Vietnam: Motorbike insurance sold on the street Source: eDaily | 07 Oct 2013 Motorbike owners in Vietnam stopping on the street to buy third party civil liability insurance from vendors is becoming as common as buying cigarettes. They are acquiring the insurance from unauthorised vendors at incredibly cheap prices, reports Tuoi Tre News. In Vietnam, the law requires motorcyclists to carry the motorbike insurance. The insurance covers the policyholder against property damage and personal injury to any other party in case of a traffic accident. Should a rider fail to produce the insurance when pulled over by the traffic police, he or she will be fined at least VND100,000 (US$4.70). A number of local motorcyclists buy the insurance merely to avoid the penalty. Even with the insurance, motorcyclists tend to flee the scene of an accident rather than contacting police and their insurer. This is because they see the insurance process as complex, Thus, motorbike insurance has emerged as a lucrative business for the insurers as there is little chance that their customers will claim compensation. Many insurance companies hire students, youths, and workers to sell the insurance right on the street. The sellers are not professionally trained. The motorbike liability insurance policies are sold at prices that are far lower than the rates stipulated by the Finance Ministry. While it is stipulated that the insurance costs VND66,000 per year, it is being sold at prices ranging from VND60,000 for two years to only VND15,000 for a year.
Posted on: Mon, 07 Oct 2013 04:25:48 +0000