Regulations on Compensation for damage caused by sources of extreme danger in Vietnam

Regulations on Compensation for damage caused by sources of extreme danger in Vietnam (Internet image)

1. Regulations on compensation for damage caused by sources of extreme danger according to Article 601 of the Civil Code

- Sources of extreme danger comprise motorized means of transport, power transmission systems, operating industrial plants, weapons, explosives, inflammable substances, toxic substances, radioactive substances, dangerous animals and other sources of extreme danger as provided by law.

An owner of a source of extreme danger must comply strictly with the regulations on taking care of, preserving, transporting and using sources of extreme danger in accordance with law.

- An owner of a source of extreme danger must compensate for damage caused by such source. If the owner has transferred possession or use of the source of extreme danger to another person, such other person must compensate [for the damage], unless otherwise agreed.

- An owner, or person to which an owner has transferred the possession or use, of a source of extreme danger must compensate for damage caused by such source, even where such owner or person is not at fault, except in either of the following cases:

+ The aggrieved person is entirely at fault for intentionally causing the damage;

+ The damage occurred due to an event of force majeure or in an emergency situation, unless otherwise provided by law.

- Where a source of extreme danger is taken into possession or used unlawfully, the person possessing or using [it] unlawfully must compensate for damage.

Where an owner, or a person to which an owner has transferred possession or use, of a source of extreme danger is at fault by allowing the unlawful possession or use of the source of extreme danger, the owner, or the person to which the owner has transferred possession or use, of the source of extreme danger as the case may be must compensate jointly for the damage.

2. Guidance on compensation for the damage caused by sources of extreme danger in Vietnam according to Resolution 02/2022/NQ-HDTP

Regarding the ompensation for the damage caused by sources of extreme danger in Vietnam specified in Article 601 of the Civil Code

- The source of extreme danger is determined in Article 601 of the Civil Code and relevant legal documents.

Example 1: Road motor vehicles, including cars; tractors; trailers or semi-trailers towed by cars or trucks; two-wheeled motorcycles; three-wheeled motorcycles; motorcycles (including electric scooters) and similar vehicles as prescribed in Clause 18, Article 3 of the Law on Road Traffic 2008 are sources of extreme danger.

Example 2: Weapons prescribed by the Law on Management and Use of Weapons, Explosives and Combat Gear in 2017, amended in 2019 are sources of extreme danger.

- A person assigned by the owner of the source of extreme danger to possess and use the source of extreme danger in accordance with law must compensate for the damage caused by the source of extreme danger, except for the case the owner of the source of extreme danger and that person otherwise agreed not contrary to law, social ethics or are not intended to evade compensation.

For example: the following agreements are not against the law, social ethics or are not intended to evade compensation:

+ Agreement to be held jointly and severally liable for the damages;

+ Agreement that the owner compensates for damage in advance with their legal property, then the mentioned person will return to the owner the damages in case the owner can afford the damages.

- In case the owner of a source of extreme danger assigns another person to possess or use a source of extreme danger in contravention of law and causes damage, the owner must compensate for the loss.

For example: If the owner knows that he or she does not have a driver's license for a car, but still assigns the right to possess and use it to the mentioned person, then the owner must compensate for the loss caused by that person.

- Owners, possessors and users of sources of extreme danger must compensate for the damage caused by sources of extreme danger even without fault, except for the following cases:

+ The damage occurred was entirely due to intentional fault of the aggrieved person;

For example: Knowing that an area having a sign of dangerous high voltage source of electricity, A still steals things and gets electrocuted to death is a case entirely due to the intentional fault of the person who suffers the loss.

+ Damage occurs in case of force majeure or emergency situation, unless otherwise provided for by law.

An urgent situation is a situation of a person who wants to avoid a real danger that directly threatens his or her own or other's public interests, legitimate rights and interests, or that of others, but has no other choice but to cause less damage than the loss to be prevented.

Compensation liability in urgent situations shall comply with Article 595 of the Civil Code.

For example: A was driving a car in accordance with the Road Traffic Law 2008, B was riding a motorbike in the opposite direction from A and encroached on A's lane. In order to avoid causing an accident for B, A had no choice but hit a motorcycle owned by C which is parked on the roadside causing damage to C.

This is an emergency situation, A does not have to compensate C but B has to compensate C for damage because B has caused an urgent situation under Clause 2, Article 595 of the Civil Code.

- In case the source of extreme danger is illegally possessed or used, causing damage, the settlement shall be as follows:

+ If the owner or the person assigned by the owner to possess and use lawfully is not at fault in allowing the source of extreme danger to be illegally possessed or used, the illegal possessor or user must compensate for all damage.

+ If the owner or the person assigned by the owner to possess and use lawfully is at fault in allowing the source of extreme danger to be illegally possessed or used, the owner or the person assigned by the owner lawful possession and use and the unlawful possessor and user must jointly compensate for damage.

Diem My

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE