Compulsory Motorbike Liability Insurance in Vietnam: What the Certificate Covers and What a Renter Should Check

Every motorbike on a Vietnamese road is supposed to carry compulsory civil liability insurance, and the rider is expected to be able to show the certificate when stopped. For a visitor renting in Hanoi, that raises three practical questions: what does compulsory motorbike insurance in Vietnam actually pay for, what happens if the bike you are handed has no valid certificate, and how do you check before you ride off? The short version: the policy covers the owner’s liability to other people (injury, death and property damage caused to third parties, plus injury to a passenger) up to fixed limits; it does not repair the rental bike or treat your own injuries; riding without a valid certificate is an offence with a fixed fine; and the check at pickup takes about a minute if you know what to look for. The rest of this guide walks through the rules as published on Vietnamese government pages and the UK government’s travel advice, then turns them into a pickup checklist.

What “compulsory insurance” means for a motorbike in Vietnam

The current rules come from Decree 67/2023/NĐ-CP, issued by the Government on 6 September 2023. A summary published by the Cà Mau provincial legal-education portal explains that the object of the insurance is the civil liability of the motor vehicle owner towards third parties and passengers. In plain terms, it is a third-party policy bought by the vehicle’s owner, not a personal accident policy for whoever is riding.

Because the obligation sits with the owner, a rental customer is not normally the person who buys the policy. The rental shop, as the owner, should already hold a certificate for each bike in its fleet, and the certificate should travel with the bike. Your job as a renter is to confirm that it exists and is in date, and to keep it with the vehicle’s registration paper while you ride.

The UK Foreign, Commonwealth and Development Office makes the same point from the traveller’s side. Its Vietnam safety and security advice states plainly that it is illegal to drive without third-party insurance in Vietnam, alongside the reminder that a UK licence holder needs both the 1968-version international driving permit and the home licence when riding a motorbike.

What the policy pays for, and the limits

The compensation limits are set by the decree and repeated on several official pages. According to the Cà Mau portal, the limit for damage to health or life caused by a motor vehicle is 150 million VND per person per accident. For property damage caused by two-wheeled motorbikes, three-wheeled motorbikes and mopeds (including electric motorbikes), the limit is 50 million VND per accident; for cars, tractors and trailers it is 100 million VND per accident.

The same page describes the scope. The insurer compensates non-contractual damage to the health, life and property of third parties caused by the vehicle while in traffic or operation, and damage to the health and life of passengers on that vehicle. A Government portal article on the decree, published on xaydungchinhsach.chinhphu.vn, adds detail on how the money is calculated: payouts for injury or death follow a schedule in Annex VI of the decree (or an agreement between the parties, capped at the schedule), property compensation follows actual loss and the owner’s degree of fault up to the limit, and where an accident is officially found to be entirely the third party’s fault, the health and life payout to that party is halved. The same article notes that the insurer is not liable for anything above the limits unless the owner also bought voluntary cover, and that if several compulsory policies exist for one vehicle only the first one pays.

What it does not do

Three gaps matter to a renter. First, the policy is about liability to other people; it says nothing about the rental bike itself. Any damage to the scooter you are riding is a matter between you and the shop under the rental contract. Second, your own injuries as the rider are not the “third party” the policy protects. That is what travel insurance is for, and the UK advice repeats several times that travellers should make sure their policy covers the planned activity; our guide on travel insurance and rental motorbikes in Vietnam lists the questions to put to your insurer before you leave home. Third, the limits are limits: a serious injury claim can exceed 150 million VND, and the UK advice warns that foreign nationals involved in accidents have been asked to pay compensation and have been stopped from leaving the country while police investigations run.

Exclusions that can void the cover for a renter

The exclusions are where a tourist can accidentally ride uninsured even though the shop’s certificate is perfectly valid. An introduction to the decree on the Thanh Hóa city portal lists the cases in which the insurer has no duty to pay. The ones most relevant to a visitor are:

• The driver does not meet the legal age, has no driving licence, uses an invalid, altered or expired licence, or uses a licence that does not match the vehicle class. A licence that has been suspended or revoked counts as no licence.
• The driver causes an accident and deliberately leaves the scene without fulfilling the owner’s civil liability.
• Intentional damage caused by the owner, driver or the injured person.
• Property damage where the driver’s blood or breath alcohol exceeds the normal reference level set by the Ministry of Health, or where the driver has used drugs or banned stimulants.
• Indirect losses such as reduced commercial value, property stolen or robbed during the accident, special items such as gold, gems, cash-like documents and antiques, and losses from war, terrorism or earthquake.

The licence exclusion is the one to take seriously. If your licence does not cover the bike you are riding, the shop’s insurance will not respond to a claim against you, whatever the certificate says. Check the motorcycle category on your permit before you book; our article on checking the motorcycle category on a 1968 Convention IDP explains what to look for.

How long a certificate lasts and what it costs the owner

Knowing the term helps you judge whether a certificate is plausible. The Government portal article explains that the term of compulsory owner liability insurance is a minimum of one year and a maximum of three years, with a few exceptions allowing shorter terms (for example, foreign vehicles temporarily imported for less than a year, vehicles with less than a year of permitted service life, and vehicles under temporary registration). The validity period is written on the certificate, and if the vehicle changes hands during that period the previous owner may terminate the contract. So a certificate for a rental scooter should show a start and end date spanning at least a year, and the end date should be after your rental period.

