Public demand to scrap compulsory motorbike insurance grows

Public petitions have been submitted to the Ministry of Finance from Dong Nai, Binh Duong, An Giang, Quang Ninh, Lang Son, and Lai Chau provinces seeking abolition of the insurance.

Many people only buy the insurance to show the traffic police and do not expect to get any compensation in case of an accident because of the complicated processes and paperwork involved, and the compensation rate is often low, they said.

The insurance should be voluntary, they said.

In HCMC and Ninh Thuan and Tien Giang provinces, petitioners called for making the claim settlement process simple and quick.

Last year the Vietnam Federation of Commerce and Industry (VCCI) had made a similar proposal.

But the ministry did not budge, saying that many countries still require compulsory insurance for vehicles and motorbikes remain the main motorized means of transport and the biggest cause of accidents in Vietnam.

Statistics from the National Traffic Safety Committee show that the total number of motorbikes as of October 14, 2022, was 72 million, and accounted for 63% of accidents.

According to figures from the VCCI, the insurance payout ratio for motorbikes was less than 6% in 2019.