Auto-insurance in Vietnam covers a range of products designed to protect vehicle owners from financial losses due to accidents, theft, and other risks. The market includes mandatory insurance types such as civil liability insurance for motor vehicle owners, which is required by law, and optional insurance types like physical damage insurance and personal accident insurance. The growing demand for motor vehicles, especially in urban areas, has contributed to the steady expansion of the auto-insurance market.
Looking ahead, the auto-insurance market in Vietnam is expected to evolve with increased competition and digital transformation. Insurers are focusing on enhancing customer experience through digital platforms and more personalised products. Moreover, the implementation of stricter road safety regulations and a growing emphasis on vehicle compliance and environmental standards will likely drive further demand for comprehensive auto-insurance coverage.
Vietnam’s auto-insurance market in numbers
The auto-insurance market in Vietnam is projected to achieve gross written premiums of US$2.30 billion in 2024, with an average spending per capita of US$23.13. The market is expected to grow at a compounded annual growth rate of 2.11 percent from 2024 to 2028, resulting in a projected market volume of US$2.50 billion by 2028, according to data collated by Statista.
This moderate growth is fueled by factors such as increasing vehicle ownership and heightened awareness of insurance benefits.
Compulsory auto-insurance in Vietnam
Compulsory auto-insurance in Vietnam is regulated under Decree 67/2023/ND-CP, which was issued on September 6, 2023. This decree governs the civil liability insurance of motor vehicle owners, covering damages to third parties in case of accidents. It mandates all vehicle owners, including those of cars, motorcycles, and trucks, to purchase this insurance to ensure compensation for victims of road traffic accidents.
Key aspects of Decree 67/2023/ND-CP include provisions on insurance premiums, minimum coverage limits, and exclusions. For example, the liability limit for damages caused by motorcycles and similar vehicles is set at VND 50 million per accident, while for automobiles and tractors, it is VND 100 million per accident. The decree also outlines situations where insurers can deny coverage, such as when accidents are caused by drivers under the influence of alcohol or narcotics, or when operators do not have valid driving licences at the time of the incident.
The decree further regulates the management and use of the Motor Vehicle Insurance Fund, which supports individuals affected by accidents involving uninsured or unknown vehicles. It also specifies that the insurance period typically ranges from one to three years, depending on the type and status of the vehicle. These regulations aim to improve the accountability of vehicle owners and provide financial protection to accident victims, while promoting road safety and compliance across the country.
Key auto-insurance providers in Vietnam
Key auto-insurance providers in Vietnam include both local and international companies, which offer a variety of products ranging from mandatory civil liability insurance to comprehensive motor insurance policies. Most of these companies also provide health insurance and life insurance too. Some of the leading providers are:
Bao Viet Insurance
As one of the largest and oldest insurance companies in Vietnam, Bao Viet offers a wide range of auto-insurance products, including mandatory civil liability insurance and optional comprehensive coverage. They have a strong nationwide network and are known for their customer service and diverse product offerings.
PTI Insurance (Post and Telecommunication Insurance)
PTI is a prominent non-life insurer in Vietnam, providing motor insurance products with extensive coverage options. Their products include coverage for vehicle damage, theft, and personal accident insurance for drivers and passengers.
PVI Insurance
PVI is another major player in the motor insurance market. It offers comprehensive auto-insurance products, including coverage for accidents, natural disasters, and theft. PVI also provides unique services like fast claim settlements and a broad network of repair garages.
Liberty Insurance
Liberty is a foreign-owned insurer with a strong presence in Vietnam. They specialise in comprehensive car insurance, offering various add-ons like roadside assistance and premium repair services. Liberty’s digital platform allows customers to easily manage their policies and claims online.
MIC (Military Insurance Company)
MIC provides motor insurance solutions specifically tailored for military personnel and their families, but their products are available to the general public as well. They offer both compulsory and optional insurance coverages with competitive premiums.
These companies are continuously expanding their product offerings and improving digital services to cater to the growing demand for auto-insurance in Vietnam. The market is expected to continue its growth trajectory as vehicle ownership increases and regulatory compliance becomes stricter
Main motor auto-insurance products in Vietnam
The motor auto-insurance market in Vietnam is primarily driven by a few main product categories.
Compulsory Civil Liability Insurance
This insurance is mandated by law for all vehicle owners, covering third-party damages and injuries caused by the insured vehicle in an accident. It ensures that victims receive compensation even if the at-fault driver cannot pay. This type of insurance is essential for vehicle registration and must be renewed annually.
Voluntary Vehicle Insurance
This category includes various optional products that provide broader coverage beyond what is required by law. It often covers damages to the insured vehicle, theft, natural disasters, and personal accidents for the driver and passengers. Comprehensive car insurance is a popular product in this segment, offering extensive protection for vehicle owners.
Personal Accident Insurance for Passengers
This insurance covers the medical expenses and compensation for accidental injuries or death of passengers in the insured vehicle. It is often bundled with other motor insurance policies to provide additional protection.
These insurance products cater to a growing market as vehicle ownership in Vietnam continues to rise, supported by regulatory measures and increasing consumer awareness.
What’s next?
Auto-insurance in Vietnam includes compulsory civil liability insurance and optional coverages such as physical damage and personal accident insurance. Compulsory insurance is mandated by law and covers third-party injuries and property damage caused by the insured vehicle. Optional products provide additional protection against risks like theft, natural disasters, and accidents involving the insured vehicle. The motor insurance market is growing, driven by increased vehicle ownership and regulatory enforcement, with leading providers offering a range of products.
With this in mind, foreign insurance firms considering entering the Vietnam market should make sure to keep up to date with the latest developments in Vietnam’s insurance industry by subscribing to the-shiv.