However, the insurance unit only reimburses for physical insurance and does not refund for civil liability insurance, because the sale of the vehicle is not eligible for reimbursement.

Mr. Tuan asked, is your case reimbursed for civil liability insurance?

The Ministry of Finance responded to this issue as follows:

According to the provisions of Article 10 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 10. Termination of insurance contracts

1. Termination of insurance contracts in cases where the vehicle registration certificate and license plate must be revoked according to the regulations of the Ministry of Public Security.

2. Terminate the insurance contract in case the motor vehicle owner fails to fully pay the insurance premium as prescribed in Clause 5, Article 7 of this Decree.

3. To unilaterally suspend the performance of an insurance contract in case there is a change in the factors serving as the basis for premium calculation, leading to an increase or decrease in insured risks.

The legal consequences of the termination of the insurance contract in the above cases shall comply with the provisions of Article 11 of Decree No. 03/2021/ND-CP.

"Article 11. Legal consequences of termination of insurance contract

1. In case of termination of an insurance contract as prescribed in Clause 1, Article 10 of this Decree:

a) The policyholder and the insured must notify the insurance in writing, enclosed with the Certificate of Insurance that they wish to terminate and the Certificate of revocation of the vehicle registration certificate, license plate or decision regulations and notices of competent agencies on the revocation of vehicle registration certificates and license plates.

The insurance contract terminates from the time the insurance enterprise receives the notice of termination of the insurance contract.

... b) Within 5 working days from the date of receipt of the notice, the insurance enterprise must refund the premium to the insurance buyer and the insured corresponding to the remaining time of the contract of insurance for which the policyholder and the insured have paid the premium, after deducting reasonable expenses related to the insurance contract. Insurance companies do not have to refund insurance premiums the case where the insured event has occurred and the insurance liability arises before the insurance contract is terminated.

c) In case the insurance buyer or the insured does not notify the termination of the insurance contract, but the insurer has specific proofs that the motor vehicle is eligible for termination of the insurance contract. For insurance according to the provisions of Clause 1, Article 10 of this Decree, the insurance enterprise must notify in writing the insurance buyer, the insured and proof that the motor vehicle is under the case of termination of the insurance contract.

After 15 days from the date of receipt of the notice, if the policyholder or the insured fails to carry out the procedures for termination of the insurance contract specified at Point a, Clause 1 of this Article, the insurance contract will automatically be end. Insurance enterprises shall refund insurance premiums according to the provisions of Point b, Clause 1 of this Article. In case an insured event occurs within 15 days from the date the insurer sends a notice to the insurance buyer or the insured of the termination of the insurance contract, the insurer is still responsible for indemnify the insured.

2. In case of termination of an insurance contract as prescribed in Clause 2, Article 10 of this Decree:

a) The insurance contract will terminate on the day following the day the policyholder and the insured must pay the premium.

Within 5 working days from the date the insurance contract terminates, the insurer must notify in writing the insurance buyer and the insured of the termination of the insurance contract and refund to the insurance buyer or the insured the overpaid portion of the premium (if any) or request the insurance buyer or the insured to pay the premium in full by the time of termination of the insurance contract.

b) The insurer is not required to refund the premium in case the insured event has occurred and the insurance liability arises before the insurance contract is terminated.

c) The insurer is not responsible for indemnifying the insured upon occurrence of the insured event.

... 3. In case of unilaterally suspending the performance of an insurance contract as prescribed in Clause 3, Article 10 of this Decree:

a) In the case of unilaterally suspending the performance of an insurance contract when there is a change in the factors serving as the basis for premium calculation, leading to a reduction in insured risks but the insurer does not accept the reduction in premium; insurance:

The insurance buyer must notify in writing within 5 working days from the date the insurance enterprise refuses to accept the reduction of the premium. The insurance contract terminates from the time the insurance enterprise receives the notice of termination of the insurance contract. The legal consequences of the termination of the insurance contract comply with the provisions of Point b, Clause 1 of this Article.

b) In case of unilaterally suspending the performance of an insurance contract when there is a change in the factors serving as the basis for the calculation of insurance premiums, leading to an increase in insured risks, but the insurance buyer does not accept the increase in insurance premiums fees:

The insurer must notify in writing within 5 working days from the date the insurance buyer refuses to accept the increase in premium. The insurance contract terminates from the time the insurance buyer receives the notice of termination of the insurance contract.

Within 5 working days from the date of termination of the insurance contract, the insurer must refund the premium to the policyholder and the insured in proportion to the remaining time of the insurance contract that the insured party has to purchase insurance, the insured has paid the premium, after deducting reasonable expenses related to the insurance contract.

The insurance enterprise is not required to refund the insurance premium in the event that the insured event has occurred and the indemnification liability arises.