What are rules for fire and explosion insurance indemnity in Vietnam?

What are rules for fire and explosion insurance indemnity in Vietnam?

Pursuant to Clause 1 Article 8 of the Decree 23/2018/NĐ-CP (amended by Article 2 of the Decree 97/2021/NĐ-CP) stipulating rules for fire and explosion insurance indemnity in Vietnam as follows:

1. Rules for insurance indemnity

The insurer shall consider providing insurance indemnity in accordance with regulations of the Law on Insurance Business and the following rules:

a) The indemnity for the damaged property shall not exceed sum insured for such property (already specified in the insurance contract and insurance certificate), minus (-) the deductible specified in Clause 2, Article 7 of this Decree.

b) Up to 10% of the indemnity shall be deducted in case the insured facility fails to implement all the recommendations specified in the record on fire safety inspection by the competent police authority on schedule, resulting in increased damage upon occurrence of fire or explosion.

c) The insurer shall not be liable for additional amounts due to insurance scam as prescribed by the Criminal Code.

What documents are included in the claim application for for fire and explosion insurance in Vietnam?

Pursuant to Clause 2 Article 8 of the Decree 23/2018/NĐ-CP (amended by Article 2 of the Decree 97/2021/NĐ-CP) stipulating claim application for for fire and explosion insurance in Vietnam as follows:

2. Claim applications

A claim application includes the following documents:

a) A policyholder’s claim letter.

b) Documents concerning the insured property, including: insurance contract and insurance certificate.

c) A copy of the record on fire safety inspection by the competent police authority at the time nearest to the time an insured event occurs.

d) An assessment record of the insurer or the person authorized by the insurer.

dd) A copy of the competent authority’s conclusion or notice of the cause of the fire or explosion or proof of the cause of the fire or explosion.

e) List of damage and documentary evidences for damage.

The policyholder shall collect and send the documents specified in Points a, b, c, dd and e, Clause 2 of this Article to the insurer. The policyholder shall collect the document specified in Point d, Clause 2 of this Article.

What are regulations on fire and explosion insurance premiums in Vietnam?

Pursuant to Clause 1 Article 7 of the Decree 23/2018/NĐ-CP (amended by Article 1 of the Decree 97/2021/NĐ-CP) stipulating fire and explosion insurance premiums in Vietnam as follows:

The insurance premiums specified in Section I, Appendix II enclosed with this Decree shall be applied to the insured facilities specified in Clause 1, Article 2 of this Decree. To be specific:

a) If the total sum insured on a single facility (except nuclear facilities) is less than VND 1,000 billion, the insurance premiums are provided in Clause 1, Section I, Appendix II hereof.

The insurer and the policyholder may increase the insurance premiums applied to each insured facility according to its risk level and regulations of law.

b) If the total sum insured for all assets in a single location of facilities facing a risk of conflagration (except nuclear facilities) is at least VND 1,000 billion: Insurance enterprises and policyholders shall agree on insurance premiums on the basis of approval of reinsurers. In any case, insurance premiums must not be lower than the product of VND 1,000 billion multiplying with insurance rate specified under Clause 1 Section I Annex I attached hereto.

c) For nuclear facilities: Insurance enterprises and policyholders shall agree on insurance premiums on the basis of approval of reinsurers.

What are regulations on deductible of fire and explosion insurance in Vietnam?

Pursuant to Clause 2 Article 7 of the Decree 23/2018/NĐ-CP stipulating deductible of fire and explosion insurance in Vietnam as follows:

A deductible is the amount of money a policyholder must pay upon the occurrence of each insured event, specified in Section II, Appendix II hereof. To be specific:

a) If the total sum insured on a single facility (except nuclear facilities) is less than VND 1,000 billion, the deductible is provided in Clause 1, Section I, Appendix II hereof.

The insurer and the policyholder shall enter into an insurance contract specifying the deductible applied to each insured facility according to its risk level and history of losses.

b) If the total sum insured on a single facility (except nuclear facilities) is VND 1,000 billion or over or the insured facility is a nuclear facility, the insurer and the policyholder shall reach an agreement on the deductible with the reinsurer’s approval.

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