The insured can be quickly compensated right in the verification process to promptly respond to the consequences of the traffic accident
Legal grounds:
- Decree No. 03/2021/ND-CP.
Civil liability insurance of motor vehicle owners is considered to be rich in humanity. Specifically:
- The victim is entitled to humanitarian support in case the vehicle that causes the accident cannot be identified, the vehicle is not insured, and insurance is excluded;
- Advance compensation for health damage while verifying the accident.
So how is the advance payment of compensation regulated?
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Provisional payment before compensation
Pursuant to Clause 2, Article 14 of Decree No. 03/2021/ND-CP, the insurance enterprise must temporarily prepay a part of the compensation within 3 working days from the date of receipt of the notice of the insurance buyer, as follows:
In case the accident has been determined to be within the scope of compensation for damage:
- 70% of the compensation as prescribed / 1 person / 1 case for death.
- 50% of the compensation as prescribed/1 person/1 case for the case of injury.
In case the accident within the scope of compensation for damage has not been determined:
- 30% of the insurance liability as prescribed/1 person/1 case in case of death.
- 10% of the insurance liability as prescribed/1 person/1 case in case of injury.
According to the above regulations, although the insurer is still in the process of verifying the accident, collecting insurance records and has not yet concluded the claim, the insurer still has to temporarily pay the compensation in advance.
Thus, motor vehicle owners can receive compensation very soon after a claim is made..
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The compensation has been paid but the results of the verification of the accident are not within the scope of compensation?
According to the provisions of Article 14 of Decree No. 03/2021/ND-CP, it should be noted:
- The compensation advance is only applied to damage to health and life;
- Does not apply to property damage.
After the insurance enterprise has advanced the compensation, but the results of their compensation review determine that the accident is in the case of insurance exclusion or the advance amount is larger than the indemnified amount, The insurance enterprise is entitle to require reimbursement from the Motor Vehicle Insurance Fund.
Thus, after the compensation advance has been received, the insured is not required to return the advance received regardless of the verification results of the traffic accident.
