What is the maximum coverage of compulsory civil liability insurance for a third party in construction in Vietnam according to Decree 67/2023/ND-CP?
- What is the maximum coverage of compulsory civil liability insurance for a third party in construction in Vietnam according to Decree 67/2023/ND-CP?
- What is the coverage of compulsory civil liability insurance for a third party in construction in Vietnam?
- How long is the insurance period of a compulsory civil liability insurance for a third party in construction in Vietnam?
What is the maximum coverage of compulsory civil liability insurance for a third party in construction in Vietnam according to Decree 67/2023/ND-CP?
Pursuant to the provisions of Article 55 of Decree 67/2023/ND-CP regulations on insurance liability limits as follows:
Maximum coverage
The maximum coverage of compulsory civil liability insurance for a third party shall be as follows:
1. Maximum coverage for damage to health and life is VND 100 million/individual/case.
2. Maximum coverage for damage to property and relevant legal expenses (if any) is determined as follows:
a) For a construction work whose value is under VND 1.000 billion, the maximum coverage for damage to property and relevant legal expenses (if any) shall be 10% of the construction work value for the full insurance period for all losses without limit.
b) For a work whose value is at least VND 1.000 billion, the maximum coverage for damage to property and relevant legal expenses (if any) shall be VND 100 billion for the full insurance period for all losses without limit.
Thus, The maximum coverage of compulsory civil liability insurance for a third party shall be 100 million VND/person/case (unlimited number of losses; applicable to damage to health and life).
Particularly for compulsory insurance, civil liability for property damage and related legal costs are specifically limited as follows:
- 10% of the construction work value for the full insurance period for all losses without limit which is under VND 1.000 billion.
- 100 billion VND for the full insurance period: for a work whose value is at least VND 1.000 billion.
*Note: There is no limit to the number of losses.
What is the maximum coverage of compulsory civil liability insurance for a third party in construction in Vietnam according to Decree 67/2023/ND-CP?
What is the coverage of compulsory civil liability insurance for a third party in construction in Vietnam?
According to the provisions of Article 56 of Decree 67/2023/ND-CP, Insurers shall pay construction contractors indemnities payable by the latter to the third parties according to agreements in insurance policies:
- damages to health, life and
- property directly arising from construction and relevant legal expenses (if any),
*Insurers shall not pay construction contractors indemnities payable by the latter to the third parties as specified in Clause 2, Article 56 of Decree 67/2023/ND-CP, specifically:
- Losses incurred by war, riots, strikes, actions of hostile forces, rebellions, malicious acts on behalf of or in connection with political organizations, distraint, expropriation, requisition, confiscation or destruction or damage caused by order of competent regulatory agencies.
- Losses incurred by terrorism.
- Losses incurred by nuclear reactions, nuclear radiation, and radioactive contamination.
- Losses or damages of policyholders and the insured named in the list of entities placed under embargo.
- Losses or damages relating to diseases according to publications of competent authorities.
- Losses incurred by intentional violations against law of policyholders or the insured.
- Losses incurred in case policyholders have not insurable interests.
- Losses incurred by suspension from construction or losses incurred by consequences of suspending works wholly or partly.
- Losses to data, software and computer programs.
- Losses incurred by pollution or contamination. This exclusion is not applied to damage to health, life or property arising from pollution or contamination due to unpredictable risks.
- Damage incurred by vibrations or movement or decline of seismic-resistant and load-bearing components or injury or damage to life or property due to any of the above losses (unless otherwise agreed upon in amended Clauses).
- Damage resulting from accidents caused by motor vehicles or vessels, barges or aircraft involved in civil liability insurance by motor vehicle owners to third parties
- Liabilities resulting from injuries or sick caused for employees of investors or contractors relating to the insured works.
- Losses of property legally owned, managed or used by investors or contractors or employees or workers of one of the above-mentioned entities.
- Losses related to asbestos or any materials containing asbestos.
How long is the insurance period of a compulsory civil liability insurance for a third party in construction in Vietnam?
Pursuant to Article 57 of Decree 67/2023/ND-CP, the insurance period of a compulsory civil liability insurance for a third party shall be a specific period which is calculated from the commencement date to the completion date of construction on the basis of the construction contract and specified in the insurance policy.
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