehicle.

3. Motor vehicle means an automobile, tractor, construction vehicle or machine, agricultural or forestry vehicle or machine or a special-type vehicle, which is used for security or defense purpose (including trailers and semi-trailers pulled by automobiles or tractors), two-wheeled motorcycle, three-wheeled motorcycle, motorbike or a similar motor vehicle (including motor vehicles for disabled people) which runs on road.

4. Passenger means a person transported or riding on a motor vehicle under a passenger transport contract in any form specified in the Civil Code.

5. Third party means a person suffering from loss of life, bodily or property damage caused by a motor vehicle, other than the following persons:

a/ The driver or assistant driver of the vehicle;

b/ Persons and passengers on board the vehicle;

c/ The owner of that vehicle, unless he/she/ it has authorized another organization or individual to possess or use the vehicle.

6. Day (counted in a time limit) referred to in this Decree is a working day.

Article 4.- The Motor Vehicle Insurance Fund

1. The Motor Vehicle Insurance Fund is raised by insurance enterprises for the following purposes:

a/ To prevent road traffic accidents and mitigate their consequences;

b/ To conduct public information and education about road traffic safety and compulsory insurance for civil liability of motor vehicle owners:

c/ To provide humanitarian aid for third parties and passengers oh board to remedy damage caused by motor vehicles in cases accident-causing vehicles are unidentifiable or insurance has not been purchased for these vehicles;

d/ To provide financial supports to cover accident victim burial costs in cases of insurance exemption specified in Article 13 of this Decree;

f/ To provide financial supports for the commendation and rewarding of public security forces for their achievements in controlling, detecting and handling motor vehicle owners' administrative violations of regulations on compulsory insurance for civil liability of motor vehicle owners;

g/ To provide financial supports for developing a database on compulsory insurance for civil liability of motor vehicle owners;

h/ To provide financial supports for other purposes in the course of coordination and direction of compulsory insurance for civil liability of motor vehicle owners.

2. Insurance enterprises shall deduct at least 2% of annually collected premiums of compulsory insurance for civil liability of motor vehicle owners as contributions to the Motor Vehicle Insurance Fund.

Article 5.- Database on compulsory insurance for civil liability of motor vehicle owners

1. The database is developed to make statistics on. update and systematize all information on motor vehicles and motor vehicle owners joining traffic and participating in compulsory insurance for civil liability of motor vehicle owners; and to serve the state management, operation of insurance enterprises and supervision by the people.

2. The Ministry of Finance shall assume the prime responsibility for, and coordinate with concerned agencies in. guiding the Vietnam Insurance Association and insurance enterprises in organizing the development of the database on compulsory insurance for civil liability of motor vehicle owners.

Chapter II

COMPULSORY INSURANCE FOR CIVIL LIABILITY OF MOTOR VEHICLE OWNERS.

Article 6.- Principles for insurance participation

1. Motor vehicle owners shall participate in compulsory insurance for their civil liability under this Decree and in accordance with the rules, terms and table of premium rates of compulsory insurance for civil liability of motor vehicle owners set out by the Ministry of Finance.

2. A motor vehicle owner may not concurrently enter into two or more policies of compulsory insurance for civil liability for the same motor vehicle.

3. Apart from entering into policies of compulsory insurance for civil liability, motor vehicle owners may also reach agreement with insurance enterprises on entry into voluntary insurance policies.

4. Insurance enterprises may take the initiative in selling compulsory insurance for civil liability of motor vehicle owners by the following modes:

a/ Direct sale to motor vehicle owners;

b/ Through insurance agents or brokers:

c/ Through bidding;

d/ By other modes in accordance with law.

In case of sale of compulsory insurance for civil liability of motor vehicle owners through insurance agents, these insurance agents must satisfy the criteria specified in the Law on Insurance Business, guiding documents and relevant legal provisions.

Insurance enterprises may not use other insurance enterprises agents for sale of insurance for civil liability of motor vehicle owners, unless those enterprises so consent in writing.

Article 7.- Scope of indemnification for damage

1.  Loss of life, bodily or property damage caused by motor vehicles to third parties.

2.  Loss of life or bodily damage of passengers under passenger transport contracts caused by motor vehicles.

Article 8.- Policies of insurance for civil liability of motor vehicle owners

1. Certificates of compulsory insurance for civil liability of motor vehicle owners (below referred to as insurance certificates) are evidence of entry into civil liability insurance policies between motor vehicle owners and insurance enterprises.

