Article 9 of Decree No. 67/2023/ND-CP of the Government stipulates: "During the valid period stated on the Insurance Certificate, if there is a transfer of ownership of the motor vehicle, the old motor vehicle owner has the right to terminate the insurance contract according to the provisions of Article 11 of this Decree".

Mr. Ha asked, if he does not terminate the insurance contract, will the insurance still be valid for the new owner or will his insurance automatically terminate when the new owner's name is transferred?

Regarding this issue, the Department of Insurance Management and Supervision, Ministry of Finance has the following opinion:

Clause 1, Article 2 of Decree No. 67/2023/ND-CP stipulates:

"Article 2. Subjects of application:

1. Motor vehicle owners participating in traffic and operating in the territory of the Socialist Republic of Vietnam for compulsory civil liability insurance of motor vehicle owners".

According to Clause 1, Article 4 of Decree No. 67/2023/ND-CP stipulates: "1. Agencies, organizations and individuals specified in Clause 1, Clause 2, Clause 3, Article 2 of this Decree (hereinafter referred to as "insurance buyers") must purchase compulsory insurance from insurance enterprises licensed to implement insurance services in accordance with the law".

Pursuant to Clause 3, Article 9 of Decree No. 67/2023/ND-CP: "During the valid period stated on the Insurance Certificate, if there is a transfer of ownership of the motor vehicle, the old motor vehicle owner has the right to terminate the insurance contract according to the provisions of Article 11 of this Decree".

At Points a, b and c, Clause 2, Article 10 of Decree No. 67/2023/ND-CP stipulates:

"2. The insurance certificate is actively designed by the insurance enterprise and must include the following contents:

a) Name, address, telephone number (if any) of the motor vehicle owner;

b) License plate number and chassis number, engine number;

c) Vehicle type, tonnage, number of seats, purpose of use for automobiles".

Article 11 of Decree No. 67/2023/ND-CP stipulates: "Article 11. Termination of insurance contract and legal consequences of termination of insurance contract: In case the motor vehicle's vehicle registration certificate and license plate are revoked according to the regulations of the Minister of Public Security, the insurance contract shall terminate from the time the vehicle registration certificate and license plate are revoked. The insurance enterprise shall be responsible for refunding the insurance premium paid to the insurance buyer corresponding to the remaining term of the insurance contract from the time the insurance contract is terminated". Article 13 of Circular No. 24/2023/TT-BCA stipulates:

"Article 13. Cases of vehicle registration and transfer:

1. When transferring vehicle ownership or changing headquarters or residence from one province or centrally run city to another (hereinafter referred to as transferring the original owner), the vehicle owner must carry out the revocation procedure at the agency managing the vehicle records.

2. The organization or individual receiving the transfer of vehicle ownership or the vehicle owner (in the case of transferring the original owner) shall carry out the procedures for registration and transfer of the vehicle at the vehicle registration agency as prescribed in Article 4 of this Circular".

According to Clause 6, Article 23 of Circular No. 24/2023/TT-BCA:

"Article 23. Cases of revocation of vehicle registration certificate and license plate:

... 6. Vehicles carrying out procedures for registration transfer and transfer".

In the content of the question, Mr. Ha mentioned "selling a vehicle to a new owner, the new owner transfers the registration and changes the license plate", changing information about the name, license plate and purpose of use of the motor vehicle owner will change the information on the content of the Insurance Certificate according to the provisions of Points a, b and c, Clause 2, Article 10 of Decree No. 67/2023/ND-CP.

For the convenience of the insurance company and the insurance buyer as well as to avoid disputes, the motor vehicle owner and the insurance company can negotiate and agree to terminate and reissue the Insurance Certificate accordingly.

It is recommended that Mr. Ha should study and implement the above legal provisions in accordance with the law.