Decree 67/2023/ND-CP compulsory insurance for motor vehicle owner’s civil liability

DECREE

On compulsory insurance for motor vehicle owner’s civil liability, compulsory fire and explosion insurance and 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 November 24, 2015 Civil Code;

Pursuant to the June 16, 2022 Law on Insurance Business;

Pursuant to the November 13, 2008 Law on Road Traffic;

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;

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

At the proposal of the Minister of Finance;

The Government promulgates the Decree on compulsory insurance for motor vehicle owner’s civil liability, compulsory fire and explosion insurance and compulsory insurance in construction investment activities.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides:

1. Insurance conditions, premium rates and minimum sums insured for compulsory insurance for motor vehicle owner’s civil liability, compulsory fire and explosion insurance and compulsory insurance in construction investment activities.

2. Mechanism for management and use of the Motor Vehicle Insurance Fund; premium rates, and the management and use of revenues from compulsory fire and explosion premiums for fire prevention and fighting activities.

3. Responsibilities of ministries, related agencies, insurance buyers and insurance enterprises in the implementation of compulsory insurance for motor vehicle owner’s civil liability, compulsory fire and explosion insurance and compulsory insurance in construction investment activities.

Article 2. Subjects of application

This Decree applies to:

1. Owners of motor vehicles joining in traffic and operating in the territory of the Socialist Republic of Vietnam, for compulsory insurance for motor vehicle owner’s civil liability.

2. Agencies, organizations and individuals that have establishments with fire and explosion risks as specified by the law on fire prevention and fighting, for compulsory fire and explosion insurance.

3. Project owners and contractors as specified by the construction law, for compulsory insurance in construction investment activities.

4. Non-life insurance enterprises and branches of foreign non-life insurance enterprises (below collectively referred to as insurance enterprises); and reinsurance enterprises and branches of foreign reinsurance enterprises (below collectively referred to as reinsurance enterprises).

5. Other agencies, organizations and individuals involved in compulsory insurance for motor vehicle owner’s civil liability, compulsory fire and explosion insurance and compulsory insurance in construction investment activities.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Motor vehicle owner means the owner of a motor vehicle or a person who is assigned by the motor vehicle owner to lawfully possess and use a motor vehicle.

2. Operating motor vehicle means a motor vehicle in operation, which means moving, stopping or parking by the motor vehicle owner or the driver.

3. Motor vehicle joining traffic means a motor vehicle operated by its owner or driver to join road traffic.

4. Consultancy contractor means a construction survey consultancy contractor or a construction engineering consultancy contractor of a construction work of grade II or higher grade.

5. A third party

a/ For compulsory insurance for motor vehicle owner’s civil liability: A third party means a person who suffers health, life or property damage caused by a motor vehicle, except the driver and persons and passengers on board such vehicle; and the vehicle owner, unless the vehicle owner has assigned another organization or individual to possess and use the vehicle.

b/ For compulsory insurance in construction investment activities: A third party means a party that suffers health, life or property damage or damage to its/his/her other lawful rights and interests caused by construction survey, construction engineering or construction execution, except insurance enterprises, insurance buyers and workers working on construction sites.

6. Insurance deductible means a money amount that the insurance buyer must bear on its own in each insured event.

7. Commissioning means the putting of a construction work or construction work item into operation or exploitation.

8. Occupational diseases means those defined in the Law on Occupational Safety and Health.

9. Employees means those defined in the Labor Code.

10. Occupational accidents means those defined in the Law on Occupational Safety and Health.

Article 4. General principles

1. Agencies, organizations and individuals specified in Clauses 1, 2 and 3, Article 2 of this Decree (below collectively referred to as insurance buyers) shall purchase compulsory insurance at insurance enterprises licensed to carry out lines of insurance in accordance with law.

2. Insurance buyers and insurance enterprises shall implement compulsory insurance according to insurance conditions, premium rates and minimum sums insured as specified in this Decree.

3. In addition to participating in compulsory insurance according to insurance conditions, premium rates, minimum sums insured or insurance liability limit specified in this Decree, the insurance buyer and the insurance enterprise may agree in the insurance contract on the extension of insurance conditions, additional sum insured and the corresponding additional premium rate in accordance with law. In this case, the insurance enterprise shall separate the content on compulsory insurance in the insurance contract.

The State shall encourage agencies, organizations and individuals not subject to compulsory insurance specified in this Decree to purchase insurance on the basis of agreements with insurance enterprises and in accordance with law.

4. In compulsory insurance for motor vehicle owner’s civil liability, for each motor vehicle, the indemnification liability for compulsory insurance for motor vehicle owner’s civil liability arises only under a sole insurance contract.

5. An insurance enterprise may refuse to sell compulsory insurance in the following cases:

a/ For compulsory insurance for motor vehicle owner’s civil liability:

Motor vehicles with expired lifespans in accordance with law.

b/ For compulsory fire and explosion insurance:

Establishments with fire and explosion risks for which fire prevention and fighting conditions have yet to be tested and accepted in accordance with law.

Establishments with fire and explosion risks that cannot produce fire safety inspection minutes of competent public security agencies or that produce inspection minutes made more than 1 year counted from the time of minutes making to the time of purchase of compulsory fire and explosion insurance.

Establishments with fire and explosion risks that are currently subject to suspension or termination of operation due to violations of the law on fire prevention and fighting.

c/ For compulsory insurance in construction investment activities:

Insurance buyers that fail to fully satisfy the capacity conditions for carrying out construction activities specified in the Law on Construction and guiding documents.

6. Compulsory insurance costs:

a/ For compulsory insurance for motor vehicle owner’s civil liability and compulsory fire and explosion insurance: Insurance buyers may include compulsory insurance costs in their product or service costs or business operation costs (for production and business establishments) or in recurrent expenditures (for state administrative agencies, public non-business units, socio-political organizations and other organizations).

b/ Compulsory insurance costs in construction investment activities must comply with the construction law and this Decree.

7. The premium payment time limit must comply with regulations of the Minister of Finance. For insurance contracts for construction works under the construction investment projects specified in the Government’s Decree No. 50/2021/ND-CP of April 1, 2021, amending and supplementing a number of articles of the Government’s Decree No. 37/2015/ND-CP of April 22, 2015, providing in detail construction contracts, insurance enterprises and insurance buyers shall reach agreement on the premium payment time limit that shall be stated in insurance contracts and must not be beyond payment schedules of construction contracts. In any circumstances, the premium payment time limit must not be longer than the period of insurance.

8. Insurance enterprises are not liable to indemnify for amounts that arise or are increased due to insurance frauds specified in the Penal Code.

9. Leading foreign insurance enterprises and organizations assuming reinsurance and foreign insurance enterprises and organizations assuming reinsurance accounting for 10% or more of the total liability level of each reinsurance contract must be those rated at least as “BBB” by Standard & Poor’s or Fitch, “B++” by A.M.Best, or “Baal” by Moody’s or rated as equivalent by other organizations with rating functions and experience in the latest fiscal year prior to the time of entry into a reinsurance contract.

10. Contents related to insurance contracts not mentioned in this Decree must comply with the law on insurance business and relevant laws.

Chapter II

COMPULSORY INSURANCE FOR MOTOR VEHICLE OWNER’S CIVIL LIABILITY

Section 1

INSURANCE CONDITIONS, PREMIUM RATES, AND INSURANCE LIABILITY LIMITS

Article 5. Insured object

The object of compulsory insurance for a motor vehicle owner’s civil liability is such motor vehicle owner’s civil liability for a third party and passengers in accordance with law.

Article 6. Insurance liability limits

1. The insurance liability limit for health or life damage caused by motor vehicles is VND 150 million per person per accident.

2. Insurance liability limits for property damage:

a/ For property damage caused by two-wheeled motorcycles, three-wheeled motorcycles or mopeds (including also electric motorcycles) and vehicles with similar structure as specified by the Law on Road Traffic, the insurance liability limit is VND 50 million per accident.

b/ For property damage caused by automobiles, tractors, trailers or semi-trailers towed by automobiles or tractors as specified by the Law on Road Traffic, the insurance liability limit is VND 100 million per accident.

Article 7. Scope of coverage and exclusion from insurance liability

1. Scope of coverage

Insurance enterprises are liable to indemnify for:

a/ Non-contractual health, life or property damage to third parties that is caused by motor vehicles joining traffic or in operation; and,

b/ Health or life damage caused by motor vehicles joining traffic or in operation to passengers on board such vehicles.

2. Cases of exclusion from insurance liability

Insurance enterprises are not liable to indemnify for:

a/ Acts of intentionally causing damage that are committed by the motor vehicle owner, the driver or the victim.

b/ Cases in which the accident-causing driver intentionally flees and fails to fulfill the civil liability of motor vehicle owners. In case in which the accident-causing driver intentionally flees but has fulfilled the civil liability of motor vehicle owners, this will not be regarded as a case of exclusion from insurance liability.

c/ Cases in which the driver does not satisfy the age condition specified in the Law on Road Traffic; the driver has no driver’s license or uses a driver’s license that is not valid as required under the regulations on road motor vehicle driver training and testing and issuance of driver’s licenses, or the driver’s license is erased or has expired at the time of occurrence of the accident or the driver’s license is not suitable to motor vehicles requiring a driver’s license. In case the driver is deprived of the right to use driver’s licenses for a definite time or has his/her driver’s license revoked, he/she is regarded as having no driver’s license.

d/ Cases in which damage causes indirect consequences, such as: reduction of commercial value or damage associated with the use and exploitation of the damaged assets.

dd/ Cases of property damage caused by the driver of a motor vehicle whose blood or breath alcohol content by the time of the accident exceeds the normal level guided by the Ministry of Health, or the driver who uses drugs and stimulants banned by law.

e/ Damage to property stolen or robbed in the accident.

g/ Damage to special property, including: gold, silver, gems and valuable papers, such as money, antiques, precious and rare paintings and pictures, corpses and remains; and,

h/ Damage caused by wars, terrorism or earthquakes.

Article 8. Premium rates

1. The premium rate for each type of motor vehicle is specified in Appendix I to this Decree.

2. Based on the indemnification history of each motor vehicle or the accident-causing history of a motor vehicle owner, an insurance enterprise shall consider and increase or decrease the premium rate. The premium rate increase or decrease level must not exceed 15% of the premium specified in Appendix I to this Decree.

Article 9. Period of insurance

1. The period of compulsory insurance for motor vehicle owner’s civil liability is between 1 year and 3 years, except the following motor vehicles for which the period of insurance is shorter than 1 year:

a/ Foreign motor vehicles temporarily imported for re-export that have joined traffic in the territory of the Socialist Republic of Vietnam for under 1 year.

b/ Motor vehicles with the lifespan of under 1 year as specified by law.

c/ Motor vehicles subject to temporary registration under the Minister of Public Security’s regulations.

2. In case a motor vehicle owner has more than one vehicle covered by insurance at different times of a year but in the subsequent year he/she wishes to count such different times as a single time of insurance for better management, the period of insurance of these vehicles may be shorter than 1 year and equal to the remaining validity period of the first insurance contract concluded in that year. The period of insurance of the subsequent year for insurance contracts and insurance certificates after the application of a single time of insurance must comply with Clause 1 of this Article.

3. During the validity period stated in an insurance certificate, if there is the motor vehicle title transfer, the former motor vehicle owner may terminate the insurance contract under Article 11 of this Decree.

Article 10. Insurance certificates

1. When buying compulsory insurance for motor vehicle owner’s civil liability, a motor vehicle owner shall be issued an insurance certificate by the insurance enterprise. For each motor vehicle, one insurance certificate will be issued. A motor vehicle owner whose insurance certificate is lost shall send a request to the insurance enterprise for re-issuance of the insurance certificate.

2. An insurance certificate shall be designed by the issuing insurance enterprise and must have the following contents:

a/ Name, address and telephone number (if any) of the motor vehicle owner.

b/ Plate number, chassis number and engine number.

c/ Type of vehicle, tonnage, number of seats and use purpose, for automobiles.

d/ Name, address and hotline of the insurance enterprise.

dd/ Insurance liability limit for a third party.

e/ Responsibilities of the motor vehicle owner and the driver upon the occurrence of an accident.

g/ Period of insurance, premium, and premium payment time limit.

h/ Date of issuance of the insurance certificate.

i/ Article numbers and barcodes registered, managed and used in accordance with law to store, transmit and retrieve identification information of the insurance enterprise and insurance products, for compulsory insurance for motor vehicle owner’s civil liability.

