Drivers who carry out-of-date vehicle insurance will face hefty fines as of the beginning of March.
The fine for motorbike drivers is VND100,000 (US$5.88) and car owners VND500,000 ($29.41) for each violation.
One-year motorbike insurance is usually worth about VND55,000 ($3.23) and the cost of car insurance is value-dependent.
Motorbike owner Nguyen Xuan Phuong, 24, from Ha Noi, said he got his bike insured for a year when he first bought the bike because he was told insurance was part of the registration process.
"I’ve had the bike for three years and I’ve never renewed the insurance. I’ve heard getting compensation after an accident is really complicated."
Le Nguyen on Nguyen Chi Thanh Street, also from Ha Noi, said he had to insure his car because it was worth VND500 million ($29,4111).
"I had to get insurance in case I have an accident. If anything happens, I will get compensation," he said.
When accidents do happen, insurance companies are responsible for co-operating with the owners of vehicles and the police to collect information to decide on compensation, said Phung Dac Loc, general secretary of the Viet Nam Insurance Association.
Information sought
For their part, police have to provide insurance firms with enough information, according to an inter-ministerial circular from the Ministry of Finance and Ministry of Public Security.
The Finance Ministry’s Insurance Management Department is responsible for supervising and inspecting insurance companies to prevent compensation fraud.
A draft helmet law for children is to be laid out on July 1, Minister of Transport Ho Nghia Dung said on Thursday.
The minister was speaking at the Child Helmet Wearing Campaign Launch.
The campaign, organised with support from the Asia Injury Prevention Foundation (AIP) and the National Transportation Safety, aims to boost the number of children wearing helmets on the road.
The Minister said the law was very important for child safety.
"Stipulations on age, and fines for adults who drive with children who are not wearing a helmet will be laid out in the revised traffic law from July 1," he said.
Chairman of the AIP Greig Craft said he was worried as only 15-30 per cent of kids on the road wore helmets. He said quality-controlled helmets did not impede children’s growth.
Source:http://vietnamnews.vnagency.com.vn
