Cross border vehicle insurance
According to local media reports, a bilateral agreement signed recently introduces compulsory insurance in both countries as part of requirements stipulated in the ASEAN 2015 integration plan.
The agreement was signed, 29 April, by the Cambodia Insurance Association (CIA) and Vietnam’s largest insurance provider and industry representative, Bao Viet Insurance Corporation (BIC).
CIA president, Chhay Rattanak, told the Phnom Penh Post: “Both countries now require cross-border vehicles to have insurance, but we have different laws on auto insurance. That is why we signed the MoU as a bilateral agreement.”
It will be implemented late July, is in line with obligations stipulated in Protocol 5 of the Association of Southeast Asian Nation’s Scheme of Compulsory Motor Vehicle Insurance.
Commercial trucks and tourist busses will be required to be insured for both passenger liability and third-party liability cover and failure to meet the requirement will result in the vehicle being refused entry.
The insurance requirements will be extended to smaller passenger vehicles in the near future.
Some 500 commercial trucks and tourist busses cross the Cambodia–Vietnam border daily, according to documents included in the MoU.