Who is responsible for purchasing insurance against fire for apartment in Vietnam?

Who is responsible for purchasing insurance against fire for apartment in Vietnam? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Who is responsible for purchasing insurance against fire for apartment in Vietnam?

Specifically, Point dd, Clause 1, Article 11 of the Law on Housing 2014 stipulates that if the homeowner is a Vietnamese entity or an oversea Vietnamese, he/she shall have rights to purchase insurance against fire pertaining to the house subject to insurance against fire as prescribed in law on fire safety and law on insurance business;

Agencies, organizations and individuals prescribed in Clauses 1, 2 and 3 Article 2 of Decree 67/2023/ND-CP (hereinafter referred to as "policyholders") shall purchase compulsory insurance from insurers permitted to operate insurance services as prescribed by law.

Thus, the person responsible for purchasing apartment fire and explosion insurance is the investor of the apartment project in case it is still owned by the investor or the owner of the apartment building in case the Certificate has been issued. rights and has been put into operation.

2. Coverage and exclusions of compulsory fire and explosion insurance in Vietnam

(1) Insurance coverage:

Insurers shall indemnities for damage to the insured prescribed in Clause 1 Article 23 of Decree 67/2023/ND-CP caused by fire or explosion, except for the cases prescribed in Clause 2 and Clause 3 of Article 25 of Decree 67/2023/ND-CP.

(2) Insurance exclusions for facilities facing fire and explosion hazards in accordance with regulations of law on fire prevention and fighting (excluding nuclear facilities): Insurers shall not provide indemnities in the following cases:

- Earthquakes, volcanic eruptions or other convulsions of nature.

- Damage caused by political convulsions, social safety, security and order events.

- Property that is burned and exploded according to decisions of competent regulatory agencies.

- Self-fermenting and self-heating products; property subjected to a heat treatment.

- Damage caused by direct hit of lightning strike without causing fire or explosion.

- Fire and explosion caused by weapons-grade nuclear materials.

- Damage to electrical machinery and equipment or components of electrical equipment caused by direct impact of over-running, excessive pressure, short circuiting, self heating, arcing or leakage of electricity arising from whatever cause, lightning included.

- Damage caused by arson attack of the insured or by deliberate violation against fire safety regulations causing fire or explosion.

- Damage to data, software and computer programs.

- Damage caused by acts of burning forests, bushes, prairies or clearing lands by fire.

Note: Insurance exclusions for nuclear facilities: Insurers and policyholders shall negotiate insurance exclusions on the basis of approvals of reinsurers

(Article 25 of Decree 67/2023/ND-CP)

3. Principles of indemnification for compulsory fire and explosion insurance in Vietnam

Insurers shall consider and settle insurance claims according to regulations of law on insurance business and the following principles:

- When losses to facilities facing fire and explosion hazards are incurred, policyholders shall immediately notify insurers via contract information means, then submit written notifications to insurers within 14 days from the date on which such losses are incurred.

- Insurance indemnities for damaged property shall not exceed the sums insured of such property (agreed and specified in insurance policies and insurance certificates) minus the deductibles prescribed in Clause 3 of Article 28 of Decree 67/2023/ND-CP.

- A deductible of up to 20% of insurance indemnities shall be provided if facilities facing fire and explosion hazards fail to fully comply with proposals on records on fire safety inspection issued by competent public security authorities within the prescribed period, thereby leading to an increase in damages caused by fire and explosion.

(Article 28 of Decree 67/2023/ND-CP)

Ho Quoc Tuan

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