Principles and Documentation for Fire and Explosion Insurance Compensation

To be specific, the insurer shall review and settle insurance claims in accordance with the legal provisions on insurance business and the following principles:

- The insurance compensation for damaged property shall not exceed the insured value of that property (as agreed upon and recorded in the insurance contract, Insurance Certificate), minus the deductible.- A maximum reduction of 10% of the insurance compensation amount in cases where premises with fire and explosion hazards fail to fully and timely follow the recommendations in the fire safety inspection report by the Fire and Rescue Police Department, leading to increased damage when fire or explosion occurs.- There shall be no obligation to compensate for insurance claims arising from or increased by fraudulent actions under the provisions of the Criminal Code.

To be eligible for compensation, the dossier for compulsory fire and explosion insurance claims must include the following documents:

- A written compensation request from the policyholder.- Documents related to the insured object, including: Insurance contract, Insurance Certificate.- The latest fire safety inspection report by the Fire and Rescue Police Department at the time of the insurance event (copy).- An assessment report by the insurer or the insurer's authorized representative.- A conclusion or notification on the cause of the fire or explosion from the competent authority (copy) or other evidence proving the cause of the fire or explosion.- A list of damages and documents proving the damages.

The policyholder is responsible for collecting and sending the insurer the above documents, except for the assessment report which shall be collected by the insurer or the insurer's authorized representative. The insurer shall collect the assessment report by the insurer or the insurer's authorized representative.

See more details in Decree 23/2018/ND-CP, which took effect from April 15, 2018.

-Thao Uyen-

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE