What are the subjects of compulsory professional liability insurance for construction consultancy service in Vietnam? What is the rate of this insurance?
- What are the subjects of compulsory professional liability insurance for construction consultancy service in Vietnam?
- What are the fees and forms of payment for compulsory professional liability insurance for construction consultancy service in Vietnam?
- What are the exclusions of compulsory professional liability insurance for construction consultancy service in Vietnam?
What are the subjects of compulsory professional liability insurance for construction consultancy service in Vietnam?
Pursuant to Article 14 of Circular 50/2022/TT-BTC stipulating that the subject of compulsory insurance for professional liability of construction investment consultants is the civil liability of the construction investment consulting contractor towards a third party. arising from the performance of construction survey and design work of construction works of grade II or higher.
The minimum insurance rate is equal to the value of the construction survey consultancy contract or construction design consultancy contract.
Besides, Article 18 of Circular 50/2022/TT-BTC stipulates that consulting contractors must purchase compulsory professional liability insurance for construction consultancy service when performing construction consultancy work.
Therefore, the subject of this insurance is the construction investment consulting contractor.
What are the subjects of compulsory professional liability insurance for construction consultancy service in Vietnam? What is the rate of this insurance? (Image from the internet)
What are the fees and forms of payment for compulsory professional liability insurance for construction consultancy service in Vietnam?
Pursuant to Article 17 of Circular 50/2022/TT-BTC stipulating the fees and forms of payment for compulsory insurance for professional liability of construction investment consultants as follows:
- The compulsory insurance rates for professional liability of construction design consultants and construction survey consultants is determined as follows:
+ For construction works valued at less than one thousand (1,000) billion dong and not belonging to the types of construction works for dam, port, port, wharf, wharf, breakwater and other hydroelectric works; profit; constructions of airports, aircraft, satellites and space; shipbuilding and repair works; marine and underwater energy constructions; projects of trains, trams, express trains and underground projects, mines: Insurance rates and deductibles are specified in Clause 1, Appendix II issued together with this Circular.
+ For construction works not specified at Point a, Clause 1 of this Article: The insurer and the insurance buyer may agree on the rules, terms, rate and deductible on the basis of evidence. Verify that the leading reinsurer accepts reinsurance in accordance with the rules, terms, rates and deductibles provided by the insurer to the policyholder.
+ Foreign reinsurance enterprises and foreign reinsurance organizations must be rated at least "BBB" according to Standard & Poor's, "B++" according to AM.Best or equivalent ratings of organizations. Other functional and ranking organizations in the latest fiscal year of the year of receiving reinsurance.
- Based on the risk level of the insured object, the insurance enterprise may increase or decrease the insurance rate by up to twenty-five percent (25%) calculated on the rate specified at Point a, Clause 1 of this Article. 1 Appendix II issued together with this Circular.
- In case the construction period is prolonged compared with the time specified in the document of the competent authority to decide on investment when concluding the insurance contract, the insurance buyer and the insurance enterprise must reach an agreement. for additional rates applicable to the extended period.
The additional rate is calculated on the basis of the rate specified at Point a, Clause 1, Appendix II issued with this Circular and corresponds to the extended consulting work period.
- The payment of professional liability insurance rate for construction investment consultancy shall comply with the provisions of Circular No. 50/2017/TT-BTC.
- The settlement of insurance rates must be based on the settlement value of construction survey and construction design consultancy contracts, specifically as follows:
+ In case the settlement value of the construction survey and construction design consultancy contract increases compared with the estimated value approved by the competent authority when concluding the insurance contract, the insurance rate will be adjusted to increase accordingly. response.
The insurance buyer is responsible for paying the outstanding rate amount to the insurance enterprise within thirty (30) days from the date of the competent authority's written approval of the final settlement value.
+ In case the settlement value of the construction survey, construction design consultancy contract is lower than the estimated value approved by the competent authority when concluding the insurance contract, the insurance rate shall be adjusted down in proportion to the value of the contract. response.
The insurer must pay the insurance buyer the overpaid portion of the rate within thirty (30) days from the date the insurer receives the written approval of the final settlement value from the competent authority. sent by the insurance buyer.
What are the exclusions of compulsory professional liability insurance for construction consultancy service in Vietnam?
Pursuant to Clause 2, Article 15 of Circular 50/2022/TT-BTC stipulating the exclusion of liability of compulsory insurance for professional liability of construction investment consultants as follows:
- Exclusion of general insurance liability as prescribed in Article 5 of this Circular.
- Loss incurred due to the contractor intentionally choosing construction methods, calculating, measuring, designing, using untested materials.
- Cost of redesigning or correcting drawings, plans, technical manuals or lists of technical manuals.
- Loss caused by mold.
- Loss caused by consulting construction survey, construction design leading to pollution, contamination to the environment and third parties.
- Loss related to asbestos or any material containing asbestos.
- Loss arising from the infringement of intellectual property rights.
Circular 50/2022/TT-BTC takes effect from October 1, 2022.
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