What are regulations on certificates of compulsory insurance for construction investment activities in Vietnam?

What are regulations on certificates of compulsory insurance for construction investment activities in Vietnam?

Pursuant to Article 4 of the Circular 50/2022/TT-BTC stipulating certificates of compulsory insurance for construction investment activities in Vietnam (hereinafter referred to as “Insurance Certificates”) as follows:

1. Insurance Certificates are proofs of the conclusion of contracts of compulsory insurance for construction investment activities between the policyholders and insurers.

2. Insurers shall separately issue Insurance Certificates to policyholders. Insurance Certificates shall be proactively designed by insurers and include the following contents:

a) Names and addresses of insurers, policyholders, and the insured and hotline phone numbers of insurers.

b) Names and addresses of construction works.

c) Insurance payout.

d) The total value of construction works (if any).

dd) Numbers of advisory contracts and values of advisory contracts in which values of construction service advice services and values of construction design services are separated (regarding compulsory insurance for professional liability for construction investment activities).

e) The total number of insured workers (regarding compulsory insurance for workers working on construction sites).

g) Insurance duration, insurance premium rates, insurance premiums, and deductibles (if any).

h) Issuance date, month, and year of Insurance Certificates.

3. In case of issuance of E-Insurance Certificates, insurers shall comply with regulations of the Law on E-Transactions and its guiding documents; E-Insurance Certificates shall fully comply with current regulations and adequately display the contents prescribed in Clause 2 of this Article.

What are regulations on liability exclusion of general insurance for construction investment activities in Vietnam?

Pursuant to Article 5 of the Circular 50/2022/TT-BTC stipulating liability exclusion of general insurance for construction investment activities in Vietnam as follows:

Insurers shall not indemnify the following losses:

1. Losses caused by wars, riots, strikes, actions of hostile forces, rebellions, malicious actions on behalf of or related to organizations of politics, confiscation, escheat, requisition, or destruction or damage according to orders of competent authorities.

2. Losses caused by terrorism actions.

3. Losses caused by nuclear reaction, nuclear radiation, and radiation contamination.

4. Losses caused by intentional acts of law violations of policyholders of the insured (this regulation does not apply to compulsory insurance for workers working on construction sites in cases where they have to defend themselves, save lives, save properties, or use stimulants for treatment prescribed by doctors)

5. Losses due to policyholders do not have benefits eligible for insurance according to Clause 9 Article 3 of the Law on Insurance Business.

6. Losses caused by stopping the construction work or losses caused by consequences of stopping the construction work (partially or wholly).

7. Losses of data, software, and computer programs.

What are regulations on termination of insurance policies for construction investment activities in Vietnam?

Pursuant to Article 6 of the Circular 50/2022/TT-BTC stipulating termination of insurance policies for construction investment activities in Vietnam as follows:

1. An insurance policy is terminated in the following cases:

a) The policyholder and the insurer have an agreement in the insurance policy on the termination of the insurance policy in case of suspension of the implementation of the work prescribed in the construction contract or termination of the construction contract according to regulations of the law.

The policyholder shall send a written notification to the insurer within 5 working days after the investor decides to suspend the implementation of the work prescribed in the construction contract or terminate the construction contract according to regulations of the law. The time of termination of the insurance policy is based on the time of suspension of the work prescribed in the construction contract or termination of the construction contract according to regulations of the law.

b) Other cases of termination according to regulations of the law.

2. Legal consequences of the termination of the insurance policy

a) If the insurance policy is terminated according to regulations prescribed in Point a Clause 1 of this Article, within 15 days after the termination date of such insurance policy, the insurer shall refund the policyholder the insurance premium corresponding to the remaining time of the insurance policy after deducting reasonable costs related to the insurance policy according to agreements in the insurance policy (if any). In case the policyholder has not fully paid the insurance premium, the policyholder shall pay an additional amount of insurance premiums corresponding to the insured period up to the time of termination of the insurance policy.

b) Legal consequences of the insurance policy termination prescribed in Point b Clause 1 of this Article shall be implemented according to agreements in the insurance policy and regulations of the law.

Best regards!