Mandatory Insurance Premium Rates for Workers on Construction Sites – Latest Update
Latest Mandatory Insurance Premium Rates for Workers at Construction Sites
In Appendix 5 issued together with Decree 67/2023/ND-CP, the mandatory insurance premium rates for workers at construction sites are specified as follows:
Insurance Premium for a 1-year Term (Excluding VAT)
Short-term Insurance Premium
Occupational Classification:
Type 1: Indirect labor, mainly working in offices, at desks, or other similar jobs with minimal travel.
Type 2: Non-manual occupations with higher risk than Type 1, requiring more travel or involving occasional and light manual labor.
Type 3: Occupations where the primary work involves manual labor and jobs with higher risk levels.
Type 4: Hazardous occupations prone to accidents, not covered under the above three occupational types.
What are the latest mandatory insurance premium rates for workers at construction sites?
What is the Mandatory Insurance Liability Limit for Workers at Construction Sites?
Article 48 of Decree 67/2023/ND-CP stipulates the insurance subjects as follows:
Insurance Subjects
1. The mandatory insurance subject for workers at construction sites is the civil liability of the construction contractor towards the workers at the construction site as prescribed by law.
2. The insurance liability limit is VND 100 million per person per incident.
Thus, the mandatory insurance liability limit for workers at construction sites is VND 100 million per person per incident.
In Which Cases Are Workers at Construction Sites Compensated by Insurance?
Article 49 of Decree 67/2023/ND-CP regulates the scope of insurance and exclusions of insurance liabilities as follows:
Scope of Insurance and Insurances Liability Exclusions
1. Scope of Insurance
The insurance enterprise is responsible for compensating the construction contractor amounts payable by the contractor to workers who are injured, deceased due to workplace accidents, or occupational diseases arising from performing construction work at the site, except for the cases specified in clause 2 of this Article.
2. Cases Excluded from Insurance Liability
The insurance enterprise is not responsible for insurance compensation in the following cases:
a) Liability exclusions specified in points a, b, c, d, dd, g, h, and i clause 2 Article 34 of this Decree.
b) Losses related to asbestos or any materials containing asbestos.
c) Losses arising from the conflicts between the worker and the person causing the accident that are not related to performing construction work at the site.
d) Losses arising from the worker's intentional self-harm.
dd) Losses arising from the worker using narcotic substances or illegal drugs contrary to legal regulations (except for prescriptions for treatment by a licensed doctor).
e) Losses arising from the intentional act of policyholder or insured violating the law (except for cases where the worker acts in self-defense, rescues people, or property or follows prescriptions for treatment by a licensed doctor).
Thus, workers at construction sites are compensated by insurance in the following cases:
(1) The worker is injured or deceased due to workplace accidents or occupational diseases arising from performing construction work at the site;
(2) Not falling under the cases:
- Liability exclusions:+ Losses arising from war, riots, strikes, actions of hostile forces, rebellion, malicious acts on behalf of or related to political organizations, confiscation, requisition, requisitioning, destruction, or damage caused by orders of competent state authorities.+ Losses arising from terrorist acts.+ Losses arising from nuclear reactions, nuclear radiation, radioactive contamination.+ Losses or damages related to policyholder and insured listed in sanctions lists.+ Losses or damages related to epidemic outbreaks as announced by competent authorities.+ Losses arising when the policyholder has no insurable interest as defined by law.+ Losses arising from the cessation of construction work or consequences of such cessation (whether partial or complete cessation).+ Losses related to data, software, and computer programs.
- Losses related to asbestos or any materials containing asbestos.
- Losses arising from conflicts between the worker and the person causing the accident that are not related to performing construction work at the site.
- Losses arising from the worker's intentional self-harm.
- Losses arising from the worker using narcotic substances or illegal drugs contrary to legal regulations (except for prescriptions for treatment by a licensed doctor).
- Losses arising from the intentional act of policyholder or insured violating the law (except for cases where the worker acts in self-defense, rescues people, or property or follows prescriptions for treatment by a licensed doctor).
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