We have a saying within Vietnam insurers: ‘Traffic accident is not a matter of IF you will occur to you, but of WHEN it will happen… and HOW serious it will be? Why they buy car insurance?
#1 By law, there is a minimum of VND100Mio in 3rd party liability for damage to property or bodily injury. The amount sounds big but it barely pays for a 1-minor surgery or a rear-mirror on a Mercedes car
#2 In a car accident foreigners rapidly taken in some kind of extortion by the family or by the damaged car owner’s ‘powerful’ relationships
#3 When accident involves bodily injuries or death, the leadtime to sort out is an average of 6-month with Police and judgement
#4 Leave all the troubles to the insurer’s lawyers
#5 Cars in Vietnam are very expensive x3 times. Repay to the owner, the value of the expensive car and the original parts changes
#6 If you rent, note that Vietnamese owners don’t buy insurance except for the value of their car. You may want to buy additional 3rd party injury and material damage but also passenger insurance (especially for company vehicles transporting staff or clients)
#7 Most company drivers don’t know how to read an insurance contract (this is the job of the accountant), some don’t even know how to check the validity dates.
#8 Make sure your driver did not pocket part or all of the premium, leaving you uninsured!
NB. A car buy at home would triple price in Vietnam due the following taxes.
There are also many kinds of official taxes and fees on cars. These include the car part import tax for domestically assembled cars (assemblers pay this tax and take it into consideration when setting selling prices), import tax (paid by importers) of 50-150 percent, luxury tax at 40-60 percent, VAT of 10 percent and corporate income tax of 22 percent.
#8 You may have you own needs…
Most vietnamese vehicles are not insured properly to the risk incurred, a good professional advice To calculate a price and make an offer, we will need to know:
We have shortened to 4 main questions to make it simple:
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