Vietnam’s Decree 119: Scope of compulsory insurance coverage in construction investment activities

Consultancy service contractors, engineering construction contractors, non-life insurance enterprises, branches of foreign non-life insurance enterprises and reinsurance enterprises should pay attention to the scope of insurance coverage and denial of coverage specified in Article 6 of Decree No. 119/2015/NĐ-CP of Vietnam’s Government. To be specific:

Firstly, scope of compulsory insurance coverage in construction investment activities:

- With respect to insurance for works in progress: An insurance enterprise shall perform its duty to provide insurance cover against losses, claims or damages that may arise from all risks, except for losses referred to in paragraph 2 of this Article.

- With respect to professional liability insurance for construction investment consultancy: An insurance enterprise shall pay a construction consultancy contractor sums as an insurance cover which such contractor has its duty to provide a damage against losses or claims for a third party and pay related statutory costs incurred from provision of a construction consultancy service, except for losses or damages stipulated in paragraph 2 of this Article;

- With respect to insurance for employees working at construction sites: An insurance enterprise shall be liable to pay a construction contractor sums as an insurance cover which such contractor has its duty to provide damages for these employees who suffer injury or death caused by work accidents or occupational diseases that fall within the scope of insurance coverage.

Secondly, insurance enterprises shall not have duties to pay insurance cover against the following losses or damages:

- Those that arise from intentional acts;

- Those which are not incidental ones;

- Those which are not quantified by monetary amounts;

- Catastrophic losses or damages;

- Those that arise from the case in which insurance buyers have no insurable interests.

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