The content of Precedent No. 37/2020/AL on the validity of property insurance contracts in Vietnam

The content of Precedent No. 37/2020/AL on the validity of property insurance contracts in Vietnam (Image from the Internet)

According to Decision 50/QD-CA dated 2020, the Preceden No. 37/2020/AL on the validity of property insurance contracts in case the insurance buyer pays the insurance premium after the expiration of the premium payment period is as follows:

Source of the Precedent:

Cassation Decision No. 28/2018/KDTM-GDT dated June 26, 2018 of the High People's Court in Ho Chi Minh City on the commercial business case "Insurance contract dispute" in Dong Nai province between the plaintiff, N Limited Liability Company, and the defendant, P Insurance Corporation; People with related rights and obligations include Insurer P1, V Joint Stock Commercial Bank, and S Paper Joint Stock Company.

Location of the Precedent content:

Paragraphs 4 and 5 of the "Court's Opinions" section.

Overview of the Precedent content:

- The Precedent situation:

The insurance buyer paid the insurance premium to the insurer after the end of the premium payment period as agreed in the property insurance contract. The insurance company has no opinion, does not have a written notice to the insurance buyer about the contract termination but still receives the insurance premium, issues an added value invoice and reports taxes on the premium payment. Then the insurance event occurs.

- Legal solutions:

In this case, the insurance contract is effective and the insurance company is responsible for compensating the insured for damages.

Legal provisions related to the Precedent:

- Articles 285, 287 of the 2005 Civil Code (corresponding to Articles 278, 354 of the 2015 Civil Code);

- Articles 15 and 23 of the Law on Insurance Business 2000 (amended and supplemented in 2010).

Keywords of the Precedent:

“Property insurance contract”; "Insurance fees"; “Insurance premium payment period”; “Validity of insurance contract”; “Insurance event”; "Damages".

CONTENTS OF THE PRECEDENT:

According to the petition, the plaintiff's authorized representative presented:

Limited liability company N (referred to as Company N) was established and operates under Business Registration Certificate No. 3600686844 dated July 29, 2004 of the Department of Planning and Investment of Dong Nai province, registered the 6th change on September 4, 2015.

Company N is the insured party and Insurer P1 (referred to as P1 Insurance) is the insurer who jointly signed 07 boiler insurance contracts and public liability insurance contracts as follows:

1. Boiler insurance contract No. P-15/DNI/XCG/3201/0005 dated March 24, 2015, Contract content includes: Certificate of insurance - boiler insurance No. P-15/DNI /XCG/3201/0005 dated March 24, 2015; Notice of fee collection dated March 24, 2015; Additional Terms; Boiler insurance rules, according to which Company N is insured by P1 Insurance:

- Regarding physical damage: Biomass drying oven (common name HOA VIET OVEN) with insurance amount of 6,500,000,000 VND.

- Regarding liability towards third parties: Liability limit of 1,000,000,000 VND/each incident and throughout the insurance period, of which:

- About people

+ For each person: 20,000,000 VND/person/each incident.

+ For total number of people: 200,000,000 VND/each incident and throughout the insurance period.

- Regarding property: 2,000,000,000 VND/each incident and throughout the insurance period.

Insured location: H Joint Stock Company (referred to as H Company); Address: Quarter 8, Ward L, City B, Dong Nai Province. Insurance beneficiaries: Joint Stock Commercial Bank V - Branch B (Bank V - Branch B). Insurance period is from April 1, 2015 to March 31, 2016. (Hereinafter referred to as Contract No. 0005).

2. Public liability insurance contract No. P-15/DNI/XCG/3303/0009, dated March 24, 2015. Contract contents include: Public liability insurance certificate No. P-15/DNI/XCG/3303/0009; March 24, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0009, dated March 24, 2015; Notice of fee collection dated March 24, 2015; Public liability insurance rules; The revised terms add public liability insurance, whereby Company N is insured by P1 Insurance for an amount of 21,000,000,000 VND for each loss and for the entire year (Limited on persons: No more than 20 million/person/case). Scope of insurance: P1 insurance compensates for personal injuries or material damage occurring during the insurance period due to an incident within geographical limits related to the business activities of Company N. Location Covered point: At Company H; Address: Quarter 8, Ward L, City B, Dong Nai Province. Geographic scope: Vietnam. Beneficiaries of insurance benefits: Bank V - Branch B (Beneficiary 1), Company N (Beneficiary 2). Insurance period is from April 1, 2015 to March 31, 2016. (Hereinafter referred to as contract No. 0009).

3. Boiler insurance contract No. P-15/DNI/XCG/3201/0006 dated March 26, 2015. Contract content includes: Certificate of insurance - boiler insurance No. P-15/DNI/XCG/3201/0006 dated March 26, 2015; Notice of fee collection dated March 26, 2015; Additional Terms; Boiler insurance rules, according to which Company N is insured by P1 Insurance:

- Regarding physical damage: Biomass Dryer No. 03 (Common name Boiler No. 3), with insurance amount of 13,000,000,000 VND.

- Regarding liability towards third parties: Liability limit of 1,000,000,000 VND/each incident and throughout the insurance period, of which:

- About people:

+ Give each person 20,000,000 VND/person/each incident.

+ For total number of people: 200,000,000 VND/each incident and throughout the insurance period.

- Regarding property: 2,000,000,000 VND/each incident and throughout the insurance period.

Insured location: At S Paper One Member Limited Liability Company, now S Paper Joint Stock Company (referred to as S Paper Company); Address: M Industrial Park, T district, Ba Ria - Vung Tau province. Insurance beneficiaries: Bank V - Branch B. Insurance participation period is from April 1, 2015 to March 31, 2016. (Hereinafter referred to as contract No. 0006).

4. Public liability insurance contract No. P-15/DNI/XCG/3303/0010 dated March 26, 2015. Contract contents include: Public Liability Insurance Certificate No. P-15/DNI/XCG/3303/0010, dated March 26, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0010, dated March 26, 2015; Notice of fee collection dated March 26, 2015; Public liability insurance rules; The revised terms add public liability insurance, whereby Company N is insured by P1 Insurance for an amount of 21,000,000,000 VND for each loss and for the entire year (Limited on persons: No more than 20 million/person/case). Scope of insurance: Insurance P1 compensates for damages caused by bodily injury or property to third parties that Company N is legally responsible for paying that occurs during the insurance period due to incidents related to the business activities of Company N.  Insured location: At Paper Company S; Address: M Industrial Park, T district, Ba Ria - Vung Tau province. Geographic scope: Vietnam. Beneficiaries of insurance benefits: Bank V - Branch B (Beneficiary 1), Company N (Beneficiary 2). Insurance period is from April 1, 2015 to March 31, 2016. (Hereinafter referred to as Contract No. 0010).

5. Boiler insurance contract No. P-15/DNI/XCG/3201/0007 dated September 30, 2015. Contract content includes: Insurance certificate - boiler insurance No. P-15/DNI/XCG/3201/0007 dated September 30, 2015; Notice of fee collection, dated September 30, 2015; Additional Terms; Boiler insurance rules, according to which Company N is insured by P1 Insurance:

- Regarding physical damage: Biomass dryer No. 01 (common name boiler No. 1), with insurance amount of 9,300,000,000 VND.

- Regarding liability towards third parties: Liability limit of 1,000,000,000 VND/each incident and throughout the insurance period, of which:

- About people:

+ For each person: 20,000,000 VND/person/each incident.

+ For total number of people: 200,000,000 VND/each incident and throughout the insurance period.

- Regarding property: 800,000,000 VND/each incident and throughout the insurance period.

Location covered: At S Paper Company; Address: M Industrial Park, T district, Ba Ria - Vung Tau province. Insurance beneficiary: Bank V - Branch B. Insurance participation period is from October 1, 2015 to October 1, 2016. (Hereinafter referred to as Contract No. 0007).

