Decree 97/2021/ND-CP amending Decree 23/2018/ND-CP providing compulsory fire and explosion insurance

DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 23/2018/ND-CP of February 23, 2018, providing compulsory fire and explosion insurance^[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 29, 2001 Law on Fire Prevention and Fighting, and the November 22, 2013 Law Amending and Supplementing a Number of Articles of the Law on Fire Prevention and Fighting;

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. 23/2018/ND-CP of February 23, 2018, providing compulsory fire and explosion insurance.

Article 1. To amend and supplement a number of articles of the Government’s Decree No. 23/2018/ND-CP of February 23, 2018, providing compulsory fire and explosion insurance (below referred to as Decree No. 23/2018/ND-CP)

 1. To amend and supplement Clause 1, Article 2 as follows:

“1. Agencies, organizations and individuals that have establishments prone to fire or explosion in accordance with the law on fire prevention and fighting.”

2. To amend and supplement Point b, Clause 1, Article 7 as follows:

“b/ For establishments prone to fire or explosion that have the total insurance sum of or higher than VND 1 trillion for assets in a single location (except nuclear facilities), insurance enterprises and insurance purchasers shall reach agreement on insurance premiums provided that such premiums are approved by reinsurance enterprises. In all cases, an insurance premium must not be lower than the amount calculated by multiplying (x) VND 1 trillion by the insurance premium rate specified in Clause 1, Section I, Appendix I to this Decree.”

3. To add the following Point c to below Point b, Clause 1, Article 7:

“c/ For nuclear facilities, insurance enterprises and insurance purchasers shall reach agreement on insurance premiums provided that such premiums are approved by reinsurance enterprises.”

4. To add the following Article 7a to below Article 7:

“Article 7a. Compulsory fire and explosion insurance certificates

1. Insurance enterprises shall issue compulsory fire and explosion insurance certificates to insurance purchasers. A compulsory fire and explosion insurance certificate may be designed by an insurance enterprise and must have the following contents:

a/ Names and addresses of the insurance enterprise, insurance purchaser and the insured;

b/ A content clearly stating the insurance purchaser is on what list of establishments prone to fire and explosion in accordance with the law on fire prevention and fighting;

c/ Address(es) of the insured asset(s);

d/ Insured asset(s);

dd/ Insurance sum;

e/ Insurance premium deduction rate;

g/ Insurance duration;

h/ Insurance premium rate and insurance premium;

i/ Name, address, hotline of the insurance enterprise;

k/ Date of issuance of the insurance certificate.

2. In case of issuance of electronic insurance certificates, insurance enterprises shall comply with the Law on E-Transactions and guiding documents. An electronic insurance certificate must comply with current regulations and have the contents specified in Clause 1 of this Article.”

5. To amend and supplement Clause 3, Article 10 as follows:

“3. Revenues from compulsory fire and explosion insurance premiums reserved for fire prevention and fighting activities shall be used to support:

a/ The provision of fire prevention and fighting devices and equipment for the fire prevention and fighting police force. The expense for this content must not exceed 65% of the compulsory fire and explosion insurance premium actually collected by an insurance enterprise in a fiscal year;

b/ The public communications about and dissemination of laws and knowledge on fire prevention and fighting and compulsory fire and explosion insurance. The expense for this content must not exceed 15% of the compulsory fire and explosion insurance premium actually collected by an insurance enterprise in a fiscal year;

c/ The fire prevention and fighting police force in the following activities: investigation into causes of fires; further training in and safety inspection of fire prevention and fighting; supervision of participation in compulsory fire and explosion insurance by establishments prone to fire or explosion. The expense for this content must not exceed 15% of the compulsory fire and explosion insurance premium actually collected by an insurance enterprise in a fiscal year;

d/ The commendation of achievements recorded by organizations and individuals directly participating or coordinating in fire prevention and fighting activities. The expense for this content must not exceed 5% of the compulsory fire and explosion insurance premium actually collected by an insurance enterprise in a fiscal year.”