2. When purchasing compulsory insurance for their civil liability, motor vehicle owners are issued insurance certificates by insurance enterprises. Insurance enterprises shall issue insurance certificates to motor vehicle owners only when the latter have fully paid insurance premiums. Other particular cases are subject to specific regulations of the Ministry of Finance.

3. The Ministry of Finance shall specify the model insurance certificate for unified application and management nationwide.

Article 9.- Insurance premiums and insurance liability level

1.  Insurance premium means a sum of money payable by a motor vehicle owner to an insurance enterprise when purchasing compulsory insurance for civil liability of motor vehicle owners.

2.  Insurance liability level means the maximum sum of money which an insurance enterprise may be obliged to pay for the loss of life or a bodily or property damage caused by a motor vehicle to a third party or passenger in an insured accident.

3.  The Ministry of Finance shall specify premium rates and insurance liability levels.

Article 10.- Insurance duration and validity

1. The validity duration stated in insurance certificates is one year. In the following cases, the insurance duration may be under one year:

a/ Foreign motor vehicles are temporarily imported for re-export and run on roads in the territory of the Socialist Republic of Vietnam for under one year;

b/ The use life of motor vehicles is less than one year under law.

2. The insurance validity commences and expires according to the validity duration stated in the insurance certificate.

3. When insurance certificates are still valid, if the ownership of motor vehicles is transferred, all insurance benefits related to the civil liability of motor vehicle owners remain valid for new owners.

Article 11.- Cancellation of insurance policies

1. An insurance policy is cancelled only in the following cases:

a/ The registration and number plate of the motor vehicle are withdrawn under law;

b/ The use life of the motor vehicle expires under law;

c/ The motor vehicle is lost and this loss is certified by a police office;

d/ The motor vehicle breaks down and is no longer usable or damaged in a traffic accident with the certification of a police office: the motor vehicle is temporarily imported for re-export.

2. When wishing to cancel insurance policies, motor vehicle owners shall notify in writing insurance enterprises thereof and furnish the latter with insurance policies requested to be cancelled and evidence to prove that their motor vehicles are eligible for insurance policy cancellation under Clause 1 of this Article.

Insurance policies are invalidated as soon as insurance enterprises receive notices of insurance policy cancellation.

3.  Within five days after receiving notices, insurance enterprises shall refund to motor vehicle owners 70% of insurance premiums already paid for the cancelled duration. Insurance enterprises are not required to refund insurance premiums in case insurance policies are still valid and insured events have occurred to motor vehicle owners requesting the insurance policy cancellation and the insurance indemnity liability has arisen.

4.  In case motor vehicle owners do not notify the insurance policy cancellation, but insurance enterprises have specific evidence of motor vehicles' eligibility for insurance policy cancellation under Clause 1 of this Article, insurance enterprises shall notify such to motor vehicle owners for carrying out procedures for policy cancellation. If motor vehicle owners fail to carry out procedures for insurance policy cancellation within 15 days after being notified, their insurance policies are automatically cancelled.

Article 12.- Assessment of damage

1. Upon the occurrence of an accident, the insurance enterprise or a person authorized by the insurance enterprise shall closely coordinate with the motor vehicle owner, the third party or lawful representatives of involved parties in conducting a loss assessment in order to identify the cause and extent of loss. Assessment results must be recorded in writing with signatures of involved parties. The insurance enterprise shall bear all assessment costs.

2. In case the motor vehicle owner disagrees with the Insurance enterprise on the cause and extent of damage, the two parties may agree to select an independent assessor to conduct the assessment. In case the parties cannot reach agreement on the invitation of an independent assessor, either of them may request a court of the locality where the loss occurs or where the motor vehicle owner resides to designate an independent assessor. The independent assessor's documentary award is binding on the parties.

3. In case the independent assessor's award is different from that of the insurance enterprise, the insurance enterprise shall pay the charge for the independent assessment. In case the independent assessor's award is similar to that of the insurance enterprise, the motor vehicle owner shall pay the charge for the independent assessment.

4. In a special case it is impossible to conduct an assessment, the insurance enterprise may base itself on written records and conclusions of competent functional agencies and relevant documents to identify the cause and extent of damage.