3. 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 all the contents specified in Clause 2 of this Article.

Article 11. Termination of insurance contracts and legal consequences of the termination of insurance contracts

In case the vehicle registration certificate or license plate of a motor vehicle is revoked under the Minister of Public Security’s regulations, the insurance contract will terminate from the time of revocation. The concerned insurance enterprise shall refund the paid premium to the insurance buyer in proportion to the remaining validity period of the insurance contract from the time of contract termination.

Article 12. Indemnification principles

An insurance enterprise shall consider and pay indemnities in accordance with the law on insurance business and on the following principles:

1. When an accident occurs, the insurance buyer or the insured shall:

a/ Promptly notify the accident to the hotline of the insurance enterprise for the latter to coordinate in the settlement of relevant matters, actively participate in rescuing and treating victim(s), mitigate health, life and property damage, and protect the accident scene.

b/ Refrain from moving, dismantling or repairing assets before obtaining approval of the insurance enterprise, except where it is necessary to do so in order to ensure safety, prevent and mitigate health, life and property damage or it is necessary to do so at the request of competent agencies.

c/ Proactively collect and provide the insurance enterprise with documents required for an indemnity claim dossier falling under the responsibility of the insurance buyer and the insured as specified in Article 13 of this Decree.

d/ Create favorable conditions for the insurance enterprise to verify documents they have provided.

2. Within 1 hour after receiving a notice of accident, the insurance enterprise shall provide the insurance buyer and the insured with instructions on measures to ensure safety, prevent and mitigate human and property damage, and how to proceed with indemnity claim dossiers and procedures; closely coordinate with the insurance buyer, the insured, the third party and related parties in organizing within 24 hours the loss assessment in order to identify causes and extent of the loss for use as a basis for the settlement of indemnity claims.

3. Within 3 working days after receiving the notice of accident from the insurance buyer or the insured, the insurance enterprise shall make advance indemnity payment for health or life damage at a level specified below:

a/ In case the accident has been identified as falling within the scope of indemnification:

70% of the estimated indemnity amount specified for a person in an accident, in case the insured dies.

50% of the estimated indemnity amount specified for a person in an accident, in case the insured suffers partial disablement.

b/ In case the accident has yet to be identified as falling within the scope of indemnification:

30% of the insurance liability limit specified for a person in an accident, in case the insured dies or suffers the disablement rate estimated at 81% or more.

10% of the insurance liability limit specified for a person in an accident, in case the insured suffers the disablement rate estimated at between 31% and under 81%.

After making the advance indemnity payment, the insurance enterprise may request the Motor Vehicle Insurance Fund to refund the indemnity amount paid in advance if the accident is determined to fall into a case eligible for exclusion from insurance liability or not covered by insurance.

4. Within 5 working days from the date of occurrence of an accident other than a force majeure event or an external obstacle, the insurance buyer or the insured shall send a notice of accident in the paper form or electronic form to the insurance enterprise.

5. When an accident occurs, within the insurance liability limit, the insurance enterprise shall indemnify the insured for the compensation amount the insured has paid or will have to pay to the victim.

In case the insured dies or loses his/her civil act capacity under a court ruling, the insurance enterprise shall pay compensation directly to the victim or the heir of the victim (in case the victim dies) or a representative of the victim (in case the victim has lost his/her civil act capacity under a court ruling or is a minor as defined in the Civil Code).

6. Indemnity levels:

a/ The specific indemnity level for health and life damage shall be determined based on each type of disablement or damage specified in the Table on payment of indemnity for health and life damage provided in Appendix VI to this Decree or agreement (if any) between the insured and the victim or the heir of the victim (in case the victim dies) or a representative of the victim (in case the victim loses his/her civil act capacity under a court ruling or is a minor as defined in the Civil Code), which, however, must not exceed the indemnity level specified in Appendix VI to this Decree. In case there is a court ruling thereon, the indemnity level shall be determined on the basis of such court ruling but must not exceed the indemnity level specified in Appendix VI to this Decree.

In case more than one motor vehicle cause an accident, leading to health or life damage, the indemnity level shall be determined based on the degree of fault of the motor vehicle owners provided that the total indemnity level does not exceed the insurance liability limit.

For an accident of which the cause is identified by a competent agency to be totally attributable to the fault of a third party, the indemnity level for health and life damage for the third party is equal to 50% of the indemnity level specified in Appendix VI to this Decree or as agreed upon (if any) between the insured and the victim or the heir of the victim (in case the victim dies) or a representative of the victim (in case the victim loses his/her civil act capacity under a court ruling or is a minor as defined in the Civil Code), which, however, must not exceed 50% of the indemnity level specified in Appendix VI to this Decree.

b/ The specific indemnity level for property damage in an accident shall be determined based on actual damage and degree of fault of the motor vehicle owner but must not exceed the insurance liability limit.

7. The insurance enterprise may deduct up to 5% of the indemnity amount for property damage in case the insurance buyer or the insured fails to notify the accident to the insurance enterprise under Clause 4 of this Article, or after the occurrence of the insured event, the insurance enterprise detects that during the performance of the insurance contract the insurance buyer or the insured fails to fulfill the obligation to notify changes in factors serving as bases for premium calculation, leading to an increase in insured risks.

8. The insurance enterprise is not liable to indemnify the amount exceeding the insurance liability limit as specified in this Decree, except cases in which the motor vehicle owner enters into a voluntary insurance contract.

9. In case more than one contract on compulsory insurance for motor vehicle owner’s civil liability are concluded for the same motor vehicle, the indemnity amount shall be paid only for the first concluded insurance contract. The insurance enterprise shall refund to the insurance buyer 100% of the premium already paid for remaining insurance contracts.

10. The insurance buyer or the insured shall notify the victim or his/her heir or representative of the indemnity amount already paid by the insurance enterprise for each case of health and life damage specified at Point a, Clause 6 of this Article.

11. The insurance enterprise shall notify the insurance buyer, the insured and the victim of the indemnity amount for health and life damage and pay the indemnity amount specified at Point a, Clause 6 of this Article.

Article 13. Indemnity claim dossiers

A dossier of claim for indemnity for compulsory insurance for motor vehicle owner’s civil liability must comprise:

1. An indemnity claim.

2. Documents related to the motor vehicle and the driver (certified copies of the originals or copies bearing the insurance enterprise’s certification after being collated with the originals or photocopies):

a/ The original vehicle registration certificate (or a certified copy of the original vehicle registration certificate, together with the original receipt issued by the credit institution which remains valid and is used instead of the original vehicle registration certificate during the period the credit institution keeps the original) or the vehicle title transfer and vehicle origin documents (in case the vehicle registration certificate is not available).

b/ The driver’s license.

c/ The people’s identity card or citizen identity card or passport or another personal identification document of the driver.

d/ The insurance certificate.

3. Documents proving health and life damage (copies issued by health establishments or copies certified by the insurance enterprise after being collated with the originals or photocopies). Depending on the degree of human damage, the indemnity claim dossier may comprise one or more than one of the following documents:

a/ The certificate of disablement.

b/ Medical records.

c/ An extract of the death certificate or death notice or a written certification issued by a public security agency or assessment results provided by a forensic examination agency in case the victim dies on a vehicle or dies due to an accident.

4. Documents proving property damage:

a/ Valid invoices and documents or proofs of the repair or replacement of assets damaged by the accident (these papers shall be collected by the insurance enterprise if it carries out the repair and remediation of the damage).

b/ Papers, invoices and documents for use as proofs of expenses already paid by the motor vehicle owner to mitigate losses or to comply with instructions of the insurance enterprise.

5. Copies of relevant documents issued by public security offices in accidents causing death to third parties and passengers or in cases in which it is necessary to verify that the accidents are caused totally due to the fault of third parties, including: notice of results of the investigation, verification and settlement of the accident or notice of investigation conclusions for the accident settlement.

6. Assessment minutes issued by the insurance enterprise or a person authorized by the insurance enterprise.

7. The court ruling (if any).

The insurance buyer and the insured shall collect and send to the insurance enterprise the documents specified in Clauses 1, 2, 3, 4 and 7 of this Article. The insurance enterprise shall collect the documents specified in Clauses 5 and 6 of this Article.

Section 2

MECHANISM FOR MANAGEMENT AND USE OF THE MOTOR VEHICLE INSURANCE FUND

Article 14. Principles of the management and use of the Motor Vehicle Insurance Fund

1. The Motor Vehicle Insurance Fund is a fund founded to cover expenses for humanitarian assistance activities; prevention of, and mitigation of losses caused by, road traffic accidents; public communication and education about road traffic safety and compulsory insurance for motor vehicle owner’s civil liability, and related activities in order to contribute to protecting public interests and ensuring social safety.

2. The Motor Vehicle Insurance Fund shall be founded with contributions of insurance enterprises providing compulsory insurance for motor vehicle owner’s civil liability, and centrally managed by the Insurance Association of Vietnam. The Fund has its own account opened at a commercial bank operating in Vietnam and may use the seal of the Insurance Association of Vietnam.

3. The Motor Vehicle Insurance Fund shall be managed and used transparently and efficiently for proper purposes in accordance with this Decree.

Article 15. Sources forming the Motor Vehicle Insurance Fund

1. Contributions of insurance enterprises licensed to provide compulsory insurance for motor vehicle owner’s civil liability.

2. Deposit interests.

3. Donations and financial aid of organizations and individuals.

4. Other lawful revenues (if any).

Article 16. Contributions to the Motor Vehicle Insurance Fund

1. Insurance enterprises shall deduct up to 1% of the total premiums of compulsory insurance for motor vehicle owner’s civil liability actually collected from original insurance contracts in the preceding fiscal year to make contributions to the Motor Vehicle Insurance Fund.

2. Before April 30 every year, the Management Council of the Motor Vehicle Insurance Fund shall decide on the percentage of contribution to the Motor Vehicle Insurance Fund and notify it to insurance enterprises and the Ministry of Finance.

3. Insurance enterprises that provide compulsory insurance for motor vehicle owner’s civil liability shall make remittances to the account of the Motor Vehicle Insurance Fund as follows:

a/ Before June 30 every year, they shall remit 50% of the total amount specified in Clauses 1 and 2 of this Article.

b/ Before December 31 every year, they shall remit the remainder of the amount specified in Clauses 1 and 2 of this Article.

Article 17. Items and rates of expenses from the Motor Vehicle Insurance Fund

1. The Motor Vehicle Insurance Fund shall be used for the following purposes:

a/ Providing humanitarian assistance:

In case it is impossible to identify the vehicle causing the accident, or cases in which the vehicle is not insured or not covered by insurance, or cases of exclusion from insurance liability specified in Clause 2, Article 7 of this Decree (except the victim’s act of intentionally causing damage), the expense for providing humanitarian assistance shall be paid at a level equal to 30% of the law-specified insurance liability limit for a person in an accident, in case the victim dies or suffers a disablement rate of 81% or more; or 10% of the law-specified insurance liability limit for a person in an accident, in case the victim suffers a disablement rate of between 31% and under 81%.

After the insurance enterprise has made advance indemnity payment under Point b, Clause 3, Article 12 of this Decree, the Motor Vehicle Insurance Fund shall refund the indemnity amount paid in advance by the insurance enterprise in case the accident is determined to fall into a case of exclusion from insurance liability or to be not covered by insurance.

