The Government issued Decree No. 20/2022/ND-CP dated 10 March 2022 to amend, supplement several regulations of Decree No. 199/2015/ND-CP regulating compulsory insurance in construction investment activities. Some notable contents are as follows:
- In addition to the compulsory insurance premium for the employees on the construction site, the compulsory civil liability insurance premium for third parties is also included in production and business costs.
- Constructions that have a great impact on safety and community interests specified in Appendix X of Decree No. 15/2021/ND-CP are subject to compulsory insurance in construction investment activities.
- Construction contractors must purchase compulsory insurance for the employees on the construction site and compulsory insurance for civil liability for third parties.
- Adding regulations related to insurance period: The compulsory insurance period for third parties’ civil liability is a specific time, counting from the start date to the end date of the construction period, which is based on the construction contract and stated in the insurance contract.
- Supplementing regulations on the minimum insurance amount for compulsory insurance of civil liability for third parties:
- The minimum insurance amount for damage to health and life is 100 million VND/person in one case and there is no limit to the number of cases.
- The minimum insurance amount for property damage and related legal costs (if any) is determined as follows:
- For constructions valued at less than VND 1,000 billion, the minimum insurance amount for property damage and related legal costs (if any) is 10% of the construction value for the entire warranty period and there is no limit to the number of cases.
- For constructions valued at VND 1,000 billion or more, the minimum insurance amount for property damage and related legal costs (if any) is VND 100 billion for the entire insurance period there is no limit to the number of cases.
- This Decree takes effect on 01 July 2022.
For further information, please contact:
Minh Ngo Nhat, Managing Partner, BLawyers
