Chapter III
REGULATIONS ON COMPULSORY FIRE AND EXPLOSION INSURANCE
Section 1. Insurance conditions, insurance premiums and sums insured
Article 23. Insured entities
1. The insured of compulsory fire and explosion insurance is the entire property of facilities facing fire and explosion hazards, including:
a) Houses, construction works and property attached thereto; machinery and equipment.
b) Goods and supplies (including raw materials, semifinished products and finished products).
2. The insured and locations of the insured must be specified in insurance policies and insurance certificates.
Article 24. Minimum coverage
1. Minimum coverage of compulsory fire and explosion insurance is a monetary value according to the market price of the property specified in Clause 1 Article 23 of this Decree at the time of entering into an insurance policy.
2. In case the market price of property is unidentified, the minimum coverage shall be agreed upon as follows:
a) As for the property prescribed in Point a Clause 1 Article 23 hereof: minimum coverage is a monetary value of the property according to the residual value or replacement value of the property at the time of entering into an insurance policy.
b) As for the property prescribed in Point b Clause 1 Article 23 hereof: minimum coverage is a monetary value of the property on the basis of valid invoices and receipts or relevant documents.
Article 25. Insurance coverage and insurance exclusions
1. Insurance coverage:
Insurers shall indemnities for damage to the insured prescribed in Clause 1 Article 23 hereof caused by fire or explosion, except for the cases prescribed in Clause 2 and Clause 3 of this Article.
2. Insurance exclusions for facilities facing fire and explosion hazards in accordance with regulations of law on fire prevention and fighting (excluding nuclear facilities): Insurers shall not provide indemnities in the following cases:
a) Earthquakes, volcanic eruptions or other convulsions of nature.
b) Damage caused by political convulsions, social safety, security and order events.
c) Property that is burned and exploded according to decisions of competent regulatory agencies.
d) Self-fermenting and self-heating products; property subjected to a heat treatment.
dd) Damage caused by direct hit of lightning strike without causing fire or explosion.
e) Fire and explosion caused by weapons-grade nuclear materials.
g) Damage to electrical machinery and equipment or components of electrical equipment caused by direct impact of over-running, excessive pressure, short circuiting, self heating, arcing or leakage of electricity arising from whatever cause, lightning included.
h) Damage caused by arson attack of the insured or by deliberate violation against fire safety regulations causing fire or explosion.
i) Damage to data, software and computer programs.
k) Damage caused by acts of burning forests, bushes, prairies or clearing lands by fire.
3. Insurance exclusions for nuclear facilities: Insurers and policyholders shall negotiate insurance exclusions on the basis of approvals of reinsurers.
Article 26. Insurance premiums and deductibles
1. If the total sum insured of property situated in a location of a single facility facing fire and explosion hazards (excluding nuclear facilities) is less than VND 1.000 billion, insurance premiums and deductibles are provided for in Clause 1 Section I Annex II and Clause 1 Section II Annex II enclosed herewith.
Insurers may increase or decrease the insurance premiums by up to 25% according to the risk level of the insured.
In case the insured is the direct cause of higher indemnities than principal insurance premiums collected from compulsory insurance for compulsory fire and explosion insurance in the immediately preceding fiscal year, on the basis of data verified by actuaries of the insurers and independent audit organizations, upon renewal of insurance policies, the insurers and policyholders may negotiate insurance premiums and deductibles to ensure the solvency of the insurers.
2. If the total sum insured of property situated in a location of a single facility facing fire and explosion hazards (excluding nuclear facilities) is VND 1.000 billion or more:
Insurers and policyholders may negotiate insurance premiums and deductibles on the basis of evidence proving approval by the major foreign reinsurers. Major foreign reinsurers and foreign reinsurers assuming from 10% of total insurance coverage of each reinsurance policy shall satisfy the regulations in Clause 9 Article 4 hereof. In any case, insurance premiums shall not be lower than the amounts equal VND 1.000 billion multiplied (x) by 75% of insurance premiums prescribed in Clause 1 Section I Annex II enclosed herewith.
3. For nuclear facilities: Insurers and policyholders may negotiate rules, terms, insurance premiums and deductibles on the basis of evidences proving that the major foreign reinsurers accept reinsurance in accordance with rules, terms, insurance premiums and deductibles provided by insurers to policyholders. The major foreign reinsurers and foreign reinsurers assuming from 10% of total insurance coverage of each reinsurance policy shall satisfy the regulations in Clause 9 Article 4 hereof.
Article 27. Insurance certificates
1. Insurers shall grant certificates of compulsory fire and explosion insurance to policyholders. Certificates of compulsory fire and explosion insurance shall be designed by insurers. An insurance certificate shall include:
a) Names, addresses and phone numbers (if any) of policyholder and the insured.
b) Name, address and hotline of insurer.
c) Name of facility facing fire or explosion hazard in accordance with regulations of law on fire prevention and fighting.
d) The insured’s location.
dd) The insured property.
e) Sum insured.
g) Deductible.
h) Insurance period.
i) Insurance rate, insurance premiums.
k) Date of issue of the insurance certificate.
l) Number code and barcode registered, managed and used according to regulations of law to enable storage, transmission and extraction of ID information of insurer and ID information of compulsory fire and explosion insurance.
2. In case of issuance of electronic certificates of insurance, issuers must comply with Law on Electronic Transactions and guiding documents; Electronic certificates of insurance must closely comply with applicable regulations and Clause 1 of this Article.
Article 28. Principles of indemnification
Insurers shall consider and settle insurance claims according to regulations of law on insurance business and the following principles:
1. When losses to facilities facing fire and explosion hazards are incurred, policyholders shall immediately notify insurers via contract information means, then submit written notifications to insurers within 14 days from the date on which such losses are incurred.
2. Insurance indemnities for damaged property shall not exceed the sums insured of such property (agreed and specified in insurance policies and insurance certificates) minus the deductibles prescribed in Clause 3 of this Article.
3. A deductible of up to 20% of insurance indemnities shall be provided if facilities facing fire and explosion hazards fail to fully comply with proposals on records on fire safety inspection issued by competent public security authorities within the prescribed period, thereby leading to an increase in damages caused by fire and explosion.
Article 29. Applications for insurance claims
An application for claim for compulsory fire and explosion insurance includes the following documents:
1. A claim form.
2. Documents relating to the insured including: an insurance policy and a certificate of insurance (COI).
3. A copy of a record on fire safety inspection issued a competent public security authority at the time nearest to the time an insured event occurs.
4. An assessment record of insurer or person authorized by insurer.
5. A copy of a competent authority’s conclusion or notice of the cause of the fire or explosion or proofs of the cause of the fire or explosion.
6. List of damage and documentary evidences for damage.
Policyholders shall collect and submit the documents prescribed in Clauses 1, 2, 3, 5 and 6 of this Article to insurers. Insurers shall collect the documents prescribed in Clauses 4 of this Article.
Section 2. transfer rates, regulations on management and use of revenues from compulsory fire and explosion insurance for fire prevention and fighting purposes
Article 30. Compulsory fire and explosion insurance transfer rates for fire prevention and fighting purposes
1. In a fiscal year, an insurer that provides compulsory fire and explosion insurance shall transfer 1% of the total premium for compulsory fire and explosion insurance that is collected from its principle insurance policy in the immediately preceding fiscal year.
2. The insurer shall annually submit the amount specified in Clause 1 of this Article to the Fire and Rescue Police Department’s account opened at the State Treasury by the Ministry of Public Security. To be specific:
a) Before June 30 of each year: Transfer 50% of the total amount prescribed in Clause 1 of this Article.
b) Before December 31 of each year: Transfer the remaining amounts prescribed in Clause 1 of this Article.
Article 31. Regulations on management and use of revenues from compulsory fire and explosion insurance
1. Revenues from compulsory fire and explosion insurance must be managed and used in a transparent manner and for the right purposes according to regulations herein and regulations of relevant law.
2. Revenues from compulsory fire and explosion insurance for fire prevention and fighting purposes shall be used as follows:
a) Providing assistance in purchase of fire prevention and fighting equipment for fire police forces: Up to 65% of the premiums collected by the insurer from compulsory fire and explosion insurance in the fiscal year. The purchase of fire prevention and fighting equipment shall comply with regulations of law on procurement.
b) Providing assistance in dissemination of law and knowledge about fire prevention and fighting and compulsory fire and explosion insurance: Up to 15% of the premiums collected by the insurer from compulsory fire and explosion insurance in the fiscal year. Items and rates of expenditure for dissemination of law and knowledge shall comply with regulations of law on management, use and statement of guarantees for law dissemination and education work.
c) Providing assistance for fire police forces in fire investigation; provision of professional training and inspection of fire safety; supervision of participation in compulsory fire and explosion insurance by facilities facing fire and explosion hazards: up to 15% of the premiums collected by the insurer from compulsory fire and explosion insurance in the fiscal year. Expenditure items and rates shall comply with applicable expenditure regulations.
d) Providing assistance in rewarding organizations and individuals directly engaging and cooperating in fire prevention and fighting: Up to 5% of the premiums collected by the insurer from compulsory fire and explosion insurance in the fiscal year. Where:
Regular expenditures for commendation shall comply with regulations of law on emulation and commendation.
In case of irregular expenditures for organizations and individuals directly engaging in fire prevention and fighting, the Minister of Public Security shall decide specific cases eligible for irregular commendation and commendation amounts based on achievements of organizations and individuals and revenues from compulsory fire and explosion insurance.
3. At the same time with the time when annual state budget estimates are made, the Ministry of Public Security shall made an estimate of revenues from compulsory fire and explosion insurance, consolidate it into the estimate of the Ministry of Public Security, then submit it to the Ministry of Finance according to regulations of the Law on State Budget and guiding documents for consolidation and monitoring.
4. The management and use of collected premiums shall comply with applicable regulations, norms and standards. The Ministry of Public Security shall consider, approve and verify annual statements of premiums collected from compulsory fire and explosion insurance for affiliated units; consolidate them into other revenues that are remained and prepare annually final accounts, and submit them to the Ministry of Finance together with final accounts of state budget for consolidation and monitoring.
5. The amount collected from compulsory fire and explosion insurance for fire prevention and fighting purposes that remain after completing the tasks specified in Clause 2 of this Article at the end of the year shall be carried over the succeeding year. After 5 years, if premiums collected from compulsory fire and explosion insurance are not expended all, the Ministry of Public Security shall take charge and cooperate with the Ministry of Finance in reviewing and assessing revenues from compulsory fire and explosion insurance, reporting the Government for adjusting transfer ratios accordingly.
Tìm kiếm
Nghị định 67/2023/NĐ-CP (Bản Word)
Nghị định 67/2023/NĐ-CP (Bản Pdf)