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

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

Pursuant to Article 32 of the Circular 50/2022/TT-BTC stipulating as follows:

Construction contractors shall purchase compulsory third-party liability insurance when constructing construction works.

What are regulations on indemnification rates when third parties suffer from damage outside of insurance policies in terms of health, life, and properties directly generated from the constructing process subject to insurance responsibilities, insurers in Vietnam?

Pursuant to Clause 1 Article 33 of the Circular 50/2022/TT-BTC stipulating as follows:

1. When third parties suffer from damage outside of insurance policies in terms of health, life, and properties directly generated from the constructing process subject to insurance responsibilities, insurers shall pay policyholders according to the following indemnification rates:

a) The specific indemnification rate for health and life is determined according to each type of injury prescribed in the Table of indemnification for damage to health and life of Appendix V promulgated with this Circular or agreements (if any) between the insured and persons receiving damage or heirs of persons receiving damage (in case such persons have died) or representatives of persons receiving damage (in case such persons have lost their civil capacity according to decisions of the Court or such persons are less than 6 years old) and shall not exceed the indemnification rate prescribed in Appendix V promulgated with this Circular. In case there are decisions of the Court, the indemnification rate shall be based on such decisions but shall not exceed the rate prescribed in Appendix V promulgated with this Circular.

b) The specific indemnification rate for damage to properties per accident shall be determined according to the actual damage and the extent of error and shall not exceed the insurance liabilities according to agreements prescribed in insurance policies.

c) Relevant legal costs (if any).

The total insurance indemnification amount of insurers prescribed in this Clause shall not exceed the insurance payout prescribed in Clause 7 Article 1 of Decree No. 20/2022/ND-CP.

How shall policyholders and insurers in Vietnam cooperate to settle the indemnification when there are indemnification requests from third parties regarding construction investment activities in Vietnam?

Pursuant to Clause 2 Article 33 of the Circular 50/2022/TT-BTC stipulating as follows:

2. When there are indemnification requests from third parties, policyholders and insurers shall cooperate in settling the indemnification as follows:

a) Policyholders shall:

- Immediately notify insurers via means of communication and notify insurers in writing of such matters within 14 days after receiving indemnification requests from third parties.

- Adopt every measure within their capacity to minimize losses.

- Provide documents in indemnification documents according to regulations prescribed in Clauses 1, 2, 3, 4, 5, and 7 of Article 34 of this Circular and facilitate insurers during the process of verifying such documents.

- Implement, cooperate, and permit insurers to perform actions and measures that are necessary or at the request of insurers to protect the rights of insurers after the indemnification of losses subject to indemnification responsibilities according to regulations of this Circular.

b) Insurers shall:

- Conduct loss assessment according to regulations of the law and prepare records of the assessment of causes and the extent of damage according to regulations prescribed in Clause 6 Article 34 of this Circular.

- Guide and cooperate with policyholders and relevant agencies, organizations, and individuals in sufficiently collecting documents to prepare indemnification documents.

- Cooperate with policyholders in settling requests for loss indemnification of third parties subject to insurance responsibilities when insurance events occur.

- In case of accepting the indemnification, insurers shall prepare written notifications on the indemnification.

- In case of refusing the indemnification, insurers shall provide explanations in writing.

Best regards!