Vietnam: Which entity will take the responsibility for compensation in case the valuation enterprise makes faulty appraisal?

09:13, 02/04/2014

This is a notable content specified in Circular No. 38/2014/TT-BTC elaborating several articles of Decree No. 89/2013/ND-CP dated August 06, 2013 of Vietnam’s Government providing guidance on implementation of the Price Law on appraisal of prices.

Compensation for damage caused by the valuation enterprise is specified in Circular No. 38/2014/TT-BTC of the Ministry of Finance of Vietnam as follows:

- When the valuation enterprise must pay compensation for damage caused for users of valuation results, it shall receive compensation from the insurer or the foreign non-life insurance enterprise's branch operating in Vietnam under terms and conditions of the signed policy. If the valuation enterprise fails to purchase insurance, it must pay compensation for such damage by using the professional risk reserve fund.

- If the amounts received under the professional liability policy or the balance of the professional risk reserve fund is not enough for paying compensation for damage, the valuation enterprise shall record the deficit as its business expenses.

View more details at Circular No. 38/2014/TT-BTC of the Ministry of Finance of Vietnam, effective from May 15, 2014.

Thu Ba

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