Sunday, May 4, 2014

Cross-border insurance to be compulsory

4 May 2014

Tourist buses and commercial vehicle operators crossing over the Cambodia-Vietnam border will soon be required by law to have insurance in both countries or risk being denied entry, a bilateral agreement signed on Tuesday states. In an effort to meet requirements stipulated in the ASEAN 2015 integration plan, insurance industry representatives from Cambodia and Vietnam signed a MoU to ensure that all commercial vehicles crossing the countries’ shared border were insured.

The MoU was signed by the Cambodia Insurance Association (CIA) and Vietnam’s largest insurance provider and industry representative, Bao Viet Insurance Corporation (BIC), at the Ministry of Economy and Finance. Until now, commercial vehicles such as trucks and tourist busses crossing the border have not been legally required to have insurance in both nations.

The agreement, which is set to be implemented within three months of its signing, is in line with the obligations and requirements 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 with both passenger liability and third-party liability cover within the next three months. Failure to meet the insurance requirements will result in the vehicle being refused border crossing. The insurance requirements will be extended to smaller passenger vehicles in the near future, he added.


Some 500 commercial trucks and tourist busses cross the Cambodia-Vietnam border every day, according to documents included in the MoU. 

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