Is physical damage car insurance mandatory insurance?

 Car material damage insurance is an optional but also very necessary type of insurance, which will cover repair costs if the vehicle unexpectedly encounters a problem while in motion. Car material damage insurance is usually directly proportional to the vehicle's value. This is insurance used in cases of accidents, damage, or theft, helping the owner not to worry too much about financial issues. However, owners should note that in some exceptional situations, this insurance may not cover repair costs.

In which cases will car material damage insurance pay out?

Typically, when you have car material damage insurance, you will be covered in the following cases:

- Collision (including collision with objects other than motor vehicles), overturning, capsizing, sinking, complete vehicle falling, or being hit by falling objects.

- Fire, conflagration, explosion.

- Force majeure events caused by nature (including but not limited to typhoons, floods, inundations, lightning strikes, storms, earthquakes, landslides, tsunamis, etc.).

- Total loss of the vehicle due to theft or robbery.

- Malicious acts, intentional destruction (excluding malicious acts or intentional destruction by the Owner/Legal Representative of the Owner/Insured Person/Driver/Person entrusted with the use of the vehicle).

What cases are considered violations of the law and not covered by car material damage insurance?

The terms and conditions of car material damage insurance also include exclusion clauses, which are cases where the insurance will not pay you when an incident occurs, including:

- The driver operating the vehicle causing damage with an alcohol concentration exceeding the current legal regulations, as concluded in writing by the competent state authority, or the driver using other stimulants that are prohibited by law.

- Transporting illegal goods or failing to fully comply with legal regulations on transportation and loading/unloading of goods.

- The driver does not possess a valid driver's license.

- The vehicle carries more passengers than permitted by the competent state authority.

- The vehicle carries more than 20% of its payload capacity as stipulated by the competent state authority.

- The vehicle travels at night without headlights as required, enters prohibited roads or areas (turning where prohibited, driving against the flow of one-way traffic, running a red light, or failing to comply with the instructions of traffic controllers) causing an accident.

Will a vehicle that encounters an incident abroad be compensated by insurance?

For vehicles that encounter incidents occurring outside the territory of the Socialist Republic of Vietnam, damages will not be compensated.

If a vehicle is in an accident and valuable items on board are damaged (ceramics, potted plants, etc.), how will it be compensated?

Currently, in most cases, car material damage insurance will not compensate you for indirect consequential damages such as: loss of commercial value, damages related to the use and operation of the damaged property, emotional damages, or damages not directly caused by an accident.

Damages to special property on the vehicle, including gold, silver, precious stones, money, valuable papers like currency, antiques, rare paintings, etc., will also not be compensated.

Notes when purchasing car material damage insurance

Before purchasing car material damage insurance, owners should consult with relatives and friends who have used this type of insurance to understand the advantages, disadvantages, and costs of each specific material damage insurance policy. From there, make a final decision on the type of insurance they should own.

Owners also need to research the deductible insurance amount stipulated for the type of insurance they intend to purchase. Currently, there are two types of deductibles: with deductible (the customer pays for the loss, the insurance company pays the remainder) and without deductible (if the loss is less than the deductible amount, the customer pays; if the loss is greater than the deductible amount, the insurance company pays in full).

As with any type of insurance, before signing a car material damage insurance contract, owners must read all terms and conditions carefully. In case of unreasonable terms, owners can negotiate with the provider, as this will be the legal basis in case of any disputes over rights that arise later.

In addition, vehicle owners should choose to repair their cars at authorized garages that are convenient for their travel. This ensures peace of mind regarding service quality when the vehicle requires repairs.

As soon as an incident occurs, the owner must immediately contact the insurance companies for timely resolution, ensuring their rights and avoiding complications related to the compensation process. For convenience, owners should save the hotline numbers of insurance companies to call immediately in emergency situations such as when the vehicle is in an accident.

How does car insurance compensate in the event of an accident?

 

Many people buy car insurance but are unsure what to do after an accident to receive compensation according to regulations.

**Notification of Car Accident or Incident**

For the car insurance claim process after an accident, you must first notify the insurance company of the incident, typically by phone. Most insurance companies have a 24/7 customer service hotline clearly printed on your insurance certificate. Be sure to provide complete information, including your full name, phone number, license plate number, time, location of the incident, and a detailed description of what happened.

