In Vietnam: If a house is hit by lightning strikes, shall the owner receive fire and explosion insurance compensation?
In Vietnam: If a house is hit by lightning strikes, shall the owner receive fire and explosion insurance compensation? What are the rules of fire and explosion insurance indemnity in Vietnam?
Hello Lawnet. My family has already bought fire and explosion insurance for our house. During the thunderstorm, it was hit by a lightning strike. It didn't cause a fire, but it burnt a part of the wall. Can we receive the compensation? Thank you.
In Vietnam: If a house is hit by lightning strikes, shall the owner receive fire and explosion insurance compensation?
Pursuant to Clause 2, Article 6 of the Decree 23/2018/ND-CP stipulating insurance exclusions as follows:
2. Insurance exclusions
a) For the insured facilities mentioned in Clause 1, Article 2 of this Decree (except nuclear facilities), the insurer shall not be liable to indemnify in the following cases:
- Earthquakes, volcanic eruptions or other convulsions of nature.
- Damage occasioned by unexpected political, security or social order and safety events.
- Damage occasioned by burning or explosion of properties according to regulations of a competent authority.
- Damage occasioned by property’s own fermentation or natural heating; property's undergoing any process involving the application of heat.
- Damage occasioned by direct hit of lightning strike without causing fire or explosion.
- Fire and explosion caused by nuclear weapon materials.
- Damage to any electrical machine, apparatus, or any portion of the electrical installation occasioned by over-running, excessive pressure, short circuiting, self heating, arcing or leakage of electricity arising from whatever cause, lightning included.
- Damage occasioned by malicious act of the insured or by deliberate violation of fire safety regulations and direct cause of fire or explosion.
- Damage to data, software and computer programs.
- Damage occasioned by the burning of forests, bush, prairie or the clearing of lands by fire.
b) For the nuclear facilities, the insurer and the policyholder shall reach an agreement on insurance exclusions with the reinsurer’s approval.
As regulations above, your house was hit by a lightning strike, but it didn't cause a fire. Therefore, you shall not receive the compensation.
What are the rules of fire and explosion insurance indemnity in Vietnam?
Pursuant to Clause 1, Article 8 of the Decree 23/2018/ND-CP (amended by Clause 1, Article 2 of the Decree 97/2021/ND-CP) stipulating the rules of fire and explosion insurance indemnity in Vietnam:
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 public serurity authorities 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.
Best regards!
