Claim applications of insurance indemnity in Vietnam

Claim applications of insurance indemnity in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Rules for insurance indemnity in Vietnam

According to Clause 1, Article 8 of Decree 23/2018/ND-CP (amended in Decree 97/2021/ND-CP), the rules for insurance indemnity are as follows:

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

- 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.

- 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.

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

2. Claim applications of insurance indemnity in Vietnam

According to Clause 2, Article 8 of Decree 23/2018/ND-CP (amended in Decree 97/2021/ND-CP), a claim application includes the following documents:

- A policyholder’s claim letter.

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

- 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.

- An assessment record of the insurer or the person authorized by the insurer.

- 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.

- List of damage and documentary evidences for damage.

3. Rules for participation in compulsory fire and explosion insurance in Vietnam

According to Article 3 of Decree 23/2018/ND-CP (amended in Decree 97/2021/ND-CP), the rules for participation in compulsory fire and explosion insurance are as follows:

- Organizations and individuals specified in Clause 1, Article 2 of Decree 23/2018/ND-CP (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.

- The conditions for purchase and sale of insurance, insurance premiums and minimum sum insured are specified in Decree 23/2018/ND-CP.

In addition to compulsory fire and explosion insurance specified in Decree 23/2018/ND-CP, 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.

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

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

+ The facility does not have a record on fire safety inspection by the competent police authority 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.

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

- 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).

- 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.

Quoc Dat

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE