Mr. Ha Manh Linh participates in voluntary motor vehicle insurance, his car was involved in a traffic collision resulting in serious damage. The insurance contract provides as follows:

"Article 2: Insurance rules

2.1. Compulsory insurance for civil liability (TNDS) of motor vehicle owners:

Insurance coverage, conditions, insurance terms, exclusions of insurance liability and other contents are applied according to Decree No. 03/2021/ND-CP dated January 15, 2021

2.2. Voluntary motor vehicle insurance:

Insurance coverage, conditions, terms of insurance, exclusion of insurance liability and other contents are applied in accordance with Insurance Rule No. 187/2019/QD-BHHK the minutes of the civil agreement stating:

Civil part: The parties involved in the traffic accident have voluntarily agreed to mediate the civil agreement by means of a written record, whichever party's vehicle is damaged, that party will self-repair and do not propose to remedy the consequences, damages".

Thus, according to Mr. Linh's understanding, the hull insurance will have nothing to do with the civil liability record. But currently, the insurance company is reducing 50% of the damage to his car on the grounds that the owner/driver does not reserve the right to claim and transfer the right to claim the third person to the insurance company with the whole package dossiers, necessary documents, failure to cooperate closely with the insurance company to claim the third party or automatically negotiate compensation with the third-party causing damage to the insurance company.

When an accident happened, the insurance company did not instruct him on how to keep the right to claim against the third party (TNDS) and apply the Civil liability rule (Article 2.1) to deduct 50% of the voluntary material insurance claim (Article 2.2). 

Mr. Linh asked, is it right or wrong for the insurance company to do so?

The Ministry of Finance responded to this issue as follows:

According to the provisions of Clause 1, Article 12 of the Law on Insurance Business: "An insurance contract is an agreement between the insurance buyer and the insurance enterprise, whereby the insurance buyer must pay the insurance premium and the insurance enterprise must pay the insurance premium. The insurer must indemnify the beneficiary or indemnify the insured upon the occurrence of the insured event.

According to the provisions of Clause 1, Clause 2, Article 49 of the Law on Insurance Business on the responsibility to transfer the right to claim:

"1. In the event that a third party is at fault for causing damage to the insured and the insurance enterprise has paid indemnification to the insured, the insured must transfer the right to claim the third-party indemnification the money that the insurer has received compensation for the insurance company.

2. In case the insured refuses to transfer the right to the insurance enterprise, does not reserve or waive the right to claim compensation from a third party, the insurer has the right to deduct the amount of indemnity depending on the extent of the claim. fault of the insured".

Pursuant to the Government's Decree No. 03/2021/ND-CP dated January 15, 2021 on compulsory civil liability insurance of motor vehicle owners, there is no regulation on the reduction of 50% of the insurance indemnity in case The policyholder/insured does not transfer the right to claim a third party to the insurer.

On that basis, it is suggested that Mr. Ha Manh Linh coordinate with the insurance company to settle the case according to the agreement in the insurance contract and the law.

In case the two parties cannot agree on how to settle the compensation, the case can be brought to the Court for settlement according to the provisions of Clause 3, Article 26 of the 2015 Civil Procedure Code: "Civil disputes under the jurisdiction of the Court:… Clause 3-Disputes over civil transactions, civil contracts…”.