CONSTRUCTION CONTRACTORS HAVE TO BUY A COMPULSORY CIVIL LIABILITY INSURANCE FOR THIRD PARTIES FROM 01 JULY 2022
This content is stipulated in the Government’s Decree No. 20/2022/ND-CP dated March 10, 2022, amending and supplementing a number of articles of the Government’s Decree No. 119/2015/ND-CP dated November 13, 2015, prescribing compulsory insurance in construction investment activities.
According to the new provisions, in addition to compulsory insurance for workers working on the construction sites, construction contractors shall have to buy compulsory civil liability insurance for third parties. Duration of compulsory civil liability insurance for third party is a specific span, counting from the date of starting to the date of finishing the construction time, based on the construction contract and written in the insurance contract. The minimum insurance sum of the compulsory civil liability insurance for third parties is prescribed as follows: The minimum insurance sum for damage to health and life is VND 100,000,000/person/case, and there is no limit to the number of loss cases.
In case a damaged work is valued at less than one thousand billion Vietnam Dong, the minimum insurance sum for property damage and related legal costs (if any) is 10% of the value of the work for the entire insurance duration, and there is no limit to the number of loss cases. For a work valued at one thousand billion dong or more, the minimum insurance sum for property damage and related legal costs (if any) is one hundred billion dong for the entire insurance duration and there is no limit to the number of loss cases.
Compulsory insurance contracts in construction investment activities, civil liability insurance contracts for third parties signed before the effective date of this Decree shall continue to be performed in accordance with the law at the time of entering into insurance contracts.
This Decree takes effect on July 01, 2022.