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‘Too many Vietnamese do not understand the nature of auto insurance’


It is necessary to understand the process, terms and conditions of auto insurance to avoid harming yourself and causing confusion for others.

Reading many articles in the past few days about auto insurance, I realized that very few people understand and have never even read through the terms and conditions when buying insurance. When there is an incident, I don’t know what kind of insurance to use and without any scene, call or record but just talking about it, what insurance will cover it?

First of all, there are two types of auto insurance in Vietnam. Compulsory insurance is also known as civil liability and the other type is voluntary insurance or roughly called shell insurance.

Civil liability insurance

This is a must-have insurance, mainly used to pay for the person we cause an accident, to avoid the case when the driver causes an accident without paying. The name says it all, that is, this insurance compensates for civil damage on behalf of the victim and when used, definitely needs a report from the police and the insurance representative to come to the scene to Accident verification, making insurance records.

Usually the car will be detained for investigation, the result is almost always a police fine of at least a few million, sometimes a driver’s license. For that reason, few people dare to use it if it is not really necessary such as serious accidents, death, damage of over several tens of millions… People when they know they are at fault will often agree to “pick” their own pocket money. Going to the temple is better than being recorded by the police. Again, in serious cases, this insurance is very necessary, light accidents should pay for themselves to save trouble and single and double losses.

Voluntary insurance

This type of insurance is known as body insurance, which is used to repair your own car when you accidentally damage your car. And this insurance is very easy to use, of course still need to follow the insurance policy.

Regulations still require a record or a scene, but usually no police are required. When causing an accident, of course, the driver still has to pay for the victim if any (if not using civil insurance, he will pay his own pocket) and his car will be repaired by insurance, but must be present. The insurance officer confirms the scene, unless the operator informs the switchboard that the employee cannot get off, he/she can take pictures of the scene and leave. The key point in this insurance is that the car is only compensated when we are at fault.

Many people I see at garages claim insurance to pay for themselves, but because of pride or ignorance, they insist that they are not at fault but others are at fault. At this time, the responsible party must be the party to insure the civil liability of the party causing the fault. And of course, the consequences are that the voluntary insurance on their side is innocent, taking care of themselves and claiming the other party. Just admitting your fault, it’s over, what’s the virtual face to do?

In addition, many people completely do not understand this problem or intentionally do not understand, after an accident, they leave without any notice or valuable record and then happily ask for car repair insurance. That is completely against the law and certainly not compensated because there is no basis at all, if you are lucky, you will also be punished.

Above are basic concepts and examples of how to use auto insurance in Vietnam.

Readers Vu Khoi

VnExpress will organize Car Talks number 3 with the topic “Car body insurance is easy to buy, difficult to claim?” on Wednesday, October 12 at 8pm – 9pm. Speakers who are insurance experts and experienced auto sellers will clarify car users’ questions about body insurance. Readers can ask questions of the speakers under the Comments section.

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