The expense level must not exceed 30% of the total amount annually contributed to the Motor Vehicle Insurance Fund and the Fund’s balance in the previous years (if any). If the Motor Vehicle Insurance Fund has used up money amounts eligible to be spent for the humanitarian assistance purpose in a year, unpaid expenses for the provision of humanitarian assistance will be carried forward to cover the subsequent year’s expenses for the provision of humanitarian assistance.

b/ Providing support for the construction of works and equipment to prevent and mitigate losses and road traffic accidents: The expense level must not exceed 15% of the total amount annually contributed to the Motor Vehicle Insurance Fund and the Fund’s balance in the previous years (if any).

c/ Organizing public communication and education about road traffic safety and compulsory insurance for motor vehicle owner’s civil liability: The expense level must not exceed 17% of the total amount annually contributed to the Motor Vehicle Insurance Fund and the Fund’s balance in the previous years (if any).

d/ Covering expenses for the provision of assistance for the public security forces in coordinating with the Insurance Association of Vietnam, the Management Council of the Motor Vehicle Insurance Fund and insurance enterprises in the prevention and mitigation of losses, prevention of fraud in insurance business, and implementation of the regulations on compulsory insurance for motor vehicle owner’s civil liability: The expense level must not exceed 10% of the total amount annually contributed to the Motor Vehicle Insurance Fund.

dd/ Providing support for the rewarding of organizations and individuals for their achievements in providing compulsory insurance for motor vehicle owner’s civil liability, preventing and mitigating losses and traffic accidents, and ensuring road traffic order and safety: The expense level must not exceed 5% of the total amount annually contributed to the Motor Vehicle Insurance Fund.

e/ Paying expenses for the improvement and maintenance of the database on compulsory insurance for motor vehicle owner’s civil liability: The expense level must not exceed 10% of the total amount annually contributed to the Motor Vehicle Insurance Fund.

g/ Paying expenses for the operation of the ASEAN Scheme of Compulsory Motor Insurance and the operation of the Vietnam National Bureau to Implement Protocol No. 5 on the ASEAN Scheme of Compulsory Motor Insurance: The expense level must not exceed 5% of the total amount annually contributed to the Motor Vehicle Insurance Fund.

h/ Paying expenses for the management of the Motor Vehicle Insurance Fund, including salaries, allowances and salary-based deductions (social insurance, health insurance and unemployment insurance premiums, and trade union dues), and for the commendation of, and payment of welfare for, staff of the Office of the Motor Vehicle Insurance Fund; responsibility-based allowances for the management and administration apparatus of the Motor Vehicle Insurance Fund and part-time staff of the Office of the Motor Vehicle Insurance Fund; expenses for payment of office rentals, procurement of equipment, and banking and postal services; expenses for hiring audit services; and expenses for work-trip allowances and organization of meetings of the Motor Vehicle Insurance Fund: The expense level must not exceed 8% of the total amount annually contributed to the Motor Vehicle Insurance Fund.

i/ In case the Prime Minister issues a decision to declare a state of emergency related to disasters in accordance with the law on disaster prevention and control or to declare class-A infectious diseases in accordance with the law on prevention and control of infectious diseases, the Management Council of the Motor Vehicle Insurance Fund may use the Fund’s balance of the previous years to pay the expenses specified at Points d, dd, e, g and h, Clause 1 of this Article; total expense amounts must not exceed the percentages specified at Points d, dd, e, g and h, Clause 1 of this Article in proportion to the maximum contribution rate of 1% to the Motor Vehicle Insurance Fund.

2. The Insurance Association of Vietnam shall prioritize the payment of expenses for the provision of humanitarian assistance, prevention and mitigation of losses and road traffic accidents, and public communication and education, ensuring conformity with the objectives of founding the Motor Vehicle Insurance Fund.

Article 18. Management and administration of operation of the Motor Vehicle Insurance Fund

1. The organizational structure of the management and administration apparatus of the Motor Vehicle Insurance Fund shall be composed of the Management Council of the Motor Vehicle Insurance Fund, the Executive Board of the Motor Vehicle Insurance Fund, and the Supervisory Board of the Motor Vehicle Insurance Fund. The Office of the Motor Vehicle Insurance Fund shall act as the assisting body of the administration and administration apparatus of the Motor Vehicle Insurance Fund, which shall be based at the standing office of the Insurance Association of Vietnam. The Management Council of the Motor Vehicle Insurance Fund shall be established under the Minister of Finance’s decision at the proposal of the Insurance Association of Vietnam.

2. The account-finalization statement of a year of the Motor Insurance Fund (certified by an independent auditing firm) shall be sent to the Ministry of Finance and insurance enterprises before March 31 of the subsequent year and published on the website of the Insurance Association of Vietnam, together with opinions of the independent auditing firm.

 Article 19. Organizational structure, management and administration of the Motor Vehicle Insurance Fund

1. The Management Council of the Motor Vehicle Insurance Fund is composed of:

a/ A Chairperson who is the Chairperson of the Insurance Association of Vietnam.

b/ Members who are:

A representative of the Ministry of Finance.

A representative of the Ministry of Public Security.

The Secretary General of the Insurance Association of Vietnam.

Directors General or Deputy Directors General of at least 3 insurance enterprises licensed to provide compulsory insurance for motor vehicle owners’ civil liability with the largest market share in compulsory insurance for motor vehicle owners’ civil liability.

2. The Executive Board of the Motor Vehicle Insurance Fund is composed of:

a/ A Chairperson who is the Secretary General of the Insurance Association of Vietnam.

b/ Members who are representatives of at least 3 insurance enterprises licensed to provide compulsory insurance for motor vehicle owners’ civil liability with the largest market share in compulsory insurance for motor vehicle owners’ civil liability.

3. The Supervisory Board of the Motor Vehicle Insurance Fund is composed of:

a/ At least 3 members who are representatives of 3 insurance enterprises licensed to provide compulsory insurance for motor vehicle owners’ civil liability.

b/ A head who is appointed by the Chairperson of the Management Council of the Motor Vehicle Insurance Fund from among its members.

c/ Insurance enterprises whose members participating in the Supervisory Board of the Motor Vehicle Insurance Fund must be independent from insurance enterprises having members participating in the Executive Board of the Motor Vehicle Insurance Fund so as to assess and promptly detect risks that are likely to affect the efficiency and principles of the management and use of the Motor Vehicle Insurance Fund.

Article 20. Tasks and powers of the Motor Vehicle Insurance Fund’s organization and apparatus

1. Tasks and powers of the Management Council of the Motor Vehicle Insurance Fund:

a/ To take responsibility before law and the Minister of Finance for the management and administration of the Motor Vehicle Insurance Fund.

b/ To promulgate its working regulation and working regulations of the Executive Board and the Supervisory Board of the Motor Vehicle Insurance Fund.

c/ To promulgate specific regulations on management and use of the Motor Vehicle Insurance Fund, and approve estimates and account-finalization of the Motor Vehicle Insurance Fund.

d/ To decide on rates of contribution to the Motor Vehicle Insurance Fund, and notify thereof to insurance enterprises and the Ministry of Finance.

dd/ To supervise, manage, administer, operate, exploit, develop and maintain the database on compulsory insurance for motor vehicle owners’ civil liability.

e/ To formulate and implement policies on data management, decentralization, administration and updating, and exploitation, use, and keeping of confidentiality of information on the database on compulsory insurance for motor vehicle owners’ civil liability.

g/ To coordinate with insurance enterprises in summarizing proposals on upgrading and improvement of the database on compulsory insurance for motor vehicle owners’ civil liability; to adjust and improve the system configuration and implement projects on connection and upgrading of the database on compulsory insurance for motor vehicle owners’ civil liability;

h/ To regularly check, monitor and urge the periodical updating of information and data by insurance enterprises; to receive and sum up and address difficulties, problems and proposals of insurance enterprises under regulations.

i/ To assume the prime responsibility for guiding insurance businesses in developing their databases on compulsory insurance for motor vehicle owners’ civil liability.

k/ To issue processes, procedures and dossiers for payment of expenses for the provision of humanitarian assistance, refund of indemnity amounts that insurance enterprises have paid in advance.

l/ To issue decisions on the establishment of the Executive Board and the Supervisory Board of the Motor Vehicle Insurance Fund.

m/ To report to the Ministry of Finance on the Motor Vehicle Insurance Fund’s approved revenue and expenditure estimates and account-finalization.

2. Tasks and powers of the Executive Board of the Motor Vehicle Insurance Fund:

a/ To take responsibility before law and the Management Council of the Motor Vehicle Insurance Fund for the management, use, payment and account-finalization of the Motor Vehicle Insurance Fund.

b/ To abide by regulations on management and use of the Motor Vehicle Insurance Fund in accordance with the plan approved by the Management Council of the Motor Vehicle Insurance Fund and this Decree, and refrain from using the Motor Vehicle Insurance Fund for activities other than the Fund’s purposes.

c/ To urge contribution by, or retrospectively collect contributions of, insurance enterprises that fail to make such contributions within the set time limit or at the prescribed rate.

3. Tasks and powers of the Supervisory Board of the Motor Vehicle Insurance Fund:

a/ To supervise the Motor Vehicle Insurance Fund’s operation to ensure the compliance with law and this Decree.

b/ To sum up evaluations of, and send to the Management Council of the Motor Vehicle Insurance Fund proposals on, the Fund’s quarterly and annual financial status.

c/ To examine the management and use of the Motor Vehicle Insurance Fund at the request of the Management Council of the Motor Vehicle Insurance Fund.

Article 21. Estimation, accounting and account-finalization of the Motor Vehicle Insurance Fund

1. Estimation:

a/ Before December 15 every year, the Executive Board of the Motor Vehicle Insurance Fund shall formulate the Fund’s revenue and expenditure estimates with the following contents:

The Fund’s revenues and expenditures in the current year.

The Fund’s revenue and expenditure plan for the next year.

b/ The Executive Board of the Motor Vehicle Insurance Fund shall report on the Fund’s revenue and expenditure estimates to the Management Council for approval. The Fund’s revenue and expenditure estimates shall be notified to the Ministry of Finance and insurance enterprises as soon as they are approved.

c/ Expenditure plans according to expenditure estimates for a year, excluding the expenditures specified at Points e, g and h, Clause 1, Article 17 of this Decree, that have not been implemented or completed by December 31 every year shall be carried forward to the subsequent year.

d/ When necessary, the Management Council of the Motor Vehicle Insurance Fund may adjust the revenue and expenditure estimates approved at the beginning of the year and notify such to the Ministry of Finance and insurance enterprises.

2. Accounting of the Motor Vehicle Insurance Fund

The Executive Board of the Motor Vehicle Insurance Fund shall:

a/ Organize the accounting and statistical work in accordance with the Accounting Law, the Statistics Law and their guiding documents.

b/ Comply with regulations on accounting documents; and account the Motor Vehicle Insurance Fund’s revenues and expenditures.

c/ Keep the accounting book to record, systematize and archive all operations that have arisen in relation to the Motor Vehicle Insurance Fund.

d/ Make and send the Motor Vehicle Insurance Fund’s quarterly revenue and expenditure reports to the Fund’s Management Council for approval and hand-deliver or send by post or email the notification thereof to the Ministry of Finance.

For quarterly reports: The data collection period shall be from the 1^st day of the first month of the reporting period to the 30^th or 31^st day of the last month of the quarter of the reporting period. The time limit for report sending is 30 days from the last day of the quarter.

3. Account-finalization of the Motor Vehicle Insurance Fund:

The Executive Board of the Motor Vehicle Insurance Fund shall make the Fund’s annual account-finalization reports certified by independent audit firms for reporting to the Fund’s Management Council for approval.

Article 22. Establishment of the Management Council of the Motor Vehicle Insurance Fund, change of members of the Management Council of the Motor Vehicle Insurance Fund

1. Procedures for requesting the establishment of the Management Council or change of members of the Management Council of the Motor Vehicle Insurance Fund:

a/ The Insurance Association of Vietnam (in case of establishment of the Management Council of the Motor Vehicle Insurance Fund) or the Management Council of the Motor Vehicle Insurance Fund (in case of change of members of the Management Council of the Motor Vehicle Insurance Fund) shall select the method of carrying out procedures with the Ministry of Finance via the latter’s online public service system or hand-deliver or send a dossier by post.

b/ Within 10 working days after receiving a complete and valid dossier, the Minister of Finance shall issue a decision on the establishment of the Management Council of the Motor Vehicle Insurance Fund or the change of members of the Management Council of the Motor Vehicle Insurance Fund. In case of disapproval, the Ministry of Finance shall issue a document clearly stating the reason.

2. A dossier of request for establishment of the Management Council of the Motor Vehicle Insurance Fund must comprise:

a/ The original written request for establishment of the Management Council of the Motor Vehicle Insurance Fund, made according to the form provided in Appendix VIII to this Decree.

b/ One copy of the resolution of the Executive Board of the Insurance Association of Vietnam approving the request for establishment of the Management Council of the Motor Vehicle Insurance Fund.

3. A dossier of request for change of a member of the Management Council of the Motor Vehicle Insurance Fund must comprise:

a/ The original written request for change of a member of the Management Council of the Motor Vehicle Insurance Fund, made according to the form provided in Appendix IX to this Decree.

b/ One copy of the resolution of the Management Council of the Motor Vehicle Insurance Fund approving the request of the concerned insurance enterprise for change of a member of the Management Council of the Motor Vehicle Insurance Fund.

