Minimum Mandatory Contribution for Fire and Explosion Insurance

According to the provisions of Article 5 of Decree 23/2018/ND-CP regulating compulsory fire and explosion insurance issued by the Prime Minister of the Government of Vietnam, the minimum compulsory fire and explosion insurance amount is regulated as follows:

- The minimum compulsory fire and explosion insurance amount is the monetary value at market price of: buildings, structures, and assets attached to buildings, structures; machinery, equipment or types of goods, materials (including raw materials, semi-finished products, finished products) at the time of entering into the insurance contract.

- In cases where the market price of the asset cannot be determined, the compulsory fire and explosion insurance amount is agreed upon by the parties as follows:

+ For buildings, structures and assets attached to buildings, structures; machinery, equipment: The insurance amount is the monetary value of the asset based on the remaining value or replacement value of the asset at the time of entering into the insurance contract.

+ For types of goods, materials (including raw materials, semi-finished products, finished products): The insurance amount is the monetary value of the asset based on valid invoices, documents, or related documents.

=> Therefore, to determine the specific amount that compulsory fire and explosion insurance will cover, please refer to the above regulation.

Sincerely!