Mr. A has insurance. Mr. A caused damage to Mr. B's car. In the file of the police agency, Mr. A has compensated the entire cost of repairing the car for Mr. B (compensation in cash with a receipt and Mr. A's complaint letter to Mr. B in the police file).

After that, Mr. B takes the car to be repaired at agency C and pays the repair fee to agency C. Mr. B transfers the invoice issued by agency C to the insurance party (in the repair contract, only the insurer and the insurance company).

Therefore, after receiving all invoices, documents and police files, the insurance party pays Party A according to the Government's Decree No. 03/2021/ND-CP.

But when checking the tax, the tax agency announced that the insurance paid the wrong person to transfer money to the car repair party, which is party C.

Mr. Dang Dinh Tu asked, is it correct that the insurance side pays car owner A (the insured) in this case?

The Ministry of Finance responded to this issue as follows:

According to the provisions of Article 56, Article 57 of the Law on Insurance Business in 2000:

"Article 56. Right to represent the insured.

The insurer has the right to negotiate on behalf of the insurance buyer with a third party about the level of compensation for damage, unless otherwise agreed in the insurance contract.

Article 57. Mode of compensation.

At the request of the insured, the insurance enterprise may directly indemnify the insured or the third party who suffers damage.

According to the provisions of Clause 1, Article 14; Clause 3, Article 15 of Decree No. 03/2021/ND-CP dated January 15, 2021 of the Government on compulsory insurance for civil liability of motor vehicle owners:

"Article 14. Insurance compensation

1. When an accident occurs, within the scope of the insurance liability, the insurance enterprise must indemnify the insured for the amount that the insured has already indemnified or will have to compensate the damage sufferer.

In case the insured person dies or loses his/her civil act capacity under a court decision, the insurance enterprise shall directly compensate the damage sufferer or the victim's heirs (in case the injured person dies or loses his/her civil act capacity). the damage sufferer is dead) or the representative of the damage sufferer (in case the damage sufferer loses his/her civil act capacity under a court decision or is under six years old)…”.

"Article 15. Insurance claim file

The insurer is responsible for coordinating with the insurance buyer and related parties to collect a set of insurance claim documents and take responsibility before law for the accuracy, completeness and validity of the insurance claim. insurance claim. The insurance claim file includes the following documents:…

3. Documents proving damage to property provided by the insurance buyer or the insured:

a) Valid invoices and vouchers for the repair or replacement of damaged property caused by traffic accidents (in case the insurance enterprise repairs or overcomes the damage, the insurance enterprise may responsible for collecting this document).

b) Papers, invoices and documents related to the expenses incurred by the motor vehicle owner to minimize losses or to comply with the instructions of the insurance enterprise.

Regarding tax policy: Because your question does not have attached documents such as insurance contract, car repair contract, proof of payment for repair, time of invoice... please contact with tax authorities for guidance.