Chapter III

REGULATIONS ON COMPULSORY FIRE AND EXPLOSION INSURANCE

Section 1

INSURANCE CONDITIONS, INSURANCE PREMIUMS, MINIMUM INSURANCE SUM

Article 23. Insured objects

1. Objects covered by compulsory fire and explosion insurance include all assets of establishments prone to fire or explosion, including:

a/ Houses, construction works and assets attached to such houses and works; machinery and equipment.

b/ Goods and supplies (including raw materials and semi-finished and finished products).

2. Insured objects and their locations shall be clearly stated in insurance contracts and insurance certificates.

Article 24. Minimum insurance sum

1. The minimum sum covered by compulsory fire and explosion insurance means the monetary value of assets calculated according to their market prices under Clause 1, Article 23 of this Decree at the time of entry into an insurance contract.

2. In case it is impossible to identify market prices of assets, the sum covered by compulsory fire and explosion insurance shall be agreed by the parties as follows:

a/ For assets specified at Point a, Clause 1, Article 23 of this Decree, the insurance sum shall be the monetary value of an asset according to its residual or substitutive value at the time of entry into the insurance contract;

b/ For assets specified at Point b, Clause 1, Article 23 of this Decree, the insurance sum shall be the monetary value of an asset based on valid invoices and documents or related documents.

Article 25. Scope of insurance and exclusion from insurance liability

1. Scope of insurance:

Insurance enterprises shall perform the liability to pay insurance indemnity for damage caused by fire or explosion to insured objects specified in Clause 1, Article 23 of this Decree, except the cases specified in Clauses 2 and 3 of this Article.

2. In cases of exclusion from insurance liability for establishments prone to fire or explosion specified in the law on fire prevention and fighting (except nuclear facilities), insurance enterprises are not liable to pay insurance indemnity in the following cases:

a/ Earthquakes, volcano eruptions or other natural catastrophes.

b/ Damage caused by unexpected political, security or social order and security events.

c/ Assets that are burnt or detonated under decisions of competent state agencies.

d/ Self-fermenting or heat-radiating assets; assets that are affected by a heated treatment process.

dd/ Lightning strike directly on insured assets without causing any fire or explosion.

e/ Fire or explosion caused by nuclear weapon materials.

g/ Damage to electric machinery or equipment or parts thereof due to direct impacts of overload, over-pressure, short circuit, self-heating, electric arc or electric leakage caused by any reasons, including lightning.

h/ Damage caused by intentional fire- or explosion-causing acts committed by the insured parties; damage caused by intentional violations of regulations on fire prevention and fighting, as the direct cause of a fire or an explosion.

i/ Damage to computer data, software and programs.

k/ Damage caused by burning forests, bushes and pastures or setting fire for ground clearance.

3.  Cases of exclusion from insurance liability for nuclear facilities: Insurance enterprises and buyers shall reach agreement on cases of exclusion from insurance liability based on approval by reinsurance enterprises.

Article 26. Insurance premiums and insurance deduction rates

1. For establishments prone to fire or explosion (except nuclear facilities) having a total insurance sum of under VND 1 trillion for assets in a single location, the insurance premiums and deduction rates are specified in Clause 1, Section I of Appendix II and Clause 1, Section II of Appendix II to this Decree.

Based on the degree of risk of insured objects, insurance enterprises may increase or decrease the insurance premiums by up to 25%.

In case  the insured object directly makes the original insurance indemnity amount greater than revenue from the original compulsory fire and explosion insurance premium in the preceding fiscal year, based on data certified by the insurance enterprise’s actuary and an independent audit firm, when renewing the insurance contract, the insurance enterprise and insurance buyer may reach agreement on insurance premium and insurance deduction rate in order to ensure the solvency of the insurance enterprise.

2. For establishments prone to fire or explosion (except nuclear facilities) having a total insurance sum of under VND 1 trillion for assets in a single location:

The insurance enterprise and insurance buyer shall reach agreement on insurance premium and insurance deduction rate based on evidence of certification by the leading foreign insurance enterprise or organization that provides reinsurance. The leading foreign insurance enterprise or organization that assumes reinsurance and foreign insurance enterprises or organizations that assume reinsurance for 10% or more of the total liability of the reinsurance contract must comply with Clause 9, Article 4 of this Decree. In all cases, the insurance premium must not be lower than that calculated by multiplying (x) VND 1 trillion by 75% of the insurance premium rate specified in Clause 1, Section I, Appendix II to this Decree.

3. For nuclear facilities, the insurance enterprise and insurance buyer shall reach agreement on rules, terms, insurance premium and insurance deduction rate based on evidence that the leading foreign insurance enterprise or organization that assumes reinsurance certifies reinsurance according to such rules, terms, insurance premium and insurance deduction rate as provided by the insurance enterprise to the insurance buyer. The leading foreign insurance enterprise or organization that assumes reinsurance and foreign insurance enterprises or organizations that assume reinsurance for 10% or more of the total liability of the reinsurance contract must comply with Clause 9, Article 4 of this Decree.

Article 27. Insurance certificates

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

a/ Names, addresses and telephone numbers (if any) of the insurance buyer and the insured.

b/ Name, address and hotline of the insurance enterprise.

c/ Name of the establishment prone to fire and explosion in accordance with the law on fire prevention and fighting.

d/ Location of the insured object.

dd/ Insured asset(s).

e/ Insurance sum.

g/ Insurance deduction rate.

h/ Insurance period.

i/ Insurance premium rate and insurance premium.

k/ Date of issuance of the insurance certificate.

l/ Article numbers and barcodes that are registered, managed and used in accordance with law to archive, transmit and extract identification information of the insurance enterprise and compulsory fire and explosion insurance product(s).

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

Article 28. Insurance indemnification principles

Insurance enterprises shall consider paying insurance indemnities in accordance with the law on insurance business and on the following principles:

1. Upon the occurrence of a damage, the insurance buyer shall immediately notify it the insurance company by means of communication. Within 14 days after the damage is caused to the establishment prone to fire or explosion, such damage shall be notified in writing to the insurance enterprise.

2. The insurance indemnity for a damaged asset must not exceed the insurance sum for such asset (which has been agreed upon and stated in the insurance contract and certificate) minus the insurance deduction rate specified in Clause 3 of this Article.

3. The insurance indemnity amount may be reduced by up to 20% in case the establishment prone to fire or explosion fails to promptly and fully implement recommendations stated in the fire prevention and fighting safety examination minutes made by a competent public security office, thus leading to a greater damage caused by a fire or explosion.

Article 29. Insurance indemnity dossiers

A dossier for compulsory fire and explosion insurance indemnity must comprise the following documents:

1. A written indemnity claim of the insurance buyer.

2. Documents related to the insured object, including the insurance contract and insurance certificate.

3. A copy of the fire prevention and fighting safety examination minutes made by a competent public security office at the time closest to the occurrence of the insurance incident.

4. Assessment minutes of the insurance enterprise or a person authorized by the insurance enterprise.

5. A copy of the written conclusion or notice of cause(s) of the fire or explosion made by the competent agency or evidences proving such cause(s).

6. A written declaration of the damage and papers proving the damage.

The insurance buyer shall collect and send to the insurance enterprise the documents specified at Clauses 1, 2, 3, 5 and 6 of this Article. The insurance enterprise shall collect the document specified at Clause 4 of this Article.

Section 2

COLLECTION RATES AND THE MANAGEMENT AND USE OF REVENUES FROM COMPULSORY FIRE AND EXPLOSION INSURANCE FOR FIRE PREVENTION AND FIGHTING

Article 30. Rates of collection and remittance of revenues from compulsory fire and explosion insurance for fire prevention and fighting

1. Revenues of an insurance enterprise providing compulsory fire and explosion insurance in a fiscal year is equal to 1% of total compulsory fire and explosion insurance premiums actually collected from original insurance contracts in the preceding fiscal year.

2. Insurance enterprises shall remit the amount specified in Clause 1 of this Article into the account of the Fire Prevention, Fighting, Rescue and Salvage Police Department opened by the Ministry of Public Security at the Central State Treasury before:

a/ June 30 every year: 50% of the total amount specified in Clause 1 of this Article;

b/ December 31 every year: the remaining amount specified in Clause 1 of this Article.

Article 31. Management and use of revenues from compulsory fire and explosion insurance

1. The management and use of revenues from compulsory fire and explosion insurance must ensure the transparency and proper purposes specified in this Decree and relevant laws.

2. Revenues from compulsory fire and explosion insurance for fire prevention and fighting shall be used as follows:

a/ To provide support for the procurement of fire prevention and fighting vehicles and equipment of the fire prevention and fighting police. Such support must not exceed 65% of compulsory fire and explosion insurance premiums actually collected by insurance enterprises in the fiscal year. The procurement of fire prevention and fighting vehicles and equipment must comply with the law on bidding.

b/ To provide support for the public communication about, and dissemination of, regulations and knowledge on fire prevention and fighting and compulsory fire and explosion insurance. Such support must not exceed 15% of compulsory fire and explosion insurance premiums actually collected by insurance enterprises in the fiscal year. Contents and level of expenses for the public communication and dissemination must comply with the law on management, use and settlement of funds for the law dissemination and education.

c/ To provide support for the fire prevention and fighting police in investigating causes of fire, providing fire prevention and fighting and safety inspection training courses, supervising the participation in compulsory fire and explosion insurance by establishments prone to fire or explosion. Such support must not exceed 15% of compulsory fire and explosion insurance premiums actually collected by insurance enterprises in the fiscal year. Expense contents and levels must comply with the current financial spending regimes.

d/ To provide support for the commendation and rewarding of achievements of organizations and individuals directly participating and coordinating with one another in the fire prevention and fighting. Such support must not exceed 5% of compulsory fire and explosion insurance premiums actually collected by insurance enterprises in the fiscal year in which:

Expenses for regular commendation and rewarding must comply with the law on emulation, commendation and rewarding.

Expenses for irregular commendation and rewarding for organizations and individuals directly participating in the fire prevention and fighting: The Minister of Public Security shall base himself/herself on achievements of organizations and individuals and revenues from compulsory fire and explosion insurance premiums to decide on specific cases eligible for commendation and rewarding and irregular rewarding levels.

3. Every year, at the time of making annual state budget estimates, the Ministry of Public Security shall make estimates of revenues from compulsory fire and explosion insurance premiums and incorporate them in its general estimates for submission to the Ministry of Finance in accordance with the Law on the State Budget and its guiding documents for summarization and monitoring.

4. The management and use of funds must comply with current regulations on regimes, norms and standards. The Ministry of Public Security shall consider, appraise and approve annual account finalization of funding sources from compulsory fire and explosion insurance premiums for its affiliated units; and sum up, make and send account finalization statements of other retained funding sources to the Ministry of Finance concurrently with state budget account finalization statements for summarization and monitoring.

5. Amounts actually collected from compulsory fire and explosion insurance for the fire prevention and fighting at the end of a year that have not yet been used up for activities specified in Clause 2 of this Article shall be carried forward to the subsequent year for further use. After 5 years, if such amounts are still not used up, the Ministry of Public Security shall assume the prime responsibility for, and coordinate with the Ministry of Finance, in reviewing and evaluating revenues from compulsory fire and explosion insurance premiums and report to the Government for adjusting the revenue remittance rate.

Chapter IV

COMPULSORY INSURANCE IN CONSTRUCTION INVESTMENT ACTIVITIES

Section 1

INSURANCE CONDITIONS, PREMIUM RATES, MINIMUM INSURANCE SUMS FOR COMPULSORY INSURANCE FOR UNDERWAY WORKS

Article 32. Insured objects

Project owners shall buy compulsory insurance for underway works for:

1. Works and work items that greatly affect the community safety and interests 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.

2. Construction investment works that are likely to exert significant adverse environmental impacts or adverse environmental impacts specified in Appendices III and IV to the Government’s Decree No. 08/2022/ND-CP of January 10, 2022, detailing a number of articles of the Law on Environmental Protection, and on the list of investment projects subject to environmental impact assessment in accordance with the Law on Environmental Protection.

3. Works with special technical requirements and complex construction conditions specified by the law on construction and relevant laws.

Article 33. Minimum insurance sum

The minimum insurance sum for compulsory insurance for an underway work is the full value of such work when completed, including costs of all materials, labor cost, costs of equipment installed therein, transportation costs, other taxes and charges, and other items provided by the project owner. The minimum insurance sum for an underway work must not be lower than the total value of the construction contract, including the adjusted value or added value (if any).