6. Boiler insurance contract No. P-15/DNI/XCG/3201/0008 dated September 30, 2015. Contract content includes: Insurance certificate - boiler insurance No. P-15/DN1/XCG/3201/0008, dated September 30, 2015; Notice of fee collection, dated September 30, 2015; Additional Terms; Boiler insurance rules, according to which Company N is insured by P1 Insurance:

- Regarding physical damage: Biomass dryer No. 02 (common name boiler No. 2), with insurance amount of 5,400,000,000 VND.

- Regarding liability towards third parties: Liability limit of 1,000,000,000 VND/each incident and throughout the insurance period, of which:

- About people:

+ For each person: 20,000,000 VND/person/each incident.

+ For total number of people: 200,000,000 VND/each incident and throughout the insurance period.

- Regarding property: 800,000,000 VND/each incident and throughout the insurance period.

Location covered: At S Paper Company; Address: M Industrial Park, T district, Ba Ria - Vung Tau province. Insurance beneficiary: Bank V - Branch B. Insurance participation period is from October 1, 2015 to October 1, 2016. (Hereinafter referred to as Contract No. 0008).

7 Public liability insurance contract No. P-15/DNI/XCG/3303/0057, dated September 30, 2015. Contract contents include: Public Liability Insurance Certificate No. P-15/DNI/XCG/3303/0057 dated September 30, 2015; Notice of insurance premium collection, dated September 30, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0057 dated September 30, 2015; Amended provisions for public liability insurance; Public liability insurance rules, according to which Company N is insured by P1 Insurance with an amount of 21,000,000,000 VND for each loss and for the entire year (Limit of person: No more than 20 million/ person/case). Scope of insurance: Insurance P1 compensates for damages caused by bodily injury or property to third parties that Company N is legally responsible for paying that occurs during the insurance period due to incidents. related to the business activities of Company N. Insured location: At Paper Company S; Address: M Industrial Park, T district, Ba Ria - Vung Tau province. Geographic scope: Vietnam. Beneficiaries of insurance benefits: Bank V - Branch B (Beneficiary 1), Company N (Beneficiary 2). Insurance period is from October 1, 2015 to October 1, 2016. (Hereinafter referred to as Contract No. 0057).

At around 00:30, on November 13, 2015, at Paper Company S, an explosion occurred in boiler No. 3, leading to:

1. Regarding physical damage to boiler No. 3: The entire boiler system No. 3 was destroyed. Regarding property damage to third parties: Firefighting costs, property damage, construction costs, damage due to machine shutdown... of S Paper Company.

2. Human loss: 02 workers on duty to operate Boiler No. 3, Mr. Nguyen Van C and Mr. Nguyen Thanh L, died.

3. Costs incurred in cleaning up the scene: Dismantling, cleaning, transporting and storing assets at the scene after a boiler explosion.

4. Affecting and partially damaging Boiler No. 2 of Company N.

At 10:00 a.m., November 13, 2015, P Insurance and Company N made a field/work record. The Police Investigation Agency - Ba Ria-Vung Tau Provincial Police requested an assessment of the cause of the incident. On January 13, 2016, there was Assessment Conclusion No. 3548/C54B of the Criminal Science Sub-Institute (C54B) - Ministry of Public Security, shown in 03 documents of the Police Investigation Agency - Public Security of Ba Ria - Vung Tau province on the same date January 26, 2016 includes: Notice No. 02/TB-PC44, on not prosecuting criminal cases; Conclusion on verifying crime reports No. 02/KL-PC44 (Đ3); Announcement of results of handling crime reports No. 02/TB-PC44; Official Dispatch No. 100/VKS-P2, dated January 26, 2016 of the People's Procuracy of Ba Ria - Vung Tau province on the conclusion of verifying the criminal complaint, concluding that the cause of boiler explosion No. 3 was due to Technical error, boiler No. 3 is still within the inspection period (issued by the Industrial Inspection Center II, Ministry of Industry and Trade, the next inspection date is December 17, 2016), so the explosion of boiler No. On November 13, 2015, there were no signs of a crime occurring.

P1 Insurance appointed Inspection Joint Stock Company B, address: 2.5 P, Ward B, District P, Ho Chi Minh City to conduct damage assessment of boiler explosion incident No. 3. The assessment was carried out in November 17, 18, 19, 20 and 28, 2015, shown by field records and identified damage including: Boiler No. 3; boiler house No. 1, No. 2; Common equipment used between boilers No. 1, No. 2 and No. 3; mechanical and electrical damage to boiler No. 2; assets of third parties S Paper Company; actual site cleanup.

Company N compiled and sent data to request compensation from P Insurance Joint Stock Corporation and P1 Insurance, based on the following legal basis:

1. Regarding physical damage to boiler No. 3: Company N based on boiler insurance contract No. P-15/DNI/XCG/3201/0006 dated March 26, 2015, boiler explosion incident 3 under the scope of insurance liability of Insurance P, including:

- Boiler system No. 3: 13,886,965,686 VND;

- Boiler house No. 3: 1,298,476,400 VND;

- Equipment and supplies (Increasing the ability to use fuels): 2,519,308,592 VND;

- Costs arising from site cleanup: Company N, based on Clause 25 of the Site Cleanup Clause (Limited US$ 100,000) of the Additional Terms of Contract No. 0006, current costs arising from cleanup In the event of an explosion of boiler No. 3 within the scope of insurance liability of Insurance P with actual damages:

+ Dismantling and crane work for boiler No. 3: 140,000,000 VND;

+ Shipping fee (Large trailer): 20,000,000 VND;

+ Small cleaning and transportation fee: 200,000,000 VND;

+ Rent for boiler warehouse No. 3: 120,000,000 VND.

Total: 18,184,750,678 VND.

2. Regarding human damage: Company N based on Contract No. 0009; Contract No. 0010; Contract No. 0057, boiler explosion incident No. 3 causing human damage (02 deaths) occurred within the geographical area: Vietnam, within the scope of public insurance liability of P Insurance with actual damages :

- For Mr. Nguyen Van C: 300,000,000 VND;

- For Mr. Nguyen Thanh L: 333,000,000 VND.

Total: 633,000,000 VND;

3. Regarding property damage to third parties: Company N based on Contract No. 0009; Contract No. 0010; Contract No. 0057, boiler explosion No. 3 causing property damage to a third party of S Paper Joint Stock Company, occurring within the geographical area: Vietnam, within the scope of public insurance responsibility of Baoviet insurance P with total actual damages:

- Property damage, construction costs: 90,804,880 VND;

- Firefighting costs: 24,943,000 VND;

- Damage due to production interruption: 332,010,000 VND;

- Compensation for S Paper Joint Stock Company for the difference in replacement gas prices in November 2015 due to boiler No. 3 exploding: 1,063,032,472 VND.

Total: 1,510,790,352 VND.

4. Physical damage to boiler No. 2: Company N, based on Contract No. 0008, damage to boiler No. 2 is within the scope of insurance liability of Insurance P with the amount of damage:

- Mechanical damage: 200,000,000 VND;

- Electrical damage: 300,000,000 VND.

Total: 500,000,000 VND.

On P Insurance side:

1. Do not agree to compensate Company N for material liability for boiler No. 3 and public insurance liability for third party people and property because it denies the validity of Contract No. 0006 and Contract No. 0010, shown through Official Dispatch No. 13 0/P-DNI-CV, dated November 24, 2015 of P1 Insurance; further negates the validity of contract No. 0005 and Contract No. 0009 through Official Dispatch No. 136/P-DNI-CV, dated December 1, 2015. On November 26, 2015, Company N sent official dispatch No. 01/2015/PHTT-NTN-PHCO DN to Insurance P responding that it did not accept Insurance P's disclaimer of insurance liability and requested compensation. Usually total damage occurs. P Insurance continues to refuse compensation with Official Dispatch No. 135/P-DNI-CV, dated December 1, 2015 with the explanation: Company N had to pay insurance fees before 01-05-2015. However, on 07-05-2015, Insurance P1 only received the Insurance Fee, based on the Payment Terms in these Contracts terminated on 01-05-2015, before the loss occurred on 13-11-2015. Thus, it is not within the insurance responsibility of Insurer P. Disagreeing with P Insurance's denial of insurance liability, on December 2, 2015, Company N sent a complaint to Insurance P.

The insurance company P's refusal to compensate for the above reason is completely unfounded.

i) Regarding the effective date of the Contract: According to the provisions of Article 405 of the Civil Code, "A legally concluded contract takes effect from the time of conclusion, unless otherwise agreed or otherwise provided by law", regarding the time of entering into the Contract, "at the time the requesting party receives a reply accepting the contract" (Clause 1, Article 404) or "at the time the last party signs the document" (Clause 4 Article 404). In fact, P Insurance issued a certificate of insurance for Contract No. 0005, dated March 24, 2015; Contract No. 0009, dated March 24, 2015; Contract No. 0006, dated March 26, 2015; Contract No. 0010, dated March 26, 2015 and issued a value-added invoice to Company N, received insurance premiums on May 7, 2015 with the total premium amount of the Contracts being 91,179 000 VND. The parties have no other agreement on the effective date of the Contract. Insurance P must be responsible for compensating for losses to Company N according to the provisions of Clauses 1 and 3, Article 15 on the time when insurance liability arises in the Law amending and supplementing a number of articles of the Law on Insurance Business. insurance in 2010.

ii) Regarding termination of contract validity: According to the provisions of Clause 2, Article 23 of the Law on Insurance Business, the insurance contract terminates when "The insurance buyer does not pay the insurance premium in full or does not pay the insurance premium in accordance with the law." the agreed term in the insurance contract, unless otherwise agreed by the parties.

According to the agreement of the two parties in the payment terms of the boiler insurance contracts: contract No. 0005, No. 0006, the parties have agreed:

"In case the insured does not pay the insurance premium in full or does not pay the insurance premium according to the payment terms of the insurance contract." According to the payment terms of boiler insurance contracts, "The insurance premium will be paid to the insurer by transfer in one lump sum". Company N paid the insurance premium by transfer in one time with a total amount of 91,179,000 VND and P1 Insurance received it in full.

“or other payment agreements agreed in writing by both parties, the validity of the Insurance Contract will automatically terminate on the next day the insured must pay the premium as agreed in the Insurance Contract or attached amendments/additional appendices (if any). Pursuant to Article 23, the term of commitment to pay the insurance premium is the term of additional purchase by Company N, applicable only when and only when it is more beneficial to Company N than the payment terms agreed in the insurance contract. dangerous “(but without prejudice to the rights of the parties under this application)”. According to the explanation, the invocation to deny the validity of the insurance contract and not be responsible for compensation by Insurance P is not beneficial to Company N, so the additional payment clause is not valid. On the other hand, the additional terms are part of contract No. 15/DNI/XCG/3201/0005, not part of contract No. 0005 (No. P-15/DNI/XCG/3201/0005). ; of contract number 15/DNI/XCG/3201/0006, not contract number 0006 (No. P-15/DNI/XCG/3201/0006).

According to the public liability insurance contracts: contract No. 0009, No. 0010, Insurance P cited Article 5 as the provision on commitment to pay insurance premiums (15 days) to negate the validity of the contract, refusing to accept the contract. The liability to compensate for insurance incidents for Company N is unfounded, because it is not related to contracts No. 0009, No. 0010 and is disadvantageous for Company N. When applying additional terms (if any):

- Amendments and supplements to public liability insurance are part of Contract No. 15/DNI/XCG/3303/0009, not part of Contract No. 0009 (No. P-15DNI/XCG /33 March 0009); are part of contract No. 15/DNI/XCG/3303/0010, not a part of contract No. 0010 (No. P-15/DNI/XCG/3303/0010);

- The terms of commitment to pay insurance premiums (15 days) are additional terms that only apply when they are more beneficial than other terms agreed in contracts No. 0009, No. 0010 but these contracts do not stipulate Contract termination due to late payment of insurance premiums.

2. Regarding the damage to boiler No. 2: Insurance P intentionally avoided fulfilling its responsibility to compensate for loss under Contract No. 0008 as committed in the conclusion of part III of Official Dispatch No. 130/P-DNI- CV dated November 24, 2015.

For the above reasons, the authorized representative of Company N still maintained the lawsuit request, but on September 29, 2016 and at the first instance court hearing, The plaintiff's authorized representative would like to withdraw part of the lawsuit request as follows:

- Recognition of the validity of Public Liability Insurance Contract No. P-15/DNI/XCG/33 03/0009 dated March 24, 2015 between Insurer P1 and the insured Company N; P Insurance Joint Stock Corporation (P Insurance Joint Stock Company) is responsible for compensating Company N for all damages when an insurance incident occurs.

- Recognition of the validity of Public Liability Insurance Contract No. P-15/DNI/XCG/3303/0009, dated March 24, 2015 between insurer P1 and insured party N; P Insurance Joint Stock Corporation (P Insurance Joint Stock Company) is responsible for compensating Company N for all damages when an insurance incident occurs.

- Compensation for Public Liability Insurance Company N is 633,000. 000 VND according to Public Liability Insurance Contract No. P-15/DNI/XCG/3303/0009 dated March 24, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0010 dated March 26, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0057 dated September 30, 2015.

- There is no calculation of the 150% overdue penalty interest in the claim for compensation for damages due to P Insurance Joint Stock Company's delay in fulfilling its insurance compensation obligations.

- Withdrawal of part of the lawsuit request to compensate Company N for all loss and explosion of Biomass fluidized bed boiler No. 3 according to Boiler Insurance Contract No. P-15/DNI/XCG/3201/0006 dated March 26- 2015 is: 18,184,750,678 VND, only asking for 13,000. 000,000 VND and 200,000,000 VND to clean up the scene.

The authorized representative of Company N still maintains the remaining lawsuit claims and respectfully requests the Court to resolve and force P Insurance Joint Stock Corporation (P Insurance Joint Stock Company):

1. Recognizing the validity of Boiler Insurance Contract No. P-15/DNI/XCG/3201/0006, dated March 26, 2015, between insurer P1 and insured party N; P Insurance Joint Stock Corporation (P Insurance Joint Stock Company) is responsible for compensating Company N for all damages.

2. Recognizing the validity of Public Liability Insurance Contract No. P-15/DNI/XCG/3303/0010 dated March 26, 2015, between insurer P1 and insured party N; P Insurance Joint Stock Corporation (P Insurance Joint Stock Company) is responsible for compensating Company N for all damages.

3. Compensating Company N for all loss and explosion of Biomass fluidized bed boiler No. 3 according to boiler insurance contract No. P-15/DNI/XCG/3201/0006 dated March 26, 2015: 13,000. 0000,000 VND.

4. Cleaning up the scene 200,000,000 VND.

5. Compensating Public Liability Insurance Company N for third party property due to boiler explosion incident No. 3 with the amount of: 1,510,790,352 VND according to Public Liability Insurance Contract No. P- 15/DNI/XCG/3303/0010 dated March 26, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0057 dated September 30, 2015.

6. Compensating Company N for all loss of Biomass fluidized bed boiler No. 2: 500,000,000 VND according to boiler insurance contract No. P-15/DNI/XCG/3201/0008 dated September 30, 2015 .