Article 13.- Insurance exemption

Insurance enterprises do not indemnify for damage in the following cases:

1. Motor vehicle owners, drivers or damage sufferers intentionally take damage-causing acts.

2. Accident-causing motor vehicle drivers intentionally flee away, shirking the civil liability of motor vehicle owners or drivers.

3. Drivers have no driving licenses or inappropriate driving licenses for motor vehicles for which driving licenses are required.

4. The damage entails such circumstantial consequences as decrease in commercial value, loss caused by the use and exploitation of the damaged property.

5. The damage is property stolen or robbed in accidents.

6. Wars, terrorism, earthquakes.

7. The damage is caused to such special property as gold, silver, gems, money, papers of monetary value, antiques, precious and rare paintings and pictures, corpses, dead bodies' remains.

Article 14.- Principles of indemnification

1. Upon the occurrence of accidents, insurance enterprises shall, within the scope of their liability, indemnify motor vehicle owners for sums of money the latter have paid or will be obliged to pay as compensations to damage sufferers.

In case motor vehicle owners are dead or sutler from permanent bodily injuries, insurance enterprises shall pay indemnity directly to damage sufferers.

2. When necessary, insurance enterprises shall promptly advance necessary and reasonable expenses within the scope of insurance liability to remedy accident consequences.

3. Levels of insurance indemnity:

a/ The level of insurance indemnity for loss of life or bodily damage is determined on the basis of the table of indemnities for loss of life or bodily damage set by the Ministry of Finance.

b/ The level of indemnity for property damage is determined according to the actual damage and the degree of fault of motor vehicle owners.

4. Insurance enterprises are not obliged to indemnify for the damage beyond the insurance liability level specified by the Ministry of Finance.

5. In case a motor vehicle owner concurrently enters into many policies of compulsory insurance for civil liability for the same motor vehicle, the receivable indemnity is calculated under the first insurance policy.

Article 15.- Indemnity dossiers

1. An indemnity dossier shall be compiled by an insurance enterprise, comprising the following:

a/ Documents related to the motor vehicle and driver:

b/ Documents evidencing human and property damage;

c/ A competent agency's documents relevant to the accident.

2.  Insurance enterprises and motor vehicle owners shall gather and supply related documents in indemnity dossiers.

3.  The Ministry of Finance shall guide in detail indemnity dossiers.

Article 16.- Time limits for claiming, paying and lodging complaints about indemnities

1. The time limit for claiming an indemnity by a motor vehicle owner is one year after the occurrence of an accident, except for cases in which claims cannot be made within this time limit due to objective reasons and force majeure circumstances under law.

2. Within five days after the occurrence of an accident (except in force majeure circumstances), a motor vehicle owner shall send a written notice thereof to the insurance enterprise enclosed with documents required for a dossier of request for indemnity within his/ her/its liability.

3. The time limit for paying an indemnity by an insurance enterprise is fifteen days after receiving a dossier of request for indemnity within the motor vehicle owner's liability, and thirty days in case it is necessary to verify the dossier.

4. In case of refusal to pay an indemnity, the insurance enterprise shall notify in writing the motor vehicle owner of the reason for refusal within thirty days after receiving the dossier of request for insurance indemnity.

5. The statute of limitations for instituting a lawsuit about insurance indemnity is three years after the insurance enterprise pays or refuses to pay an indemnity. Past that time limit, the right to institute lawsuits is no longer valid.

Article 17.- Rights of motor vehicle owners

1. To select insurance enterprises to purchase compulsory insurance for civil liability of motor vehicle owners from.

2. To request insurance enterprises to explain and supply information relevant to the entry into, performance and cancellation of insurance policies.

3. To request insurance enterprises to reduce insurance premium rates as appropriate for the remaining validity duration of insurance policies in case there is a change in factors serving as bases for insurance premium calculation which leads to fewer insured risks.

4.  To request insurance enterprises to indemnify in a swift, full and timely manner under insurance policies.

5.  To have insurance premiums accounted into their business operation costs, for motor vehicle owners being production and business units; or have insurance premiums included in their regular operation funds, for motor vehicle owners being administrative agencies and non-business units of the State.

6. Other rights provided for by law.

Article 18..- Obligations of motor vehicle owners

1. To participate in compulsory insurance for civil liability of motor vehicle owners and fully pay insurance premiums under this Decree. When purchasing insurance, motor vehicle owners shall provide full and truthful information in their insurance certificates.

2. To create favorable conditions for insurance enterprises to inspect the actual conditions of motor vehicles before issuing insurance certificates.

