What are the cases that exclude the liability of compulsory fire insurance companies in Vietnam?
What are the cases that exclude the liability of compulsory fire insurance companies in Vietnam? - Mr. Minh (Ha Noi)
In which cases do insurance companies not have liability for compulsory fire insurance in Vietnam?
According to Clause 2, Article 25 of Decree 67/2023/ND-CP, the scope of insurance and liability exclusion is stipulated as follows:
Scope of insurance and liability exclusion
1. Scope of insurance:
Insurance companies are responsible for compensating for losses that occur to the insured property specified in Clause 1, Article 23 of this Decree arising from the risk of fire and explosion, except for cases specified in Clause 2, Clause 3 of this Article.
2. Cases of liability exclusion for facilities with fire and explosion hazards as prescribed by the law on fire prevention and fighting (except nuclear facilities): Insurance companies do not have liability for compensation in the following cases:
a) Earthquakes, volcanic eruptions or other natural disasters.
b) Losses caused by political, security and social order and safety events.
c) Property is burned or exploded as decided by the competent state authority.
d) Self-fermenting or self-heating property; property affected by a heat treatment process.
dd) Lightning strikes directly to the insured property but does not cause fire or explosion.
e) Nuclear weapons materials causing fire or explosion.
g) Machinery, electrical equipment or components of electrical equipment are damaged by the direct impact of overload, overpressure, short circuit, self-heating, electric arc, electrical leakage due to any cause, including lightning strikes.
h) Losses caused by the intentional act of causing fire or explosion of the insured; due to intentional violation of fire prevention and fighting regulations and is the direct cause of fire or explosion.
i) Losses to data, software and computer programs.
k) Losses caused by burning forests, bushes, meadows, or burning for the purpose of clearing fields and land.
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Therefore, insurance companies do not have liability for compensation for compulsory fire insurance in the following cases:
- Earthquakes, volcanic eruptions or other natural disasters.
- Losses caused by political, security and social order and safety events.
- Property is burned or exploded as decided by the competent state authority.
- Self-fermenting or self-heating property;
- Property affected by a heat treatment process.
- Lightning strikes directly to the insured property but does not cause fire or explosion.
- Nuclear weapons materials causing fire or explosion.
- Machinery, electrical equipment or components of electrical equipment are damaged by the direct impact of overload, overpressure, short circuit, self-heating, electric arc, electrical leakage due to any cause, including lightning strikes.
- Losses caused by the intentional act of causing fire or explosion of the insured; due to intentional violation of fire prevention and fighting regulations and is the direct cause of fire or explosion.
- Losses to data, software and computer programs.
- Losses caused by burning forests, bushes, meadows, or burning for the purpose of clearing fields and land.
Which objects are subject to compulsory fire insurance in Vietnam?
According to Article 23 of Decree 67/2023/ND-CP, the objects of compulsory fire insurance in Vietnam are as follows:
Object of insurance
1. The object of compulsory fire and explosion insurance is the entire property of a facility with fire and explosion hazards, including:
a) Buildings, structures and assets attached to buildings, structures; machinery and equipment.
b) Various types of goods and materials (including raw materials, semi-finished products, finished products).
2. The object of insurance and the location of the object of insurance must be clearly stated in the insurance contract, the insurance certificate.
According to the above regulations, the objects of compulsory fire insurance are as follows:
- Buildings, structures and assets attached to buildings, structures;
- Machinery and equipment.
- Various types of goods and materials (including raw materials, semi-finished products, finished products).
What are the documents required for compulsory fire insurance claims in Vietnam?
According to Article 29 of Decree 67/2023/ND-CP, the documents required for compulsory fire insurance claims are as follows:
(1) A written claim by the insured.
(2) Documents related to the insured property, including:
+ Insurance contract
+ Insurance certificate
(3) A fire safety inspection report issued by the competent police authority at the time closest to the time of the insurance event (copy).
(4) An appraisal report by the insurance company or a person authorized by the insurance company.
(5) A written conclusion or notification of the cause of the fire or explosion from the competent authority (copy) or evidence proving the cause of the fire or explosion.
(6) A loss report and supporting documents.
Best regards!