7. Compensating damages due to delay in performing insurance compensation obligations after 15 days from November 19, 2015 until the date of receipt of a valid claim (Recognized by P1 Insurance in Official Dispatch No. 130 /P-DNI-CV, January 24, 2015), meaning from December 4, 2015 until the first instance trial date October 11, 2016 according to the basic interest rate issued by the State Bank : 15,210,790,352 VND x 10 months 07 days x 9%/year = 1,167,428,159 VND.

Total (3)+(4)+(5)+(6)+(7): 16,378,218,511 VND.

Additional sections for the Court to have a basis to consider and resolve:

1.According to public liability insurance contracts No. 0009, No. 0010, No. 0057, the authority to resolve disputes is by the competent People's Court specified in Article 2.3 of the contracts.

2. Regarding boiler insurance contracts, Company N, based on Article 17 of the Law on Commercial Arbitration No. 54/2010/QH12, dated June 17, 2010; Clause 5, Article 4 of Resolution No. 01/2014/NQ-HDTP dated March 20, 2014 of the Council of Judges of the Supreme People's Court, because the Boiler Insurance Rules have overlapping stamps with the Insurance Contracts. boiler insurance between Insurance service provider P1 and the insured Company N and prepared by Insurance service provider P1 with an arbitration agreement, Company N has the right to choose Arbitration or Court to resolve the dispute.

The plaintiff's authorized representative agreed with the Valuation Certificate No. 2003/TDG-CT dated August 22, 2016 of Valuation Joint Stock Company D and had no other opinions. The plaintiff's authorized representative heard the Court explain to Mr. Chu Thanh T that if Mr. T did not agree with the above valuation certificate, Mr. T had the right to request the Court to re-evaluate the price, but Mr. has no opinion and requests the Court to resolve the matter according to the provisions of law.

Besides that, nothing more is required.

The defendant's authorized representative presented:

1. Opinions on the contents of the lawsuit request include from content No. 1 to content No. 7 of Company N according to the petition dated May 17, 2016, as follows:

2. Boiler insurance certificate number: P-15/DNI/XCG/3201/0006 was mutually agreed and signed by P1 Insurance and Company N on March 26, 2015 in accordance with the provisions of law. Law (Insurance contract set includes: Insurance certificate, Notice of premium collection, Insurance rules, Additional terms stamped by P Insurance). However, during the implementation of the contract, Company N did not fully implement the commitments in the contract, resulting in the contract expiring before the loss occurred, specifically as follows:

According to the payment terms on the insurance certificate and additional clause No. 23, the payment term is specified:

1) According to the term stated on the Insurance Certificate:

“Fee payment deadline: Within 15 days from March 26, 2015.

Payment terms stated in the Contract: Insurance premium will be paid to the insurer by cash, check or bank transfer in one lump sum. As follows:

In case the insured does not pay the insurance premium in full or does not pay the insurance premium according to the payment terms of the Insurance Contract or other payment agreements agreed in writing by both parties, the validity of the Contract The insurance contract will automatically terminate on the following day. The insured must pay premiums as agreed in the Insurance Contract or accompanying amendments/additions (if any).

Thus, according to this premium payment deadline, Company N must pay the insurance premium to Insurance P before April 10, 2015 (this is also clearly stated by Insurance P in the fee collection notice sent to Company N). March 26, 2015).

2) According to Additional Clause No. 23: Insurance premium payment commitment clause (30 days):

“1) The parties agree and acknowledge that, notwithstanding any condition to the contrary contained in this insurance policy, and subject to condition 2 set out below (without prejudice to the rights of parties under this policy), it is a condition precedent to the liability of P Insurance under the policy, renewal certificate, rider or temporary insurance certificate that the insured must pay in full any assessed premium and P Insurance, the insurance broker or agent who issued or arranged the policy shall receive such premium within the prescribed payment period as follows:

(a) If the period of insurance is 30 days or more, payment must be made within 30 days of:

(i) Effective date of the insurance policy, renewal certificate, or temporary insurance certificate.

(ii) The effective date specified in each additional clause (if any) issued under the insurance policy, insurance renewal certificate, temporary insurance certificate if the declared insurance effective date is on or after the release date of the additional terms.

(iii) Date of issuance of each additional rider (if any) issued under the insurance policy, insurance renewal certificate or temporary insurance certificate if the effective date specified in this additional rider occurs before release date.

Or

(b) If the insurance period is less than 60 days, within the period of insurance declared in the insurance policy, renewal certificate, rider, or temporary insurance certificate.

2) In case the insurance premium mentioned above has not been fully paid to P Insurance, brokers, agents as declared according to the nature and time specified above (payment guarantee period premium), the validity of insurance under the insurance policy, renewal certificate, additional clause, or temporary insurance certificate shall be deemed to terminate from the expiration date of the payment guarantee period payment the insurance premium and Insurance P will be exempted from all liability from then on and in this case, Insurance P will be entitled to the insurance premium calculated in proportion to the days the insurance policy has been in force but not more than 20 USD.”

Thus, according to this premium payment deadline, Company N must pay the insurance premium to P before May 1, 2015.

Based on the above payment agreements, before May 1, 2015 at the latest, Company N must pay the insurance premium according to boiler insurance certificate No.: P-15/DNI/XCG/3201/0006 for Insurance P, but on May 7, 2015, P received the insurance premium from Company N (7 days late compared to the provisions of additional clause No. 23, 26 days late compared to the provisions of payment in insurance certificate).

Therefore, based on the payment terms on the insurance certificate and additional clause No. 23; Pursuant to section a, clause 2, Article 18 and clause 2, Article 23 of the Law on Insurance Business; Clause 4, Article 2 of Circular No. 194/2014/TT-BTC, dated December 17, 2014, effective February 1, 2015 of the Ministry of Finance, the explosion loss of Biomass fluidized bed boiler No. 3 with capacity of 30 tonnes/ h according to boiler insurance certificate number: P-15/DNI/XCG/3201/0006 occurred on November 13, 2015 of Company N at S Paper Company Limited - M Industrial Park, T District, Ba Ria - Vung Tau province is not under the insurance responsibility of P Insurance because insurance contract number: P- 15/DNI/XCG/3201/0006 has expired on May 1, 2015, before the The loss occurred on November 13, 2015.

1. Public liability insurance contract number: P-15/DNI/XCG/3303/0010 was jointly agreed and signed by P1 Insurance and Company N on March 26, 2015 (The Contract Set includes: Insurance contract, Insurance rules, Additional terms are stamped together). However, during the process of implementing the contract, Company N did not fully implement the commitments in the contract, resulting in the Contract expiring before the loss occurred, specifically as follows:

According to the insurance certificate and additional terms, the payment term is specified:

1. According to the deadline stated on the insurance certificate: "Fee payment deadline: Within 15 days from the date of issuance of the certificate".

Thus, according to this premium payment deadline, Company N must pay the insurance premium to Insurer P before April 10, 2015 (this is also clearly stated by Insurance P in the premium collection notice dated March 26, 2015 sent to Company N).

2. According to additional clause No. 23: Insurance premium payment commitment clause: “Notwithstanding anything to the contrary stated herein and solely based on and without prejudice to clause 2 stated set out below, the parties declare and agree that the condition precedent to liability under this insurance policy, renewal certificate, amendment or supplement or temporary insurance certificate is Any insurance premium due must be paid and received in full by the Insurance Company, registered brokers or agents:

(a) If the insurance period is 30 days or more, within 30 days from:

(i) Date of receipt of insurance under the insurance policy, insurance renewal certificate or temporary insurance certificate, or

(ii) The effective date of insurance is specified in each amendment and supplement, if any, issued under the insurance policy, insurance renewal certificate or temporary insurance certificate upon the effective date of insurance. The risk stated on the amendment is on or after the date of publication of the amendment, or

(iii) Date of issue of each amendment, if any, issued under the insurance policy, renewal certificate or temporary insurance certificate When the effective date of insurance is stated on the amendment That addition was before the release date.

