CIRCULAR

GUIDELINES FPR THE IMPLEMENTATION OF CERTAIN ARTICLES OF DECREE NO. 119/2015/ND-CP DATED NOVEMBER 13, 2015 OF THE GOVERNMENT OF VIETNAM ON COMPULSORY INSURANCE FOR CONSTRUCTION INVESTMENT ACTIVITIES AND DECREE NO. 20/2022/ND-CP DATED MARCH 10, 2022 ON AMENDMENTS TO DECREE NO. 119/2015/ND-CP DATED NOVEMBER 13, 2015 OF THE GOVERNMENT OF VIETNAM ON COMPULSORY INSURANCE FOR OCNSTRUCTION INVESTMENT ACTIVITIES

Pursuant to the Law on Insurance Business dated December 9, 2000; the Law on Amendments to the Law on Insurance Business dated November 24, 2010;

Pursuant to the Law on Amendments to the Law on Insurance Business and the Law on Intellectual Property dated June 14, 2019;

Pursuant to the Law on Construction of Vietnam dated June 18, 2014; the Law on Amendments to the Law on Construction of Vietnam dated June 17, 2020;

Pursuant to Decree No.87/2017/ND-CP dated July 26, 2017 of the Government of Vietnam on functions, duties, entitlements and organizational structure of the Ministry of Finance of Vietnam;

Pursuant to Decree No. 119/2015/ND-CP dated November 13, 2015 of the Government of Vietnam on compulsory insurance for construction investment activities;

Pursuant to Decree No. 20/2022/ND-CP dated March 10, 2022 of the Government of Vietnam on amendments to Decree No. 119/2015/ND-CP dated November 13, 2015 of the Government of Vietnam on compulsory insurance for construction investment activities;

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The Minister of Finance of Vietnam hereby promulgates the Circular on guidelines on the implementation of certain Articles of Decree No. 119/2015/ND-CP dated November 13, 2015 of the Government of Vietnam on compulsory insurance for construction investment activities and Decree No. 20/2022/ND-CP dated March 10, 2022 on amendments to Decree No. 119/2015/ND-CP dated November 13, 2015 of the Government of Vietnam on compulsory insurance for construction investment activities.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular provides for the principles, terms, insurance tariffs, financial regulations, and regulations on reports regarding compulsory insurance for construction investment activities, including compulsory insurance for works during construction time, compulsory insurance for professional liability of investment and construction consultancy services; compulsory insurance for workers working on construction sites; compulsory third-party liability insurance.

Article 2. Regulated entities

This Circular applies to:

1. Investors and contractors (in cases where insurance premiums for works have been included in the contract prices).

2. Advisory contractors.

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4. Non-life insurers, branches of foreign non-life insurers (hereinafter referred to as “insurers”) and reinsurers.

5. Other agencies, organizations, and individuals related to compulsory insurance for construction investment activities.

Article 3. Interpretation of terms

 For the purpose of this Circular, the following terms shall be construed as follows:

1. "Policyholders” are the following organizations and individuals:

a) Investors or contractors in cases where insurance premiums for works have been included in the contract prices (regarding compulsory insurance for works during construction time).

b) Advisory contractors (regarding compulsory professional liability insurance for investment and construction consultancy services).

c) Construction contractors (regarding compulsory insurance for workers working at construction sites; third-party liability insurance).

2. "Advisory contractors” are contractors that provide construction advice and survey services and contractors that provide advisory services of construction design of construction works from grade II or higher.

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4. “Deductible” means the fixed amount or percentage (%) of the amount of insurance indemnity that the policyholder must bear in each insurance event, specifically as follows:

a) Regarding compulsory insurance for works during construction time: the deductibles prescribed in Point b Clause 1 Section I and Point b Clause 1 Section II of Appendix I promulgated with this Circular.

b) Regarding compulsory insurance for professional liability for construction and investment consultancy services: the deductibles prescribed in Point b Clause 1 of Appendix II promulgated with this Circular.

5. “Put into use” is the process of putting works or categories of construction works into operation and utilization.

6. “The insured" are the following organizations and individuals:

a) Investors, contractors, and other organizations and individuals that have legitimate rights and benefits related to works during construction time (regarding compulsory insurance for works during construction time).

b) Advisory contractors and other organizations and individuals participating in construction surveys and construction design of advisory contractors (regarding compulsory insurance for professional liability for construction and investment consultancy services).

c) Construction contractors (regarding compulsory insurance for workers working at construction sites; third-party liability insurance).

7. “Occupational diseases” are diseases prescribed in Clause 9 Article 3 of the Law on Occupational Hygiene and Safety.

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9. “Occupational accidents” are prescribed in Clause 8 Article 3 of the Law on Occupational Hygiene and Safety.

Article 4. Certificates of compulsory insurance for construction investment activities (hereinafter referred to as “Insurance Certificates”)

1. Insurance Certificates are proofs of the conclusion of contracts of compulsory insurance for construction investment activities between the policyholders and insurers.

2. Insurers shall separately issue Insurance Certificates to policyholders. Insurance Certificates shall be proactively designed by insurers and include the following contents:

a) Names and addresses of insurers, policyholders, and the insured and hotline phone numbers of insurers.

b) Names and addresses of construction works.

c) Insurance payout.

d) The total value of construction works (if any).

dd) Numbers of advisory contracts and values of advisory contracts in which values of construction service advice services and values of construction design services are separated (regarding compulsory insurance for professional liability for construction investment activities).