According to car material damage insurance regulations, insurance companies may refuse to compensate if the customer fails to notify them of an accident. They might even impose a penalty of 10-50% of the total repair cost when processing car insurance benefits after an accident.

Furthermore, an indispensable principle for receiving insurance benefits is to preserve the accident scene. This ensures that all details of the accident are not disturbed or altered, which would complicate the investigation and claims assessment process.

**Car Insurance Claims Assessment After an Accident**

-   **Cases where the car did not collide with a third party:**

    The claims assessment requires the presence of a legal representative and an authorized claims assessor from the insurance company. Based on the estimated damage, the insurance company will inform the police to determine if they will participate in verifying the scene.

    For minor material damage, from VND 5 million or less, or damage caused by external hard objects to lights, glass, or mirrors, you only need to wait for the company to monitor and inform you of the compensation result.

    For damage ranging from VND 5 million to VND 10 million, an insurance company assessor must inspect the scene, without the need for confirmation from the police/local authorities.

    In cases where the estimated material damage to the vehicle is over VND 10 million, confirmation from the traffic police/police/local authorities is mandatory. Additionally, an assessor must verify the scene.

-   **Cases where the car collided with a third party:**

    The vehicle owner involved in a car accident must have confirmation from the traffic police/police/local authorities.

    *   **Material damage under VND 20 million:**

        The participant needs to present confirmation from the traffic police/police/local authorities, and an assessor must verify the scene.

    *   **Material damage over VND 20 million:**

        The participant must have a police report. Additionally, an assessor must inspect the scene.

**Reference for Car Insurance Compensation Amounts After an Accident**

After assessing the damage, the insurance company will decide on the compensation plan and the appropriate compensation amount for the car accident.

-   **Car Insurance Compensation Plans After an Accident:**

    *   **Vehicle Repair:**

        If the contract includes a clause for choosing a repair facility, costs will be calculated according to the official price list. If you choose a non-official facility, the price must be agreed upon based on market value. If you do not purchase the optional repair location clause, the insurance company will designate a repair facility. If you disagree with their choice, any additional costs incurred will be your responsibility.

    *   **Monetary Compensation:**

        Monetary compensation for car accidents is applied to parts where damage is easily assessed and cannot be replaced. Alternatively, it applies when the vehicle owner is in an area without quality service workshops, or when repairs cannot meet deadlines, and immediate damage mitigation is required.

-   **Car Accident Insurance Compensation Levels:**

    *   **Partial Damage:**

        Insurance companies will limit the compensation for partial damage based on a percentage of the vehicle's total value.

    *   **Total Loss:**

        This category includes theft, severe damage that cannot be repaired, or when the total repair cost exceeds the vehicle's value.

        In this situation, the maximum compensation amount is the insured sum minus the depreciation from vehicle usage. In another scenario, the compensation is calculated equivalent to the vehicle's value at the time of the loss.

Currently, insurance companies offer various types of car insurance, ensuring full benefits and advantages for policyholders.

-   **Compulsory Civil Liability Insurance:** This covers compensation to third parties caused by the vehicle.

-   **Automobile Civil Insurance:** This covers damages to health, life, and property of third parties caused by the vehicle.

-   **Vehicle Material Damage Insurance:** This covers physical damage to the vehicle.

Car Passenger Accident Insurance

 

Car passenger accident insurance is a package designed for co-drivers, drivers, and other individuals on board a car who suffer bodily injury or death due to an accident while in the vehicle or while getting on or off the vehicle during traffic.

What is car passenger accident insurance?

1.  **Insurable Objects and Scope**

    *   **Insurable Objects:** The car passenger accident insurance package is for individuals such as co-drivers, drivers, and other passengers being transported in the vehicle.

    *   **Scope of Coverage:** If bodily injury or death occurs due to an accident directly related to the use of that car, or bodily injury from an accident while on board or getting on/off the vehicle while it is in traffic.

2.  **Benefits of Car Passenger Accident Insurance**

    *   Car passenger accident insurance is a voluntary car insurance package. By participating in this package, the insured will enjoy many benefits, depending on the package you have chosen.

    *   In the event the insured unfortunately dies due to an accident covered by the insurance, Bảo Việt will pay the full amount stated in the car insurance contract.

    *   In the event the insured suffers permanent disability due to an accident, Bảo Việt will pay according to Bảo Việt's disability benefit payment ratio.