(b) If the insurance period is shorter than 7 days, within the insurance period stated in the insurance policy, insurance renewal certificate or temporary insurance certificate.

Where any of the premiums referred to above are not paid in full to the Insurer, Broker or Registered Agent as described above, in the manner and within the period specified above (“Commitment period to pay insurance premium”), the insurance under this insurance policy, insurance renewal certificate or temporary insurance certificate will be automatically terminated from the effective date of this policy. contract and the Insurer shall be relieved of all liability from that date.

Thus, according to this premium payment deadline, Company N must pay the insurance premium to Insurance P before May 1, 2015.

Based on the above payment agreements, no later than May 1, 2015, Company N must pay the insurance premium according to public liability insurance contract No.: P-15/DNI/XCG/3303/ 0010 for Insurance P. But on May 7, 2015, Insurance P received the Insurance Policy from Company N (7 days late compared to the provisions of Additional Clause No. 23, 26 days late compared to the payment terms in the insurance contract.

Therefore, based on the payment terms in the Insurance Contract; Pursuant to Section a, Clause 2, Article 18 and Clause 2, Article 23 of the Law on Insurance Business, Clause 4, Article 2 of Circular No. 194/2014/TT-BTC dated December 17, 2014, effective February 1, 2015 of the According to the Ministry of Finance, Insurer P1 is not responsible for compensation for Company N's legal responsibilities to third parties related to losses caused by the explosion of Biomass fluidized bed boiler No. 3, capacity of 30 tonnes/h, according to Public Liability Insurance Contract No.: P-15/DNI/XCG/3303/0010, occurred on November 13, 2015 at S Paper Company Limited - M Industrial Park, T District, Ba Ria - Vung Tau province because this insurance contract has expired from May 1, 2015, before the loss occurred on November 13, 2015.

III. Boiler insurance certificate number: P-15/DNI/XCG/3201/0008 was jointly agreed and signed by P1 Insurance and Company N on September 30, 2015 (Contract set includes: Certificate Insurance certificate, insurance rules, additional terms, all of these documents are stamped with P Insurance's seal. Based on these documents, P Insurance would like to announce the following:

Contract P-15/DNI/XCG/3201/0008, insurance for Biomass boiler No. 2, has been fully fulfilled by Company N of its obligations under the Contract, so Insurance P will consider settling compensation according to regulations, this was mentioned by P Insurance in Official Dispatch 130/P-DNI-CV dated November 24, 2015. Currently, the inspection company has been agreed by all parties to invite an inspection for Biomass boiler No. 2, which is conducting its work. When the results are available, P Insurance will make compensation according to regulations.

Regarding the loss of boiler No. 2, Insurance P does not avoid responsibility as stated by the plaintiff, but Insurance Company P1 is coordinating with Company N and Inspection Joint Stock Company B to determine the value of the damage, which is the basis for Insurer P1 to compensate according to regulations. Currently, the case is in the process of being resolved, so we request the Court to consider not accepting this content.

1. Public liability insurance contract No. P-15/DNI/XCG/3303/0009 was jointly agreed and signed by P1 Insurance and Company N on March 24, 2015 in accordance with the provisions of law. (The Contract Set includes: Insurance Certificate, Premium Notice, Insurance Rules, Additional terms stamped by P Insurance).

According to this Insurance Contract, the insured location is at Company H, not related to the loss occurring at Paper Company S.

Therefore, we recommend that the Court not consider this content.

1. For compensation claims against Company N's persons under Public Liability Insurance Contract No. P- 15/DNI/XCG/3303/0009 dated March 24, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0010 dated March 26, 2015 and Public liability insurance contract No. P-15/DNI/XCG/3303/0057 dated March 30, 2015 September 2015, asking the Court to reject it because public liability insurance contracts do not insure employees or employees of the insured.

2. For losses related to the liability of a third party in application P-15/DNI/XCG/3303/0057, Insurance Company P1 is coordinating with Company N and Appraisal Joint Stock Company B to determine the value of the loss. damage, on that basis let Insurer P1 compensate according to regulations. Currently, the case is in the process of being resolved, so we request that the Court consider not accepting this content.

3. Opinions on the content of lawsuit request No. 9 of Company N according to the lawsuit dated May 17, 2016, as follows:

The calculation of interest due to late payment of compensation for all lawsuit items is unfounded for the following reasons:

1) Boiler insurance certificate number: P-15/DNI/XCG/3201/0006 and public liability insurance contract number: P-15/DNI/XCG/3303/0010 have expired on dated May 1, 2015, before the loss occurred on November 13, 2015 as stated clearly in section I and II, part A. This means calculating interest due to late compensation payment. is unfounded.

2. Boiler insurance certificate No.: P-15/DNI/XCG/3201/0008, Public liability insurance contract No.: P-15/DNI/XCG/3303/0057.

On November 24, 2015, Insurer P1 issued official dispatch No. 130/P-DNI-CV announcing that: ""You have fully paid insurrance premiums in accordance with regulations, Insurer P will instruct you to take the next steps to consider insurance coverage for the damage under this insurance certificate"

After the loss occurred, P Insurance hired Inspection Joint Stock Company B to coordinate/guide Company N to collect documents to determine the cause and extent of the loss to have a basis for considering compensation for losses under this Insurance Contract (the hiring of an independent appraisal unit, Inspection Joint Stock Company B, has been jointly confirmed and agreed by P Insurance & Company N). But up to now, Company N has not provided sufficient documents to prove the loss according to the official request and instructions through many meetings of Inspection Joint Stock Company B. P Insurance is responsible for compensation within 15 days from the date of receipt of complete and valid documents according to the provisions of the Law on Insurance Business, insurance rules and effective insurance contract. In this case, Company N has not provided complete documents according to regulations, so P has not been able to make compensation for damage to Biomass boiler No. 2, so it cannot be said that P Insurance is slow in fulfilling its obligations under the lawsuit filed by Company N.

3. Regarding the timeline for calculating complaints about delayed performance of compensation obligations:

The loss occurred on November 13, 2015, while Company N complained due to delay in performing compensation obligations from January 19, 2015. The time that Company N mentioned to calculate the interest rate has nothing to do with the time of loss, nor anything to do with dispatch 130/PHCO-DNI-CV dated November 24, 2015 that P1 Insurance sent to Company N .

4. Regulations on compensation due to late payment obligations:

According to the provisions of the Law on Insurance Business and insurance rules, the insurance enterprise is responsible for compensating the insured within 15 days from the date of receiving complete and valid documents according to regulations.

Insurance Company P has fully performed its responsibilities in accordance with the terms and conditions agreed by the parties in the contracts and insurance certificate No. P-15/DNI/XCG/3201 /0006; P-15/DNI/XCG/3303/0010 and P-15/DNI/XCG/3303/0009. The refusal of compensation for these Contracts/Certificates is in accordance with the commitments in the Contract and in accordance with the provisions of the Insurance Business Law; Circular No. 194/2014/TT-BTC dated December 17, 2014, effective February 1, 2015 of the Ministry of Finance. From the above issues, we request the Court to reject the plaintiff's entire lawsuit request.

Regarding the Valuation Certificate No. 2003/TDG-CT dated August 22, 2016 of D Valuation Joint Stock Company, P Insurance has the opinion that it does not agree with the above valuation certificate because the valuation is inappropriate and not in accordance with the law. The Court explained that the defendant has the right to request a re-appraisal, but the defendant has sent an opinion to the Court that the use of the valuation certificate as the basis for insurance compensation is not in accordance with the provisions of law on insurance compensation to request the Court to resolve the case according to the law.

