Why Is Motorcycle Insurance Required?

19/05/2020, 08:54 AM

Vehicle insurance is one of the documents that drivers must drive (as defined in the 2008 Traffic Law). However, in fact, the reason why this type of insurance is mandatory, there are many people still unknown.

What is compulsory motor insurance?

Compulsory motorbike insurance with full name is Compulsory insurance for civil liability of motor vehicle owners when participating in traffic. This insurance has a great meaning in protecting the rights of victims and vehicle owners when an accident occurs. On the other hand, this is one of the social security policies of the State to protect the rights of victims in traffic accidents caused by motor vehicles; At the same time, it helps to protect motor vehicle owners financially against unexpected risks.

Why is it compulsory to have motorbike insurance?

According to Decree 103/2008 / ND-CP of the Government on compulsory insurance of civil liability for motor vehicle owners, from mid-April 2009, traffic police penalize cars and motorbikes without insurance certificates. Therefore, when checking papers for motorcyclists, in addition to the driver's license and vehicle registration, the traffic police must ask for an additional vehicle insurance certificate.

Benefit from participating in compulsory motorcycle insurance

Compensation for motor vehicle owners the money that the car owners have injured or will have to pay compensation to the victims.

Thus, when an accident occurs, compulsory motorcycle insurance will not be responsible for paying damages to the owner (the insurance buyer), but will overcome the accident consequences for the victim and ensure Vehicle owners' responsibility when participating in road traffic.

The amount of compensation for human damage will be determined based on the Table of regulations on compensation for human damage as prescribed by the Ministry of Finance. Compensation for property damage is determined according to actual damage and the degree of fault of the motor owner.

In addition, in case the motor vehicle owner concurrently participates in many contracts of compulsory civil liability insurance for the same motor vehicle, the compensation amount is only calculated according to the first insurance contract.

Thus, it can be understood that compulsory motorbike insurance is necessary and important for motor vehicle owners when participating in traffic, in order to ensure their own responsibility if any risks occur.