6. To add the following Clause 4 to below Clause 3, Article 12:

“4. To write fire and explosion proneness levels in acceptance test minutes or minutes on fire prevention and fighting safety inspection on the basis of determination of fire and explosion proneness levels by agencies, organizations and individuals that have establishments prone to fire or explosion, for industrial establishments with fire and explosion proneness level A, B, C, D, or E.”

7. To amend and supplement Clause 1, Article 15 as follows:

“1. To make and send reports on compulsory fire and explosion insurance according to the following provisions:

a/ Professional operations reports: Insurance enterprises shall make and send to the Ministry of Finance annual professional operations reports according to the form provided in Appendix II to this Decree, specifically as follows:

The data cutoff time shall be counted from January 1 to December 31 of the reporting year.

The deadline for sending reports is March 31 of the fiscal year following the reporting year.

Method of sending reports: Reports shall be sent directly or by post, or via emails to, or via the reporting information system of, the Ministry of Finance (when this system is put into operation).

b/ Reports on collection and remittance of compulsory fire and explosion insurance premiums for use for fire prevention and fighting activities: Insurance enterprises shall make and send to the Ministry of Public Security reports according to the form provided in Appendix III to this Decree, specifically as follows:

The data cutoff time shall be counted from January 1 to June 30 of the reporting year, for biannual reports, or from January 1 to December 31 of the reporting year, for annual reports.

The deadline for sending reports is July 31 of the reporting year, for biannual reports, or January 31 of the fiscal year following the reporting year, for annual reports.

Method of sending reports: Reports shall be sent directly or by post to the Ministry of Public Security (the Police Department of Fire Prevention and Fighting and Rescue).

c/ In addition to the reports specified at Points a and b of this Clause, insurance enterprises shall make and send extraordinary reports at the request of the Ministry of Finance in the following cases: reports at the request of the National Assembly, National Assembly Standing Committee, Government or Prime Minister; sum-up and evaluation reports to serve formulation of mechanisms and policies; reports on violations of regulations on compulsory fire and explosion insurance; and other extraordinary reports on arising matters.”

8.  To add the following Article 15b to below Article 15:

“Article 15b. Responsibilities of agencies, organizations and individuals that have establishments prone to fire or explosion

To determine the fire and explosion proneness level A, B, C, D, or E of industrial production establishments, for establishments prone to fire or explosion in accordance with law on fire prevention and fighting”.

 Article 2. To replace or annul a number of provisions of Decree No. 23/2018/ND-CP

1. To replace the phrase “fire prevention and fighting police office” in Decree No. 23/2018/ND-CP with the phrase “competent public security agency” in this Decree.

2. To replace or annul the following appendices:

a/ To annul Appendix I: Form of compulsory fire and explosion insurance certificate, and Appendix IV: Report on compulsory fire and explosion insurance business results, to Decree No. 23/2018/ND-CP.

b/ To replace Appendix II: Compulsory fire and explosion insurance premiums and insurance deduction rates to Decree No. 23/2018/ND-CP with Appendix I: Compulsory fire and explosion insurance premiums and insurance deduction rates to this Decree.

c/ To replace Appendix III: Report on compulsory fire and explosion insurance revenue and compensation to Decree No. 23/2018/ND-CP with Appendix II: Report on compulsory fire and explosion insurance revenue and compensation to this Decree.

d/ To replace Appendix V: Report on collection and remittance of compulsory fire and explosion insurance premiums to Decree No. 23/2018/ND-CP with Appendix III: Report on collection and remittance of compulsory fire and explosion insurance premiums reserved for fire prevention and fighting activities to this Decree.

Article 3. Implementation provisions

1. This Decree takes effect on December 23, 2021.

2. Compulsory fire and explosion insurance policies entered into before the effective date of this Decree may continue to be performed in accordance with regulations effective at the time of their entry. In case a compulsory fire and explosion insurance policy is modified and supplemented with the contents specified in this Decree, this 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

* The appendices to this Decree are not translated.