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Understanding Vietnam’s Mandatory Car Insurance (TNDS)
A Foreigner’s Guide • Updated for 2025
In Vietnam, all car owners must carry TNDS (Trách Nhiệm Dân Sự) — the mandatory third-party civil liability insurance.
This guide explains what foreign drivers need to comply legally, what TNDS covers, typical costs, how to buy it, and renewal tips.
1) Legal Requirements & Penalties for Non-Compliance
- All vehicle owners (including foreigners) must purchase TNDS before driving on public roads.
- Traffic police may check your insurance certificate during stops or after an incident.
- Penalties if uninsured: administrative fine typically around 400,000–600,000 VND; potential vehicle impound until proof of insurance is presented; full personal liability for damages in an accident.
Note: Keep a physical certificate in the car; digital copies are helpful but may not replace the original in all situations.
2) Coverage Details & Limitations
What TNDS Typically Covers
- Bodily injury or death of third parties
- Damage to third-party property (e.g., other vehicles, public assets)
What TNDS Does Not Cover
- Damage to your own car
- Theft, flood, fire, natural disasters (unless you buy optional add-ons)
- Injuries to the at-fault driver
For broader protection, consider optional physical damage insurance (comprehensive), personal accident cover, and flood/theft add-ons.
3) Cost Breakdown & Payment Methods
- Annual premium for cars typically ranges ~437,000 – 1,000,000 VND (≈ USD 20–40), depending on vehicle type and regulations.
- Optional add-ons (comprehensive, theft, flood, personal accident) increase the premium.
Where to Pay
- Insurer branches (Bảo Việt, PVI, PTI, Liberty…)
- Authorized agents & car dealerships
- Online portals, bank transfer, or e-wallets
After Payment
- Receive the TNDS insurance certificate
- Store the original in your vehicle
- Set a reminder for renewal (12 months)
4) Step-by-Step Application Process for Foreigners
- Prepare documents: Passport & valid residence permit, vehicle registration certificate, Vietnamese driver’s license.
- Choose an insurer: Compare benefits, service networks, and add-on options.
- Submit application & pay: At branch, via agent/dealer, or online.
- Receive certificate: Keep a physical copy in your car; store a digital scan as backup.
- Renew annually: TNDS validity is 12 months from the policy start date.
Tip: If you’re also purchasing comprehensive cover, ask the insurer to bundle TNDS + optional add-ons under one renewal date.
5) Renewal & Practical Tips for Expats
- Set calendar reminders 2–4 weeks before expiry to avoid lapses.
- Consider add-ons for flood & theft — useful in urban and coastal areas.
- Verify that the insured person and the vehicle owner’s name match your registration records.
- Keep emergency contacts and claim instructions in the glove box.
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Disclaimer: This guide is informational and summarizes common practices for 2025. Specific premiums, limits, and penalties may vary by regulation and insurer. Always review your policy wording and local requirements.