    *   In the event the insured suffers temporary injury due to an accident, Bảo Việt will pay for actual expenses, including treatment costs, emergency care, recovery expenses, etc. The amount paid by the insurance for these expenses will not exceed the sum insured specified in the disability benefit payment ratio table.

    *   In the event the insured dies as a result of the accident for which Bảo Việt has already paid insurance expenses, Bảo Việt will pay the difference between the sum insured stated in the insurance contract and the amount previously paid.

    *   If, at the time of the accident, the number of passengers in the car exceeds the specified capacity (excluding children under 7 years old), the compensation amount will be reduced proportionally to the ratio of insured persons to the total number of people carried in the vehicle.

The above provides information about the car passenger accident insurance package. Please refer to it to clearly understand the benefits this car insurance package offers.

Voluntary car insurance

Whether to purchase voluntary car insurance correctly and how to use it reasonably is a question many first-time car buyers always wonder about.

Besides the mandatory car insurance package, car owners also need to purchase additional voluntary insurance packages for their vehicles to help mitigate the consequences in case of accidents or theft, etc. However, not all car owners know how to choose the right insurance package and which reputable insurance company is suitable for their vehicle's usage conditions, especially those buying a car for the first time.

How many types of voluntary car insurance packages are there?

Currently, most insurance companies on the market offer 3 types of voluntary car insurance:

1.  **Vehicle Material Damage Insurance Package**

    This is a popular type of voluntary insurance used by car owners. If your car unexpectedly encounters unforeseen incidents such as collisions, fires, rollovers, explosions, or unavoidable natural disasters, the insurance company will compensate for the material damage to the vehicle's body.

2.  **Insurance for Goods Transported in the Vehicle**

    If you are in the transportation business, this voluntary car insurance package is particularly essential for you. However, if you buy a car for daily commuting for work or family needs, this vehicle material damage insurance package may not be necessary.

3.  **Insurance for Passengers and Accidents for Drivers/Co-drivers**

    This is also a form of voluntary car insurance specifically for drivers and passengers in the vehicle, collectively known as the insured. The insurance company will pay for bodily injury or death for the insured individuals when they are in, boarding, or alighting from the vehicle while it is in transit. The insurance premium and the insured amount will be recorded in the contract agreed upon between the car owner and the insurance company.

Which reputable company should you buy voluntary car insurance from?

As of now, it is not possible to definitively conclude which insurance provider offers the most reputable car insurance service. However, Bảo Việt insurance has always been the brand chosen by many people. This is because Bảo Việt consistently meets the following criteria:

*   **Reasonable Premium:** Currently, all insurance companies are fiercely competing on price and product quality. Therefore, the first principle is to identify providers that fit your financial situation.

*   **Professional Service and Network:** You should choose insurance providers with professional services that are affiliated with your car dealership or have reputable garages for repairs. A reputable insurance company must have a dedicated, professional claims settlement team that can provide 24/7 support.

*   **Efficient and Accurate Claims Settlement:** You should choose a company that can settle claims quickly, accurately, and with the best quality of compensation.

With the useful information shared above, we hope you now have enough confidence and knowledge to choose the most suitable voluntary car insurance package for yourself.

What is car insurance?

 

Car insurance is a type of insurance that combines various insurance types, including those for people, property, and goods transported, related to automobiles.

Compulsory car insurance is a type of civil liability insurance that all car owners must participate in according to regulations. If checked by traffic police or competent authorities and the car owner does not have compulsory car insurance, it will be considered a violation of the law and penalties will be imposed according to regulations.

Additionally, when purchasing compulsory car insurance, regardless of where you buy it, you should also read the regulations, coverage scopes, and exclusions of this compulsory car insurance to ensure you receive compensation from the insurance company.

The premium for compulsory car insurance will vary for different types of specialized vehicles, regular vehicles, load capacities, and seating capacities.

Currently, the car insurance market offers 4 popular types of insurance: compulsory civil liability insurance for vehicle owners, civil liability insurance for vehicle owners regarding goods transported on the vehicle, vehicle material damage insurance, and insurance for passengers and drivers/co-drivers.

Among these, compulsory civil liability insurance for vehicle owners is the type that all individuals or organizations owning a car must purchase under Vietnamese law. The remaining 3 types of insurance are entirely voluntary for customers, based on agreements with insurance companies.

