Vietnam: How are costs paid for purchase of compulsory insurance for construction investment activities calculated?

This is a notable content of the Decree No. 119/2015/NĐ-CP providing for compulsory insurance for construction investment activities, issued by Vietnam’s Government on November 13, 2015.

Project owners, contractors, consultancy service contractors, etc. when participating in compulsory insurance in construction investment activities must follow rules specified in Decree No. 119/2015/NĐ-CP of Vietnam’s Government, specifically as follows:

nguyen tac tham gia bao hiem bat buoc HD dau tu xay dung, Nghi dinh 119/2015/NĐ-CP

- Insurance enterprises, reinsurance enterprises, reinsurance assuming enterprises, and foreign reinsurance assuming organizations, must meet regulatory conditions for sale of compulsory insurance for construction investment activities as defined in Section 2 Chapter II hereof.

- An insurance enterprise shall provide compulsory insurance for their construction investment activities on conditions that an insurance buyer fully meets regulatory requirements relating to construction investment capability as stipulated by the Construction Law and other relevant laws and regulations.

- Project owners, consultancy service contractors and engineering construction contractors (hereinafter referred to as insurance buyer), and insurance enterprises, shall sell and purchase compulsory insurance for construction investment activities under regulations on liabilities, insurance premiums and sums assured referred to in this Decree and instructions set out by the Ministry of Finance.

- Costs paid for purchase of compulsory insurance for construction investment activities shall comply with the following regulations:

+ With respect to construction insurance which is valid during a construction period: Insurance premiums shall be included in the construction investment outlay;

+ With respect to professional liability insurance for construction investment consultancy: insurance premiums shall be included in the cost price of provision of consultancy service;

+ With respect to employees working at construction sites: Insurance premiums shall be included in production and business costs.

- In addition to participating in compulsory insurance for construction investment activities under regulations on liabilities, insurance premiums and sums assured laid down in this Decree, insurance buyers are able to participate in insurance with liabilities, insurance premiums and sums assured which are higher on the basis of arrangements with insurance enterprises and in compliance with laws and regulations. Additional costs that may be incurred by buying insurance (if any) shall be consistent with paragraph 4 of this Article.

- A contractor shall participate in civil liability insurance as a third party in accordance with paragraph 3 Article 9 of the Construction Law and under the direction of the Ministry of Finance.

- Organizations or individuals that do not belong to entities required to participate in compulsory insurance under the provisions of this Decree shall buy compulsory insurance for their construction investment activities on the basis of arrangements with insurance enterprises and in compliance with relevant laws and regulations.

View full text at Decree No. 119/2015/NĐ-CP of Vietnam’s Government, effective from February 10, 2016.

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

46 lượt xem



  • Address: 19 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City
    Phone: (028) 7302 2286
    E-mail: info@lawnet.vn
Parent company: THU VIEN PHAP LUAT Ltd.
Editorial Director: Mr. Bui Tuong Vu - Tel. 028 3935 2079
P.702A , Centre Point, 106 Nguyen Van Troi, Ward 8, Phu Nhuan District, HCM City;