Persons with related rights and obligations of Insurer P1 represented by Mr. Chu Thanh T presented:

Agree with the defendant's opinions in the self-declaration dated June 27, 2016, the conciliation minutes and no other opinions. The opinions of P Insurance Corporation (P Insurance) sent to the Court are also his opinions as the legal representative of the person with related rights and obligations of Insurer P1.

Persons with related rights and obligations of Joint Stock Commercial Bank V presented by Ms. Ha Thi Thanh H, authorized representative.

- On May 8, 2013, Company N (hereinafter abbreviated as: customer) mortgaged assets to Joint Stock Commercial Bank V - Branch B (hereinafter abbreviated as Bank) which is a boiler system installed located at H Joint Stock Company, according to mortgage contract No. 069/13/VCB.BH dated May 8, 2013. The boiler system installed at H Joint Stock Company has been insured by customers as follows:

+ Boiler insurance contract No. P-15/DNI/XCG/3201/0005, dated March 24, 2015 with the first beneficiary being Joint Stock Commercial Bank V - Branch B, the insured amount is 6,500,000,000 VND, insurance period from April 1, 2015 - March 31, 2016.

+ Public liability insurance contract No. P-15/DNI/XCG/3303/0009 dated March 24, 2015 with the first beneficiary, Joint Stock Commercial Bank V - Branch B, insurance amount is 21,000. 000,000 VND, insurance period from April 1, 2015 - March 31, 2016.

- On October 1, 2014, Company N mortgaged its assets to the Bank, which is the boiler system installed at S Paper One Member Limited Liability Company (Oven 2), according to Asset Mortgage Contract No. 207/14/ VCB.BH October 1, 2014. Boiler system No. 2 at S Paper Company has been insured by customers as follows:

+ Boiler insurance contract No. P-15/DNI/XCG/3201/0008 dated September 30, 2015 with the first beneficiary being Joint Stock Commercial Bank V - Branch B, the insured amount is 5,400,000,000 VND , insurance period from October 1, 2015 - October 1, 2016.

+ Public liability insurance contract No. P-15/DNI/XCG/3303/0057 dated September 30, 2015 with the first beneficiary, Joint Stock Commercial Bank V - Branch B, with an insurance amount of 21,000 000,000 VND, insurance period from October 1, 2015 to October 1, 2016.

- On February 6, 2015, Company N mortgaged its assets to the Bank, which are the boiler system installed at Paper S Company Limited (Oven 3), according to Asset Mortgage Contract No. 055/15/ VCB.BH, February 6, 2015. Boiler system No. 3 located at S Paper Company has been insured by customers as follows:

+ Boiler insurance contract No. P-15/DNI/XCG/3201/0006 dated March 26, 2015 with the first beneficiary being Joint Stock Commercial Bank V - Branch B, the insured amount is 13,000,000,000 VND , insurance period from April 1, 2015 to March 31, 2016.

+ Public liability insurance contract No. P-15/DNI/XCG/3303/0010 dated March 26, 2015 with the first beneficiary being Joint Stock Commercial Bank V - Branch B, the insured amount is 21,000. 000,000 VND, insurance period from April 1, 2015 to March 31, 2016.

The above assets are used to secure Company N's loans at Joint Stock Commercial Bank V - Branch B according to Credit Contracts with detailed content as follows:

- According to the written report on the boiler explosion incident of Company N sent to Joint Stock Commercial Bank V - Branch B on November 16, 2015, at about 00:30 on November 13, 2015, at Paper Company S, Address: M Industrial Park, T District, Ba Ria - Vung Tau Province, there was an explosion of customer's No. 3 boiler. The above incident caused complete damage to the mortgaged property at the Bank under Mortgage Contract No. 055/15/VCB.BH dated February 6, 2015, the estimated damage value is about 13,000. 000,000 VND.

- On November 16, 2015, the Bank went to the actual incident scene and worked with Company N (details according to the Working Minutes dated November 16, 2015). The bank requires the customer to provide detailed information on the status of the collateral, and actively work with Insurer P1 to receive compensation for damages caused by the above incident.

According to the Notice of Acceptance of Case No. 72/2016/TB-KDTM dated June 2, 2016 of the People's Court of Bien Hoa City regarding "Insurance Contract Dispute", Company N requested the Court Solve the following specific problems:

1. Recognizing the validity of boiler insurance contract No. P-15/DNI/XCG/3201/0006 dated March 26, 2015 between Insured Party P1 and Insured Party N; P Insurance Joint Stock Corporation (P Insurance Joint Stock Company) is responsible for compensating Company N for all damages stated below.

2. Recognizing the validity of boiler insurance contract No. P-15/DN1/XCG/3303/0010 dated March 26, 2015 between Insured Party P1 and Insured Party N; P Insurance Joint Stock Corporation (P Insurance Joint Stock Company) is responsible for compensating Company N for all damages stated below.

3. Recognizing the validity of boiler insurance contract No. P-15/DNI/XCG/3201/0005 dated March 24, 2015 between Insured Party P1 and Insured Party N; P Insurance Joint Stock Corporation (P Insurance Joint Stock Company) is responsible for compensating Company N for all damages when an insurance incident occurs.

4. Recognizing the validity of boiler insurance contract No. P-15/DNI/XCG/3303/0009 dated March 24, 2015 between insurer P1 and insured party N; P Insurance Joint Stock Corporation (P Insurance Joint Stock Company) is responsible for compensating Company N for all damages mentioned below and other damages when an insurance incident occurs.

5. Compensating Company N for all loss and explosion of Biomass fluidized bed boiler No. 3 according to Boiler Insurance Contract No. P-15/DNI/XCG/3201/0006 dated March 26, 2015 with an amount of 18,184 ,750,678 VND.

6 Compensating Company N's public liability insurance is 633,000. 000 VND according to public liability insurance contract No. P-15/DNI/XCG/3303/0009 dated March 24, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0010 dated March 26, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0057 dated September 30, 2015.

7. Compensating Public Liability Insurance Company N for the property of a third party, due to the incident of boiler No. 3 with the amount of 1,510,790,352 VND according to Public Liability Insurance Contract No. P-15 /DNI/XCG/3303/0009 dated March 24, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0010 dated March 26, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0057 dated September 30, 2015.

8. Compensating Company N for all loss and explosion of Biomass fluidized bed boiler No. 2 of 500,000,000 VND according to boiler insurance contract No. P-15/DNI/XCG/3201/0008 dated September 30, 2015 .

9. Compensating damages due to delay in performing insurance compensation obligations after 15 days from January 19, 2015 (recorded by P1 Insurance in Official Dispatch No. 130/P-DNI-CV, dated November 24 -2015) until the first instance trial date, according to the average overdue debt interest rate on the market: 20,828,541,030 VND x 15 months (temporarily calculated from February 4, 2015 to May 4, 2016) x 9 %/year x 150% = 3,514,816,298 VND.

Total (5)+(6)+(7)+(8)+(9): 24,343,357,328 VND.

Regarding the contents of Company N's lawsuit against P Insurance Joint Stock Corporation (P Insurance Joint Stock Company) in the petition as well as at the trial, Joint Stock Commercial Bank V requests the Court to adjudicate according to regulations. provisions of the law.

Regarding Valuation Certificate No. 2003/TDG-CT dated August 22, 2016 of Valuation Joint Stock Company D, the Bank has no opinion and requests the Court to resolve it according to the law.

In the first instance commercial and business judgment No. 50/2016/KDTM-ST dated October 11, 2016, the People's Court of Bien Hoa city, Dong Nai province decided:

Accepting the petition of Company N.

Forcing P Insurance Joint Stock Corporation (P Insurance Joint Stock Company):

1. Recognizing the validity of Boiler Insurance Contract No. P-15/DNI/XCG/3201/0006 dated March 26, 2015 between insurer P1, insured party N and P Insurance Joint Stock Corporation (Insurance Joint Stock Company P) is responsible for compensating Company N for all damages.

2. Recognizing the validity of Public Liability Insurance Contract No. P-15/DNI/XCG/3303/0010 dated March 26, 2015 between insurer P1, insured party N and Insurance Joint Stock Corporation P Insurance (P Insurance Joint Stock Company) is responsible for compensating Company N for all damages.

3. Compensating Company N for all explosion losses of Biomass Fluidized Bed Boiler No. 3 according to boiler insurance contract No. P-15/DNI/XCG/3201/0006, dated March 26, 2015: 13,000. 0000,000 VND;

4. Cleaning up the scene 200,000,000 VND.

5. Compensating N Public Liability Insurance Co., Ltd. for third party property due to the boiler explosion incident No. 3 with the amount of: 1,510,790,352 VND, according to public liability insurance contract No. P-15/DNI/XCG/3303/0010 dated March 26, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0057 dated September 30, 2015.

6. Compensating Company N for all loss of Biomass Fluidized Bed Boiler No. 2: 500,000,000 VND, according to boiler insurance contract No. P-15/DNI/XCG/3201/0008 dated September 30, 2015.

7. Compensating damages due to delay in performing insurance compensation obligations after 15 days from November 19, 2015, receiving all valid compensation claims (recorded by P1 Insurance in Official Dispatch No. 130/P- DNI-CV dated January 24, 2015) i.e. December 4, 2015 until the first instance trial date October 11, 2016, according to the basic interest rate issued by the State Bank: 15,210,790,352 VND x 10 7 days per month x 9%/year = 1,167,428,159 VND.

Total (3)+(4)+(5)+(6)+(7): 16,378,218,511 VND.

Suspension of the withdrawn lawsuit request of Company N includes:

- Recognizing the validity of Public Liability Insurance Contract No. P-15/DNI/XCG/3303/0009 dated March 24, 2015 between insurer P1, insured party N and Insurance Joint Stock Corporation P (Insurance Joint Stock Company P) is responsible for compensating Company N for all damages when an insurance incident occurs.

- Recognizing the validity of Public Liability Insurance Contract No. P-15/DNI/XCG/3303/0009 dated March 24, 2015 between insurer P1, insured party N and Insurance Joint Stock Corporation P (Insurance Joint Stock Company P) is responsible for compensating Company N for all damages when an insurance incident occurs.

- Compensating public liability insurance company N is 633,000,000 VND, according to public liability insurance contract No. P-15/DNI/XCG/3303/0009 dated March 24, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0010 dated March 26, 2015; Public liability insurance contract No. P-15/DN1/XCG/3303/0057 dated September 30, 2015.

- Having not calculated the 150% overdue penalty interest in the claim for compensation for damages due to P Insurance Joint Stock Company's delay in fulfilling its insurance compensation obligations.

- Partial request to sue to compensate Company N for all loss and explosion of Biomass fluidized bed boiler No. 3 according to Boiler Insurance Contract No. P-15/DNI/XCG/3201/0006 dated March 26, 2015 is: 4,984,750,678 VND.

P Insurance Joint Stock Corporation (P Insurance Joint Stock Company) must reimburse Company N for the total price appraisal cost: 134,000,000 VND.

In addition, the Court of First Instance also decides on the liability for delay in judgment enforcement, court fees and the litigants' right to appeal.

On October 20, 2016, the defendant P Insurance Joint Stock Corporation filed an appeal against the entire first-instance commercial business judgment.

In the Appellate Business and Commercial Judgment No. 01/2017/KDTM-PT dated March 6, 2017, the People's Court of Dong Nai province decided:

Rejected the entire appeal request of P Insurance Joint Stock Corporation (P Insurance Joint Stock Company), maintaining the first instance judgment.

Accepting the petition of Company N.

Forcing P Insurance Joint Stock Corporation (P Insurance Joint Stock Company):

1. Recognizing the validity of boiler insurance contract No. P-15/DNI/XCG/3201/0006 dated March 26, 2015 between insurer P1, insured party N and P Insurance Joint Stock Corporation (Insurance Joint Stock Company P) is responsible for compensating Company N for all damages.

2. Recognizing the validity of public liability insurance contract No. P-15/DNI/XCG/3303/0010 dated March 26, 2015 between insurer P1, insured party N and Insurance Joint Stock Corporation P Insurance (P Insurance Joint Stock Company) is responsible for compensating Company N for all damages.

3. Compensating Company N for all loss and explosion of Biomass fluidized bed boiler No. 3 according to boiler insurance contract No. P-15/DNI/XCG/3201/0006 dated March 26, 2015: 13,000,0000,000 copper.

4. Cleaning up the scene 200,000,000 VND.

5. Compensating Company N for public liability insurance on third party property due to boiler explosion incident No. 3 with the amount of: 1,510,790,352 VND, according to public liability insurance contract No. P -15/DNI/XCG/3303/0010 dated March 26, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0057 dated September 30, 2015.

6. Compensating Company N for all loss of Biomass Fluidized Bed Boiler No. 2: 500,000,000 VND, according to boiler insurance contract No. P-15/DNI/XCG/3201/0008 dated September 30, 2015.

7. Compensating damages due to delay in performing insurance compensation obligations after 15 days from November 19, 2015, receiving all valid compensation claims (Recognized by P1 Insurance in Official Dispatch No. 130/P- DNI-CV dated January 24, 2015) i.e. December 4, 2015 until the first instance trial date October 11, 2016, according to the basic interest rate issued by the State Bank: 15,210,790,352 VND x 10 7 days per month x 9%/year = 1,167,428,159 VND.

In total (3)+(4)+(5)+(6)+(7), P Insurance Joint Stock Corporation (P Insurance Joint Stock Company) is responsible for compensating Company N as : 16,378,218,511 VND.

Suspension of the withdrawn lawsuit request of Company N includes:

- Recognizing the validity of Public Liability Insurance Contract No. P-15/DNI/XCG/3303/0009 dated March 24, 2015 between insurer P1, insured party N and Insurance Joint Stock Corporation P (Insurance Joint Stock Company P) is responsible for compensating Company N for all damages when an insurance incident occurs.

- Recognizing the validity of Public Liability Insurance Contract No. P-15/DNI/XCG/3303/0009 dated March 24, 2015 between insurer P1, insured party N and Insurance Joint Stock Corporation P (Insurance Joint Stock Company P) is responsible for compensating Company N for all damages when an insurance incident occurs.

- Compensating Public Liability Insurance Company N is 633,000,000 VND, according to Public Liability Insurance Contract No. P-15/DNI/XCG/3303/0009, dated March 24, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0010 dated March 26, 2015; Public liability insurance contract No. P-15/DNI/XCG/3303/0057 dated September 30, 2015.

- Having not calculated the 150% overdue penalty interest in the claim for compensation for damages due to P Insurance Joint Stock Company's delay in fulfilling its insurance compensation obligations.

- Partial request to sue to compensate Company N for all loss and explosion of Biomass fluidized bed boiler No. 3 according to Boiler Insurance Contract No. P-15/DNI/XCG/3201/0006 dated March 26, 2015 is: 4,984,750,678 VND.

- Regarding litigation costs: P Insurance Joint Stock Corporation (P Insurance Joint Stock Company) must bear valuation costs of 134,000,000 VND, so P Insurance Joint Stock Corporation (P Joint Stock Company) insurance P) must be responsible for repaying Company N the amount of 134,000,000 VND.