**Types of Car Insurance**

**Car Civil Liability Insurance**

This insurance covers compensation to third parties for damages to property and persons caused by your vehicle during traffic.

*   **Participants:**

    All motor vehicle owners participating in traffic within the territory of Vietnam.

*   **Coverage Scope:**

    The insurance will compensate the vehicle owner for 2 main types of damages:

    *   Bodily injury, death, and property damage to third parties caused by the motor vehicle;

    *   Bodily injury and death of passengers under a passenger transport contract caused by the motor vehicle.

*   **Exclusions:**

    *   Intentional damage caused by the insured;

    *   Driver intentionally fleeing the scene of an accident;

    *   Invalid driver's license;

    *   Indirect damage consequences;

    *   Damage from theft or robbery after an accident;

    *   Force majeure events such as earthquakes, terrorism;

    *   Special assets such as gold, silver, precious stones, cash, valuable papers, antiques...

*   **Benefits:**

    *   **Compulsory Car Insurance Liability Limits:**

        *   For personal injury: VND 100,000,000 / person / accident;

        *   For property damage: VND 100,000,000 / accident.

  Additionally, the premium rates for vehicle owner's civil liability are specifically regulated for types such as: Non-commercial vehicles; Commercial transport vehicles; and Cargo vehicles.

 Premiums are also specifically divided for vehicle types with different seating capacities and load capacities. Driving school vehicles, taxis, and specialized vehicles are also distinguished and regulated in detail.

**Vehicle Material Damage Insurance**

This insurance covers damage to the vehicle's material components caused by collisions, overturning, falling objects, engine damage due to water ingress (hydrostatic lock), etc.

Vehicle material damage insurance is voluntary but very necessary. By purchasing vehicle material damage insurance, the insurer will cover the costs of repairing damages, making you more financially prepared and confident in using your vehicle.

*   **Participants:**

    Applies to automobiles and specialized vehicles, including: Cars, tractors, semi-trailers or trailers pulled by cars or tractors; construction machinery; agricultural and forestry machinery, and other special-purpose vehicles participating in road traffic.

*   **Coverage Scope:**

    The insurance is responsible for compensating vehicle owners for material damages caused by natural disasters, unexpected accidents, and unforeseen events in the following cases:

    *   Collisions (including impact with objects other than motor vehicles), overturning, falling, submersion, complete vehicle loss, or being hit by falling objects;

    *   Fire, explosion;

    *   Natural disasters;

    *   Total loss of the vehicle due to theft or robbery.

*   **Benefits:**

    In addition to compensation, the insurance will also reimburse the vehicle owner for necessary and reasonable expenses agreed upon in the insurance contract to perform tasks as required and instructed by the insurer when a loss occurs (within the scope of insurance), including costs for:

    *   Costs to prevent further losses;

    *   Costs for towing and transporting the damaged vehicle to the nearest repair facility, but not exceeding 10% of the sum insured.

**Hydrostatic Lock Insurance**

Customers who purchase the hydrostatic lock insurance clause within their car material damage insurance will be compensated by the insurance company according to the contract terms when a hydrostatic lock event occurs.

*   **Participants:**

    Applies to automobiles and specialized vehicles, including: Cars, tractors, semi-trailers or trailers pulled by cars or tractors; construction machinery; agricultural and forestry machinery, and other special-purpose vehicles participating in road traffic.

*   **Coverage Scope:**

    *   If you drive into a flooded area and the engine stalls without restarting, the vehicle body and material damage insurance company will compensate and pay up to 70-80% of the repair and maintenance costs for components like cylinders, pistons, rings, gaskets, oil changes, air filters, etc. The remaining costs will be borne by the customer.

    *   However, if the customer intentionally attempts to restart the engine to drive through a flooded area, leading to severe damage, the insurance company may refuse compensation.

*   **Benefits:**

    The insured amount will be compensated and paid according to the contract provisions when hydrostatic lock occurs.

By purchasing this hydrostatic lock insurance package, customers will receive consultation and roadside assistance to mitigate the incident and its consequences to the lowest possible level.

*Where to Buy Compulsory Car Insurance?**

There are many places to buy car insurance on the market, so people often wonder where to buy compulsory car insurance to ensure they receive all their rights and benefits.

The best way to purchase quality, fast, economical, and convenient insurance is to choose a reputable and trustworthy car insurance company in the market.