Insurance Rates and Deductibles for Fire and Explosion

Insurance Premium Rates

The insurance premium rates stipulated in Section I, Appendix II of Decree 23 apply to establishments with fire and explosion hazards as prescribed by law. Specifically, as follows:

- For establishments with fire and explosion hazards (excluding nuclear facilities) with a total insured amount of assets at one location under 1,000 billion VND: The insurance premium rate prescribed in Clause 1, Section I, Appendix II issued with Decree 23.

Based on the stipulated insurance premium rate, the insurer and the policyholder can agree to increase the insurance premium rate applicable to each establishment with fire and explosion hazards, based on the risk level of each establishment and the legal provisions.

- For establishments with fire and explosion hazards with a total insured amount of assets at one location from 1,000 billion VND or more and nuclear facilities: The insurance enterprise and the policyholder agree on the insurance premium rate according to legal provisions and based on acceptance from the reinsurer.

Insurance Deductible

Decree 23 refers to the insurance deductible as the amount that the policyholder must bear in each insurance event, as stipulated in the Appendix attached to Decree 23, specifically as follows:

- For establishments with fire and explosion hazards (excluding nuclear facilities) with a total insured amount of assets at one location under 1,000 billion VND: The insurance deductible prescribed in Clause 1, Section II, Appendix II issued with Decree 23.

The insurer and the policyholder agree in the insurance contract on the insurance deductible applicable to each establishment with fire and explosion hazards, based on the risk level and loss history of each establishment.

- For establishments with fire and explosion hazards with a total insured amount of assets at one location from 1,000 billion VND or more and nuclear facilities: The insurer and the policyholder agree on the insurance deductible based on acceptance from the reinsurer.

More details can be found in Decree 23/2018/ND-CP, which takes effect from April 15, 2018.

-Thao Uyen-

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