What are the insured entities for compulsory insurance for construction investment activities in Vietnam according to Decree 67/2023/ND-CP?
- What are the insured entities for compulsory insurance for construction investment activities in Vietnam according to Decree 67/2023/ND-CP?
- What is the minimum coverage for compulsory insurance for construction investment activities in Vietnam during the construction period?
- What is the coverage of compulsory insurance for construction investment activities in Vietnam?
What are the insured entities for compulsory insurance for construction investment activities in Vietnam according to Decree 67/2023/ND-CP?
Pursuant to the provisions of Article 32 of Decree 67/2023/ND-CP stipulates as follows:
Insured entities
Investors shall purchase compulsory insurance for construction investment activities for the following construction works:
1. Construction works and construction items significantly affecting public safety and benefits prescribed in Annex X Decree No. 15/2021/ND-CP dated May March 03, 2021 of the Government elaborating certain contents of management of construction investment projects.
2. Construction works facing high environmental risks or facing environmental risks prescribed in Annex III and Annex IV of Decree No. 08/2022/ND-CP dated January 10, 2022 of the Government elaborating certain Articles of the Law on Environment Protection and included in the list of investment projects requiring environmental impact assessment (EIA) in accordance with the Law on Environmental Protection.
3. Construction works having special technical requirements and complicated construction requirements according to regulations of law on construction and relevant laws.
According to the above regulations, Investors shall purchase compulsory insurance for construction investment activities for the following construction works:
- Construction works and construction items significantly affecting public safety and benefits prescribed in Annex X Decree No. 15/2021/ND-CP
Construction works facing high environmental risks or facing environmental risks include:
- Construction works facing high environmental risks or facing environmental risks prescribed in Annex III and Annex IV of Decree No. 08/2022/ND-CP
- Construction works having special technical requirements and complicated construction requirements according to regulations of law on construction and relevant laws.
What are the insured entities for compulsory insurance for construction investment activities in Vietnam according to Decree 67/2023/ND-CP?
What is the minimum coverage for compulsory insurance for construction investment activities in Vietnam during the construction period?
Pursuant to the provisions of Article 33 of Decree 67/2023/ND-CP, the minimum coverage for compulsory insurance for construction works is as follows:
Minimum coverage for compulsory insurance for construction works in progress refers to the full values of construction works upon completion, including all building materials, workforce costs, equipment installed on construction works, transport costs, taxes, other fees and other items provided by investors. Minimum coverage for construction works in progress shall not be allowed to be lower than total construction policy value, including values subject to amendments and revisions (if any).
What is the coverage of compulsory insurance for construction investment activities in Vietnam?
Pursuant to the provisions of Article 34 of Decree 67/2023/ND-CP stipulating the scope of compulsory insurance for works during construction as follows:
Insurers shall provide indemnities for damage to construction works in progress arising from all risks, except for insurance exclusions in the following cases.
- 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 design faults of consultancies for construction works at class II or higher.
- Losses incurred by corrosion, abrasion and oxidation.
- Losses incurred by decay and taking place under pressure conditions, normal temperature (this regulation is only applied to construction works prescribed in Point a Clause 1 Article 37 of Decree 67/2023/ND-CP).
- Losses incurred by hard scale formation such as rust, dregs or other similar phenomena (this regulation is only applied to construction works prescribed in Point b Clause 1 Article 37 of Decree 67/2023/ND-CP).
- Expenses for repair, replacement, correction of defective materials or workmanship. This exclusion is only applied to losses of items that are directly affected and is not applied to losses of other items which were caused by indirect consequences of defects in materials or workmanship and have not caused improper construction.
- Losses or damages only detected at the time of inventory.
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