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g) Insurance duration, insurance premium rates, insurance premiums, and deductibles (if any).

h) Issuance date, month, and year of Insurance Certificates.

3. In case of issuance of E-Insurance Certificates, insurers shall comply with regulations of the Law on E-Transactions and its guiding documents; E-Insurance Certificates shall fully comply with current regulations and adequately display the contents prescribed in Clause 2 of this Article.

Article 5. General insurance liability exclusion

Insurers shall not indemnify the following losses:

1. Losses caused by wars, riots, strikes, actions of hostile forces, rebellions, malicious actions on behalf of or related to organizations of politics, confiscation, escheat, requisition, or destruction or damage according to orders of competent authorities.

2. Losses caused by terrorism actions.

3. Losses caused by nuclear reaction, nuclear radiation, and radiation contamination.

4. Losses caused by intentional acts of law violations of policyholders of the insured (this regulation does not apply to compulsory insurance for workers working on construction sites in cases where they have to defend themselves, save lives, save properties, or use stimulants for treatment prescribed by doctors)

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6. Losses caused by stopping the construction work or losses caused by consequences of stopping the construction work (partially or wholly).

7. Losses of data, software, and computer programs.

Article 6. Termination of insurance policies

1. An insurance policy is terminated in the following cases:

a) The policyholder and the insurer have an agreement in the insurance policy on the termination of the insurance policy in case of suspension of the implementation of the work prescribed in the construction contract or termination of the construction contract according to regulations of the law.

The policyholder shall send a written notification to the insurer within 5 working days after the investor decides to suspend the implementation of the work prescribed in the construction contract or terminate the construction contract according to regulations of the law. The time of termination of the insurance policy is based on the time of suspension of the work prescribed in the construction contract or termination of the construction contract according to regulations of the law.

b) Other cases of termination according to regulations of the law.

2. Legal consequences of the termination of the insurance policy

a) If the insurance policy is terminated according to regulations prescribed in Point a Clause 1 of this Article, within 15 days after the termination date of such insurance policy, the insurer shall refund the policyholder the insurance premium corresponding to the remaining time of the insurance policy after deducting reasonable costs related to the insurance policy according to agreements in the insurance policy (if any). In case the policyholder has not fully paid the insurance premium, the policyholder shall pay an additional amount of insurance premiums corresponding to the insured period up to the time of termination of the insurance policy.

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Chapter II

SPECIFIC PROVISIONS

Section 1. COMPULSORY INSURANCE FOR WORKS DURING CONSTRUCTION TIME

Article 7. Insurance subjects and the minimum insurance payout

1. Insurance subjects of compulsory insurance for works during construction time are works and categories of works prescribed in Clause 1 Article 4 of Decree No. 119/2015/ND-CP dated November 13, 2015 of the Government of Vietnam on compulsory insurance for construction and investment activities and Clause 2 Article 1 of Decree No. 20/2022/ND-CP dated March 10, 2022 of the Government of Vietnam on amendments to Decree No. 119/2015/ND-CP.

2. The minimum insurance payout for compulsory insurance for works during construction time according to regulations prescribed in Clause 1 of this Article is the total value of works after completion, including all materials, personnel costs, devices installed in such works, transport fees, tax types, other fees, and other categories provided by investors or contractors. The minimum insurance payout for works during construction time shall not be lower than the total value of construction contracts, even the adjusted or supplemented value (if any).

Article 8. Insurance scope and exclusion of insurance responsibility

1. Insurance scope

Insurers shall implement insurance responsibilities for losses of works during construction time that arise from any risk, except for cases of exclusion of insurance responsibilities prescribed in Clause 2 of this Article.

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Cases of exclusion of insurance responsibilities for compulsory insurance for works during construction time:

a) Exclusion of the general insurance responsibility according to regulations prescribed in Article 5 of this Circular.

b) Losses caused by errors in the design of advisory contractors regarding construction works.

c) Losses caused by corrosion, abrasion, and oxidation.

d) Losses caused by the phenomenon of rotting that takes place under conditions of normal pressure and temperature (this regulation only applies to construction works prescribed in Point a Clause 1 Article 10 of this Circular).

dd) Losses cause by the phenomenon of hard scale formation such as rust, deposition, or other equivalent phenomena (this regulation only applies to construction works prescribed in Point b Clause 1 Article 10 of this Article).

e) Costs of repair, replacement, and correction of defects in materials or workmanship errors. This exclusion only applies to losses of categories that are directly affected and does not apply to losses of other categories that are indirect consequences of defects in materials or workmanship errors.

g) Losses or damage that can only be detected at the time of inventory.

Article 9. Insurance duration

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1. Regarding construction works prescribed in Point a Clause 1 Article 10 of this Circular: the insurance duration prescribed in insurance policies, starting from the start to the end date of construction time, shall be based on documents of authorities competent to decide on investment (including adjustment and supplement (if any)). The insurance duration for each division and category that has been handed over or put into use shall end after such division and category have been handed over or put into use.

2. Regarding construction works prescribed in Point b Clause 1 Article 10 of this Circular: the insurance duration prescribed in insurance policies, from the start to the end date of construction time, shall be based on documents of authorities competent to decide on investment (including adjustment and supplement (if any)) until the handover of the works or after the completion of the first load testing, whichever comes first, but shall not exceed 28 days after the date of the test run. The insurance duration for used devices installed in works shall end at the time of test running such devices.

Article 10. Insurance premiums and payment of insurance premiums

1. Premiums of compulsory insurance for works during construction time are determined as follows:

a) Regarding insured construction works valued less than 1000 billion VND, excluding or including the installment but the cost of the installment is lower than 50% of the total value of categories of the insured construction works: the insurance premium shall be determined according to Point a Clause 1 Section I of Appendix I promulgated with this Circular.

b) Regarding insured construction works valued less than 1000 billion VND, including the installment and the cost of the installment accounts for at least 50% of the total value of categories of the insured construction works: the insurance premium shall be determined according to Point a Clause 1 Section II of Appendix I promulgated with this Circular.

c) Regarding construction works not stipulated in regulations prescribed in Point a Clause 1 Section I and Point a Clause 1 Section II of Appendix I promulgated with this Circular or construction works valued from 1000 billion VND or more, insurers and policyholders shall agree on the principles, terms, insurance premiums, and deductibles on the basis of evidence proving the leading enterprises receive reinsurance and confirm the reinsurance in accordance with the principles, terms, insurance premiums, and deductibles provided to policyholders by insurers. Enterprises that receive foreign reinsurance and organizations that receive foreign reinsurance must be rated at least “BBB” according to Standard & Poor’s, “B++” according to A.M.Best, or other equivalent ranks of other organizations with functions and experience in ranking in the fiscal year closest to the reinsurance year.

2. Based on the risk level of each of the insured, insurers may increase or decrease insurance premiums by a maximum of 25% of the insurance premiums prescribed in Point a Clause 1 Section I of Appendix I promulgated with this Circular (regarding works prescribed in Point a Clause 1 of this Article) or Point a Clause 1 Section II of Appendix I promulgated with this Circular (regarding works prescribed in Point b Clause 1 of this Article).

3. In case the construction time of works is extended compared to the time prescribed in documents of authorities competent to decide on the investment when concluding insurance policies, policyholders and insurers may agree on additional insurance premiums applicable to the extended time. Additional insurance premiums (if any) shall be determined according to the insurance premiums prescribed in Appendix I promulgated with this Circular and the ratio of extended construction time to the total construction time prescribed in documents of authorities competent to decide on the investment when concluding insurance policies and other risk factors.

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Regarding insurance policies of construction works of projects on construction and investment prescribed in Decree No. 50/2021/ND-CP dated April 1, 2021 of the Government of Vietnam on amendments to Decree No. 37/2015/ND-CP dated April 22, 2015 of the Government of Vietnam elaborating on construction contracts, insurers and policyholders shall agree on the deadline for payment of insurance premiums prescribed in insurance policies and such deadline shall not be later than the payment deadline of construction contracts. In any case, the deadline for payment of insurance premiums shall not exceed the insurance duration.

5. The final settlement of insurance premiums shall be based on the value of the final settlement of the construction contract (the part subject to purchase of compulsory insurance), specifically:

a) If the value of the final settlement of the construction contract (the part subject to purchase of compulsory insurance) increases compared to the value of the estimate approved by competent authorities when concluding the insurance policy, the insurance premium shall increase correspondingly. The policyholder shall pay the missing insurance premium to the insurer within 30 days after receiving documents on approval of the value of the final settlement of the construction contract issued by competent authorities.

b) If the value of the final settlement of the construction contract (the part subject to purchase of compulsory insurance) decreases compared to the value of the estimate approved by competent authorities, the insurance premium shall decrease correspondingly. The insurer shall pay the overpaid insurance premium to the policyholder within 30 days after the date the insurer receives documents on approval of the value of the final settlement of the construction work issued by competent authorities from the policyholder. The policyholder shall retrieve the deducted insurance premium amount from the insurer. If the policyholder is the contractor in construction and investment activities and the insurance premium for work has been included in the construction contract price, the contractor in construction and investment activities shall return the insurance premium retrieved from the insurer to the investor.

Article 11. Responsibilities of policyholders

Investors or contractors (in cases where insurance premiums for works have been included in the contract prices) shall purchase insurance for all of the works or for each category of works during construction time. Specific cases:

1. In case of purchasing insurance for all of the works during construction time, investors or contractors (in cases where insurance premiums for works have been included in the contract prices) shall purchase insurance with the minimum insurance payout as prescribed in Clause 2 Article 7 of this Circular.

2. In case of purchasing by each category of works during construction time, investors or contractors (in cases where insurance premiums for works have been included in the contract prices) shall purchase insurance with the insurance payout of each category of works not lower than the full value of the category of such works after completion and the total insurance payout of categories of works during construction time shall not be lower than the minimum insurance payout prescribed in Clause 2 Article 7 of this Circular.

Article 12. Indemnification principles

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a) Policyholders shall:

- Immediately notify insurers via means of communication and notify insurers in writing of such incidents within 14 days from the date of construction works incidents.

- After notifying insurers in writing, policyholders may start the repair or replacement of minor damage valued no more than the corresponding deductible prescribed in Point b Clause 1 Section I of Appendix I promulgated with this Circular (regarding works prescribed in Point a Clause 1 Article 10 of this Circular) or Point b Clause 1 Section II of Appendix I promulgated with this Circular (regarding works prescribed in Point b Clause 1 Article 10 of this Circular).

In other cases, before beginning the repair or replacement of categories suffered from losses, policyholders shall have their losses assessed by insurers. If insurers fail to assess losses within 5 working days after receiving notifications on construction work incidents, except for force majeure or objective difficulties, policyholders have the right to begin the repair and replacement of categories suffered from losses. Insurers shall pay the costs of repair and replacement of categories suffered from losses within their insurance responsibilities if the policyholders timely begin the repair and replacement of such categories.

