Decree 20/2022/ND-CP amending Decree 119/2015/ND-CP prescribing compulsory insurance in construction investment activities

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Decree No. 20/2022/ND-CP dated March 10, 2022 of the Government amending and supplementing a number of articles of the Government’s Decree No. 119/2015/ND-CP of November 13, 2015, prescribing compulsory insurance in construction investment activities
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Official number:20/2022/ND-CPSigner:Le Minh Khai
Type:DecreeExpiry date:
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Issuing date:10/03/2022Effect status:
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Fields:Construction , Insurance , Investment

SUMMARY

Construction contractors have to buy compulsory civil liability insurance for third parties from July 01

This content is stipulated in the Government’s Decree No. 20/2022/ND-CP dated March 10, 2022, amending and supplementing a number of articles of the Government’s Decree No. 119/2015/ND-CP dated November 13, 2015, prescribing compulsory insurance in construction investment activities.

According to the new provisions, from July 01, 2022, in addition to compulsory insurance for workers working on the construction sites, construction contractors shall have to buy compulsory civil liability insurance for third parties. Duration of compulsory civil liability insurance for third party is a specific span, counting from the date of starting to the date of finishing the construction time, based on the construction contract and written in the insurance contract.

The minimum insurance sum of the compulsory civil liability insurance for third parties is prescribed as follows: The minimum insurance sum for damage to health and life is VND 100,000,000/person/case, and there is no limit to the number of loss cases.

In case a damaged work is valued at less than one thousand billion dong, the minimum insurance sum for property damage and related legal costs (if any) is 10% of the value of the work for the entire insurance duration, and there is no limit to the number of loss cases. For a work valued at one thousand billion dong or more, the minimum insurance sum for property damage and related legal costs (if any) is one hundred billion dong for the entire insurance duration and there is no limit to the number of loss cases.

Compulsory insurance contracts in construction investment activities, civil liability insurance contracts for third parties signed before the effective date of this Decree shall continue to be performed in accordance with the law at the time of entering into insurance contracts.

This Decree takes effect on July 01, 2022.

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THE GOVERNMENT

 

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

No. 20/2022/ND-CP

 

Hanoi, March 10, 2022

 

DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 119/2015/ND-CP of November 13, 2015, prescribing compulsory insurance in construction investment activities[1]

 

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the December 9, 2000 Law on Insurance Business; and the November 24, 2010 Law Amending and Supplementing a Number of Articles of the Law on Insurance Business;

Pursuant to the June 14, 2019 Law Amending and Supplementing a Number of Articles of the Law on Insurance Business and the Law on Intellectual Property;

Pursuant to the June 18, 2014 Construction Law; and the June 17, 2020 Law Amending and Supplementing a Number of Articles of the Construction Law;

At the proposal of the Minister of Finance;

The Government promulgates the Decree amending and supplementing a number of articles of the Government’s Decree No. 119/2015/ND-CP of November 13, 2015, prescribing compulsory insurance in construction investment activities.

 

Article 1. To amend and supplement a number of articles of the Government’s Decree No. 119/2015/ND-CP of November 13, 2015, prescribing compulsory insurance in construction investment activities

1. To amend and supplement Point c, Clause 4, Article 3 as follows:

“c/ For compulsory insurance for workers on construction sites and compulsory civil liability insurance for third parties: The insurance charges shall be included in production and business expenses”.

2. To amend Point a, Clause 1, Article 4 as follows:

“a/ Works and work items which greatly affect the community safety and interests, as specified in Appendix X to the Government’s Decree No. 15/2021/ND-CP of March 3, 2021, detailing a number of provisions on management of construction investment projects, and amending, supplementing and replacing documents (if any)”.

3. To amend and supplement Clause 3, Article 4 as follows:

“3. Construction contractors shall buy compulsory insurance for workers on construction sites and compulsory civil liability insurance for third parties”.

4. To add Clause 4 below Clause 3, Article 5 as follows:

“4. The duration of compulsory civil liability insurance for third parties is a specific timespan, counting from the date of starting to the date of finishing the construction time, based on construction contracts, and written in insurance contracts”.

5. To add Point d below Point c, Clause 1, Article 6 as follows:

“d/ For compulsory civil liability insurance for third parties: Insurance enterprises shall pay as indemnities to the construction contractors the law-prescribed money amounts to be indemnified by the construction contractors to third parties for non-contractual damage related to health, life and property which directly occur in the course of work construction and relevant legal expenses (if any) covered by insurance liability as agreed upon in insurance contracts”.

6. To add Point e below Point dd, Clause 2, Article 6 as follows:

“e/  Losses in accordance with international practices that are agreed to be applied by insurance parties in case such practices are not contrary to Vietnam’s law”.

7. To add Clause 4 below Clause 3, Article 10 as follows:

“4. For compulsory civil liability insurance for third parties:

a/ The minimum indemnity for damage to health or life is VND 100 million (one hundred million Vietnam dong), per person per case and with no limitation on the number of cases.

b/ The minimum indemnity for property damage and relevant legal expenses (if any) shall be determined as follows:

- For works valued at under VND 1 trillion (one trillion Vietnam dong), the minimum indemnity for property damage and relevant legal expenses (if any) equals to 10% of the value of works for the entire insurance duration and with no limitation on the number of cases.

- For works valued at VND 1 trillion (one trillion Vietnam dong) or higher, the minimum indemnity for property damage and relevant legal expenses (if any) is VND 100 billion (one hundred billion Vietnam dong) for the entire insurance duration and with no limitation on the number of cases”.

8. To amend and supplement Clause 1, Article 12 as follows:

“1. To promulgate insurance rules and regulations and insurance premium levels for the following compulsory insurance products:

a/ Compulsory insurance for underway works;

b/ Compulsory for insurance for construction investment consultancy professional liability;

c/ Compulsory insurance for workers on construction sites;

d/ Compulsory civil liability insurance for third parties”.

Article 2. To annul Clause 6, Article 3 and Clause 1, Article 18 of the Government’s Decree No. 119/2015/ND-CP of November 13, 2015, prescribing compulsory insurance in construction investment activities.

Article 3. Implementation provisions

1. This Decree takes effect on July 1, 2022.

2. Contracts for compulsory insurance in construction investment activities and contracts for civil liability insurance for third parties which are signed before the effective date of this Decree must continue to comply with regulations effective at the time of their signing. In case contracts that are modified and supplemented contain modified and supplemented contents specified in this Decree, the Decree shall apply.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and subjects of application of this Decree shall implement this Decree.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
LE MINH KHAI

 

[1] Công Báo Nos 273-274 (20/3/2022)

 

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