Voters in some cities and provinces around Vietnam have proposed that the Ministry of Finance consider abolishing compulsory motorbike insurance.

Compulsory insurance for the civil liability of motor vehicle users is stipulated in Government Decree No. 03/2021/ND-CP dated January 15, 2021.

Voters said the regulation has some shortcomings. In order to obtain a payout after a traffic accident, vehicle drivers must complete a range of complex documentation. Vehicle owners and their relatives, however, are generally focused on treating any injuries and dealing with the aftermath of an accident and don’t want to be bothered by paperwork.

Without the required legal documents proving damage, many vehicle users cannot receive a payout. Insurance therefore fails to guarantee their interests.

Voters proposed that the government amend the relevant regulations to make motorbike insurance optional or to simplify regulations to make it easier to access payouts.

The Ministry of Finance said it is reviewing and completing a draft decree on the issue.