- Preserve parts suffered from losses and prepare for the assessment of such parts conducted by representatives or assessors of insurers.

- Immediately notify public security agencies in case of losses caused by theft.

- Adopt every measure within their capacity to minimize losses.

- Provide documents in indemnification documents according to regulations prescribed in Clauses 1, 2, 3, 4, and 6 of Article 13 of this Circular and facilitate insurers during the process of verifying such documents.

- Implement, cooperate, and permit insurers to perform actions and measures that are necessary or requested by insurers to protect the rights of insurers after the indemnification of losses subject to indemnification responsibilities according to regulations of this Circular.

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- Conduct loss assessment according to regulations of the law and prepare records of the assessment of causes and the extent of damage according to regulations prescribed in Clause 5 Article 13 of this Circular.

- Guide and cooperate with policyholders and relevant agencies, organizations, and individuals in sufficiently collecting documents to prepare indemnification documents.

- In case of accepting the indemnification, insurers shall prepare written notifications on the indemnification.

- In case of refusing the indemnification, insurers shall provide explanations in writing.

2. Insurers shall only indemnify for physical losses that policyholders actually suffer from and when such amounts have been included in the insurance payout.

3. The indemnification for each category of properties prescribed in insurance policies shall not exceed the insurance payout of such category of properties. The total insurance payout shall not exceed the total insurance payout prescribed in insurance policies. Specific cases:

a) Losses that can be repaired shall be repaired, and the insurance payout is the necessary fund to restore categories suffered from losses to their previous state before losses after deducting the part of value subject to retrieval (in case policyholders retrieve properties suffered from losses) and deductibles.

b) In case of a total loss, the insurance payout is the market value of the category at the time or the place of losses and the actual level of damage minus deductibles. If policyholders retrieve properties suffered from losses, the insurance payout is the actual value of such categories at the time or the place of losses minus deductibles and values of the retrieved properties that suffered from losses.

4. Insurers shall cover temporary repair costs if such repair is a part of the official repair and does not increase the total repair cost according to the final scheme for the repair of categories suffered from losses.

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6. If policyholders conclude compulsory insurance policies for works during construction time with 2 or more insurers to insure the same subject, with the same conditions and insurance events, when insurance events occur, each insurer is only responsible for indemnification according to the ratio between the agreed insurance payout to the total insurance payout of all insurance policies concluded by policyholders. The total insurance payout of insurers shall not exceed the damaged value of properties.

7. Insurers are not responsible for indemnifying the amounts that occurred or increased due to acts of insurance fraud according to regulations of the Criminal Code.

Article 13. Indemnification documents

Insurers shall cooperate with policyholders, the insured, and relevant agencies, organizations, and individuals in collecting documents related to the preparation of indemnification documents. Indemnification documents on compulsory insurance for works during construction time include:

1. Documents requesting the indemnification of the policyholders.

2. Documents related to insurance subjects, including Insurance Policies and Certificates of Insurance.

3. Documents proving the damage to properties, including:

a) Documents on construction work incidents (certified copies or copies confirmed by parties that prepare the documents) according to regulations prescribed in Article 47 of Decree No. 06/2021/ND-CP dated January 26, 2021 of the Government of Vietnam elaborating on quality management, construction, and maintenance of construction works.

b) Valid receipts and invoices in case of repairing or replacing properties.

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5. Records of the assessment of causes and the extent of damage prepared by insurers or persons authorized by insurers.

6. Other relevant documents (if any).

Section 2. COMPULSORY INSURANCE FOR PROFESSIONAL LIABILITY FOR CONSTRUCTION AND INVESTMENT CONSULTANCY SERVICE

Article 14. Insurance subjects and the minimum insurance payout

1. Subjects of compulsory insurance for professional liability for construction and investment consultancy services are civil liabilities of investment and construction advisory contractors for third parties generated from the implementation of construction surveys and construction design of construction works from grade II or higher.

2. The minimum insurance payout is equal to the value of the construction survey consultancy contract and the construction design consultancy contract.

Article 15. Insurance scope and exclusion of insurance responsibility

1. Insurance scope

Insurers shall indemnify advisory contractors for the amounts that such advisory contractors are responsible for indemnifying for losses of third parties generated from the implementation of construction consultancy services and relevant costs according to regulations of the law, except for cases prescribed in Clause 2 of this Article.

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Cases of exclusion of insurance responsibilities for compulsory insurance for professional liability for construction and investment consultancy services:

a) Exclusion of the general insurance responsibility according to regulations prescribed in Article 5 of this Circular.

b) Losses caused by untested measures to construct, calculate, measure, design, and use materials intentionally selected by advisory contractors.

c) Costs of redesigning or correcting drawings, plans, and technical manuals or catalogs of technical manuals.

d) Losses caused by mold.

dd) Losses caused by pollution and contamination to the environment and third parties due to the construction survey consultancy and construction design.

e) Losses related to asbestos or any material containing asbestos.

g) Losses caused by violations of intellectual property rights.