From the date the plaintiff files a request for judgment enforcement, if the defendant fails to pay the above amount and the price appraisal fee, he/she must pay late payment interest at the basic interest rate set by the State Bank accordingly. corresponding to the late payment amount at the time of payment.

In addition, the Court of Appeal also decides on court fees.

After the appeal trial, P Insurance Joint Stock Corporation filed a request to review the above appeal judgment according to cassation procedures.

In Decision No. 45/QDKNGDT-VC3-KDTM dated February 8, 2018, the Director of the High People's Procuracy in Ho Chi Minh City protested the above appellate judgment and requested the Court Judges Committee to High-ranking people in Ho Chi Minh City conducted a cassation trial to annul the above-mentioned appellate commercial and business judgment and annul the entire first-instance commercial and business judgment No. 50/2016/KDTM-ST dated October 11, 2016 of the People's Court of Bien Hoa city, Dong Nai province; hand over the case file to the People's Court of Bien Hoa city, Dong Nai province for first instance trial in accordance with the law.

At today's court hearing, the representative of the High People's Procuracy in Ho Chi Minh City requested the Judges Committee of the High People's Court in Ho Chi Minh City to accept the protest of the Procurator General of the People's Procuracy. senior citizens in Ho Chi Minh City.

COURT'S OPINION:

[1] According to the documents and evidence in the case file, it shows:

[2] Company N supplies, installs and operates 03 boilers at M Industrial Park, T district, Ba Ria - Vung Tau province for S Paper Joint Stock Company (Paper Company). At the same time, Company N and Insurance Company P1 (P1 Insurance) signed 05 boiler insurance contracts and public liability insurance, specifically: Boiler insurance contract No. P-15/DNI/XCG /3201/0006 dated March 26, 2015 (Condition No. 06); Public liability insurance contract No. P-15/DNI/XCG/3303/0010 dated March 26, 2015 (Contract No. 10); Boiler insurance contract No. P-15/DNI/XCG/3201/0007 dated September 30, 2015 (Contract No. 07); Boiler insurance contract No. P-15/DNI/XCG/3201/0008 dated September 30, 2015 (Contract No. 08); Public liability insurance contract No. P-15/DNI/XCG/3303/0057 dated September 30, 2015 (Contract No. 57).

[3] At about 00:30 on November 13, 2015, at the Paper Company, there was an explosion of boiler No. 3. The Police Investigation Agency - Ba Ria - Vung Tau Provincial Police requested to examine the cause. The cause of the incident and the conclusion was that the cause of boiler explosion No. 3 was due to a technical error, with no signs of crime. The boiler explosion not only caused damage to the assets of Company N but also affected the assets of the Paper Company. The damaged assets at the Paper Company are within the scope of insurance according to the Insurance Certificate, so Company N is compensated by insurance for the lost value according to the provisions of law.

[4] However, P1 Insurance believes that Company N is late in paying insurance premiums, so Contract No. 06 and Contract No. 10 are not valid because: The last day to pay insurance premiums is January 1- May 2015, but on May 7, 2015, Company N transferred the premium payment to P1 Insurance. After receiving the non-insurance money from Company N, P Insurance Joint Stock Corporation and P1 Insurance Corporation had no comments and no written notice of late premium payment, then the two Contracts The above is no longer valid from May 1, 2015, but P1 Insurance still receives, issues value-added invoices and reports taxes on these two insurance payments of Company N, so naturally the Corporation P Insurance Joint Stock Company and P1 Insurance acknowledge Company N's late payment of insurance premiums and acknowledge that the above two insurance contracts are valid.

[5] Therefore, when an insurance event occurs, P Insurance Joint Stock Corporation must be responsible for compensation according to the contract signed between the two parties.

[6] Regarding loss and compensation, it is found that: Pursuant to Article 48 of the Law on Insurance Business stipulates: A loss assessment must be performed to determine the cause and extent of the loss. From there, there is a basis to determine the amount of compensation P Insurance Corporation must pay. But the Court of First Instance and the Court of Appeal only decided to appraise the property value to use as a basis to force P Insurance Joint Stock Corporation to compensate, which is unfounded because according to the provisions of Clause 15. Article 4 of the Price Law stipulates: Price appraisal is the determination of the monetary value of assets by an agency or organization with the function of price appraisal in accordance with the provisions of the Civil Code in accordance with the market price at a certain location, certain time, serving a certain purpose according to valuation standards.

[7] On the other hand, according to the provisions of Insurance Contract No. 06, the deductible level is as follows: The deductible level is the amount of money the insured person must bear in case a loss occurs, the deductible level is in this Contract is 5% of the minimum loss value of 10,000,000 VND/each loss. But the Court of First Instance and the Court of Appeal did not consider this agreement in the Contract and forced P Insurance Joint Stock Corporation to compensate for all damages, which was not in accordance with the Contract's agreement, causing damage. 

[8] For Insurance Contract No. 08: After the incident, the two parties agreed to let Inspection Joint Stock Company B perform the inspection. But appraisal Joint Stock Company B has not finished assessing the loss because Company N has not provided enough documents. The Court of First Instance and the Court of Appeal did not consider this issue but forced the Joint Stock Corporation Insurer P to compensate Company N. When there is not enough evidence, it is unfounded.

[9] Company N has not provided evidence to prove that it has compensated for material damage to third parties, but the Court of First Instance and the Court of Appeal both forced P Insurance Joint Stock Corporation having to compensate for public liability under Contract No. 10 and Contract No. 57 in the amount of 1,510,790,352 VND is unfounded.

[10] In addition, the technical inspection certificate of the Industrial Inspection Center II determines: The inspection was before October 2013, but the insurance contract and appraisal certificate confirm that the BIOMASS drying oven is manufactured 2014, but the Court of First Instance and the Court of Appeal have not yet clarified this issue, but decided that forcing Insurance Joint Stock Corporation P to compensate Company N is not sufficient grounds.

Because of the above reasons;

DECISION:

Pursuant to Article 337, Article 343 and Article 349 of the Civil Procedure Code.

1. Accept Protest No. 45/QDKNGDT-VC3-KDTM dated February 8, 2018 of the Director of the High People's Procuracy in Ho Chi Minh City.

2. Cancel the entire Appellate Commercial and Business Judgment No. 01/2017/KDTM-PT dated March 6, 2017 of the People's Court of Dong Nai Province and annul the entire First Instance Commercial and Business Judgment No. 50/ 2016/KDTM-ST dated October 11, 2016 of the People's Court of Bien Hoa city, Dong Nai province between the plaintiff, Company N, and the defendant, Insurance Joint Stock Corporation P; hand over the case file to the People's Court of Bien Hoa city, Dong Nai province for first instance trial in accordance with the law.

3. The cassation decision takes legal effect from the date of decision.

CONTENTS OF THE PRECEDENT

“[4]... After receiving the insurance premium from Company N, P Insurance Joint Stock Corporation and P1 Insurance had no comments and no written notice of premium payment. If the insurance is late, the above two Contracts will no longer be valid from May 1, 2015, but P1 Insurance still receives, issues value-added invoices and reports taxes on these two insurance payments of the Company N, so P Insurance Joint Stock Corporation and P1 Insurance implicitly acknowledge Company N's late payment of insurance premiums and acknowledge that the above two insurance contracts are valid.

[5] Therefore, when an insurance event occurs, P Insurance Joint Stock Corporation must be responsible for compensation according to the contract signed between the two parties.”

Above is the content of Precedent No. 37/2020/AL on the validity of property insurance contracts in cases where the insurance buyer pays the insurance premium after the end of the premium payment period.

In addition, you can refer to the comprehensive list of 39 Precedents published and applied in Vietnam (the latest) here.

Best regards!