How should insurance companies and policyholders handle third-party insurance claims when there is a claim request?
Which expenses must mandatory professional liability insurance in construction investment consultancy indemnify for the consultancy contractor?
Pursuant to the provisions of Clause 1, Article 46 Decree 67/2023/ND-CP, the mandatory professional liability insurance for construction investment consultancy indemnifies the consultancy contractor for amounts that the consultancy contractor is liable to indemnify for third-party losses and related expenses as prescribed by law. To be specific:
+ Losses of third parties and related expenses arising from the insured's negligence or carelessness resulting from the performance of construction survey work, construction design within the insurance scope.
+ Third-party claims for indemnity first made (from an insured event) against the insured and notified by the policyholder to the insurer within the insurance period, including costs payable to lawyers appointed by the insurer or by the insured (with written consent from the insurer), fees, and other expenses arising from investigation, correction, and defense related to the insured event but not including wages paid to employees or managers signing labor contracts with the insured.
+ Other related expenses as prescribed by law.
How must the insurer and policyholder settle third-party indemnity claims when there is an indemnity request?
How must the insurer and policyholder settle third-party indemnity claims when there is an indemnity request?
Pursuant to the provisions of Clauses 3 and 4, Article 46 Decree 67/2023/ND-CP, the settlement of insurance indemnity when there is a third-party indemnity request by the insurer and the policyholder is prescribed as follows:
(1) When there is a third-party indemnity request, the policyholder must cooperate with the insurer to settle the insurance indemnity as follows:
- Immediately notify the insurer by any means of communication, and subsequently, notify in writing within 14 days from the date of receiving the third-party indemnity request.
- Take all measures within their capability to minimize the loss to the lowest extent.
- Implement, cooperate, and allow the insurer to implement the necessary actions or measures or as required by the insurer to protect the rights that the insurer is entitled to after indemnifying the damage under the insurance liability according to this Decree.
(2) When there is a third-party indemnity request, the insurer must implement the insurance indemnity settlement as follows:
- Assess the loss according to legal regulations and prepare an assessment report on the cause and extent of the loss.
- Guide the policyholder, cooperate with the policyholder and relevant agencies, organizations, and individuals to collect all documents to compile the indemnity dossier.
- Coordinate with the policyholder to settle the third-party indemnity claims falling under the insurance liability when an insured event occurs.
What is the maximum total indemnity amount of the insurer for all indemnity claims?
Pursuant to the provisions of Clause 2, Article 46 Decree 67/2023/ND-CP as follows:
Principles of insurance indemnity
The insurer considers and settles insurance indemnity as prescribed by the law on insurance business and the following principles:
...
2. The total indemnity amount of the insurer for all indemnity claims during the insurance period does not exceed the insurance liability limit as agreed in the insurance contract.
According to the above provisions, the total indemnity amount of the insurer for all indemnity claims during the insurance period does not exceed the insurance liability limit as agreed in the insurance contract.
What does the mandatory professional liability insurance indemnity dossier in construction investment consultancy include?
Pursuant to the provisions of Article 47 Decree 67/2023/ND-CP, the mandatory professional liability insurance indemnity dossier in construction investment consultancy includes:
- The policyholder's written indemnity request.
- Documents related to the insured object, including: Insurance contract, Insurance certificate.
- Written indemnity request from the third party against the insured.
- Documents proving personal injury (copies from medical establishments or copies certified by the insurer after comparison with the originals) provided by the policyholder. Depending on the extent of personal injury, it may include one or several of the following documents:
+ Certificate of injury.
+ Hospital discharge paper.
+ Certificate of surgery.
+ Medical records.
+ Excerpts of death certificate or Death notice or a confirmation document from a police agency or the results of forensic examination by a forensic agency.
+ Legitimate invoices, documents regarding medical expenses.
- Documents proving property damage, including:
+ Construction incident dossier in case of a construction incident (certified copies from the original or copies certified by the file creator) as prescribed in Article 47 of Decree 06/2021/ND-CP.
+ Legitimate invoices, documents or evidence proving the repair, replacement of damaged property.
+ Bills, invoices, related documents for expenses incurred by the policyholder to minimize loss or to follow the insurer's instructions.
- Assessment report on the cause and extent of damage by the insurer or its authorized person.
- Other related documents (if any).
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