Insurance Premium Rates and Deductibles for Compulsory Construction Insurance During the Construction Period According to Decree 67/2023/ND-CP
Insurance Premium Rates and Deductible Rates for Mandatory Construction Insurance During Construction Period According to Decree 67/2023/ND-CP?
Based on the provisions of Clause 1, Article 37 of Decree 67/2023/ND-CP, the latest insurance premium rates and deductible rates for mandatory construction insurance during the construction period are as follows:
Type of Works (1)
For construction projects valued at less than 1,000 billion VND, excluding installation work or including installation work but the installation cost is less than 50% of the total insured value of the construction:
- The insurance premium rates and deductible rates are as stipulated in Clause 1, Section I, Appendix III issued together with Decree 67/2023/ND-CP.
Type of Works (2)
For construction projects valued at less than 1,000 billion VND, including installation work where the installation cost accounts for 50% or more of the total insured value of the construction project:
- The insurance premium rates and deductible rates are as stipulated in Clause 1, Section II, Appendix III issued together with this Decree.
Type of Works (3)
For construction projects valued at 1,000 billion VND or more, as specified in the two cases above:
- The insurance company and the policyholder can agree on the insurance premium rates and deductible rates based on evidence proving the leading foreign insurance or reinsurance organization confirms the reinsurance acceptance.
- The leading foreign insurance or reinsurance organization, and any foreign reinsurance organization accepting reinsurance from 10% of the total liability of each reinsurance contract, must meet the requirements specified in Clause 9, Article 4 of Decree 67/2023/ND-CP.
- In all cases, the insurance premium rates should not be lower than the premium rates corresponding to 1,000 billion VND multiplied by (x) 75% of the insurance rate stipulated in Clause 1, Section I, Appendix III issued together with Decree 67/2023/ND-CP (for projects specified in Point a, Clause 1 of this Article) or Clause 1, Section II, Appendix III issued together with Decree 67/2023/ND-CP (for projects specified in Point b, Clause 1 of this Article)
Type of Works (4)
For construction projects not specified in the above cases:
- The insurance company and the policyholder can agree on terms, conditions, insurance premium rates, and deductible rates based on evidence proving that the leading foreign insurance or reinsurance organization confirms the reinsurance acceptance in accordance with the rules, terms, premium rates, and deductible rates provided by the insurer to the policyholder.
- The leading foreign insurance or reinsurance organization, and any foreign reinsurance organization accepting reinsurance from 10% of the total liability of each reinsurance contract, must meet the requirements specified in Clause 9, Article 4 of Decree 67/2023/ND-CP.
Insurance Premium Rates and Deductible Rates for Mandatory Construction Insurance During Construction Period According to Decree 67/2023/ND-CP?
What are the Insurance Premium Rates and Deductible Rates for Mandatory Construction Insurance During the Construction Period?
Based on the provisions of Appendix III issued together with Decree 67/2023/ND-CP, the insurance premium rates and deductible rates for mandatory construction insurance during the construction period are as follows:
(1) For construction projects valued at less than 1,000 billion VND, excluding installation work or including installation work but the installation cost is less than 50% of the total insured value of the construction project.
(2) For construction projects valued at less than 1,000 billion VND, including installation work where the installation cost accounts for 50% or more of the total insured value of the construction project.
Can Insurance Companies Adjust the Insurance Premium for Projects Below 1,000 Billion VND?
Based on the provisions of Clause 2, Article 37 of Decree 67/2023/ND-CP, it is stipulated as follows:
Insurance Premium Rates and Deductible Rates
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2. For construction projects specified in Points a and b, Clause 1 of this Article:
Based on the risk level of the insured object, the insurer is allowed to adjust the insurance premium up or down by a maximum of 25% of the insurance premium.
In case, in the immediate previous financial year, the insured object directly caused the compensation payout amount to be greater than the original insurance premium revenue of mandatory construction insurance during the construction period, based on the data confirmed by the actuary of the insurer and confirmed by an independent auditing organization, when renewing the insurance contract, the insurer and the policyholder can agree on the insurance premium rates and deductible rates to ensure the payment capability of the insurer.
According to the above regulations, for construction projects valued at less than 1,000 billion VND, excluding installation work or including installation work but the installation cost is less than 50% of the total insured value of the construction project, and construction projects valued at less than 1,000 billion VND including installation work where the installation cost accounts for 50% or more of the total insured value of the construction project:
The insurance company is allowed to adjust the insurance premium up or down by a maximum of 25% of the insurance premium based on the risk level of the insured object.
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