On November 8th, 2021, the Government has promulgated the Decree No. 97/2021/ND-CP amending, supplementing certain provisions of the Decree No. 23/2018/ND-CP on compulsory fire and explosion insurance (hereinafter referred to as “Decree No. 97/2021”) with a few noteworthy points as follows:
1. Supplement the regulation on the obligation of agencies, organizations and individuals who have the establishment being a risk of fire and explosion
Decree No. 97/2021/ND-CP supplements a provision on the obligation of agencies, organizations and individuals who have the establishment being a risk of fire and explosion in Article 15b. Accordingly, such agencies, organizations and individuals are obligated to identify the A, B, C, D, E levels of risk of fire and explosion of their industrial production establishments as regards establishments being a risk of fire and explosion in accordance with the laws on fire prevention and extinguishment.
In addition, Decree No. 97/2021/ND-CP also supplements the regulation on the Ministry of Public Security’s responsibility for recording the risk of fire and explosion level. In particular, the Ministry of Public Security will rely on the determination of fire and explosion risk level of agencies, organizations and individuals who have the establishment being a risk of fire and explosion to record the risk level of industrial establishments having A, B, C, D, E risk levels in the Minutes of acceptance or the Minutes of safety inspection on fire prevention and extinguishment.
2. Certificates of compulsory fire and explosion insurance
When Decree No. 97/2021/ND-CP takes effect, all non-life insurance enterprises and branches of foreign non-life insurance enterprises in Vietnam (hereinafter referred to as “insurance enterprises”) will have to issue Compulsory fire and explosion insurance certificates to their policyholders. These Compulsory fire and explosion insurance certificates shall be designed according to the insurance enterprises and shall include the following contents:
- Name, address of the insurance enterprise, policyholder, insured person;
- Establishment directory (specify which fire and explosion risk establishment directory do the establishment belong to in accordance with the laws on fire prevention and extinguishment);
- Address of the insured property;
- The insured property;
- The insured amount;
- Insurance deduction rate;
- Term of insurance;
- Insurance fee ratio, insurance fee;
- Name, address, hotline number of the insurance enterprise;
- Date of issuance of the Insurance certificate.
In case the Insurance certificate is issued in digital form, the insurance enterprise shall comply with the regulations of the Law on E-transactions and its guidance documents. The digital Insurance certificates shall fully comply with current regulations and sufficiently reflect the aforementioned contents.
Decree No. 97/2021/ND-CP will take effect from December 23rd, 2021.
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