Article 16. Insurance duration

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Article 17. Insurance premiums and payment of insurance premiums

1. Premiums of compulsory insurance for professional liabilities for construction design consultancy services and construction survey consultancy services shall be determined as follows:

a) Regarding construction works valued less than 1000 billion VND and are not included in types of construction works such as dikes, dams, ports, harbors, jetties, docks, breakwaters, and other irrigation works; construction works such as airports, airplanes, satellites, space; shipbuilding and repair works; energy construction works on the sea and underwater; projects on trains, trams, express trains, and underground projects and mines: the insurance premiums and deductibles prescribed in Clause 1 Appendix II promulgated with this Circular.

b) Regarding construction works not stipulated in regulations prescribed in Point a Clause 1 of this Article: Insurers and policyholders shall agree on the principles, terms, insurance premiums, and deductibles on the basis of evidence proving the leading enterprises receive reinsurance and confirm the reinsurance in accordance with the principles, terms, insurance premiums, and deductibles provided to policyholders by insurers. Enterprises that receive foreign reinsurance and organizations that receive foreign reinsurance must be rated at least “BBB” according to Standard & Poor’s, “B++” according to A.M.Best, or other equivalent ranks of other organizations with functions and experience in ranking in the fiscal year closest to the reinsurance year.

2. Based on the risk level of each of the insured, insurers may increase or decrease insurance premiums by a maximum of 25% of the insurance premiums prescribed in Point a Clause 1 of Appendix II promulgated with this Circular.

3. In case the construction time of works is extended compared to the time prescribed in documents of authorities competent to decide on the investment when concluding insurance policies, policyholders and insurers shall agree on additional insurance premiums applicable to the extended time. Additional insurance premiums shall be determined according to the insurance premiums prescribed in Point a Clause 1 of Appendix II promulgated with this Circular and corresponding to the extended implementation time of consultancy work.

4. The payment of premiums of compulsory insurance for professional liabilities for construction and investment consultancy services shall follow Circular No. 50/2017/TT-BTC.

5. The final settlement of insurance premiums shall be based on the value of the final settlement of the construction survey and construction design consultancy contract, specifically:

a) If the value of the final settlement of the construction survey and construction design consultancy contract increases compared to the value of the estimate approved by competent authorities when concluding the insurance policy, the insurance premium shall increase correspondingly. The policyholder shall pay the missing insurance premium to the insurer within 30 days after receiving documents on approval of the value of the final settlement of the construction contract issued by competent authorities.

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Article 18. Responsibilities of policyholders

Advisory contractors shall purchase compulsory insurance for professional liabilities for construction and investment consultancy services when providing such services.

Article 19. Indemnification principles

1. Insurers shall indemnify advisory contractors for the amounts that such advisory contractors are responsible for indemnifying for losses of third parties and relevant costs according to regulations of the law, specifically:

a) Losses of third parties and related costs generated by negligent actions of the insured as a result of the implementation of construction surveys and construction design within the scope of insurance.

b) Indemnification request of third parties (from an insurance event) regarding the insured and have been notified to insurers by policyholders within the insurance duration, including expenses to be paid to lawyers appointed by insurers or the insured (with the written consent of insurers), other fees and charges generated from the investigation, correction, and defense related to insurance events but not including the salary to be paid to workers or managers concluding labor contracts with the insured.

c) Other relevant costs according to regulations of the law.

2. The total liability of insurers for all indemnification requests during the insurance duration shall not exceed the insurance payout agreed on in insurance policies.

3. If policyholders conclude compulsory insurance policies for professional liabilities for construction and investment consultancy services during construction time with 2 or more insurers to insure the same subject, with the same conditions and insurance events, when insurance events occur, each insurer is only responsible for indemnification according to the ratio between the agreed insurance payout to the total insurance payout of all insurance policies concluded by policyholders.

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5. When there are indemnification requests from third parties, policyholders and insurers shall cooperate in settling the indemnification as follows:

a) Policyholders shall:

- Immediately notify insurers via means of communication and notify insurers in writing of such matters within 14 days after receiving indemnification requests from third parties.

- Adopt every measure within their capacity to minimize losses.

- Provide documents in indemnification documents according to regulations prescribed in Clauses 1, 2, 3, 4, 5, and 7 of Article 20 of this Circular and facilitate insurers during the process of verifying such documents.

- Implement, cooperate, and permit insurers to perform actions and measures that are necessary or requested by insurers to protect the rights of insurers after the indemnification of losses subject to indemnification responsibilities according to regulations of this Circular.

b) Insurers shall:

- Conduct loss assessment according to regulations of the law and prepare records of the assessment of causes and the extent of damage according to regulations prescribed in Clause 6 Article 20 of this Circular.

- Guide and cooperate with policyholders and relevant agencies, organizations, and individuals in sufficiently collecting documents to prepare indemnification documents.

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- In case of accepting the indemnification, insurers shall prepare written notifications on the indemnification.

- In case of refusing the indemnification, insurers shall provide explanations in writing.

Article 20. Indemnification documents

Insurers shall cooperate with policyholders, the insured, and relevant agencies, organizations, and individuals in collecting documents related to the preparation of indemnification documents. Indemnification documents on compulsory insurance for professional liabilities for construction and investment consultancy services include:

1. Documents requesting the indemnification of the policyholders.

2. Documents related to insurance subjects, including Insurance Policies and Certificates of Insurance.

3. Documents requesting the indemnification of third parties regarding the insured.

4. Documents proving human damage (copies of medical service facilities or copies confirmed by insurers after comparison with the original) provided by policyholders. Based on the extent of human damage, one or more of the following documents may be included:

a) Injury certificates.

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c) Surgery certificates.

d) Medical records.

dd) Extracts of death certificates or Death Certificates or order documents confirmed by public security agencies or examination results of Forensic Examination Agencies.

e) Valid and reasonable receipts and invoices on medical costs.

5. Documents proving the damage to properties, including:

a) Documents on construction work incidents (certified copies or copies with confirmation of parties that prepare the documents) according to regulations prescribed in Article 47 of Decree No. 06/2021/ND-CP.

b) Valid receipts and invoices in case of repairing or replacing properties.

c) Documents, receipts, and invoices related to expenses that policyholders have spent to minimize losses or to implement instructions of insurers.

6. Records of the assessment of causes and the extent of damage prepared by insurers agreed upon between insurers, policyholders, and the insured.

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Section 3. COMPULSORY INSURANCE FOR WORKERS WORKING ON CONSTRUCTION SITES

Article 21. Insurance subjects and the minimum insurance payout

1. Subjects of compulsory insurance for workers working on construction sites are civil liabilities of construction contractors for workers working on construction sites according to regulations of the law.

2. The minimum insurance payout in case of compulsory insurance for workers working on construction sites is 100 million VND/person/case.

Article 22. Insurance scope and exclusion of insurance responsibility

1. Insurance scope

Insurers shall indemnify construction contractors for the amounts that such construction contractors are responsible for indemnifying for workers who are injured or die due to occupational accidents or occupational diseases while conducting construction work on construction sites, except for cases prescribed in Clause 2 of this Article.

2. Exclusion of insurance responsibilities.

a) Exclusion of the general insurance responsibility according to regulations prescribed in Article 5 of this Circular.

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Article 23. Insurance duration

1. The duration of compulsory insurance for workers working on construction sites will start from the start date of construction work on construction sites until the end of the work warranty period according to regulations of the law.

2. The determination of the insurance duration shall, specifically for workers working on construction sites, be based on labor contracts and documents confirmed by construction contractors regarding the actual working time of workers on construction sites.

Article 24. Insurance premiums and payment of insurance premiums

1. Premiums of compulsory insurance for workers working on construction sites are prescribed in Appendix III promulgated with this Circular.

2. Based on the risk level of each of the insured, insurers may increase or decrease insurance premiums by a maximum of 25% of the insurance premiums prescribed in Appendix III promulgated with this Circular.

3. The payment of premiums of compulsory insurance for workers working on construction sites shall follow Circular No. 50/2017/TT-BTC.

4. In case of changes to the number of workers or the work of workers, follow the following instructions:

a) Before the 15th of the month following the month of changes, construction contractors shall send written notifications to insurers on the mentioned changes enclosed with the list of workers increased or decreased (in case of changes to the number of workers) and the list of changes to work of workers (in case of changes to the work of workers).

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c) In case the decrease of the number of workers or the change to the work of workers decreases insured risks, insurers shall pay construction contractors the decreased insurance premium corresponding to the remaining time of insurance policies that policyholders have overpaid before the 15th of the month following the month of notification.

d) If construction contractors properly perform the obligation to provide notifications as prescribed in Point a of this Clause and pay the insurance premium according to Point b of this Clause, insurance policies shall automatically be valid regarding lists of workers increased or invalidated regarding lists of workers decreased; insurance policies shall automatically be valid regarding the changed work of workers as from the date of changes according to written documents of the insured.

Article 25. Responsibilities of policyholders

Construction contractors shall purchase compulsory insurance for workers working on construction sites when workers conduct construction work on construction sites.

Article 26. Indemnification principles

1. When occupation accidents or occupation diseases happen to workers working on construction sites, policyholders and insurers shall cooperate in settling the indemnification as follows:

a) Policyholders shall:

- Immediately notify insurers via means of communication and notify insurers in writing of such incidents within 14 days after occupational accidents or occupational diseases happen to workers working on construction sites.

- Adopt every measure within their capacity to minimize losses.

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- Implement and permit insurers to perform actions and measures that are necessary or requested by insurers to protect the rights of insurers after the indemnification of losses subject to indemnification responsibilities according to regulations of this Circular.

b) Insurers shall:

- Guide and cooperate with policyholders and relevant agencies, organizations, and individuals in sufficiently collecting documents to prepare indemnification documents; identify causes and the extent of damage.

- In case of accepting the indemnification, insurers shall prepare written notifications on the indemnification.

- In case of refusing the indemnification, insurers shall provide explanations in writing.

2. If workers, who are injured or die because of occupational accidents or occupational diseases due to the implementation of construction work on construction sites, are subject to insurance responsibilities, insurers shall pay the amounts agreed upon between construction contractors and workers or legal representatives of workers (in case workers have died), including:

a) Leave allowance during the treatment period as prescribed by the treating doctor shall be determined based on the salary according to the labor contract and shall not exceed the salary of 6 months in each insurance event.

b) Actual medical costs, including emergency costs and inpatient and outpatient treatment costs that are necessary and reasonable but shall not exceed 100 million VND/person/case.

c) In case workers suffer from a working capacity decrease of less than 81%, the specific indemnification for each type of injury and human damage shall be determined according to the Table of payment rates for compulsory insurance for workers working on construction sites according to Appendix IV promulgated with this Circular.

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The total insurance payout shall not exceed the total insurance payout prescribed in insurance policies.

3. If occurred occupational accidents or occupational diseases cause injuries to workers, and such injuries aggravate the previous injuries or diseases, insurers are not responsible for indemnifying the aggravating part.

4. Particularly for the case of indemnification according to regulations prescribed in Point b Clause 2 of this Article, if policyholders conclude compulsory insurance policies for workers working on construction sites with 2 or more insurers to insure the same subject, with the same conditions and insurance events, when insurance events occur, each insurer is only responsible for indemnification according to the ratio between the agreed insurance payout to the total insurance payout of all insurance policies concluded by policyholders.

