Motor vehicle insurance fund: Simplify payment records and procedures

The compensation payment for motor vehicle owners has been revised in a simple and quick manner.

Payment to the affected person is made within 2 days

Complying with the provisions of Clause 2, Article 30 of Decree No. 03/2021/ND-CP, Circular 04 details the process, procedures and records of humanitarian assistance payments, and refunds the insurance enterprise has advanced compensation from the Motor Vehicle Insurance Fund for health and life damage (death or organ injury receiving emergency treatment) in various cases.

Accordingly, the circular clearly states that, for the process and procedures for humanitarian assistance, the aggrieved person or the heir or the victim's representative will contact the Motor Vehicle Insurance Fund for guidance in preparing a humanitarian assistance payment dossier. Within one working day after receiving the victim's request, the fund is responsible for providing guidance on humanitarian assistance spending records as prescribed. Within two working days after receiving a complete and valid application file, the fund is responsible for paying the affected person. In case of refusing to pay humanitarian assistance, the fund must clearly explain in writing the reason.

In terms of records of humanitarian assistance payments, the victim is responsible for collecting one set of dossiers to request humanitarian assistance and taking responsibility before the law for the accuracy, completeness and validity of the dossiers. In the circular, records for humanitarian assistance also specify the types of documents needed.

So, basically, the process, procedures and records of humanitarian assistance are built to ensure the goal of support quickly, promptly, to the right audience, in accordance with the law with the views: simple and compact support details; processing time is quick and timely and it is the victim's responsibility to provide honest and complete information.

Along with that, Circular 04 basically retains the regulations on the organisation, management and administration of the fund, the work of estimating, accounting, and the settlement of the fund. However, the process, procedures and records of humanitarian assistance and refunds that insurers have advanced to compensate have been modified and supplemented.

Paying in advance of compensation to businesses in just five days

In Circular 04, insurance enterprises also benefit from regulations on advance reimbursement of compensation. Accordingly, after an insurance enterprise submits one set of documents to the Motor Vehicle Insurance Fund as prescribed, within five working days after receiving a complete and valid application, the fund is responsible for the refund of money the insurance firm has advanced to compensate according to the provisions of Point a, Clause 1, Article 27 of Decree No. 03/2021/ND-CP. In case of a refusal to refund, the Motor Vehicle Insurance Fund shall issue a written explanation of the reason.

Regarding the application for advance reimbursement, the insurer is responsible for collecting one set of dossiers to request the advance payment of compensation and taking responsibility before law for the accuracy, completeness and validity of the profile.

Circular 04 also specifies the application for compensation advance refund includes documents: an application for advance refund signed by the insurer in the form specified in Appendix III attached to the Circular 04; a notarised copy of the insurance indemnity settlement document or the insurance enterprise's refusal to settle indemnity and a detailed list of accidents that the insurer proposes to pay in advance.

Compared to the current regulations, Circular 04 changed the ratio (ceiling rate or floor rate) of each spending item of the Motor Vehicle Insurance Fund. For example, the rate of humanitarian assistance will not be less than 25% of the annual total and the fund balance from previous years; spending no more than 20% on road traffic injury and loss prevention and control. Or for the organisation of propaganda and education on road traffic safety and compulsory insurance for motor vehicle's civil liability, the amount will not exceed 15% of the total amount paid to the annual fund and fund balance in previous years.