What are rules for participation in compulsory fire and explosion insurance in Vietnam?

What are rules for participation in compulsory fire and explosion insurance in Vietnam?

Pursuant to Article 3 of the Decree 23/2018/NĐ-CP (amended by Article 2 of the Decree 97/2021/NĐ-CP) stipulating rules for participation in compulsory fire and explosion insurance in Vietnam as follows:

1. Organizations and individuals specified in Clause 1, Article 2 of this Decree (hereinafter referred to as “the policyholder”) must purchase compulsory fire and explosion insurance from insurers that sell fire and explosion insurance in accordance with regulations of law.

2. The conditions for purchase and sale of insurance, insurance premiums and minimum sum insured are specified in this Decree.

In addition to compulsory fire and explosion insurance specified in this Decree, the policyholder and the insurer may agree on additional insurance conditions or increase in the sum insured and insurance premiums. In this case, the insurer shall separate the compulsory fire and explosion insurance in the insurance contract.

3. The insurer may refuse to sell compulsory fire and explosion insurance in the following cases:

a) The facility has not undergone fire safety inspection in accordance with regulations of law.

b) The facility does not have a record on fire safety inspection by the fire department or the record expires 01 year from the date on which it is made to the date on which compulsory fire and explosion insurance is purchased.

c) The facility is temporarily suspended or suspended due to violations of fire safety regulations.

4. The policyholder may include the expenses for purchase of compulsory fire fighting and prevention in the prices of products and services (applicable to manufacturing and trading facilities) or in recurrent expenditures (applicable to state administrative authorities, public service providers, socio-political organizations and other organizations).

5. Organizations and individuals that are not required to purchase compulsory fire and explosion insurance in accordance with regulations of this Decree should purchase fire and explosion insurance under a contract with the insurer and in accordance with regulations of law.

What are insured property of compulsory fire and explosion insurance in Vietnam?

Pursuant to Article 4 of the Decree 23/2018/NĐ-CP stipulating insured property of compulsory fire and explosion insurance in Vietnam as follows:

1. Insured property is the property of the insured facility, including:

a) Houses, works and properties on houses and works; machines, equipment.

b) Goods and supplies (including materials, finished goods, semi-finished goods).

2. The insured property and its location must be specified in the insurance contract and insurance certificate.

What are regulations on minimum sum insured regarding compulsory fire and explosion insurance in Vietnam?

Pursuant to Article 5 of the Decree 23/2018/NĐ-CP stipulating minimum sum insured regarding compulsory fire and explosion insurance in Vietnam as follows:

1. The minimum sum insured is the market value of the properties specified in Clause 1, Article 4 of this Decree on the inception date.

2. In case of failure to determine the market value of the properties, the sum insured shall be agreed upon by the parties as follows:

a) For the properties specified in Point a, Clause 1, Article 4 of this Decree, the sum insured is the remaining value or the replacement value of the properties on the inception date.

b) For the properties specified in Point b, Clause 1, Article 4 of this Decree, the sum insured is the monetary value of the properties according to valid vouchers or relevant documents.

Best regards!