Third party civil liability insurance of motor vehicle owners at Petrolimex Joint Stock Insurance Company: current situation and solutions

as well as prospects when implementing the business. To contribute to the completion and improvement of the business efficiency of motor vehicle liability insurance for third parties at the company in the coming time. I would like to boldly give some suggestions as follows.

2.1. Exploitation work.

Exploitation is a necessary condition to decide the success or failure when implementing an insurance business. To maintain and promote the results achieved in recent years, exploitation needs to be adjusted:

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To increase the number of vehicles participating in insurance at the company. First, the company needs to actively advertise and educate extensively to all classes of people and vehicle owners so that they see that participating in this insurance service is not only an obligation but also their benefits and rights. Due to the characteristics of the insurance industry as an abstract product, finding a way to advertise and reach customers is very difficult. Advertising and propaganda of civil liability insurance services must be advertised directly or through traffic safety surveys.

The staff in the company need to be more active, always accumulate experience and professional qualifications. It is necessary to apply different measures to find new customers, actively strengthen the network of agents and insurance collaborators with reasonable reward and discipline regimes, open courses to improve professional qualifications for staff to meet current needs. Because a good insurance salesperson is not only someone who sells many contracts and collects many fees, but also has to guide and explain to everyone the rights and obligations when participating.

To maintain and keep a friendly and trusting relationship with customers, the company should assign managers according to location and region. Paying salaries based on revenue must be balanced and reasonable to motivate them to be aware of their responsibilities in their work and encourage them to work more effectively.

To attract more customers to the company and increase competitive advantage, the company must always flexibly adjust the fee to each specific condition. Customers should be classified to be able to apply more preferential policies for each type of object. For companies and businesses with a large number of insured vehicles, these customers

Traditionally, premiums can be collected in installments. Companies also need to offer high liability limits to meet the diverse needs of insurance participants.

Using motorbikes in our country is a habit, the number of motorbikes participating in insurance is increasing. Therefore, it is recommended that the Ministry of Finance should issue a separate rule for motorbikes because some regulations on motor vehicles are no longer suitable for motorbikes such as regulations on the purpose of using the vehicle, safety and technical inspection certificates, and passenger transport business licenses. Therefore, it is necessary to have a separate insurance rule so that vehicle owners are interested and aware of their responsibilities when participating in insurance.

In the coming time, the company needs to strengthen coordination with functional agencies such as traffic police and the Department of Public Works and Transport to control the insurance participation of vehicle owners. Agencies should also soon have forms of punishment for vehicle owners who have not purchased insurance. It is possible to consider the third-party liability insurance certificate of the motor vehicle owner as a mandatory document when putting the vehicle into operation. In addition, it is necessary to coordinate with statistical agencies to fully determine the number of motor vehicles in circulation. This helps PJICO predict the market and expand the market.

2.2. Prevention and loss reduction work

The work of prevention and loss limitation has an important position, it not only directly affects the efficiency of business operations but also deeply affects society. Because traffic accidents are a burning concern of the whole society. To limit the damage that occurs, individuals as well as the whole society need to do a good job of prevention and loss limitation.

To better prevent and limit losses, I would like to propose the following ideas:

- Propose that the company, together with the transport and public works sectors, pay attention to roads and bridges, regularly repair degraded roads, and when carrying out construction, coordinate with agencies such as electricity and water to avoid indiscriminate road digging causing traffic jams. Actively build more signs and install traffic lights at important intersections. For roundabouts, it is necessary to build escape routes, barriers, and arrange convex mirrors in dangerous places. Every year, PJICO needs to

Conduct safety assessment, find out the main causes of accidents, and propose measures to prevent these risks.

- The company needs to closely coordinate with vehicle registration inspection agencies to determine the origin of the vehicle and review whether the vehicle in circulation meets all technical safety conditions. The company also requires driver training centers and driver license testing centers to strictly implement the recruitment and training procedures to ensure quality.

- The authorities need to strictly implement Decree 36 of the Prime Minister on traffic safety, actively and strictly punish those who encroach on the roadside for trading and holding markets. Strictly punish drivers who speed, drive recklessly, and drink alcoholic beverages while operating vehicles.

- The company must regularly coordinate with mass media agencies and organize classes to propagate traffic safety laws to vehicle owners and traffic participants.

- The company needs to coordinate closely with agencies and sectors to organize rewards and support units that perform well in preventing and minimizing losses. These units, when participating in insurance at the company and having a small number of accidents, will receive a discount when continuing to re-establish the contract.

- The company needs to increase costs for prevention and loss reduction.

- The company needs to coordinate with related departments to find out the causes of risks in order to propose measures to limit, prevent and minimize damage, helping the company stabilize its business and avoid possible major losses.

2.3. Compensation assessment work

Compensation appraisal work is two consecutive links. Good and accurate appraisal work will help to resolve compensation for victims quickly and promptly, while enhancing reputation and business efficiency. Improving the quality of compensation appraisal is to improve the quality of insurance products, creating a competitive advantage.

To do that, the company needs to do well the following issues:

- PJICO Company needs to recruit and screen people with professional competence, technical knowledge, and market prices. In addition, the surveyors must have good moral qualities, be trained to be able to handle major accidents, detect and limit cases of insurance fraud.

- The company must improve product quality through timely and adequate compensation settlement to protect the legitimate rights of victims, while helping car owners stabilize production and business, contributing to enhancing reputation and strengthening customer trust in the company. This is the most effective form of propaganda about the company's image.

- Before each accident, compensation assessors must prepare the legal basis to resolve major accidents. It requires assessors to have legal knowledge. Procedures must be simple to shorten the time to pay insurance money.

- Company staff must guide customers to complete necessary paperwork when filing a claim to avoid customers having to go back and forth multiple times, creating a comfortable mindset for them when receiving compensation with prompt care and satisfaction to promptly compensate for losses.

- During the appraisal process, there must be close coordination with security agencies. The appraisal must be carried out quickly after the accident occurs to ensure accuracy and avoid the situation of creating fake scenes to take advantage of insurance.

Some accidents that occur outside the scope of insurance, the company should also support them with a part of the cost to overcome the consequences of the accident, enhancing the company's humanity towards the insured.

The company should establish and decentralize compensation for representative offices and affiliated units to create a close legal relationship and financial regime according to each insurance term. There should be regulations for offices to self-settle compensation for minor accidents, regularly check and inspect the compensation approval status of affiliated units.

2.4. Perfecting the legal system.

Nowadays, the insurance business is constantly developing as well as its complexity. It requires new legal regulations to regulate in order to promote the State's management role at the macro level for insurance business activities, create conditions for insurance relations to develop, create a healthy competitive market and be the basis for protecting the rights of customers.

The Law on Insurance Business was passed on December 9, 2000 and took effect on April 1, 2001. In order for the law to be put into practice, insurance agencies, consulting agencies, and law enforcement agencies need to issue sub-law documents to guide the implementation of the law correctly and closely to the real life of the people.

2.5. Strengthen management work.

The company needs to build a modern, continuous information network from the company to the offices and regional representatives. Actively build and use various types of software in statistics, business management, and compensation settlement management to help evaluate business performance easily and accurately.

Strengthening the management capacity of staff, training and retraining staff to adapt to the new situation. Actively arranging and assigning staff according to their professional capacity, perfecting the organizational structure in the direction of reducing staff, performing well the assigned tasks, contributing to building PJICO into a leading joint stock insurance company in Vietnam.

CONCLUSION

Insurance is the last economic shield against the dangers that occur in life. Civil liability insurance for motor vehicle owners is a service that has practical significance in stabilizing the financial situation of participants, while reducing the burden on the community and contributing to ensuring social order and safety.

To expand and further promote the effectiveness of its operations in the current competitive environment, PJICO needs to be proactive and creative, promote its strengths, and gradually affirm its position in the Vietnamese insurance market. With the results achieved, we believe that in the coming years, PJICO will promote its internal strength and available potential to contribute to the completion and expansion of the Vietnamese insurance market.

REFERENCES

1. Insurance Economics Textbook - National Economics University

2. Insurance Business Administration Textbook - National Economics University.

3. Civil Code of the Socialist Republic of Vietnam.

4. PJICO's motor vehicle insurance rules.

5. Some documents of the National Traffic Safety Committee.

6. Law on insurance business.

7. Insurance magazine.

8. Some documents on PJICO's business situation.

9. Some other documents