The premium is small, which is one reason there is no good excuse for a fleet bike to be uninsured. The same Government portal article gives the Annex I premiums: 55,000 VND for a two-wheeled motorbike under 50 cc, 60,000 VND for a two-wheeled motorbike of 50 cc and above, and 55,000 VND for an electric motorbike. Insurers may raise or lower the premium by up to 15 percent based on the vehicle’s claims history or the owner’s accident record. These figures are the legal premium for the owner, not a rental charge; a rental shop does not normally bill the renter for the compulsory policy separately.

The fine for riding without a valid certificate

Since 1 January 2025 traffic penalties are set by Decree 168/2024/NĐ-CP. The Bình Phước provincial portal explains that points (a) and (b) of Clause 2, Article 18 of that decree set a fine of 200,000 to 300,000 VND for riding a motorbike or moped without a valid compulsory civil liability insurance certificate, and the same band for a motorbike used in transport business whose rider is not carrying the valid certificate. The page frames the offence as “not carrying or not having” motorbike insurance, so the practical advice is simple: keep the certificate with the bike.

The same page quotes Clause 1, Article 56 of the 2024 Law on Road Traffic Order and Safety, which lists the documents a driver must carry: the vehicle registration certificate (or a certified copy plus the bank’s original confirmation if the vehicle is mortgaged), a driving licence matching the vehicle class, the technical safety and environmental inspection certificate where the law requires one, and the compulsory civil liability insurance certificate. For a rental scooter that means two pieces of paper from the shop (registration and insurance) and one from you (your licence). Our guide to matching a rental motorbike to its registration papers covers the first of those in detail.

A renter’s checklist at pickup

None of this requires reading Vietnamese law at the counter. Use the following routine before you accept the keys.

1. Ask to see the insurance certificate for this specific bike. A reputable shop will have it with the registration paper. If staff cannot produce one, ask for a different bike or a different shop; the UK advice is to rent from a reputable organisation and to check the motorbike thoroughly.
2. Read the validity dates. The term is normally one to three years and the period is printed on the certificate. Confirm the end date is after your planned return date, including any extension you might request.
3. Compare the certificate with the bike. Check that the vehicle described on the certificate is the one in front of you, and that it matches the registration paper and the number plate. If anything differs, ask the shop to explain before you ride.
4. Photograph both documents. Take a clear photo of the insurance certificate and the registration paper next to the number plate, so you have a record even if the originals are kept in the under-seat compartment.
5. Keep the originals with the bike. The fine applies for not carrying a valid certificate, so leave the documents where you can produce them, and agree with the shop where they will be stored.
6. Keep your own licence in order. Because an unlicensed or wrongly licensed rider is excluded from cover, make sure your licence and IDP category match the scooter you chose.

If you are renting in Long Biên, Thuê xe máy Nguyễn Hà at Ngõ 5 Nguyễn Văn Cừ, Bồ Đề, Long Biên, Hà Nội is open 09:00 to 21:00 daily and can be reached on 0334 699 969; ask to see the certificate and registration for the bike you are allocated when you collect it, and confirm anything else you need directly with the shop.

If you are involved in an accident

The exclusions give two clear rules for the moment after a collision. Do not leave the scene: a driver who causes an accident and deliberately flees without meeting the owner’s civil liability is excluded from cover, although the Thanh Hóa summary notes that a driver who leaves but does fulfil that liability is not excluded. And do not ride after drinking: property damage caused while the driver is over the Ministry of Health reference level is excluded, and the UK advice warns that any alcohol in your system can lead to a fine and possible imprisonment.

Beyond that, tell the shop immediately so the owner can notify the insurer. The Government portal article explains that the insurer may reduce property compensation by up to 5 percent if the policyholder fails to report the accident as required, which is a reason to get the owner involved quickly. The UK advice adds that foreign nationals involved in accidents may face criminal charges, may need to pay compensation even for minor injuries, and may be unable to leave the country while the investigation runs; it recommends full cooperation with police and contacting your embassy. Our documentation checklist for after a rental-bike collision in Hanoi sets out what to record at the scene.

Frequently asked questions

Does the shop’s compulsory insurance cover me if I am hurt?

No. The policy covers the owner’s liability to third parties and to passengers on the vehicle. As the rider you are neither, so your own medical costs fall on your travel insurance. Check that your travel policy covers motorbike riding and that your licence satisfies its conditions.

Does it cover damage to the rental bike?

No. Damage to the insured vehicle itself is outside the scope described on the official pages, which deal only with injury, death and property damage caused to others. Repairs to the rental bike are governed by your rental contract with the shop.

Can I buy the compulsory policy myself as a renter?

The obligation rests with the vehicle owner, and the certificate is issued to the owner for that vehicle. In practice the shop should already hold a valid certificate. If a shop asks you to buy one, treat it as a sign to look more closely at whether the bike’s documents are in order.

What is the penalty if the certificate is missing?

Under Decree 168/2024/NĐ-CP, riding a motorbike without a valid compulsory civil liability insurance certificate carries a fine of 200,000 to 300,000 VND, as the Bình Phước provincial portal explains. Keep the certificate with the bike along with the registration paper and your licence.

What if the certificate expires during my rental?

Check the end date at pickup and raise it with the shop before you leave. Since the term is normally one to three years, a certificate that expires within weeks is a reason to ask for a bike whose cover runs through your whole rental, or for the shop to renew it before handover.