Fire and explosion insurance is a type of insurance that compensates customers and businesses for loss or damage caused by fire and explosion. When participating in this type of insurance, participants insured for protection of people and property, support for construction and repair costs. In addition, customers participating in compulsory fire and explosion insurance can also protect their property and neighbors, the insurance company will support costs in case of fire and explosion, making customers unable to live. inside and cannot use the property. Find out the minimum fire and explosion insurance amount in 2022 with us through the article below. LSX Lawfirm will give you an article about: “Minimum amount of fire insurance in 2022 in Vietnam”, as follows:
Legal grounds
- Decree No. 97/2021/ND-CP
Fire insurance in Vietnam
So, Principles of participation in compulsory fire and explosion insurance
– Firstly 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.
– Secondly, 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 test 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.
- Then 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).
- So 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.
Minimum amount of fire and explosion insurance in 2022
The compulsory fire and explosion insurance premium rates are specified in Section I, Appendix I issued with Decree 97/2021/ND-CP (replacing Appendix II issued together with Decree 23/2018/ND-CP).
This fee is applicable to establishments having fire and explosion hazards as prescribed: Agencies, organizations and individuals whose establishments are at risk of fire and explosion in accordance with the law on fire prevention and fighting on fire.
The premium rate determined by the minimum coverage multiplied by (x) the premium rate.
In which, the insurance premium rate/year has some changes, for example:
So Cinema (score 5.2): 0.1% (currently 0.15% (score 3.2));
Then Establishments producing, trading, preserving and using industrial explosives (clause 14): 0.5% (currently 0.35% (clause 12));
Thermal power plants (point 17.1): 0.15% (currently 0.1% (point 15.1));
Then Hydropower plants and some other power plants (point 17.2): 0.12% (currently at 0.07% (point 15.2));
Subway works (clause 12): 0.1% and 0.12%;
Air traffic control tower (point 12.3): 0.08%;…
So, according to Decree 97/2021/ND-CP, for facilities at risk of fire and explosion with a total insured sum of assets at one location from 1,000 billion VND or more (except for nuclear facilities): The insurance enterprise and the insurance buyer agree on the premium rate on the basis of the approval of the reinsurer. In all cases, the insurance premium must not be lower than the insurance premium corresponding to 1,000 billion VND multiplied by (x) the premium rate specified in Clause 1, Section I, Appendix I issued together with this Decree.” .
For nuclear facilities: The insurer and the insurance buyer agree on the premium rate on the basis of the approval of the reinsurer.
Decree 97/2021/ND-CP supplements regulations on certificates of compulsory fire and explosion insurance. Accordingly, the insurance enterprise must issue the compulsory fire and explosion insurance certificate to the insurance buyer.
The compulsory fire and explosion insurance certificate designed by the insurance enterprise proactively and must include the following contents:
a) Name and address of the insurance enterprise, the insurance buyer, the insured person;
b) Belongs to the list of establishments (specify which establishments are on the list of establishments having fire and explosion hazards according to the provisions of law on fire prevention and fighting);
c) Address of the insured property;
d) Insured property;
dd) Amount of insurance;
e) Insurance deductible;
g) The insurance period;
h) Rate of insurance premiums and premiums;
i) Name, address, telephone number of the insurance company’s hotline;
k) Date, month and year of issuance of the Certificate of Insurance.
In case of granting 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 provisions.
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; Regulations on fire and explosion insurance in Vietnam
Revenues from compulsory fire and explosion insurance for fire prevention and fighting activities
Revenues from compulsory fire and explosion insurance for fire prevention and fighting activities used as follows:
a) Support to equip fire prevention and fighting means and equipment for the fire prevention and fighting police force. Expenditure on this content does not exceed 65% of the actual amount obtained from compulsory fire and explosion insurance of insurance enterprises in the fiscal year.
b) Support in propagating and disseminating laws, knowledge of fire prevention and fighting and compulsory fire and explosion insurance. Expenses for this content must not exceed 15% of the actual amount obtained from compulsory fire and explosion insurance of insurance enterprises in the fiscal year.
c) Support the Fire Prevention and Fighting Police force in the following activities: Investigate the cause of the fire; professional training, safety inspection on fire prevention and fighting; supervise the participation in compulsory fire and explosion insurance of establishments at risk of fire and explosion. Expenses for this content must not exceed 15% of the actual amount obtained from compulsory fire and explosion insurance of insurance enterprises in the fiscal year.
In addition
Support and reward achievements of organizations and individuals directly participating in and coordinating in fire prevention and fighting. Expenses for this content must not exceed 5% of the actual amount obtained from compulsory fire and explosion insurance of insurance enterprises in the fiscal year.
The Decree also adds regulations on responsibilities of agencies, organizations and individuals whose premises are at risk of fire and explosion. Specifically, these agencies, organizations and individuals are responsible for determining fire and explosion hazard classes A, B, C, D, E of industrial production establishments for establishments having fire hazards, explosion in accordance with the law on fire prevention and fighting.
The Ministry of Public Security is responsible for recording the fire and explosion hazard classes for industrial establishments with fire and explosion hazard classes A, B, C, D, E in the minutes of acceptance or inspection of fire safety. and fire fighting on the basis of determination of fire and explosion hazard class of agencies, organizations and individuals having establishments having fire and explosion danger.
Contact LSX Lawfirm
Finally, hope this article is useful for you to answer the question about: “Minimum amount of fire insurance in 2022 in Vietnam”. If you need any further information, please contact LSX Law firm : +84846175333 or Email: [email protected]
Related questions
The insurance enterprise shall pay indemnification for damage caused to the insured object arising from the risk of fire and explosion, except for cases where insurance liability is excluded.
The subject of compulsory fire and explosion insurance is the entire property of the establishment that is at risk of fire and explosion, including:
Houses, works and assets attached to houses and works; devices.
– Goods and supplies (including raw materials, semi-finished products, finished products).
The subject-matter insured and the location of the subject-matter insured must be clearly stated in the insurance contract and the Certificate of Insurance.
In case of fire and explosion hazard, the insurance will not be compensated for damage as follows:
Natural fluctuations such as earthquakes, tsunamis, volcanic eruptions, etc.
The property is decided to burn or explode according to the decision of the competent state agencies.
– Events on security, defense, politics and social order and safety.
Was struck by lightning but did not cause an explosion.
Prohibited materials cause explosion.
– Activities that intentionally cause fire or explosion of the insured, over-capacity of the equipment.
– Damage to data, software in the computer.
– Damage caused by burning forests, weeds, burning bushes and activities with the purpose of clearing the land area.
Conclusion: So the above is Minimum amount of fire insurance in 2022 in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