Article 34. Coverage of insurance and exclusion from insurance liability

1. Coverage of insurance

Insurance enterprises shall pay indemnities for losses caused to underway works which arise from all risks, except cases of exclusion from insurance liability specified in Article 2 of this Circular.

2. Cases of exclusion from insurance liability

Insurance enterprises are not liable to pay indemnities for:

a/ Losses caused by from wars, riots, strikes, hostile acts, rebellions, or malicious acts committed by persons on behalf of or in connection with political organizations, confiscation, requisition, expropriation or destruction, or damage caused by orders of competent state agencies.

b/ Losses caused by terrorist acts.

c/ Losses caused by nuclear reactions, nuclear radiation or radioactive contamination.

d/ Losses or damage caused to insurance buyers and the insured on embargo lists.

dd/ Losses or damage related to epidemics announced by competent agencies.

e/ Losses caused by intentional violations of law committed by insurance buyers or the insured.

g/ Losses arising in case insurance buyers have no insurable interests specified by law.

h/ Losses caused by the cessation of work construction or consequences thereof (regardless of partial or whole cessation of the work construction).

i/ Losses caused to data, software or computer programs.

k/ Losses caused by construction investment consultancy contractors’ engineering errors, for construction works of grade II or higher grade.

l/ Losses caused by corrosion, abrasion or oxidation.

m/ Losses caused by decay under normal pressure and temperature conditions (this exclusion is only applicable to the construction works specified at Point a, Clause 1, Article 37 of this Decree).

n/ Losses caused by the hardening process such as rust, scaling and the like (this exclusion is only applicable to the construction works specified at Point b, Clause 1, Article 37 of this Decree).

o/ Expenses for fixing, replacement or correction of material or workmanship errors. This exclusion is applicable only to losses caused to directly affected items, not to losses indirectly caused to other items by material or workmanship errors while the construction process is carried out properly.

p/ Losses or damage only detected at the time of inventory.

Article 35. Termination of insurance contracts

1. An insurance contract shall be terminated in the following cases:

a/ In the insurance contract, the insurance buyer and the insurance enterprise have agreed on the contract termination in cases of suspension of the performance of jobs stated in the construction contract or termination of the construction contract in accordance with law.

Within 5 working days after the project owner decides on the suspension of the performance of jobs stated in the construction contract or termination of the construction contract in accordance with law, the insurance buyer shall notify such in writing to the insurance enterprise. The time of termination of the insurance contract shall be determined based on the time of suspension of the performance of jobs stated in the construction contract or the time of termination of the construction contract.

b/ Other cases specified by law.

2. Legal consequences of the termination of insurance contracts

a/ In case of termination of an insurance contract specified at Point a, Clause 1 of this Article, within 15 days from the date of termination of the insurance contract, the insurance enterprise shall refund the paid premium corresponding to the remaining period of the insurance contract to the insurance buyer after subtracting reasonable expenses (if any) as agreed upon in the insurance contract. In case the insurance buyer has not yet fully paid the premium, the insurance buyer shall pay the unpaid premium corresponding to the insured period counted by the time of termination of the insurance contract.

b/ Legal consequences of the termination of insurance contracts specified at Point b, Clause 1 of this Article must comply with the insurance contract and law.

Article 36. Insurance period

The period of compulsory insurance for an underway work is as follows:

1. For the construction works specified at Point a, Clause 1, Article 37 of this Decree, the insurance period shall be written in insurance contracts, counting from the date of starting to the date of finishing the construction, based on documents issued by authorities with the investment decision competence (including their modifications and supplementations, if any). The insurance period for work parts or items that have been handed over or put into operation ends as soon as such parts or items are handed over or put into operation.

2. For the construction works specified at Point b, Clause 1, Article 37 of this Decree, the insurance period shall be written in insurance contracts, counting from the date of construction commencement, based on documents issued by authorities with the investment decision competence (including modifications and supplementations thereof, if any) to the date of handing over the works or completing their first load test, whichever comes first, but not exceeding 28 days from the first date of the test. The insurance period for used equipment installed into works ends at the time of trial operation commencement.

Article 37. Premium rates and insurance deductibles

1. Premium rates and deductibles for compulsory insurance for underway works are as follows:

a/ For a construction work valued at under VND 1 trillion, excluding the installation cost, or including the installation cost which is smaller than 50% of the total value of insured work items, the premium rates and insurance deductibles are provided in Clause 1, Section I of Appendix III to this Decree.

b/ For a construction work valued at under VND 1 trillion, including the installation cost which is equal to 50% or higher of the total value of insured work items, the premium rates and insurance deductibles are provided in Clause 1, Section II of Appendix III to this Decree.

c/ For a construction work valued at VND 1 trillion or higher specified at Point a or b of this Clause, the insurance enterprise and the insurance buyer may reach an agreement on premium rates and insurance deductibles based on proof of confirmation by the leading foreign insurance enterprise or organization assuming reinsurance. The leading foreign insurance enterprise or organization or foreign insurance enterprise or organization that assumes reinsurance for 10% or more of the total liability under each reinsurance contract must comply with Clause 9, Article 4 of this Decree. In any circumstance, the premium rate must not be lower than the premium equal to VND 1 trillion multiplied by 75% of the premium rate specified in Clause 1, Section I of Appendix III to this Decree (for the construction works specified at Point a, Clause 1 of this Article) or in Clause 1, Section II of Appendix III to this Decree (for the construction works specified at Point b, Clause 1 of this Article).

d/ For construction works other than those specified at Points a, b and c of this Clause:

The insurance enterprise and the insurance buyer may reach an agreement on insurance rules, terms, premium rates and deductibles based on proof that the leading foreign insurance enterprise or organization assuming reinsurance confirms its assumption of reinsurance under insurance rules, terms, premium rates and deductibles as those applied by the insurance enterprise to the insurance buyer. The leading foreign insurance enterprise or organization or foreign insurance enterprise or organization that assumes reinsurance for 10% or more of the total liability under each reinsurance contract must comply with Clause 9, Article 4 of this Decree

2. For the construction works specified at Points a and b, Clause 1 of this Article:

Insurance enterprises may increase or decrease the premiums by up to 25% according to the level of risk of insured objects.

In the preceding fiscal year, if the insured object is determined as the direct cause making the primary insurance indemnity sum higher than the primary insurance premium revenue of compulsory insurance for underway works, based on data certified by the insurance enterprise’s actuary and an independent audit firm, when renewing the insurance contract, the insurance enterprise and the insurance buyer may reach an agreement on the premium rate and insurance deductible, ensuring the solvency of the insurance enterprise.

3. In case the construction time is prolonged compared to that stated in the document issued by an authority with the investment decision competence upon conclusion of the insurance contract, the insurance buyer and the insurance enterprise may reach an agreement on an additional premium for the prolonged time. An additional premium (if any) shall be calculated based on the premium rate provided in Appendix III to this Decree and Clause 2 of this Article, the proportion of the prolonged time to the total construction time stated in the document issued by an authority with the investment decision competence upon conclusion of the insurance contract, and other risk factors.

Article 38. Responsibility to buy insurance

Project owners shall buy insurance for their works or work items during the construction time. Below are specific cases:

1. In case of buying insurance for a work during the construction time, the project owner shall buy insurance with the minimum insurance sum specified in Article 33 of this Decree.

2. In case of buying insurance for a work item during the construction time, the project owner shall buy insurance with the insurance sum for such work item which must not be lower than the full value of such work item upon its completion and the total insurance sum for work items during the construction time must not be lower than the minimum insurance sum specified in Article 33 of this Decree.

Article 39. Indemnification principles

An insurance enterprise shall consider insurance indemnity claims and pay indemnities in accordance with the law on insurance business and on the following principles:

1. When a loss occurs to a work during the construction time, the insurance buyer shall coordinate with the insurance enterprise in settling the indemnity claim as follows:

a/ Immediately notifying such to the insurance enterprise via means of communication, then send an official notice to the insurance enterprise within 14 days from the date of occurrence of the loss.

b/ After sending a notice to the insurance enterprise, repairing or replacing minor damage with a value not exceeding the corresponding deductible specified in this Decree.

In other cases, the insurance buyer’s loss shall be assessed by the insurance enterprise before damaged items are repaired or replaced. If the insurance enterprise fails to carry out loss assessment within 5 working days after receiving a notice of the loss to a construction work, the insurance buyer and the insured may carry out repair or replacement of damaged items, except the case of a force majeure event or an external obstacle. The insurance enterprise shall pay expenses for the repair or replacement of damaged items falling within its insurance liability provided the insurance buyer or the insured carries out the repair or replacement
in a timely manner.

c/ Keeping damaged parts to be available for assessment by the insurance enterprise’s representative or assessor.

d/ Promptly reporting the matter to a public security office in case of loss due to theft or burglary.

dd/ Taking all measures within its capacity to minimize the loss.

e/ Taking, or coordinating with or allowing the insurance enterprise to take, all necessary actions and measures that are necessary or at the request of the insurance enterprise to protect the insurance enterprise’s interests after paying indemnities within its insurance liability specified in this Decree.

2. When a loss occurs to a work during the construction time, the insurance enterprise shall settle the indemnity claim as follows:

a/ Carrying out loss assessment in accordance with law and making a minutes of assessment of the loss cause and extent under Clause 5, Article 40 of this Decree.

b/ Guiding and coordinating with the insurance buyer and related agencies, organizations and individuals in collecting sufficient documents for making an indemnity claim dossier.

3. An insurance enterprise shall pay indemnities only for physical losses actually incurred by the insured which have been included in the insurance sum.

4. The indemnity amount for each property item specified in an insurance contract must not exceed the insurance sum for such item. The total indemnity amount must not exceed the total insurance sum specified in the insurance contract. The specific cases are as follows:

a/ In case of repairable loss, repair is required. The indemnity amount shall be equal to the necessary cost of the restoration of  the damaged item to its status before the damage after subtracting the recovered value (in case the insurance buyer recovers the damaged property) and the insurance deductible level.

b/ In case of total loss, the indemnity amount shall be equal to the market value of such item at the time when and in the place where the loss occurs and actual damage level after subtracting the insurance deductible amount. In case the insurance buyer recovers the damaged property, the indemnity amount is equal to the actual value of such item at the time when and in the place where the loss occurs after subtracting the insurance deductible amount the recovered value.

5. The cost of provisional repair shall be paid by the insurance enterprise if such repair constitutes part of the official repair and such cost does not lead to an increase in the total cost of repair of the damaged item stated in the final repair plan. 

6. Insurance enterprises are not liable to pay indemnities for all expenses for renovation, addition and upgrading of insured work items.

Article 40. Indemnity claim dossiers

An indemnity claim dossier for compulsory insurance for an underway work must comprise:

1. The insurance buyer’s indemnity claim.

2. Documents related to the insured object, including the insurance contract and insurance certificate.

3. Documents proving the property damage, including:

a/ A construction work incident case file in case of occurrence of a construction work incident (a certified copy of the original, or a copy certified by the party making such case file) under Article 47 of the Government’s Decree No. 06/2021/ND-CP of January 26, 2021, detailing a number of provisions on quality management, construction and maintenance of construction works, or proof of losses caused to the construction work.

b/ Valid invoices and documents or proofs of the repair or replacement of damaged property items.

4. Documents proving necessary and reasonable expenses paid by the insurance buyer to mitigate the loss or follow the insurance enterprise’s instructions.

5. A minutes of assessment of the damage cause and extent, made by the insurance enterprise or its authorized person.

6. Other relevant documents (if any).

The insurance buyer shall collect and send to the insurance enterprise the documents specified in Clauses 1, 2, 3, 4 and 6 of this Article. The insurance enterprise shall collect the documents specified in Clause 5 of this Article.

Section 2

INSURANCE CONDITIONS AND PREMIUM RATES, INSURANCE LIABILITY LIMIT FOR COMPULSORY INSURANCE FOR CONSTRUCTION INVESTMENT CONSULTANTS’ PROFESSIONAL LIABILITY

Article 41. Insured object

The object of compulsory insurance for construction investment consultants’ professional liability is the civil liability of investment construction consultancy contractors to third parties which arises from the performance of construction survey and construction engineering jobs of construction works of grade II or higher grade.

Article 42. Insurance liability limit

The insurance liability limit must be equal to the value of a construction survey consultancy contract or construction engineering consultancy contract.

