Decree No. 23/2018/ND-CP dated February 23, 2018 of the Government on compulsory fire and explosion insurance

THE GOVERNMENT 

Decree No. 23/2018/ND-CP dated February 23, 2018 of the Government on compulsory fire and explosion insurance

Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Law on Insurance Business dated December 09, 2000 and the Law amending and supplementing a number of articles of the Law on Insurance Business dated November 24, 2010;

Pursuant to the Law on Fire Prevention and Fighting dated June 29, 2001 and the Law amending and supplementing some articles of the Law on Fire Prevention and Fighting dated November 22, 2013;

At the request of the Minister of Finance;

The Government hereby promulgates a Decree on compulsory fire and explosion insurance.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment

This Decree provides for compulsory fire and explosion insurance:

1. Conditions for sale or purchase of compulsory insurance, insurance premiums; minimum sum insured.

2. Transfer, management and use of revenue from sale of fire and explosion insurance for fire prevention and fighting purposes.

3. Responsibilities of relevant Ministries and authorities, and insurance enterprises for compulsory fire and explosion insurance.

Article 2. Subjects of application

This Decree applies to:

1. Organizations and individuals having facilities facing fire hazard (hereinafter referred to as “insured facilities”) specified in the Appendix II enclosed with the Government’s Decree No. 79/2014/ND-CP detailing a number of articles of the Law on Fire Prevention and Fighting and the Law amending and supplementing a number of articles of the Law on Fire Prevention and Fighting and amendments thereto (if any).

2. Non-life insurance enterprises, branches of foreign non-life insurance enterprises in Vietnam (hereinafter referred to as “insurer”).

3. Other organizations and individuals related to compulsory fire and explosion insurance.

Article 3. Rules for participation in compulsory fire and explosion insurance

1. Organizations and individuals specified in Clause 1, Article 2 of this Decree (hereinafter referred to as “the policyholder”) must purchase compulsory fire and explosion insurance from insurers that sell fire and explosion insurance in accordance with regulations of law.

2. The conditions for purchase and sale of insurance, insurance premiums and minimum sum insured are specified in this Decree.

In addition to compulsory fire and explosion insurance specified in this Decree, the policyholder and the insurer may agree on additional insurance conditions or increase in the sum insured and insurance premiums. In this case, the insurer shall separate the compulsory fire and explosion insurance in the insurance contract.

3. The insurer may refuse to sell compulsory fire and explosion insurance in the following cases:

a) The facility has not undergone fire safety inspection in accordance with regulations of law.

b) The facility does not have a record on fire safety inspection by the fire department or the record expires 01 year from the date on which it is made to the date on which compulsory fire and explosion insurance is purchased.

c) The facility is temporarily suspended or suspended due to violations of fire safety regulations.

4. The policyholder may include the expenses for purchase of compulsory fire fighting and prevention in the prices of products and services (applicable to manufacturing and trading facilities) or in recurrent expenditures (applicable to state administrative authorities, public service providers, socio-political organizations and other organizations).

5. Organizations and individuals that are not required to purchase compulsory fire and explosion insurance in accordance with regulations of this Decree should purchase fire and explosion insurance under a contract with the insurer and in accordance with regulations of law.

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