What are the cases where insurers are not required to provide indemnities for construction works in progress in Vietnam?
- What is the minimum coverage for compulsory insurance for construction works in progress in Vietnam?
- What are the cases where insurers are not required to provide indemnities for construction works in progress in Vietnam?
- What is the application for claim for compulsory insurance for construction works in progress in Vietnam?
What is the minimum coverage for compulsory insurance for construction works in progress in Vietnam?
Pursuant to Article 33 of Decree 67/2023/ND-CP stipulating the minimum insurance amount as follows:
Minimum coverage
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).
Accordingly, 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.
Note: 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 are the cases where insurers are not required to provide indemnities for construction works in progress in Vietnam?
What are the cases where insurers are not required to provide indemnities for construction works in progress in Vietnam?
Pursuant to Clause 2, Article 34, Decree 67/2023/ND-CP, insurers are not required to provide indemnities 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.
What is the application for claim for compulsory insurance for construction works in progress in Vietnam?
Pursuant to Article 40 of Decree 67/2023/ND-CP stipulating applications for insurance claims as follows:
Applications for insurance claims
An application for claim for compulsory insurance for construction works in progress includes the following documents:
1. A claim form completed by the policyholder.
2. Documents relating to the insured, including: An insurance policy and a certificate of insurance (COI).
3. Documents proving damage to property, including:
a) An construction incident dossier in case a construction incident occurs (certified true copy from original or copy with confirmation of the dossier maker) according to regulations in Article 47 of Decree No. 06/2021/ND-CP dated January 26, 2021 of the Government elaborating certain contents of quality control, construction and maintenance of construction works or evidences proving the loss of the construction work.
b) Valid invoices and instruments or evidences showing repair and/or replacement of the damaged property.
4. Documents proving necessary and reasonable expenses that the policyholder has spent to minimize the loss or to follow instructions of the insurer.
5. A report of assessment of the cause and extent of damage made by the insurer or a person authorized by the insurer.
6. Other relevant documents (if any).
The policyholder shall collect and submit the documents prescribed in Clauses 1, 2, 3, 4 and 6 of this Article to the insurer. The insurer shall collect the documents prescribed in Clause 5 of this Article.
Accordingly, an application for claim for compulsory insurance for construction works in progress includes the following documents:
- A claim form completed by the policyholder.
- Documents relating to the insured, including: An insurance policy and a certificate of insurance (COI).
- Documents proving damage to property.
- Documents proving necessary and reasonable expenses that the policyholder has spent to minimize the loss or to follow instructions of the insurer.
- A report of assessment of the cause and extent of damage made by the insurer or a person authorized by the insurer.
- Other relevant documents (if any).
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