Article 43. Coverage of insurance and exclusion from insurance liability

1. Coverage of insurance

Insurance enterprises shall pay indemnities to consultancy contractors for money amounts to be paid by consultancy contractors as compensations for losses incurred by third parties which arise from the performance of construction investment consultancy jobs and related expenses specified by law, except the cases specified in Clause 2 of this Article.

2. Cases of exclusion from insurance liability

Insurance enterprises are not liable to pay indemnities in the following cases/for:

a/ Exclusion from insurance liability specified at Points a, b, c, d, dd, e, g, h and i, Clause 2, Article 34 of this Decree.

b/ Losses occurring due to consultancy contractors’ intentional selection of untested methods of construction, calculation, measurement, engineering and use of materials.

c/ Expenses for remaking or modification of drawings, plans, technical guidance documents or lists of technical guidance documents.

d/ Losses caused by mold.

dd/ Losses occurring due to construction survey or construction engineering consultancy leading to pollution or contamination to the environment and third parties.

e/ Losses occurring in relation to asbestos or asbestos-containing materials.

g/ Losses occurring due to infringements of intellectual property rights.

h/ Losses occurring due to consultancy contractors’ intentional violation of the construction law’s provisions on the application of standards and technical regulations, and use of construction materials harmful to community health and the environment.

Article 44. Insurance period

The period of compulsory insurance for construction investment consultants’ professional liability is counted from the date of commencement of the performance of the consultancy job to the date of expiration of the work warranty period specified by law.

Article 45. Premium rates and insurance deductibles

1. Premium rates and deductibles for compulsory insurance for construction investment consultants’ professional liability are as follows:

a/ For construction works valued at under VND 1 trillion each and other than dikes, dams, ports, harbors, piers, wharves, breakwaters and hydraulic structures; airports, airplanes, satellites and aerospace vehicles; ship building and repair works; offshore and underwater energy construction works; railway, tram, express train and underground projects, and mines, premium rates and insurance deductibles are specified in Clause 1 of Appendix IV to this Decree.

Insurance enterprises may increase or decrease the premiums by up to 25% according to the level of risk of insured objects.

In the preceding fiscal year, if the insured object is determined as the direct cause making the primary insurance indemnity sum higher than the primary insurance premium revenue of compulsory insurance for construction investment consultants’ professional liability, based on data certified by the insurance enterprise’s actuary and an independent audit firm, when renewing the insurance contract, the insurance enterprise and the insurance buyer may reach an agreement on the premium rate and insurance deductible, ensuring the solvency of the insurance enterprise.

b/ For construction works valued at VND 1 trillion or higher each or for which the value of consultancy contracts is over VND 80 billion each or works not subject to the premium rates specified at Point a, Clause 1 of this Article, the insurance enterprise and the insurance buyer may reach an agreement on premium rate and insurance deductible based on proof that the leading foreign insurance enterprise or organization assuming reinsurance certifies its assumption of reinsurance under insurance rules, terms, premium rates and deductibles as those applied by the insurance enterprise to the insurance buyer. The leading foreign insurance enterprise or organization or foreign insurance enterprise or organization that assumes reinsurance for 10% or more of the total liability under each reinsurance contract must comply with Clause 9, Article 4 of this Decree. In any circumstance, the premium rate must not be lower than the premium equal to VND 1 trillion multiplied by 75% of the premium rate specified in Clause 1, Appendix IV to this Decree.

2. In case the period of performance of construction investment consultancy jobs is prolonged compared to that stated in the document issued by an authority with the investment decision competence upon conclusion of the insurance contract, the insurance buyer and the insurance enterprise shall reach an agreement on an additional premium for the prolonged period. An additional premium (if any) shall be calculated based on premium rates specified Point a, Clause 1 of Appendix IV to this Decree, the provision on increase or reduction of premiums of Point a, Clause 1 of this Article, and in proportion to the prolonged period.

Article 46. Indemnification principles

Insurance enterprises shall consider indemnity claims and pay indemnities in accordance with the law on insurance business and on the following principles:

1. Insurance enterprises shall pay indemnities to consultancy contractors money amounts to be paid by consultancy contractors as compensations for losses incurred by third parties and related expenses in accordance with law, specifically as follows:

a/ Losses incurred by third parties and related expenses occurring due to mistakes or negligence of the insured are consequences of the performance of construction survey and engineering jobs within the coverage of insurance.

b/ The third parties’ claims are made for the first time against the insured (arising from an insured event) and notified by the insurance buyer to the insurance enterprise in the insurance period, including also expenses for lawyers appointed by the insurance enterprise or the insured (with the insurance enterprise’s written consent), fees and other expenses for investigation, revision and defense related to the insured event, but excluding salaries payable to the employee or manager who has signed a labor contract with the insured.

c/ Other related expenses specified by law.

2. Total indemnity amounts to be paid by an insurance enterprise for all claims in the insurance period must not exceed the insurance liability limit agreed upon in the insurance contract.

3. When receiving a third party’s claim, the insurance buyer shall coordinate with the insurance enterprise in settling the indemnity claim as follows:

a/ Immediately notifying such to the insurance enterprise via means of communication, then send a notice to the insurance enterprise within 14 days from the date of receiving a third party’s claim.

b/ Taking all measures within its capacity to mitigate the loss.

c/ Taking, or coordinating with or allowing the insurance enterprise to take, all necessary acts and measures that are deemed necessary or at the request of the insurance enterprise to protect the insurance enterprise’s interests after paying indemnities within its insurance liability specified in this Decree.

4. Upon receiving a third party’s indemnity claim, the insurance enterprise shall pay the indemnity as follows:

a/ Carrying out loss assessment in accordance with law and making a minutes of assessment of the loss cause and extent.

b/ Guiding the insurance buyer and coordinating with the insurance buyer and related agencies, organizations and individuals in collecting sufficient documents for making of an indemnity claim dossier.

c/ Coordinating with the insurance buyer in settling the third party’s indemnity claim within its insurance liability when the insured event occurs.

Article 47. Indemnity claim dossiers

An insurance enterprise shall coordinate with the insurance buyer, the insured and related agencies and organization in collecting relevant documents for making an indemnity claim dossier. An indemnity claim dossier for compulsory insurance for construction investment consultants’ professional liability must comprise:

1. An indemnity claim of the insurance buyer.

2. Documents related to the insured object, including insurance contract and insurance certificate.

3. An indemnity claim of the third party to the insured.

4. A document proving human damage (a copy of the medical examination and treatment establishment or a copy certified by the insurance enterprise after being collated with the original) provided by the insurance buyer. Depending on the severity of the human damage, one or several of the following documents are required:

a/ A written certification of disablement.

b/ A hospital discharge paper.

c/ A written certification of surgery.

d/ Medical records.

dd/ An extract of the death certificate or death notice or written certification of the public security office or assessment results of the forensic examination agency.

e/ Valid invoices and documents of medical expenses.

5. Documents proving property damage, including:

a/ A construction incident dossier in case a construction incident occurs (a certified copy of the original or a copy bearing the dossier maker’s certification) under Article 47 of the Government’s Decree No. 06/2021/ND-CP of January 26, 2021, detailing a number of contents on quality control, construction execution and maintenance of construction works, or proofs of the construction work’s losses.

b/ Valid invoices and documents or proofs of the repair or replacement of the damaged property.

c/ Papers, invoices and documents related to arising expenses already paid by the insurance buyer to mitigate losses or to follow instructions of the insurance enterprise.

6. An assessment minutes of the damage cause and severity, made by the insurance enterprise or a person authorized by the insurance enterprise.

7. Other relevant documents (if any).

The insurance buyer shall collect and send to the insurance enterprise the documents specified in Clauses 1, 2, 3, 4, 5 and 7 of this Article. The insurance enterprise shall collect the documents specified in Clause 6 of this Article.

Section 3

INSURANCE CONDITIONS, PREMIUM RATES AND COMPULSORY INSURANCE LIABILITY LIMIT FOR WORKERS ON CONSTRUCTION SITES

Article 48. Insured object

1. The object of compulsory insurance for workers on construction sites is the civil liability of construction contractors for workers on construction sites in accordance with law.

2. The insurance liability limit is VND 100 million per person per case.

Article 49. Coverage of insurance and exclusion from insurance liability

1. Covegage of insurance

Insurance enterprises shall indemnify construction contractors for the money amounts payable by the construction contractors to workers who suffer disablement or die from occupational accidents or diseases arising from the performance of jobs on construction sites, except the cases specified in Clause 2 of this Article.

2. Cases of exclusion from insurance liability

Insurance enterprises are not liable to pay indemnities for:

a/ The cases of exclusion from insurance liability specified at Points a, b, c, d, dd, g, h, and i, Clause 2, Article 34 of this Decree.

b/ Losses related to asbestos or any materials containing asbestos.

c/ Losses arising from conflicts between workers and accident causers which are not related to their performance of jobs on construction sites.

d/ Losses arising from workers’ acts of deliberately causing harm to their health.

dd/ Losses arising from workers’ use of addictive substances or narcotics in contravention of law (except cases in which drugs are prescribed for treatment by licensed medical doctors).

e/ Losses arising from intentional acts of violation of insurance buyers or the insured (except cases in which workers defend themselves, save other people, save property or use stimulants for treatment as prescribed by medical doctors).

Article 50. Insurance period

1. The period of compulsory insurance for workers on construction sites is counted from the date of construction commencement on the construction sites to the date of expiration of the work warranty time in accordance with law.

2. The determination of the specific insurance period for workers on construction sites shall be based on labor contracts and written confirmations of the construction contractors on the workers’ actual working duration on the construction sites.

Article 51. Premium rates

1. The premium rates of compulsory insurance for workers on construction sites are specified in Appendix V to this Decree.

2. Based on the risk level of an insured object, an insurance enterprise may increase or decrease a premium by up to 25%.

In the preceding fiscal year, if the insured object is the direct cause making the paid primary insurance indemnity amount higher than the revenue from primary insurance premium of compulsory insurance for workers on construction sites, based on the data verified by the actuary of an insurance enterprise and by an independent audit firm, the insurance enterprise and the insurance buyer may, upon renewal of the insurance contract, reach agreement on the premium rate and deductible rate to ensure the solvency of the insurance enterprise.

3. In case there is a change in the number of workers or jobs of workers:

a/ Before the 15^th of the month following the month when the change occurs, the construction contractor shall notify in writing the insurance enterprise of such change, together with the list of increased or decreased workers (in case of change in the number of workers), or the list of changed jobs of workers (in case of change in jobs of workers).

b/ In case an increase in the number of workers or a change in jobs of workers leads to an increase in insurable risks, the construction contractor shall pay the increased premium amount before the 15^th of the month following the month of notification.

c/ In case a decrease in the number of workers or a change in jobs of workers leads to a decrease in insurable risks, the insurance enterprise shall pay the construction contractor the decreased premium amount corresponding to the remaining period of the insurance contract for which the insurance buyer has overpaid before the 15^th of the month following the month of notification, provided that by that time, no complaint is filed for the insurance contract or a complaint has been filed but the insurance enterprise makes no payment of the insurance sum.

d/ If the construction contractor properly performs the notification obligation under Point a of this Clause and pays the premium under Point b of this Clause, the insurance contract shall automatically be valid for the list of increased workers or terminated for the list of decreased workers; the insurance contract shall automatically be valid for the workers’ changed jobs from the date of occurrence of the actual change at the request of the insured.

Article 52. Indemnification principles

Insurance enterprises shall consider and settle indemnification claims in accordance with the law on insurance business and in adherence to the following principles:

1. Upon the occurrence of an occupational accident or disease to a worker on the construction site, the insurance buyer shall coordinate with the insurance enterprise in settling the indemnity claim as follows:

a/ To immediately notify the event to the insurance enterprise by means of communication, and, within 14 days from the date of occurrence of the occupational accident or disease, to send a written notice thereof to the insurance enterprise.

b/ To take all possible measures within their capacity to mitigate the damage.

c/ To implement, or permit the insurance enterprise to implement, actions and measures that are necessary or requested by the insurance enterprise in order to protect benefits enjoyed by the insurance enterprise after it pays indemnities for insurance-covered damage under this Decree. 

2. Upon the occurrence of an occupational accident or disease for a worker on a construction site, the insurance enterprise shall guide the insurance buyer, and coordinate with the insurance buyer and related agencies, organizations and individuals in collecting sufficient documents for making an indemnity claim dossier; and identify the cause and extent of damage.

3. When a worker suffers disablement or dies from an occupational accident or disease when performing his/her jobs on a construction site, which is covered by insurance, the insurance enterprise shall pay amounts as agreed upon between the construction contractor and the worker or the latter’s lawful representative (in case the worker dies), including:

a/ An allowance for leave during the period of treatment as prescribed by the medical doctor, which shall be calculated based on the worker’s salary stated in the labor contract but must not exceed 6 months’ salary in each insured event.

b/ Actual medical expenses, including emergency costs, and necessary and reasonable inpatient and outpatient treatment costs.

c/ In case the worker suffers a working capacity reduction at a rate lower than 81%, the specific indemnity level for each type of disablement or human damage shall be determined according to the Table of compulsory insurance indemnity rates for workers on construction sites provided in Appendix VII to this Decree.

d/ In case a worker dies or suffers a working capacity reduction at a rate of 81% or more, the insurance enterprise shall pay VND 100 million per worker per case.

The total indemnity amount specified at Points a, b, c and d of this Clause must not exceed VND 100 million per worker per case, in case a worker participates in insurance with the insurance liability limit of VND 100 million.

4. In case an occupational accident or disease causes disablement to a worker, which is aggravated by his/her previous injuries or diseases, the insurance enterprise is not liable to indemnify for such aggravated disablement.

Article 53. Indemnity claim dossiers

An insurance enterprise shall coordinate with the insurance buyer, the insured and related agencies and organizations in collecting relevant documents for making an indemnity claim dossier. An indemnity claim dossier for compulsory insurance for a worker on the construction site must comprise:

1. An indemnity claim of the insurance buyer.

2. Documents related to the insured object, including:

a/ Insurance contract, insurance certificate, labor contract signed between the insured and the worker suffering the occupational accident or disease, and timesheet.

b/ The worker’s written claim for indemnity for occupational accident or disease (if any).

3. A document proving that the worker suffers disablement or dies from an occupational accident (a certified copy of the original, or a copy bearing the insurance enterprise’s certification after being collated with the original);

a/ A minutes of the occupational accident investigation, made by a competent agency in accordance with law (if any). In case the worker gets a traffic accident which is determined as an occupational accident, the dossier must have a traffic accident minutes or a scene investigation report and a diagram of the traffic accident scene made by competent agencies in accordance with law.

b/ Depending on the severity of human damage, the dossier may have one or more of the following documents: written certification of injury; hospital discharge paper; written certification of surgery; medical records; extract of the death certificate or death notice or written certification of the public security office or assessment result of the forensic examination agency.

c/ A working capacity decrease assessment minutes of the medical assessment council, in case the worker suffers a working capacity decrease of 5% or higher (if any).

d/ Valid invoices and documents of health establishments proving the worker‘s treatment of injury caused by the occupational accident.

4. Documents proving that a worker suffers disablement or dies from an occupational disease:

a/ A minutes of measurement of the environment containing toxic elements within the law-specified time limit, made by a competent agency; in case a minutes is made for more than one worker, each of the workers’ dossiers must comprise an extract of such minutes (if any).

b/ A hospital discharge paper (in case the worker does not undergo treatment in hospital, an occupational disease examination paper is required) or an occupational disease consultation sheet; medical records; an extract of the death certificate or death notice (in case the worker dies).

c/ A working capacity decrease assessment minutes of the medical assessment council, in case the worker suffers working capacity decrease of 5% or higher (if any).

d/ Valid invoices and documents of health establishments proving the worker‘s treatment of injury caused by the occupational disease.

5. Documents proving the indemnity amounts already paid by the construction contractor to the worker suffering disablement death from an occupational accident or disease, which is covered by insurance.

6. Other relevant documents (if any)

Section 4

INSURANCE CONDITIONS, PREMIUM RATES AND LIMIT OF COMPULSORY CIVIL LIABILITY INSURANCE FOR THIRD PARTIES

Article 54. Insured object

1. The object of compulsory civil liability insurance for third parties is the civil liability of construction contractors for third parties during the construction process in accordance with law.

Article 55. Insurance liability limit

The insurance liability limit of compulsory civil liability insurance for third parties is as follows:

1. The insurance liability limit for health or life damage is VND 100 million per person per case without any limit of cases.

2. The insurance liability limit for property damage and related legal costs (if any) shall be determined as follows:

a/ For a construction work valued at under VND 1 trillion, the insurance liability limit for property damage and related legal costs (if any) is equal to 10% of the construction work’s value for the entire period of insurance without imposing any limit of cases.

b/ For a construction work valued  at VND 1 trillion or more, the insurance liability limit for property damage and related legal costs (if any) is VND 100 billion for the entire period of insurance without imposing any limit of cases.

Article 56. Coverage of insurance and exclusion from insurance liability

1. Coverage of insurance

Insurance enterprises shall indemnify construction contractors the money amounts payable by the construction contractors to third parties for health, life and property damage directly arising in the construction process and related legal costs (if any), which are covered by insurance, as agreed upon in insurance contracts, except the cases specified in Clause 2 of this Article.

2. Cases of exclusion from insurance liability

Insurance enterprises are not liable to indemnify for:

a/ The cases of exclusion from insurance liability specified at Points a, b, c, d, dd, g, h, and i, Clause 2, Article 34 of this Decree.

b/ Losses arising from pollution or contamination. This exclusion is not applied to health, life or property damage arising from pollution or contamination caused by unexpected and unpredictable risks.

c/ Damage caused by vibration or by the displacement or weakening of the load-bearing components or geological conditions of the construction work, or human injuries or property damage caused by any of the above damage (unless it is agreed upon in revised contractual terms).

d/ Damage resulting from accidents caused by motor vehicles or vessels, barges or aircraft participating in insurance for vehicle owner’s civil liability for third parties.

dd/ Liability as consequences of injuries or sickness caused to workers of project owners or contractors related to the insured works.

e/ Losses to property under lawful ownership or management/use rights of project owners or contractors or of employees or workers of any of the above entities.

g/ Losses related to asbestos or any materials containing asbestos.

Article 57. Insurance period

1. The period of compulsory civil liability insurance for third parties is a specific period of time, counting from the date of commencement to the date of completion of the construction time stated in the construction contract and written in the insurance contract.

Article 58. Premium rates and deductible rates

1. The premium rates and deductible rates for compulsory civil liability insurance for third parties are as follows:

a/ The premium equals 5% of the compulsory insurance premium for the corresponding construction works specified at Points a and b, Clause 1, Article 37 of this Decree. The deductible rate for property damage and related legal costs (if any) equals 5% of the insurance liability limit for property damage and related legal costs (if any), or VND 20 million, whichever is greater. Based on the risk level of the insured object, the insurance enterprise may increase or decrease the premium by up to 25%.

In the preceding fiscal year, if the insured object is the direct cause making the paid primary insurance indemnity amount higher than the revenue from primary insurance premium of compulsory civil liability insurance for third parties, based on the data verified by the actuary of the insurance enterprise and by an independent audit firm, the insurance enterprise and the insurance buyer may, upon renewal of the insurance contract,  reach agreement on the premium rate and deductible rate to ensure the solvency of the insurance enterprise.

b/ For  construction works other than those specified at Points a and b, Clause 1, Article 37 of this Decree: The insurance enterprise and the insurance buyer may reach agreement on rules, terms and premium rates and deductible rates on proofs that a leading foreign inward reinsurer confirms its assumption of reinsurance according to the rules, terms, premium rates and deductible rates provided by the insurance enterprise to the insurance buyer. Leading foreign inward reinsurers and foreign insurers assuming reinsurance for 10% or more of the total liability of each reinsurance contract must comply with Clause 9, Article 4 of this Decree.

2. In case the construction period is prolonged as compared to the period specified in the document of the authority with investment-deciding competence, when concluding an insurance contract, the insurance buyer and the insurance enterprise may reach agreement on an additional premium for the prolonged period. An additional premium (if any) shall be calculated based on the premium specified in Clause 1 of this Article, the proportion of the prolonged period to the total construction period specified in the document of the authority with investment-deciding competence when concluding an insurance contract, and other risk factors.

Article 59. Indemnification principles

An insurance enterprise shall consider and pay indemnities in accordance with the law on insurance business and on the following principles:

1. When a third party suffers health, life or property damage arising directly during the construction process and covered by insurance, the insurance enterprise shall pay indemnities to the insurance buyer as follows:

a/ The specific indemnity level for health or life damage shall be determined based on the  types of disablement specified in the Table on payment of indemnity for health and life damage provided in Appendix VI to this Decree or agreement (if any) between the insured and the victim or the heir of the victim (in case the victim dies) or a representative of the victim (in case the victim loses his/her civil act capacity under a court ruling or is a minor as defined in the Civil Code) which, however, must not exceed the indemnity level specified in Appendix VI to this Decree. In case there is a court ruling thereon, the indemnity level shall be determined on the basis of such court ruling but must not exceed the indemnity level specified in Appendix VI to this Decree.

b/ The specific indemnity level for property damage in case of a property loss shall be determined based on actual damage and degree of fault, but must not exceed the insurance liability limit as agreed in the insurance contract.

c/ Relevant legal expenses (if any).

The total indemnities to be paid by the insurance enterprise specified in this Article must not exceed the insurance liability limit specified in Article 55 of
this Decree.

2. When receiving a third party’s indemnity claim, the insurance buyer shall:

a/ Immediately notify the claim to the insurance enterprise by any means of communication and then send a notice thereof to the insurance enterprise within 14 days after receiving the third party’s indemnity claim.

b/ Take all measures within its/his/her capacity to minimize damage.

c/ Implement, coordinate with, and allow the insurance enterprise to take actions and measures which are necessary or requested by the insurance enterprise to protect the interests that the insurance enterprise is entitled to after paying indemnities for insured damage under this Decree.

3. When receiving a third party’s indemnity claim, the insurance enterprise shall:

a/ Assess the damage in accordance with law and make an assessment minutes identifying the cause and extent of damage as specified in Clause 6, Article 60 of this Decree.

b/ Instruct the insurance buyer and coordinate with the insurance buyer and related agencies, organizations and individuals in collecting all documents to make an indemnity claim dossier.

c/ Coordinate with the insurance buyer in settling the third party’s indemnity claim for the insured damage upon occurrence of an insured event.

Article 60. Indemnity claim dossier

A dossier of claim for indemnity for compulsory insurance for a third party’s civil liability must comprise:

1. An indemnity claim prepared by the insurance buyer.

2. Documents related to the insured object, including an insurance contract and an insurance certificate.

3. An indemnity claim for the insured, prepared by the third party.

4. Documents proving the third party’s health and life damage (certified copies of the originals or copies certified by medical examination and treatment facilities or copies bearing the insurance enterprise’s certification after being collated with the originals) provided by the insurance buyer and the insured. Depending on the degree of human damage, the indemnity claim dossier may comprise one or more than one of the following documents:

a/ The certificate of disablement.

b/ The hospital discharge paper.

c/ The medical certificate for surgery.

dd/ An extract of the death certificate or the death notice or a written certification issued by a public security agency or assessment results provided by a forensic examination agency.

5. Documents proving property damage, including:

a/ A construction work incident dossier in case of a construction work incident (a certified copy of the original or a copy certified by the dossier submitter) as specified in Article 47 of the Government’s Decree No. 06/2021/ND-CP of January 26, 2021, detailing a number of provisions on quality management, construction and maintenance of construction works, or evidence proving damage to the construction work.

b/ Valid invoices and documents in case of repair or replacement of property.

6. An assessment minutes identifying the cause and extent of the damage, made by the insurance enterprise or a person authorized by the insurance enterprise.

7. A court ruling (if any).

8. Other relevant documents (if any).

The insurance buyer and the insured shall collect and send to the insurance enterprise the documents specified in Clauses 1, 2, 3, 4, 5, 7 and 8 of this Article. The insurance enterprise shall collect the documents specified in Clause 6 of this Article.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 61. Responsibilities of the Ministry of Finance

1. To organize public information about compulsory insurance according to its state management functions and tasks.

2. To inspect and supervise the management, use, payment and account-finalization of the Motor Vehicle Insurance Fund.

3. To assume the prime responsibility for inspecting, examining and supervising insurance enterprises in the implementation of compulsory insurance.

4. To handle insurance enterprises’ violations of the law on compulsory insurance.

5. To promulgate a decision on the establishment and appointment of members of the Vietnam National Bureau to implement Protocol 5 on the ASEAN Scheme of Compulsory Motor Vehicle Insurance.

