Regulations on fire and explosion insurance in Vietnam

Decree 97/2021/ND-CP issued on November 8, 2021 amending Decree 23/2018/ND-CP dated February 23, 2018 on regulations on compulsory fire and explosion insurance. To better understand the contents specified in Decree 22/2022/ND-CP. In this decree, readers can better understand the certificate of fire and explosion at organizations, enterprises, fire insurance premiums, etc. LSX Lawfirm will give you an article about: “Regulations on fire and explosion insurance in Vietnam”, as follows:

Legal grounds

• Decree No. 97/2021/ND-CP

Summary of Decree 97 on compulsory fire and explosion insurance in Vietnam

On November 8, 2021, the Government issued Decree 97/2021/ND-CP amending Decree 23/2018/ND-CP dated February 23, 2018 on compulsory fire and explosion insurance.
Accordingly, regulations on compulsory fire and explosion insurance certificate (GCN) are as follows:

• The insurance enterprise must issue the compulsory fire and explosion insurance certificate to the insurance buyer.
• The compulsory fire and explosion insurance certificate actively designed by the insurance enterprise and must include the following contents:
• Name and address of insurance enterprise, insurance buyer, insured person;
• Belongs to the list of establishments (specify which establishments are on the list of establishments with fire and explosion hazards according to the law on fire prevention and fighting);
• Address of the insured property;
• Insured property;
• Insurance money;
• Insurance deductible;
• Duration of insurance;
• Rate of premium, premium;
• Name, address, telephone number of the insurance company’s hotline; (New content added)
• Date, month and year of issuance of insurance certificate.
• In case of issuance of an electronic insurance certificate, the insurance enterprise must comply with the provisions of the Law on Electronic Transactions and guiding documents;

The electronic insurance certificate must fully comply with current regulations and fully reflect the above contents.

Thus, instead of applying the form of compulsory fire and explosion insurance certificate according to Appendix I of Decree 23/2018/ND-CP, the insurer will be able to actively design this certificate.

What is Decree 97 on compulsory fire and explosion insurance?

In this Decree, the compulsory fire and explosion insurance premium rates amended and supplemented corresponding to each list of establishments at risk of fire and explosion to be consistent with the list of establishments at risk of fire and explosion specified in Appendix II issued together with Decree No. 136/2020/ND-CP.

At the same time, the regulation added that insurers must issue certificates of compulsory fire and explosion insurance so that competent police agencies can facilitate the inspection process; at the same time, supplement regulations on issuing compulsory electronic fire and explosion insurance certificates to meet the trend of the industrial revolution 4.0.

You can also refer to the article related to What are fire prevention and fighting records under Vietnam law?; How to look up fire safety certificate in Vietnam

In addition

The new decree also revised the expenditure ratio from the revenue from compulsory fire; and explosion insurance for fire prevention; and fighting activities to increase investment in equipment and facilities for fire prevention and fighting activities. fire fighting. Accordingly, increasing the proportion of spending on supporting equipment and means of fire prevention; and fighting from 40% to 65%; reduce the rate of spending on propaganda, supporting investigation into the cause of the fire, checking the safety of fire prevention and fighting, and rewarding fire prevention and fighting work from 60% to 35%.

In addition

Decree 97 has supplemented regulations on the responsibilities of agencies, organizations and individuals whose premises are at risk of fire and explosion and the responsibility of the Ministry of Public Security in recording fire and explosion hazard class A, B, C, D, E of the industrial production facility to help the insurer and the insurance buyer have a clearer basis in determining the premium rate, creating a consensus on understanding and assurance. ensure the similarity of insurance premiums between insurance contracts, avoid disputes during the implementation of compulsory fire and explosion insurance.

Fire insurance in Vietnam

Principles of participation in compulsory fire and explosion insurance

– Agencies, organizations and individuals at risk of fire and explosion (hereinafter referred to as “insurance buyer”) must purchase compulsory fire. And explosion insurance at insurance enterprises engaged in fire insurance business. , explode in accordance with the law.

– The insurance buyer and the insurance enterprise shall deploy compulsory fire. And explosion insurance according to the conditions, insurance premium rates and minimum insurance amount as prescribed.

In addition to participating in compulsory fire and explosion insurance according to the conditions, premium rates. And minimum insurance amounts as prescribed, the insurance buyer and the insurance enterprise can agree in the insurance contract on the opening of the insurance policy. conditions of insurance, the sum insured and the corresponding additional premium. In this case, the insurance enterprise is responsible for separating the compulsory fire and explosion insurance part in the insurance contract.

The insurer has the right to refuse to sell compulsory fire and explosion insurance in the following cases:

• The facility has not tested and accepted for fire prevention and fighting in accordance with the law.
• The establishment does not have a record of safety inspection on fire prevention and fighting from the Fire Prevention and Fighting Police agency or the inspection record has been older than 01 year from the time of preparation to the time of purchase of fire and explosion insurance. tie.
• The establishment temporarily suspended or suspended from operation due to violations of regulations on fire prevention and fighting.
• The insurance buyer may include the cost of buying compulsory fire and explosion insurance into the cost of products and services (for production and business establishments) or into recurrent expenditures (for state administrative agencies). public service units, socio-political organizations and other organizations).

• Encourage agencies, organizations and individuals not required to purchase compulsory fire and explosion insurance under the provisions of this Decree to purchase fire and explosion insurance on the basis of agreements with insurers and in accordance with the provisions of this Decree. in accordance with the law.

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