Dear Valued Clients & Partners,
In respect of the Compulsory Fire & Explosion Insurance, we'd like to update that Vietnamese Government has just issued a new Decree No.97/2021/NĐ-CP, amending and supplementing a number of articles of the Government's Decree No.23/2018/NĐ-CP dated February 23, 2018 on compulsory fire and explosion insurance.
According to the Article 3, namely Implementation Article, this Decree takes effect from December 23, 2021 and that "The compulsory fire and explosion insurance contract signed before the effective date of this Decree shall continue to be executed in accordance with regulations of law on the inception date. In case of any amendment and endorsement or supplementation to the existing compulsory fire and explosion insurance contracts being prescribed in this Decree, they shall comply with the provisions of this Decree."
Below are the major amendments and endorsements under the Decree No.97/2021/NĐ-CP for your attention. Please find attached the entire Decree [scanned copy of the original Vietnamese and English unofficial translation] for your more details and perusal:-
In respect of the Compulsory Fire & Explosion Insurance, we'd like to update that Vietnamese Government has just issued a new Decree No.97/2021/NĐ-CP, amending and supplementing a number of articles of the Government's Decree No.23/2018/NĐ-CP dated February 23, 2018 on compulsory fire and explosion insurance.
According to the Article 3, namely Implementation Article, this Decree takes effect from December 23, 2021 and that "The compulsory fire and explosion insurance contract signed before the effective date of this Decree shall continue to be executed in accordance with regulations of law on the inception date. In case of any amendment and endorsement or supplementation to the existing compulsory fire and explosion insurance contracts being prescribed in this Decree, they shall comply with the provisions of this Decree."
Below are the major amendments and endorsements under the Decree No.97/2021/NĐ-CP for your attention. Please find attached the entire Decree [scanned copy of the original Vietnamese and English unofficial translation] for your more details and perusal:-
- In the "List of facilities with fire and explosion hazards" under the Decree No.97/2021, supplement several new facilities, and breakdown into more detailed other facilities (in comparison to the Decree No.23/2018.)
- The "List of facilities with fire and explosion hazards" has been classified into more appropriate extents of hazard.
- The regulated premium rates remain unchanged, except for several facilities (e.g: premium rates reduce to two facilities and increase to seven facilities)
- The major amendment under the Decree No.97/2021 is of the premium computation applied to the facilities with total sum insured on a single risk location equals or more than VND1,000 billion (~US$43,800,000), as below:
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We believe you find the above in order and updated, however, should you have any queries or need our further clarification on this new regulation please contact us.
For other risks or queries, please email us at [email protected] for further discussions.