Vietnam: When does the duration of compulsory insurance for professional liabilities for construction and investment consultancy services start?
- Vietnam: When does the duration of compulsory insurance for professional liabilities for construction and investment consultancy services start?
- What are the indemnification principles of compulsory insurance for professional liabilities for construction and investment consultancy services in Vietnam?
- What are subjects of compulsory insurance for professional liability for construction and investment consultancy services in Vietnam?
Vietnam: When does the duration of compulsory insurance for professional liabilities for construction and investment consultancy services start?
Article 16 of Circular 50/2022/TT-BTC stipulates the duration of compulsory insurance for professional liabilities for construction and investment consultancy services in Vietnam as follows:
Insurance duration
The duration of compulsory insurance for professional liabilities for construction and investment consultancy services will start from the date of the implementation of consultancy services until the end of the work warranty period according to regulations of the law.
Thus, the duration of compulsory insurance for professional liabilities for construction and investment consultancy services will start from the date of the implementation of consultancy services until the end of the work warranty period according to regulations of the law.
Vietnam: When does the duration of compulsory insurance for professional liabilities for construction and investment consultancy services start?
What are the indemnification principles of compulsory insurance for professional liabilities for construction and investment consultancy services in Vietnam?
In Article 19 of Circular 50/2022/TT-BTC on indemnification principles of compulsory insurance for professional liabilities for construction and investment consultancy services:
- Insurers shall indemnify advisory contractors for the amounts that such advisory contractors are responsible for indemnifying for losses of third parties and relevant costs according to regulations of the law, specifically:
+ Losses of third parties and related costs generated by negligent actions of the insured as a result of the implementation of construction surveys and construction design within the scope of insurance.
+ Indemnification request of third parties (from an insurance event) regarding the insured and have been notified to insurers by policyholders within the insurance duration, including expenses to be paid to lawyers appointed by insurers or the insured (with the written consent of insurers), other fees and charges generated from the investigation, correction, and defense related to insurance events but not including the salary to be paid to workers or managers concluding labor contracts with the insured.
+ Other relevant costs according to regulations of the law.
- The total liability of insurers for all indemnification requests during the insurance duration shall not exceed the insurance payout agreed on in insurance policies.
- If policyholders conclude compulsory insurance policies for professional liabilities for construction and investment consultancy services during construction time with 2 or more insurers to insure the same subject, with the same conditions and insurance events, when insurance events occur, each insurer is only responsible for indemnification according to the ratio between the agreed insurance payout to the total insurance payout of all insurance policies concluded by policyholders.
- Insurers are not responsible for indemnifying the amounts that occurred or increased due to acts of insurance fraud according to regulations of the Criminal Code.
- When there are indemnification requests from third parties, policyholders and insurers shall cooperate in settling the indemnification as follows:
* Policyholders shall:
+ Immediately notify insurers via means of communication and notify insurers in writing of such matters within 14 days after receiving indemnification requests from third parties.
+ Adopt every measure within their capacity to minimize losses.
+ Provide documents in indemnification documents according to regulations prescribed in Clauses 1, 2, 3, 4, 5, and 7 of Article 20 of this Circular and facilitate insurers during the process of verifying such documents.
+ Implement, cooperate, and permit insurers to perform actions and measures that are necessary or requested by insurers to protect the rights of insurers after the indemnification of losses subject to indemnification responsibilities according to regulations of this Circular.
* Insurers shall:
+ Conduct loss assessment according to regulations of the law and prepare records of the assessment of causes and the extent of damage according to regulations prescribed in Clause 6 Article 20 of this Circular.
+ Guide and cooperate with policyholders and relevant agencies, organizations, and individuals in sufficiently collecting documents to prepare indemnification documents.
+ Cooperate with policyholders in settling requests for loss indemnification of third parties subject to insurance responsibilities when insurance events occur.
- In case of accepting the indemnification, insurers shall prepare written notifications on the indemnification.
- In case of refusing the indemnification, insurers shall provide explanations in writing.
What are subjects of compulsory insurance for professional liability for construction and investment consultancy services in Vietnam?
Pursuant to Clause 1, Article 14 of Circular 50/2022/TT-BTC regulating that subjects of compulsory insurance for professional liability for construction and investment consultancy services are civil liabilities of investment and construction advisory contractors for third parties generated from the implementation of construction surveys and construction design of construction works from grade II or higher.
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