Vietnam debates mandatory motorcycle insurance: Is it effective or just a formality?

There is a growing debate in Vietnam regarding the mandatory nature of motorcycle liability insurance, with many citizens and even some provincial authorities questioning its practical benefits. Readers of Thanh Niên newspaper have proposed shifting the insurance to a voluntary basis, increasing its coverage value, and streamlining the claims process.

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Honestly, I buy motorcycle insurance because if I don't, the fine is higher than the insurance cost, not because I expect compensation in case of an accident.

Concerns were recently highlighted by a petition from voters in Cà Mau province to the Ministry of Finance, suggesting the abolition of mandatory third-party liability insurance for motorcycles. The primary reason cited is the perceived lack of tangible benefits, as individuals find it difficult to receive insurance payouts after accidents. When payments are made, the procedures are often described as cumbersome and inconvenient.

In response, the Ministry of Finance stated it is consolidating feedback on these issues and will research a suitable reform roadmap. The ministry aims to improve policies, introduce new regulations to enhance vehicle owners' benefits regarding insurance premiums, coverage amounts, and simplified claims documentation and procedures.

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The mandatory part in protecting people is largely covered by health insurance. If you have a serious accident, will motorcycle insurance pay? Or will people end up using health insurance?

This discussion echoes similar sentiments from early 2025, when voters from various regions, including Ho Chi Minh City, Đồng Nai, and An Giang, urged the Ministry of Finance to clarify the necessity of mandatory motorcycle insurance, arguing it leads to waste. They suggested making it voluntary instead of compulsory. Many readers shared experiences of purchasing insurance solely to avoid fines, with one commenter stating, "Honestly, I buy motorcycle insurance because if I don't, the fine is higher than the insurance cost, not because I expect compensation in case of an accident."

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The issue is how to compensate for damages quickly and conveniently.