What are cases of exclusion of insurance responsibilities for compulsory third-party liability insurance regarding construction investment activities in Vietnam?

What are cases of exclusion of insurance responsibilities for compulsory third-party liability insurance regarding construction investment activities in Vietnam?

Pursuant to Clause 2 Article 29 of the Circular 50/2022/TT-BTC stipulating as follows:

2. Exclusion of insurance responsibilities.

Cases of exclusion of insurance responsibilities for compulsory third-party liability insurance:

a) Exclusion of the general insurance responsibility according to regulations prescribed in Article 5 of this Circular.

b) Losses caused by pollution or contamination. This exclusion does not apply to losses of health, life, and properties generated from pollution or contamination due to unexpected and unpredictable risks.

c) Damage to properties on the ground or health or life caused by the displacement or weakening of the load-bearing and geologic engineering parts.

d) Damage resulting from accidents caused by motor vehicles or vessels, barges, or planes that have participated in compulsory insurance of vehicle owners for third parties.

dd) Liabilities resulting from injuries or diseases caused to workers of investors or contractors related to insured works.

e) Losses or damage to properties owned by or under the management and legal use of investors, or contractors, or workers of one of the above persons.

g) Losses related to asbestos or any material containing asbestos.

What are regulations on duration of of compulsory third-party liability insurance regarding construction investment activities in Vietnam?

Pursuant to Article 30 of the Circular 50/2022/TT-BTC stipulating as follows:

The duration of compulsory third-party liability insurance is the specific time starting from the start to the end date of construction based on construction contracts and is prescribed in insurance policies.

What are regulations on insurance premiums and payment of insurance premiums regarding construction investment activities in Vietnam?

Pursuant to Article 31 of the Circular 50/2022/TT-BTC stipulating insurance premiums and payment of insurance premiums regarding construction investment activities in Vietnam as follows:

1. The premium of compulsory third-party liability insurance is 5% of the premium of compulsory insurance for works during the corresponding construction time prescribed in Point a and Point b Clause 1 Article 10 of this Circular. Based on the risk level of each of the insured, insurers may increase or decrease insurance premiums by a maximum of 25% of the insurance premiums.

2. The deadline for payment of premiums of compulsory third-party liability insurance shall comply with Circular No. 50/2017/TT-BTC.

Regarding insurance policies on civil liabilities for third parties of construction works of projects on construction and investment prescribed in Decree No. 50/2021/ND-CP dated April 1, 2021 of the Government of Vietnam on amendments to Decree No. 34/2015/ND-CP elaborating on construction contracts, insurers and policyholders shall agree on the deadline for payment of insurance premiums prescribed in insurance policies and such deadline shall not be later than the payment deadline of construction contracts. In any case, the deadline for payment of insurance premiums shall not exceed the insurance duration.

3. The final settlement of insurance premiums shall comply with regulations prescribed in Clause 5 Article 10 of this Circular.

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