Vietnam: What are the insurance premiums and deductibles for compulsory insurance for construction work in progress under Decree 67/2023/ND-CP?
- What are the insurance premiums and deductibles for compulsory insurance for construction work in progress in Vietnam under Decree 67/2023/ND-CP?
- What are the detailed insurance premiums and deductibles for compulsory insurance for construction work whose value is under VND 1.000 billion in progress in Vietnam?
What are the insurance premiums and deductibles for compulsory insurance for construction work in progress in Vietnam under Decree 67/2023/ND-CP?
Pursuant to the provisions of Clause 1, Article 37 of Decree 67/2023/ND-CP stipulating the insurance premium and deductible for compulsory insurance for a construction work in progress as follows:
Type of work | Insurance premium and deductible for compulsory insurance for a construction work in progress |
Type of work (1) For an insured construction work whose value is under VND 1.000 billion, excluding installation or including installation but the cost for installation accounts for less than 50% of its total value | Its insurance premium and deductible shall be determined according to Clause 1 Section I Annex III enclosed with Decree 67/2023/ND-CP |
Type of work (2) For an insured construction work whose value is under VND 1.000 billion, including installation and the cost for installation accounts for at least 50% of its total value | Its insurance premium and deductible shall be determined according to Clause 1 Section II Annex III enclosed with Decree 67/2023/ND-CP |
Type of work (3) For construction work whose value is at least VND 1.000 billion as prescribed in the above two cases | The insurer and policyholder may negotiate insurance premiums and deductibles on the basis of evidence proving approval by the major foreign reinsurer. The major foreign reinsurer and foreign reinsurer assuming from 10% of total insurance coverage of each reinsurance policy shall satisfy the regulations in Clause 9 Article 4 of Decree 67/2023/ND-CP In any case, the insurance premium shall not be lower than the amount equal VND 1.000 billion multiplied (x) by 75% of the insurance premium prescribed in Clause 1 Section I Annex III enclosed with Decree 67/2023/ND-CP (for the construction work prescribed in Point a Clause 1 of this Article) or Clause 1 Section II Annex III enclosed with the Decree 67/2023/ND-CP (for works specified at Point b, Clause 1 of this Article) |
Type of work (4) For construction works that are not prescribed in the above cases: | Insurers and policyholders may negotiate rules, terms, insurance premiums and deductibles on the basis of evidence proving that major foreign reinsurers accept reinsurance in accordance with the rules, terms, insurance premiums and deductibles provided by insurers to policyholders. The major foreign reinsurers and foreign reinsurers assuming from 10% of the total insurance coverage of each reinsurance policy shall satisfy the regulations in Clause 9 Article 4 of Decree 67/2023/ND-CP |
Can insurers in Vietnam increase or decrease insurance premiums for insured construction work whose value is under VND 1.000 billion?
Pursuant to the provisions of Clause 2, Article 37 of Decree 67/2023/ND-CP as follows:
Insurance premiums and deductibles
....
2. For construction works that are not prescribed in Point a, Point b Clause1 of this Article:
Insurers may increase or decrease insurance premiums by up to 25% according to the risk level of the insured.
In case the insured is the direct cause of higher indemnities than principal insurance premiums collected from compulsory insurance for works in progress in the immediately preceding fiscal year, on the basis of data verified by actuaries of the insurers and independent audit organizations, upon renewal of insurance policies, the insurers, and policyholders may negotiate insurance premiums and deductibles to ensure the solvency of the insurers.
According to the above provisions, insurers may increase or decrease insurance premiums by up to 25% according to the risk level of the following insured:
- An insured construction work whose value is under VND 1.000 billion, excluding installation or including installation but the cost for installation accounts for less than 50% of its total value
- An insured construction work whose value is under VND 1.000 billion, including installation and the cost for installation accounts for at least 50% of its total value
What are the detailed insurance premiums and deductibles for compulsory insurance for construction work whose value is under VND 1.000 billion in progress in Vietnam?
Pursuant to the provisions of Appendix III promulgated together with Decree 67/2023/ND-CP stipulating the detailed insurance premium and deductible for compulsory insurance for a construction work in progress in Vietnam as follows:
(1) For an insured construction work whose value is under VND 1.000 billion, excluding installation or including installation but the cost for installation accounts for less than 50% of its total value:
(2) For an insured construction work whose value is under VND 1.000 billion, including installation and the cost for installation accounts for at least 50% of its total value:
See details in Appendix III promulgated together with Decree 67/2023/ND-CP.
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