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KINGDOM OF CAMBODIA
Nation -
Religion - King |
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| Royal
Government of Cambodia
Ministry of Economy and
Finance
Ministry of Public Works and Transport
Ministry of Tourism
Ministry of Interior
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| No. 653
PRKr.SHV.SK.TC.MP |
Phnom
Penh, 16th October, 2002 |
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Inter-ministerial
Prakas
On
Compulsory Motor Vehicle Third Party Liability Insurance
Ministries
Of
Economy and Finance – Public Works and Transport-
Interior |
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Referring to
the constitution of Kingdom of Cambodia |
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Referring to Royal Decree
No NS/RKT/1198/96 dated 25 November 1998 on
nomination of |
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Prime Minister of the Royal
Government of Cambodia. |
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Referring to the Royal
Decree N0 NS/RKT/1198/72 dates 30 November,
1998 on formation |
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of Royal Government of the
Kingdom of Cambodia |
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Referring to Preah Reach
Kram No NS/RKM/0196/08 date 24 January 1996
Promulgating |
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of the law on formation
of the Ministry of Interior |
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Referring to Preah Reach
Kram No NS/RKM/0196/18 date 24 January 1996
on |
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Promulgation of the law
on formation of the Ministry of Economy & Finance |
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Referring to the Preah
Reach Kram No NS/RKM/0196/18 on January 24,
1996 |
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promulgating the law on
establishment of the Ministry of Economy and
Finance. |
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Referring to Preah Reach
Kram No NS/RKM/0196/03 dated 24 January 1996
promulgating the |
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law on establishment of
the Ministry of Public Works and transport |
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Referring to Preah Reach
Kram No NS/RKMV/ 0196/15 dates 24 January,
2000 promulgating |
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the law on Insurance |
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Referring to Sub-Decree
on Insurance No106 ANKr.BK dated 22 October,
1996 Promulgating |
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the law on establishment
of the Ministry of Tourism |
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Referring to Preah Reach
Kram No NS/RKM/0700/02 dated 25 July, 2000
Promulgating on the |
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law. |
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Referring No. 106 RNKr/Bk
dated 22 October 2001 on the insurance |
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Pursuant of the proposal
of the Ministry of Economy and Finance |
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| Item: 1 |
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An insurance company that writes compulsory
motor vehicle third party liability
insurance shall be liable to settle
insured claim arising from traffic accidents
caused by the insured vehicle. |
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| Item: 2 |
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The following types of land vehicles
must be covered by compulsory third
party liability insurance: |
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- All types of
commercial motor vehicles carrying goods and
passengers in the Kingdom of Cambodia.
- All type of motor vehicles owned by a company,
enterprise, or factory.
- Motor vehicles of Non-Government Organizations,
International organizations and association.
- Motor propelled or towed cement mixers.
- Motor tricycles used for the transport of
goods or passengers. |
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| Item: 3 |
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Maximum compensation for Third Party
Liability set as follows: |
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A/ For the vehicle
with four wheels or more
- US dollars 5000.00 is minimum compulsory
compensation for bodily injury or death of
third party per person
- US dollars 25, 000.00 is minimum compulsory
compensation for bodily injury or death of
third party per accident
- US dollars 10, 000.00 is minimum compulsory
compensation for damage of third party’s
property
B/ For the vehicle with less than four wheels
- US dollars 5000.00 is minimum compulsory
compensation for bodily injury or death of
third party per person
- US dollars 12, 500.00 is minimum compulsory
compensation for bodily injury or death of
third party per accident
- US dollars 5, 000.00 is minimum compulsory
compensation for damage of third party’s
property |
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| Section: 4 |
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Vehicles owners who purchased compulsory
motor vehicle third party liability
insurance must pay the insurance premium
accordingly to the terms agreed to with
the insurance company. Insurance premium
payment can be made in cash, check or
account transfer. Once an accident occurs,
the vehicle owner or operator must immediately
notify the insurance company. With the
period of 5 days at the latest from
the date of the accident, the vehicle
owner or operator must provide written
claim notice to the insurance company.
The insurance company shall, on behalf
of vehicle owner or operator, indemnify
accident victims up to level of compensation
agreeable to both parties and within
the limit of the insurance policy or
cover note. |
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| Section: 5 |
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Under the compulsory motor vehicle
third party liability insurance the
insurance company shall not be liable
provided that: |
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- The driver
doest not have a valid license for the type
of vehicle being operated.
- The driver is actually drunk and found
to have 80 grams or more of alcohol from
1 litter of blood or is under drug intoxication
based on and expert medical or hospital
report attached with the insurance company’s
claim report or a provincial, municipal
land traffic police report.
- The loss concerns passenger and the owner
or operator failed to have the required
compulsory passenger liability coverage.
- The Department of Financial Industry of
the Ministry of Economy and Finance certified
the insurance policy is illegal
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| Section: 6 |
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All insured vehicles must have insurance
stickers stuck on the front windscreen
of the insured vehicle. The stickers
must identify the insurers and indicate
the expiration date of the insurance. |
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| Section: 7 |
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The insurance company shall have the
following duties: |
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- To cooperate
with the Department of Financial Industry
of the Ministry of Economy and Finance to
develop a public education and advertisement
programs so that all the vehicle owners
are informed about and purchase the compulsory
motor vehicle third party liability insurance
required.
- To settle claims and indemnify the victims
on behalf of the insured vehicle owner or
operator within ten (10) days, at the latest,
after having received the completed claim
documents, traffic police report unless
the insurer find out that no insurance coverage
exists or the compensation is not reasonable.
- To produce reports and statistics concerning
insurance business to the Department of
Financial Industry of the Ministry of Economy
and Finance.
- To provide notice to the appropriate Ministry
of Transport and the Ministry of Economy
and Finance that issued the owner operators
license whenever any required compulsory
motor vehicle third party liability insurance
is cancelled by the insurer for non-payment
of the premium or for some other breach
of the insurer’s obligation
- To develop and educate driver on traffic
accident prevention
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| Section: 8 |
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Once a traffic accident occurs: |
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- The parties
involve in the accident shall make a written
report to the insurer indicating the cause
of the accident.
- In case an agreement can not be reached,
the parties in dispute shall have to seek
Intervention from the traffic police so
that they can investigate the cause of the
accident - The provincial and municipal
land traffic police shall have to make report
of its
accident investigation and properly draw
up a sketch of the accident scene and submit
them to the insurance company within 48
hours from the date of the accident so
That the insurance company may have a basis
for settling the claim and determining the
Loss within policy coverage .
- Should the accident take place in a remote
are without available traffic police, the
Vehicle owner or driver must contact the
competent territorial police, and ask them
to
cerify the accident report.
- In case that the insured vehicle is suspended
by traffic police, the vehicle will be released
after receiving formal letter from insurer
which is allowed to operate in the Kingdom
of Cambodia
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| Section: 9
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Upon granting any new license or renewal
thereof to owners or operator of all
types of
vehicles listed in Section 2, the General
Direction of Transport or Provincial-Municipal
department of Public Works and Transport
shall require evidence that the vehicle
owner or operator has purchased the
compulsory motor vehicle third party
liability insurance .Owner or operators
holding existing license for vehicles
requiring compulsory motor vehicle third
party liability insurance when this
Prakas goes into effect shall have 60
days to furnish the General Direction
of Transport of Provincial-Municipal
Department of Public Works and Transport
with evidence of the required insurance.
If the vehicle owner or operator fails
to get the required insurance the foresaid
authorities shall temporarily suspend
the applicable license and technical
certificate until the vehicle owner
or operator can provide evidence of
the required insurance. |
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| Section: 10 |
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The provincial and municipal land
traffic police must strictly check to
see that all vehicles required to have
compulsory motor vehicle third party
liability insurance have a valid insurance
sticker stuck on the front windscreen
in order to find out which vehicles
do not comply with this requirement.
In case that a vehicle is found not
covered under this obligatory insurance,
the owner or operator shall be subject
to a fine as stated in article 52 of
the insurance law. The traffic police
must: |
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1. fine and instruct
the vehicle owner to buy insurance within
7 days at least
2. suspend transportation operation permission
and technical certificate in case that the
owner does not accept the above instruction
3. if still not accepted, the vehicle is temporally
suspended until the owner can provide third
party liability insurance certificate on time |
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| Section: 11 |
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The Ministry of Public Works and Transport
shall inspect technical certificates
and transport license of every motor
vehicle in order to keep order and traffic
safe on the public roads.
The Ministry of Tourism shall be responsible
for inspecting owner’s document
and means of transport for their clients
and ask for valid insurance and also
be responsible for issuing tourism license
and educating tourist industry on compulsory
insurance for their client to make sure
all the insurance agent use transportation
means with insurance.
If the owner fails to provide compulsory
insurance, he will be fined as stated
article 52 of insurance law and the
tourist license will also be suspended.
The Ministry of Interior is responsible
for pushing all type of vehicle owner
to have technical inspection and insure
that they apply for transport license
at the Ministry of Public Works and
Transport in a bid to prompt vehicle
owner or operator to have third part
liability insurance in the Kingdom of
Cambodia.
The Ministry of Economy and Finance
shall be responsible to supervise and
push for a prompt and fair claim settlement
to victims injured by the insured vehicle |
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| Section: 12 |
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Any regulation contradicting this
inter-ministerial Prakas shall be deemed
null and void to the extent of such
contradiction. |
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| Section: 13 |
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All concerned authorities or organizations
relating to these four Ministries shall
respectively and affectively implement
this Prakas from the date of its signature |
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