3. To promptly notify insurance enterprises of any change in factors serving as bases for insurance premium calculation which leads to more insured risks in order to apply appropriate insurance premium rates for the remaining validity duration of insurance policies.

4. To hold all the time their valid insurance certificates when joining traffic, and produce these certificates at the request of the traffic police and other competent functional agencies defined by law.

5. To comply with regulations on road traffic safety assurance.

6. Upon the occurrence of an accident, a motor vehicle owner shall:

a/ Promptly notify the accident to the insurance enterprise for coordinated handling, actively rescue and treat victims, mitigate human and. property damage and protect the accident scene: and at the same time, notify the accident to the nearest police office or local administration;

b/ Refrain from moving, disassembling or repairing properly without the consent of the insurance enterprise, except when it is necessary to assure safety and prevent and mitigate human and property damage or at the request of competent agencies;

c/ Supply documents in a dossier of request for indemnity, and create favorable conditions for the insurance enterprise to verify these documents.

7. To notify in writing insurance enterprises in case their motor vehicles are eligible for

insurance policy cancellation under Clause 1, Article 11 of this Decree.

8. Other obligations specified by law.

Article 19.- Rights of insurance enterprises

1.To collect premiums for compulsory insurance for civil liability of motor vehicle owners under the Ministry of Finance's regulations. To request motor vehicle owners to additionally pay insurance premiums for the remaining validity duration of insurance policies in case of a change in factors serving as bases for insurance premium calculation which leads to more insured risks.

2.To request motor vehicle owners to supply full and truthful information in insurance certificates; to inspect the actual conditions of motor vehicles before issuing insurance certificates.

3.To request police offices to supply copies of documents relevant to accidents under Clause 3, Article 22 of this Decree.

4.To refuse to pay indemnities for cases falling beyond their indemnifying liability.

5. To propose amendments or supplements to rules, terms and table of premium rates of compulsory insurance for civil liability of motor vehicle owners to suit the practical implementation of this type of insurance.

6. Other rights provided for by law.

Article 20.- Obligations of insurance enterprises

1. To sell compulsory insurance for civil liability of motor vehicle owners in strict compliance with rules, table of premium rates and insurance liability levels set by the Ministry of Finance. In case they receive motor vehicle owners' notices on a change in factors serving as bases for insurance premium calculation which leads to fewer insured risks, insurance enterprises shall reduce insurance premiums for the remaining validity duration of insurance policies and refund premium differences to motor vehicle owners.

2. To fully supply information related to insurance policies and clearly explain rules, terms and premium rates of compulsory insurance for civil liability of motor vehicle owners to motor vehicle owners.

3. To issue insurance certificates according to the model insurance certificate set by the Ministry of Finance to motor vehicle owners.

4. To refrain from providing financial supports other than commissions for agents selling insurance for civil liability of motor vehicle owners under the Ministry of Finance's regulations.

5. To refrain from conducting sales promotion in any form for compulsory insurance for civil liability of motor vehicle owners.

6. To pay to police offices expenses for copying dossiers and written records of accidents supplied to them, and keep confidential these dossiers and records in the course of investigation.

7. To pay indemnities in a swift and accurate manner under this Decree.

8. To notify motor vehicle owners of the expiration of insurance policies 15 days in advance.

9. To deduct and contribute at least 27c of annually collected premiums of compulsory insurance for civil liability of motor vehicle owners to the Motor Vehicle Insurance Fund at the annual contribution level prescribed by the Ministry of Finance.

10. To account separately turnover from insurance premiums, commissions, indemnities and other expenses related to compulsory insurance for civil liability of motor vehicle owners.

11. To install and operate information technology systems to assure adequate statistics on and updating of information on the actual implementation of compulsory insurance for civil liability of motor vehicle owners. linked with the database on compulsory insurance for civil liability of motor vehicle owners under the Ministry of Finance's guidance.

12. To report to the Ministry of Finance on the implementation of compulsory insurance for civil liability of motor vehicle owners on a periodical basis or at the latter's request.

13. To submit to the inspection or supervision of compulsory insurance for civil liability of motor vehicle owners by competent state agencies.