Article 62. Responsibilities of the Ministry of Public Security

1. To coordinate with the Ministry of Finance in organizing public information about, and dissemination of, the law on compulsory insurance for motor vehicle owner’s civil liability and compulsory fire and explosion insurance.

2. To examine and handle violations of the law on compulsory insurance for motor vehicle owner’s civil liability, and compulsory fire and explosion insurance for establishments with fire and explosion risks.

3. To publicize the list of establishments with fire and explosion risks (except those related to national defense, security and state secrets) no later than December 31 every year on its Portal.

4. To record the fire and explosion risk class of industrial facilities with fire and explosion risk class of A, B, C, D or E in the minutes of inspection of results of pre-acceptance test of fire prevention and fighting systems or minutes of inspection of fire safety on the basis of determining the fire and explosion risk class of agencies, organizations and individuals that have establishments with fire and explosion risks.

5. To direct the traffic police and investigation police forces to provide copies of documents related to traffic accidents as specified in Clause 5, Article 13 of this Decree within 5 working days from the date investigation results are available.

6. To share and provide information managed by the public security sector to the database on compulsory insurance for motor vehicle owner’s civil liability serving the management of compulsory insurance for motor vehicle owner’s civil liability in accordance with the law on management of the connection and sharing of digital data among state agencies.

7. To decide on cases and levels of extraordinary commendation as specified at Point d, Clause 2, Article 31 of this Decree.

Article 63. Responsibilities of the Ministry of Construction

1. To coordinate with the Ministry of Finance and related ministries and sectors in guiding and organizing public information about compulsory insurance in construction investment activities.

2. To assume the prime responsibility for, and coordinate with functional agencies in, examining, inspecting and settling complaints and denunciations about, and handling, insurance buyers’ administrative violations of regulations on compulsory insurance in construction investment activities in accordance with law.

Article 64. Responsibilities of the Ministry of Transport

1. To coordinate with the Ministry of Finance, Ministry of Public Security and related ministries and sectors in guiding and organizing public information about compulsory insurance for motor vehicle owner’s civil liability.

2. To coordinate with the Ministry of Finance in inspecting and supervising insurance enterprises in the implementation of compulsory insurance for motor vehicle owner’s civil liability.

Article 65. Responsibilities of the Ministry of Health

To direct and instruct central and local health establishments to provide copies of medical records, certificates of disablement, death notices or written certifications related to first aid and treatment of road traffic accident victims in order to create conditions for insurance enterprises to promptly complete indemnity claim dossiers and guarantee the interests of the insured.

Article 66. Responsibilities of the Ministry of Information and Communications

To direct central and local communications and press agencies to regularly disseminate information about compulsory insurance.

Article 67. Responsibilities of ministries, ministerial-level agencies and government-attached agencies

1. To coordinate with the Ministry of Finance and related ministries and sectors in guiding and organizing public information about compulsory insurance.

2. Within the ambit of their tasks and powers, to coordinate with others in organizing inspection, guidance and implementation of compulsory insurance in accordance with this Decree.

3. To coordinate with the Ministry of Information and Communications in organizing public information about compulsory insurance according to their state management functions and tasks.

4. The Vietnam Television and Voice of Vietnam shall spend a certain amount of broadcasting time to regularly disseminate information about compulsory insurance.

5. To perform other tasks within their competence as specified by law.

Article 68. Responsibilities of provincial-level People’s Committees

1. To direct functional agencies and administrations at all levels to organize the implementation of compulsory insurance.

2. To direct local news and press agencies to regularly disseminate information about compulsory insurance.

3. To coordinate with the Ministry of Public Security in directing the traffic police and other related police forces in the localities to inspect and handle motor vehicle owners not participating in compulsory insurance for motor vehicle owner’s civil liability.

4. To perform other tasks within their competence as specified by law.

Article 69. Responsibilities of the High Command of the Vietnam Border Guard

1. To coordinate with the Ministry of Finance and related agencies in organizing the implementation of Protocol 5 on the ASEAN Scheme of Compulsory Motor Vehicle Insurance.

2. To direct land border guards to inspect and control the observance of the implementation of compulsory insurance for civil liability by owners of motor vehicles in transit.

Article 70. Responsibilities of the National Committee for Traffic Safety

1. To coordinate with the Ministry of Finance, Ministry of Public Security and related ministries and sectors in guiding and organizing public information about compulsory insurance for motor vehicle owner’s civil liability.

2. To coordinate with the Motor Vehicle Insurance Fund in organizing public information and education activities; to prevent and limit losses; to provide humanitarian assistance in accordance with this Decree.

Article 71. Responsibilities of the Vietnam National Bureau to implement Protocol 5 on the ASEAN Scheme of Compulsory Motor Vehicle Insurance

1. To act as the standing body assisting related ministries and sectors in implementing Protocol 5 on the ASEAN Scheme of Compulsory Motor Vehicle Insurance.

2. To study and recommend the Ministry of Finance to propose competent authorities to improve regulations on compulsory insurance for motor vehicle owner’s civil liability, facilitating the implementation of the ASEAN Scheme of Compulsory Motor Vehicle Insurance.

Article 72. Responsibilities of the Vietnam Automobile Transportation Association

1. To coordinate with the Ministry of Finance, Ministry of Public Security and related ministries and sectors in guiding and promoting the implementation of compulsory insurance for motor vehicle owner’s civil liability.

2. To direct and guide its provincial and regional member associations to coordinate with provincial-level People’s Committees in guiding and organizing public information about compulsory insurance for motor vehicle owner’s civil liability.

Article 73. Responsibilities of the Insurance Association of Vietnam

1. To propose to the Ministry of Finance the rate of contribution to the Motor Vehicle Insurance Fund as specified in Clause 2, Article 16 of this Decree.

2. To organize public information about compulsory insurance.

3. To publicize information about compulsory insurance for motor vehicle owner’s civil liability.

Article 74. Responsibilities of agencies, organizations and individuals that have establishments with fire and explosion risks

To determine the fire and explosion risk class of establishments, which is A, B, C, D or E as applicable to industrial production establishments with fire and explosion risks in accordance with the law on fire prevention and fighting.

Article 75. Responsibilities of insurance enterprises

1. Not to offer promotions or payment discounts in any form for compulsory insurance for motor vehicle owner’s civil liability.

2. To make and submit the following reports:

a/ Reports on professional operations: An insurance enterprise shall make and submit reports on professional operations to the Ministry of Finance as follows:

A report on the implementation of compulsory insurance for motor vehicle owner’s civil liability (Form No. 1 provided in Appendix X); a report on revenue of and indemnity for compulsory fire and explosion insurance (Form No. 2 provided in Appendix X); and a report on revenue of and indemnity for compulsory insurance of works in construction investment activities (Form No. 3 provided in Appendix X).

The data collection period shall be from January 1 through December 31 of the reporting year.

The deadline for submitting reports is March 31 of the next fiscal year.

Method of sending reports: by hand delivery or by post or via email or via the Ministry of Finance’s reporting information system (when the Ministry of Finance’s reporting information system is operated).

b/ Reports on collection and payment of compulsory fire and explosion insurance (Form No. 4 provided in Appendix X): An insurance enterprise shall make and submit reports to the Ministry of Public Security as follows:

The data collection period shall be from January 1 to June 30 of the reporting year, for first-half reports, and from January 1 to December 31 of the reporting year, for annual reports.

The deadlines for submitting reports are July 31 for first-half reports, and January 31 of the next fiscal year for annual reports.

Method of sending reports: by hand delivery or by post.

3. To establish and maintain round-the-clock hotlines so as to promptly receive information about accident and damage, provide instructions and answers to insurance buyers, the insured and related parties about matters related to compulsory insurance. To record calls to hotlines so as to ensure the rights of insurance buyers and the insured.

4. To integrate the function of search for certificates of compulsory insurance for motor vehicle owner’s civil liability on their websites or portals, thus enabling functional agencies to inspect, examine or supervise and insurance buyers and the insured to search and verify the duration and validity of insurance certificates.

5. To clearly explain insurance conditions, premium rates, minimum insurance amounts, ensuring that insurance buyers and the insured clearly distinguish between compulsory insurance with other types of voluntary insurance.

6. To strengthen the application of information technology in paying indemnities for compulsory insurance for motor vehicle owner’s civil liability for motorbikes and mopeds.

7. To coordinate with insurance buyers and related parties to collect a set of indemnity claim dossier and take responsibility before law for the accuracy, completeness and validity of the indemnity claim dossier. To proactively collect documents required in the insurance claim dossier falling under their responsibility specified in this Decree.

8. To make advance payment and promptly and accurately pay indemnities in accordance with this Decree.

9. To pay public security agencies expenses for photocopying dossiers and minutes of motor vehicle accidents the latter have provided in accordance with law and keep these dossiers and minutes confidential during the investigation process.

10. To notify insurance buyers and the insured of the expiration of insurance contracts within 15 days before the insurance expiration date.

11. To contribute to the Motor Vehicle Insurance Fund as specified in Article 16 of this Decree; to remit 1% of the total premiums of compulsory fire and explosion insurance actually earned from original insurance contracts in the preceding fiscal year for fire prevention and fighting activities as specified in Article 30 of this Decree.

12. To separately account insurance premiums, insurance agent commissions, insurance indemnities and expenses related to compulsory insurance.

13. To provide and update information in the database on compulsory insurance for motor vehicle owner’s civil liability at the request of the Management Council of the Motor Vehicle Insurance Fund.

14. To fulfill other obligations in accordance with law.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 76. Transitional provisions

1. For compulsory insurance contracts that are concluded before the effective date of this Decree and remain valid, contractual parties shall continue to comply with the June 16, 2022 Law on Insurance Business (for insurance contracts concluded on or after January 1, 2023); the Government’s Decree No. 03/2021/ND-CP of January 15, 2021, on compulsory insurance for motor vehicle owner’s civil liability; the Government’s Decree No. 23/2018/ND-CP of February 23, 2018, on compulsory fire and explosion insurance; the Government’s Decree No. 97/2021/ND-CP of November 8, 2021, amending and supplementing a number of articles of the Government’s Decree No. 23/2018/ND-CP of February 23, 2018, on compulsory fire and explosion insurance; the Government’s Decree No. 119/2015/ND-CP of November 13, 2015, on compulsory insurance in construction investment activities; the Government’s Decree No. 20/2022/ND-CP of March 10, 2022, amending and supplementing a number of articles of the Government’s Decree No. 119/2015/ND-CP of November 13, 2015, on compulsory insurance in construction investment activities, unless they agree to modify and supplement contracts in order to be conform with, and to  apply, this Decree.

2. From the 2023 fiscal year, the mechanism for management and use of the Motor Vehicle Insurance Fund; rates of contributions and management and use of revenues from compulsory fire and explosion insurance for fire prevention and fighting activities must comply with this Decree. Particularly in the 2023 fiscal year, the Management Council of the Motor Vehicle Insurance Fund shall decide on the levels of contribution to the Motor Vehicle Insurance Fund; insurance enterprises shall complete the contribution to the Motor Vehicle Insurance Fund and payment of contributions for fire prevention and fighting activities from compulsory fire and explosion insurance before December 31, 2023.

3. In case contractors have been selected in accordance with the bidding law but yet to conclude insurance contracts, the parties may continue to comply with bidding dossiers and dossiers of requirements that have been issued.

Article 77. Effect

1. This Decree takes effect on the date of its signing.

2. The following Decrees cease to be effective from the effective date of this Decree:

a/ The Government’s Decree No. 03/2021/ND-CP of January 15, 2021, on compulsory insurance for motor vehicle owner’s civil liability.

b/ The Government’s Decree No. 23/2018/ND-CP of February 23, 2018, on compulsory fire and explosion insurance; and the Government’s Decree No. 97/2021/ND-CP of November 8, 2021, amending and supplementing a number of articles of the Government’s Decree No. 23/2018/ND-CP of February 23, 2018, on compulsory fire and explosion insurance.

c/ The Government’s Decree No. 119/2015/ND-CP of November 13, 2015, on compulsory insurance in construction investment activities; and the Government’s Decree No. 20/2022/ND-CP of March 10, 2022, amending and supplementing a number of articles of the Government’s Decree No. 119/2015/ND-CP of November 13, 2015, on compulsory insurance in construction investment activities.

3. In case the legal documents referred to for application in this Decree are amended, supplemented or replaced, the amending, supplementing or replacing documents shall prevail.

Article 78. Implementation responsibility

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.