The Vietnam Federation of Trade and Industry (VCCI) has proposed exempting motorcycles from the obligation for third-party motor insurance. It states that the purchase of third-party liability coverage for motor vehicles should be optional.
According to VnEconomy, the Federation was providing input on a draft decree that would require construction liability insurance, fire and explosion insurance, and third-party liability insurance for vehicles.
According to the VCCI, the exclusion of motorbikes from insurance requirements would lower social costs and encourage insurance companies to develop better insurance solutions that truly meet the demands of their customers.
According to a VCCI survey, even though the implementation of mandatory insurance has historically demonstrated to produce social benefits, this has not been the case for mandatory third-party liability insurance for motorbikes, where claim payouts have been significantly lower than the associated social costs.
