Vietnam: Losses for which the insurer shall be freed from the liability to indemnify in construction investment insurance

15:17, 18/01/2017

On December 26, 2016, the Ministry of Finance of Vietnam issued Circular No. 329/2016/TT-BTC on guidelines for implementation of a number of certain articles of Decree No. 119/2015/NĐ-CP dated November 13, 2015 of Vietnam’s Government on compulsory insurance for construction activities.

According to Circular No. 329/2016/TT-BTC of the Ministry of Finance of Vietnam (effective from March 01, 2017) on guidelines for implementation of a number of certain articles of Decree No. 119/2015/NĐ-CP on compulsory insurance for construction activities, the insurer shall be freed from the liability to indemnify for the following loss:

- Loss caused by intentional acts such as loss incurred due to riots, strikes and hostilities; loss caused by intentionally illegal acts committed by the policyholder or the insured; loss caused by the consultants’ errors in design;

- Loss caused by the nature due to corrosion, abrasion, redox, rot, hardness, material defects;

- Loss not quantifiable in money such as loss of data, software and computer programs applied to carry out construction survey and design according to the consultancy’s expert advice;

- Loss due to catastrophic events such as loss caused by wars, terrorism, nuclear reaction, nuclear radiation and radioactive contamination;

- Loss beyond the coverage of the insurance as stipulated in clause 9 Article 3 of the Law on Insurance Business of Vietnam.

Source: Construction Newspaper

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