14. Other obligations specified by law.

Chapter III

RESPONSIBILITIES OF MINISTRIES, BRANCHES AND PROVINCIAL/ MUNICIPAL PEOPLE'S COMMITTEES

Article 21.- Responsibilities of the Ministry of Finance

1. To assume the prime responsibility for, and coordinate with concerned ministries and branches and provincial/municipal People's Committees in, guiding and conducting public information on compulsory insurance for civil liability of motor vehicle owners.

2. To promulgate rules, terms and table of premium rates of compulsory insurance for civil liability of motor vehicle owners.

3. To specify the issuance, management and use of the model insurance certificate.

4. To guide dossiers of request for indemnities.

5. To set the level of annual contributions to and promulgate the mechanism of management, use, payment and finalization of the motor vehicle insurance fund.

6. To directly inspect and supervise insurance enterprises in organizing compulsory insurance for civil liability of motor vehicle owners, or assume prime responsibility for. and coordinate with concerned agencies in, doing so.

7. To direct functional forces in sanctioning insurance enterprises' administrative violations of regulations on compulsory insurance for civil liability of motor vehicle owners under this Decree and other relevant provisions of law.

8. To assume the prime responsibility for, and coordinate with concerned agencies in, guiding the Vietnam Insurance Association and insurance enterprises in developing a database on compulsory insurance for civil liability of motor vehicle owners.

Article 22.- Responsibilities of the Ministry of Public Security

1. To coordinate with the Ministry of Finance and concerned ministries and branches in, guiding and conducting public information on compulsory insurance for civil liability of motor vehicle owners.

2. To direct the traffic police and other concerned police forces in supervising and inspecting motor vehicle owners and:

a/ Requesting motor vehicle owners to produce valid insurance certificates when carrying out procedures for motor vehicle registration;

b/ Detecting and handling, through patrol and control operations, administrative violations of motor vehicle owners joining traffic without valid insurance certificates; requesting motor vehicle owners to purchase insurance.

3. To direct the traffic police and investigative police forces to supply copies of documents relevant to traffic accidents to insurance enterprises for paying indemnities, including:

a. Written records of accident scene investigation;

b. Plans and photos of accident scenes (if any).

c/ Written records of inspection of accident-related motor vehicles;

d/ Preliminary reports on results of the initial investigation of traffic accidents;

e/ Other documents relevant to accidents (if am)

4. To direct the traffic police and other police forces in coordinating with the Ministry of Finance's units in inspecting and supervising insurance enterprises in implementing compulsory insurance for civil liability of motor vehicle owners.

5. To direct the traffic police and other police forces in sharing and linking databases on motor vehicles under their management with the database on compulsory insurance for civil liability of motor vehicle owners.

Article 23.- Responsibilities of the Ministry of Transport

1.To coordinate with the Ministry of Finance and concerned ministries and branches in guiding and conducting public information on compulsory insurance for civil liability of motor vehicle owners.

2.To direct registry offices to request, in examining the technical safety of motor vehicles, their owners to produce valid insurance certificates. Registry offices shall only issue technical safety examination stamps and books for motor vehicles when their owners can produce valid insurance certificates.

3. To coordinate with the Ministry of Finance in inspecting and supervising insurance enterprises in implementing compulsory insurance; for civil liability of motor vehicle owners.

4. To share and link the database on motor vehicles under its management with the database on compulsory insurance for civil liability of motor vehicle owners.

5. To coordinate with functional agencies in applying measures to prevent and mitigate damage in road traffic in strict compliance with law.

Article 24.- Responsibilities of the Ministry of Health

To direct central and local health establishments in supplying copies of medical records and documents relevant to the rendering of first aid and medical treatment to road traffic accident victims to insurance enterprises for swiftly completing indemnity dossiers to assure the insured's interests.

Article 25.- Responsibilities of the Ministry of Information and Communication

1. To direct central and local information and press agencies in regularly conducting public information on compulsory insurance for civil liability of motor vehicle owners.

2. To direct the Vietnam Television Station and the Voice of Vietnam Radio to spare a certain broadcasting time volume to regularly propagate and disseminate information on compulsory insurance for civil liability of motor vehicle owners.

Article 26.- Responsibilities of ministries, ministerial-level agencies and government-attached agencies

1. To coordinate with the Ministry of Finance in inspecting and supervising the implementation of compulsory insurance for civil liability of motor vehicle owners.

2. To perform other tasks within their competence under law.

Article 27.- Responsibilities of provincial/ municipal People's Committees

1. To direct functional agencies and local administrations at all levels in implementing compulsory insurance for civil liability of motor vehicle owners in their respective localities.

2. To direct local news and press agencies in regularly conducting public information on compulsory insurance for civil liability of motor vehicle owners.

3. To direct the traffic police and other concerned police forces in their respective localities in organizing the inspection and handling of motor vehicle owners that fail to participate in compulsory insurance for civil liability of motor vehicle owners.

4. To perform other tasks within their competence.

Article 28.- Responsibilities of the National Office of Vietnam for Implementation of the ASEAN Scheme of Compulsory Motor Vehicle Insurance

1. The National Office of Vietnam for Implementation of the ASEAN Scheme of Compulsory Motor Vehicle Insurance (referred to as the National Office for Motor Vehicle Insurance for short) is a standing body assisting concerned ministries and branches in directing and supervising the implementation of compulsory insurance for civil liability of motor vehicle owners.

2. The Ministry of Finance shall define the functions, tasks, organizational structure and operation of the National Office for Motor Vehicle Insurance.

Chapter IV

HANDLING OF VIOLATIONS

Section 1. ACTS OF VIOLATION, SANCTIONING FORMS AND LEVELS

Article 29.- Sanctions against acts of violation of provisions on motor vehicle drivers' participation in insurance

1. A fine of VND 100,000 shall be imposed on drivers of motorbikes, mopeds, three-wheeled motorcycles and similar motor vehicles who do not have or carry a valid insurance certificate.

2. A fine of VND 500,000 shall be imposed on drivers of automobiles, tractors and similar motor vehicles who do not have or carry a valid insurance certificate.

Article 30.- Sanctions against acts of violation of provisions on refusal to sell insurance

1. A fine of VND 50,000,000 shall be imposed on insurance enterprises that refuse to sell compulsory insurance for civil liability of motor vehicle owners; a fine, of VND 10,000,000 shall be imposed on directors general (directors) and affiliated persons of insurance enterprises who commit such act.

2. In case of repeated commission of the act of violation specified in Clause 1 of this Article, violating insurance enterprises and individuals shall be fined under Clause 1 of this Article. At the same time, insurance enterprises shall be subjected to the sanction of suspension of operation for a definite time or narrowing of the scope and area of the motor vehicle insurance operation stated in their establishment and operation licenses.

Article 31.- Sanctions against acts of violation of provisions on model insurance certificates

1. A fine of VND 50,000,000 shall be imposed on insurance enterprises that issue to motor vehicle owners insurance certificates at variance with the Ministry of Finance's regulations; a fine of VND 50,000,000 shall be imposed on directors general (directors) and affiliated persons of insurance enterprises who commit such act.

2. Within 10 days after receiving sanctioning decisions, insurance enterprises shall withdraw the issued insurance certificates and issue new ones to motor vehicle owners under the Ministry of Finance's regulations.

3. In case of repeated commission of the act of violation specified in Clause 1 of this Article, violating insurance enterprises and individuals shall be lined under Clause 1 of this Article. At the same time, insurance enterprises shall be subjected to the sanction of suspension of operation for a definite time or narrowing of the scope and area of the motor vehicle insurance operation stated in their establishment and operation licenses.

Article 32.- Sanctions against acts of violation of provisions on the validity duration of insurance

1.A fine of VND 30,000,000 shall be imposed on insurance enterprises that fail to comply with the validity duration of insurance specified in Clause 1, Article 10 of this Article; a fine of VND 30,000,000 shall be imposed on directors, general (directors) and affiliated persons of insurance enterprises who commit such act

2.Within 10 days after receiving sanctioning decisions, insurance enterprises shall withdraw the issued insurance certificates and issue new ones to motor vehicle owners with the specified validity duration of insurance and apply appropriate premium rates.

3. In case of repeated commission of the act of violation specified in Clause 1 of this Article, violating insurance enterprises and individuals shall be fined under Clause 1 of this Article. At the same time, insurance enterprises shall be subjected to the sanction of suspension of operation for a definite time or narrowing of the scope and area of the motor vehicle insurance operation stated in their establishment and operation licenses.

Article 33.- Sanctions against acts of violation of provisions on insurance premium rates

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on insurance enterprises that fail to comply with insurance premium rates set by the Ministry of Finance; a fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on directors general (directors) and affiliated persons of insurance enterprises who commit such act.

2. Within 10 days after receiving sanctioning decisions, insurance enterprises shall readjust premium rates of insurance for civil liability of motor vehicle owners in strict compliance with regulations.

3. In case of repeated commission of the act of violation specified in Clause 1 of this Article, violating insurance enterprises and individuals shall be fined under Clause 1 of this Article. At the same time, insurance enterprises shall be subjected to the sanction of suspension of operation for a definite time or narrowing of the scope and area of the motor vehicle insurance operation staled in their establishment and operation licenses.

Article 34.- Sanctions against acts of violation of provisions on insurance liability levels

1. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on insurance enterprises that fail to comply with insurance liability levels set by the Ministry of Finance; a fine of VND 30,000,000 and VND 50,000,000 shall be imposed on directors general (directors) and affiliated persons of insurance enterprises who commit such act.

2. Within 10 days after receiving sanctioning decisions, insurance enterprises shall readjust insurance liability levels in strict compliance with regulations.

3. In case of repeated commission of the act of violation specified in Clause 1 of this Article, violating insurance enterprises and individuals shall be fined under Clause 1 of this Article. At the same time, insurance enterprises shall be subject to the sanction of suspension of operation for a definite time or narrowing of the scope and area of the motor vehicle insurance operation stated in their establishment and operation licenses.

Article 35.- Sanctions against acts of violation of provisions on payment of insurance commissions or provision of financial supports for insurance agents

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on insurance enterprises that pay insurance commissions not at the level set by the Ministry of Finance; a fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on directors general (directors) and affiliated persons of insurance enterprises who commit such act.

2. A fine of VND 70,000,000 shall be imposed on insurance enterprises, directors general (directors), chief accountants or affiliated persons of insurance enterprises that commit one of the following acts:

a/ Paying insurance commissions not to specified beneficiaries;

b/ Providing financial supports for agents selling compulsory insurance for civil liability of motor vehicle owners against Clause 4, Article 20 of this Decree.

3. Within 30 days after receiving sanctioning decisions, insurance enterprises shall withdraw all sums of money paid or provided in violation of Clause 1 or 2 of this Article.

4. In case of repeated commission of the act of violation specified in Clause 1 or 2 of this Article, violating insurance enterprises and individuals shall be fined under Clause 1 or 2 of this Article. At the same time, insurance enterprises shall be subjected to the sanction of suspension of operation for a definite time or narrowing of the scope and area of the motor vehicle insurance operation stated in their establishment and operation licenses.

Article 36.- Sanctions against acts of violation of provisions on sales promotion

1. A fine of VND 50,000,000 shall be imposed on insurance enterprises, directors general (directors), chief accountants and affiliated persons of insurance enterprises that commit acts of violation of Clause 5, Article 20 of this Decree.

2. In case of repeated commission of the act of violation specified in Clause 1 of this Article, violating insurance enterprises and individuals shall be fined under Clause 1 of this Article. At the same time, insurance enterprises shall be subjected to the sanction of suspension of operation for a definite time or narrowing of the scope and area of the motor vehicle insurance operation stated in their establishment and operation licenses.

Article 37.- Sanctions against acts of violation of provisions on cancellation of insurance policies

1. A fine of VND 20,000,000 shall be imposed on insurance enterprises that unilaterally cancel insurance policies for civil liability of motor vehicle owners not falling into the cases of insurance policy cancellation specified in Clause 1, Article 11 of this Decree.

2. Within 10 days after receiving sanctioning decisions, insurance enterprises shall reinstitute cancelled insurance policies.

Article 38.- Sanctions against acts of violation of provisions on payment of insurance indemnities

1. A fine of VND 10,000,000 shall be imposed on insurance enterprises, directors general (directors) and affiliated persons of insurance enterprises that pa\ indemnities at variance with regulations.

2. A fine of between VND 30,000,000 and VND 70,000,000 shall be imposed for one of the following acts:

a/ Insurance enterprises, directors general (directors) and affiliated persons of insurance enterprises that request insurance beneficiaries to pay a sum of money or other material benefits in contravention of law in the course of settlement of claims for indemnities or payment of insurance sums;

b/ Individuals and organizations that commit self-seeking acts in order to receive indemnities or insurance sums;

c/ Employees and staff members of insurance enterprises pay, in collusion with insurance beneficiaries, insurance indemnities or insurance sums in contravention of law for self-seeking purposes;

d/ Insurance enterprises refuse to fulfill the agreed obligation to pay insurance indemnities.

3. Within 30 days after receiving sanctioning decisions, insurance enterprises shall pay indemnities in compliance with regulations. Individuals and organizations shall refund all money amounts they have gained from committing acts of violation specified at Points a, b and c, Clause 2 of this Article.

4. For acts of violation specified at Points a. c and d, Clause 2 of this Article, insurance enterprises shall, apart from being fined, be subjected to the sanction of suspension of operation for a definite time or narrowing of the scope and area of the motor vehicle insurance operation stated in their establishment and operation licenses.

Article 39.- Sanctions against acts of violation of provisions on cost accounting

1. A fine of VND 30,000,000 shall be imposed on insurance enterprises that violate Clause 10, Article 20 of this Decree; a fine of VND 10,000,000 shall imposed on directors general (directors), chief accountants and affiliated persons of insurance enterprises who commit such act.

2. Within 30 days after receiving sanctioning decisions, insurance enterprises shall strictly comply with provisions of Clause 10, Article 20 of this Decree.

Article 40.- Sanctions against acts of violation of provisions on contributions to the Motor Vehicle Insurance Fund

1. A fine of VND 20,000,000 shall be imposed on insurance enterprises, directors general (directors) of insurance enterprises that commit one of the following acts:

a/ Failing to pay contributions to the Motor Vehicle Insurance Fund within the specified time limit;

b/ Failing to contribute sufficient money amounts as prescribed to the Motor Vehicle Insurance Fund.

2. Within 30 days after receiving sanctioning decisions, insurance enterprises shall contribute sufficient money amounts as prescribed to the

Motor Vehicle Insurance Fund.

Article 41.- Sanctions against acts of violation of provisions on reporting and statistical regulations

1. A fine of VND 20,000,000 shall be imposed on insurance enterprises, directors general (directors) and chief accountants of insurance enterprises that commit one of the following acts of violation:

a/ Failing to make statistical or professional operation reports with all required contents and in proper forms or within the specified time limit;

b/ Failing to set up and operate information technology systems or databases on compulsory insurance of civil liability of motor vehicle owners within the time limit specified by the Ministry of Finance.

2. Within 30 days after receiving sanctioning decisions, insurance enterprises shall make statistical or professional operation reports with all required contents and in proper forms; implement plans on setting up and operation of information technology systems or databases on compulsory insurance of civil liability of motor vehicle owners within the time limit specified by the Ministry of Finance.

3. For acts of violation specified in Clause 1 of this Article, violating insurance enterprises and individuals shall be fined under Clause 1 of this Article. At the same time, insurance enterprises shall be subjected to the sanction of suspension of operation for a definite time or narrowing of the scope and area of the motor vehicle insurance operation stated in their establishment and operation licenses.

Section 2. COMPETENCE AND PROCEDURES FOR SANCTIONING ADMINISTRATIVE VIOLATIONS

Article 42.- Sanctioning competence

1. The Finance Inspectorate and concerned specialized inspectorates under the Ministry of Finance may sanction administrative violations in the domain of compulsory insurance for civil liability of motor vehicle owners committed by insurance enterprises under Article 38 of the Ordinance on Handling of Administrative Violations, Article 1 of the Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Handling of Administrative Violations, and this Decree.

2. The People's Public Security forces are competent to sanction administrative violations in the domain of compulsory insurance for civil liability of motor vehicle owners committed by insurance enterprises under Clause 6, Article 1 of the Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Handling of Administrative Violations, and this Decree.

Article 43.- Application of relevant legal provisions on handling of administrative violations

1. Sanctioning principles; statute of limitations for sanctioning; sanctioning order and procedures; collection and remittance of fine amounts comply with the Ordinance on Handling of Administrative Violations and its guiding documents.

2. Acts of administrative violation in the domain of insurance business which are sanctioned under this Decree will not be further sanctioned under other legal documents on sanctioning.

Chapter V

IMPLEMENTATION PROVISIONS

Article 44.- Implementation effect

This Decree takes effect 15 days after its publication in "CONG BAO" and replaces the Government's Decree No. 115/1997/ND-CP of December 17, 1997, on compulsory insurance for civil liability of motor vehicle owners.

Article 45.- Organization of implementation

1. The Ministry of Finance shall assume the prime responsibility for. and coordinate with the Ministry of Public Security and concerned agencies in. guiding the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial/municipal People's Committees shall implement this Decree.