The Limit of Liability for Mandatory Insurance for Workers on Construction Sites
What is the limit of mandatory insurance liability for workers performing construction on-site?
According to Article 48 of Decree 67/2023/ND-CP, the following is stipulated regarding insurance subjects:
Insurance Subjects
1. The mandatory insurance subject for workers performing construction on-site is the civil liability of the construction contractor towards the workers as stipulated by law.
2. The insurance liability limit is 100 million VND per person per case.
Thus, the limit of mandatory insurance liability for workers performing construction on-site is 100 million VND/person/case.
What is the limit of mandatory insurance liability for workers performing construction on-site?
What is the current latest mandatory insurance premium for workers performing construction on-site?
Appendix 5, issued with Decree 67/2023/ND-CP, stipulates the mandatory insurance premiums for workers performing construction on-site as follows:
Insurance Premium for a 1-year term (Excluding VAT)
Short-term Insurance Premium
Occupation Classification:
Type 1: Indirect labor, working mainly in offices or other similar low-mobility tasks.
Type 2: Non-manual occupations with higher risks than Type 1, requiring frequent travel or including infrequent and light manual labor.
Type 3: Occupations primarily involving manual labor and higher risk tasks.
Type 4: Dangerous and accident-prone occupations not classified in the above three types.
In which cases are workers performing construction on-site entitled to insurance compensation?
Article 49 of Decree 67/2023/ND-CP stipulates the insurance scope and exclusions as follows:
Insurance Scope and Liability Exclusions
1. Insurance Scope
The insurance enterprise shall compensate the construction contractor for amounts which the contractor is liable to pay to workers who suffer from work-related accidents, death, or occupational diseases arising from performing construction on-site, except for the cases specified in Clause 2 of this Article.
2. Liability Exclusions
The insurance enterprise is not liable to compensate for the following cases:
a) Liability exclusions stipulated in Points a, b, c, d, dd, g, h, and i of Clause 2, Article 34 of this Decree.
b) Losses related to asbestos or any material containing asbestos.
c) Losses arising from conflicts between the worker and the person causing the accident unrelated to the performance of on-site construction tasks.
d) Losses arising from deliberate self-harm by the worker.
dd) Losses arising from the worker's use of illegal drugs or narcotics (except for prescribed medication for treatment by a licensed doctor).
e) Losses arising from intentional legal violations by the policyholder or the insured (except for cases of self-defense, rescuing people, rescuing property, or using stimulants prescribed for treatment by a licensed doctor).
Thus, workers performing construction on-site are entitled to insurance compensation in the following cases:
(1) The worker suffers from work-related injuries, death, or occupational diseases arising from performing construction on-site;
(2) Not falling under the following exclusion cases:
- Liability exclusions:
+ Losses arising from war, riot, strike, actions by hostile forces, rebellion, malicious acts on behalf of or related to political organizations, confiscation, requisition, expropriation, or destruction/damage as ordered by a competent state authority.
+ Losses arising from terrorism.
+ Losses arising from nuclear reactions, nuclear radiation, radioactive contamination.
+ Losses or damages of the policyholder and insured names in embargo lists.
+ Losses or damages related to epidemics as declared by competent authorities.
+ Losses arising in cases where the policyholder has no insurable interest as per the law.
+ Losses arising from the cessation of construction work or consequent losses of stopping construction work (whether partial or whole).
+ Losses regarding data, software, and computer programs.
- Losses related to asbestos or any material containing asbestos.
- Losses arising from conflicts between the worker and the person causing the accident unrelated to the performance of on-site construction tasks.
- Losses arising from deliberate self-harm by the worker.
- Losses arising from the worker's use of illegal drugs or narcotics (except for medication prescribed for treatment by a licensed doctor).
- Losses arising from intentional legal violations by the policyholder or the insured (except for cases of self-defense, rescuing people, rescuing property, or using stimulants prescribed for treatment by a licensed doctor).
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