Article 27. Indemnification documents

Insurers shall cooperate with policyholders, the insured, and relevant agencies, organizations, and individuals in collecting documents related to the preparation of indemnification documents. Indemnification documents on compulsory insurance for workers working on construction sites include:

1. Documents requesting the indemnification of the policyholders.

2. Documents related to insurance subjects, including:

a) Insurance Policies, Certificates of Insurance, and Labor Contracts concluded between the insured and workers suffering from occupational accidents or occupational diseases.

b) Documents requesting indemnification for occupational accidents or occupational diseases of workers (if any).

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a) Minutes of investigation of occupational accidents prepared by competent authorities according to regulations of the law (if any). In case workers suffer from traffic accidents that are identified as occupational accidents, there must be minutes of traffic accidents or minutes of scene examination and diagram of traffic accident scene prepared by competent authorities according to regulations of the law.

b) Based on the extent of human damage, there may be one or more of the following documents, Injury Certificates; Hospital Discharge Letters; Certificates of Surgery; Medical Records; Extracts of death certificates or Death Certificates or order documents confirmed by public security agencies or examination results of Forensic Examination Agencies.

c) Minutes of assessment of working capacity decrease of the Medical Evaluation Board regarding cases where workers suffer from a working capacity decrease of at least 5% (if any).

d) Valid receipts and invoices of medical facilities proving the treatment of injuries due to occupational accidents of workers.

4. Documents proving that workers suffer from injuries or die due to occupational accidents, including:

b) Minutes of measurement of the environment with hazardous factors during the stipulated time prepared by competent authorities, and if such minutes are for the confirmation for many people, the document of each worker shall have an extract.

b) Hospital Discharge Letters (in case of not being treated at the hospital, an occupational medical examination certificate is required) or consultation sheets for occupational diseases; Medical Records; Extracts of death certificates or Death Certificates (in case workers die).

c) Minutes of assessment of working capacity decrease of the Medical Evaluation Board regarding cases where workers suffer from a working capacity decrease of at least 5% (if any).

d) Valid receipts and invoices of medical facilities proving the treatment of injuries due to occupational diseases of workers.

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6. Other relevant documents (if any).

Section 4. COMPULSORY THIRD-PARTY LIABILITY INSURANCE

Article 28. Insurance subjects and the minimum insurance payout

1. Subjects of compulsory third-party liability insurance are civil liabilities of construction contractors for third parties during the construction process according to regulations of the law.

2. The minimum insurance payout for compulsory third-party liability insurance shall comply with regulations prescribed in Clause 7 Article 1 of Decree No. 20/2022/ND-CP.

Article 29. Insurance scope and exclusion of insurance responsibility

1. Insurance scope

Insurers shall indemnify construction contractors amounts that such construction contractors are responsible for indemnifying third parties regarding damage outside of insurance policies in terms of health, life, and properties directly generated during construction and related legal costs (if any) that fall within the scope of insurance in insurance policies, except for cases prescribed in Clause 2 of this Article.

2. Exclusion of insurance responsibilities.

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a) Exclusion of the general insurance responsibility according to regulations prescribed in Article 5 of this Circular.

b) Losses caused by pollution or contamination. This exclusion does not apply to losses of health, life, and properties generated from pollution or contamination due to unexpected and unpredictable risks.

c) Damage to properties on the ground or health or life caused by the displacement or weakening of the load-bearing and geologic engineering parts.

d) Damage resulting from accidents caused by motor vehicles or vessels, barges, or planes that have participated in compulsory insurance of vehicle owners for third parties.

dd) Liabilities resulting from injuries or diseases caused to workers of investors or contractors related to insured works.

e) Losses or damage to properties owned by or under the management and legal use of investors, or contractors, or workers of one of the above persons.

g) Losses related to asbestos or any material containing asbestos.

Article 30. Insurance duration

The duration of compulsory third-party liability insurance is the specific time starting from the start to the end date of construction based on construction contracts and is prescribed in insurance policies.

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1. The premium of compulsory third-party liability insurance is 5% of the premium of compulsory insurance for works during the corresponding construction time prescribed in Point a and Point b Clause 1 Article 10 of this Circular. Based on the risk level of each of the insured, insurers may increase or decrease insurance premiums by a maximum of 25% of the insurance premiums.

2. The deadline for payment of premiums of compulsory third-party liability insurance shall comply with Circular No. 50/2017/TT-BTC.

Regarding insurance policies on civil liabilities for third parties of construction works of projects on construction and investment prescribed in Decree No. 50/2021/ND-CP dated April 1, 2021 of the Government of Vietnam on amendments to Decree No. 34/2015/ND-CP elaborating on construction contracts, insurers and policyholders shall agree on the deadline for payment of insurance premiums prescribed in insurance policies and such deadline shall not be later than the payment deadline of construction contracts. In any case, the deadline for payment of insurance premiums shall not exceed the insurance duration.

3. The final settlement of insurance premiums shall comply with regulations prescribed in Clause 5 Article 10 of this Circular.

Article 32. Responsibilities of policyholders

Construction contractors shall purchase compulsory third-party liability insurance when constructing construction works.

Article 33. Indemnification principles

1. When third parties suffer from damage outside of insurance policies in terms of health, life, and properties directly generated from the constructing process subject to insurance responsibilities, insurers shall pay policyholders according to the following indemnification rates:

a) The specific indemnification rate for health and life is determined according to each type of injury prescribed in the Table of indemnification for damage to health and life of Appendix V promulgated with this Circular or agreements (if any) between the insured and persons receiving damage or heirs of persons receiving damage (in case such persons have died) or representatives of persons receiving damage (in case such persons have lost their civil capacity according to decisions of the Court or such persons are less than 6 years old) and shall not exceed the indemnification rate prescribed in Appendix V promulgated with this Circular. In case there are decisions of the Court, the indemnification rate shall be based on such decisions but shall not exceed the rate prescribed in Appendix V promulgated with this Circular.

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c) Relevant legal costs (if any).

The total insurance indemnification amount of insurers prescribed in this Clause shall not exceed the insurance payout prescribed in Clause 7 Article 1 of Decree No. 20/2022/ND-CP.

2. When there are indemnification requests from third parties, policyholders and insurers shall cooperate in settling the indemnification as follows:

a) Policyholders shall:

- Immediately notify insurers via means of communication and notify insurers in writing of such matters within 14 days after receiving indemnification requests from third parties.

- Adopt every measure within their capacity to minimize losses.

- Provide documents in indemnification documents according to regulations prescribed in Clauses 1, 2, 3, 4, 5, and 7 of Article 34 of this Circular and facilitate insurers during the process of verifying such documents.

- Implement, cooperate, and permit insurers to perform actions and measures that are necessary or at the request of insurers to protect the rights of insurers after the indemnification of losses subject to indemnification responsibilities according to regulations of this Circular.

b) Insurers shall:

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- Guide and cooperate with policyholders and relevant agencies, organizations, and individuals in sufficiently collecting documents to prepare indemnification documents.

- Cooperate with policyholders in settling requests for loss indemnification of third parties subject to insurance responsibilities when insurance events occur.

- In case of accepting the indemnification, insurers shall prepare written notifications on the indemnification.

- In case of refusing the indemnification, insurers shall provide explanations in writing.

Article 34. Indemnification documents

Insurers shall cooperate with policyholders, the insured, and relevant agencies, organizations, and individuals in collecting documents related to the preparation of indemnification documents. Indemnification documents on compulsory third-party liability insurance include:

1. Documents requesting the indemnification of the policyholders.

2. Documents related to insurance subjects, including Insurance Policies and Certificates of Insurance.

3. Documents requesting the indemnification of third parties regarding the insured.

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a) Injury certificates.

b) Hospital discharge letters.

c) Surgery certificates.

d) Medical records.

dd) Extracts of death certificates or Death Certificates or order documents confirmed by public security agencies or examination results of Forensic Examination Agencies.

5. Documents proving the damage to properties, including:

a) Documents on construction work incidents (certified copies or copies confirmed by parties that prepare the documents) according to regulations prescribed in Article 47 of Decree No. 06/2021/ND-CP (if any).

b) Valid receipts and invoices in case of repairing or replacing properties.

6. Records of the assessment of causes and the extent of damage prepared by insurers or persons authorized by insurers.

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Section 5. FINANCIAL REGULATIONS AND REGULATIONS ON REPORTS

Article 35. Financial regulations

Insurers that implement compulsory insurance for construction and investment activities shall implement financial regulations according to the following instructions:

1. Financial regulations shall comply with regulations of laws on insurance business and relevant laws.

2. Revenue from insurance premiums, insurance commissions, insurance indemnification, and other expenses related to compulsory insurance for construction and investment activities shall be recorded separately.

Article 36. Regulations on reports

Insurers shall prepare and send the Ministry of Finance of Vietnam reports on compulsory insurance for construction and investment activities according to the following regulations:

1. Professional reports: insurers shall prepare and send the Ministry of Finance of Vietnam quarterly and annual professional reports according to the forms prescribed in Appendix VI, Appendix VII, and Appendix VIII promulgated with this Circular, specifically:

a) Quarterly reports: the time for finalization of data is from the 1st of the first month of the reporting period to the 30th or 31st of the end month of the reporting period. Quarterly reports shall be submitted within 30 days from the end date of a quarter.

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Report submission methods: submit reports directly or via post services or email system or the report information system of the Ministry of Finance of Vietnam (when such system is in operation).

2. Aside from reports prescribed in Clause 1 of this Article, insurers shall prepare and submit irregular reports at the request of the Ministry of Finance of Vietnam in the following cases: reports requested by the National Assembly of Vietnam, the Standing Committee of the National Assembly of Vietnam, the Government of Vietnam, and the Prime Minister of Vietnam; reports on the summary and assessment to develop regulations and policies on reports when there is information on violations of regulations on compulsory insurance for construction and investment activities and other irregular reports to satisfy the requirement for information on irregularly generated problems.

Chapter III

IMPLEMENTATION PROVISIONS

Article 37. Implementation provisions

1. This Circular comes into force as of October 1, 2022 and replaces Circular No. 329/2016/TT-BTC.

2. Compulsory insurance policies for construction and investment activities and compulsory insurance policies for civil liabilities for third parties concluded before this Circular comes into force shall continue to comply with regulations of laws that are effective at the moment of conclusion of such insurance policies. In case of revisions to insurance policies regulated by this Circular, this Circular shall apply.

3. If any legislative document referred to this Circular is amended, supplemented, or replaced, comply with its new edition.

4. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance of Vietnam for consideration and settlement./.

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PP. MINISTER
DEPUTY MINISTER




Nguyen Duc Chi