From April 15, apartments and hotels are required to purchase fire insurance.
From April 15, facilities with fire and explosion risks such as apartment buildings, hotels, guesthouses, motels with 5 floors or more; nurseries, kindergartens with 100 children or more... must purchase compulsory fire and explosion insurance.
Decree No. 23/2018/ND-CP of the Government effective from April 15, 2018 regulates compulsory fire and explosion insurance.
Accordingly, establishments with fire and explosion risks such as apartment buildings, hotels, guesthouses, motels with 5 floors or more; nurseries, kindergartens with 100 children or more; gas stations with 1 or more pumps... must purchase compulsory fire and explosion insurance from businesses that provide fire and explosion insurance services.
Insurance premium
According to this Decree, the insurance premium is prescribed for facilities with fire and explosion hazards (except nuclear facilities) with the total insured amount of assets at a location under VND 1,000 billion: The insurance premium is determined by multiplying the minimum insured amount by the insurance premium rate. Based on the risk level of each facility with fire and explosion hazards, the insurance company and the insurance buyer agree on an insurance premium rate not lower than the insurance premium rate.
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| The fire at Carina Plaza apartment building (Vo Van Kiet Street, Ward 16, District 8, Ho Chi Minh City) in the early morning of March 23, killed 13 people and injured 28 others, leaving people in shock. |
Based on the insurance premium rate specified in this point, the insurance company and the insurance buyer may agree to increase the insurance premium rate applicable to each facility with fire and explosion risks based on the risk level of each facility and in accordance with legal regulations.
For facilities with fire and explosion hazards with a total insured amount of assets at a location of VND 1,000 billion or more and nuclear facilities: The insurance company and the insurance buyer agree on the insurance premium according to the law and on the basis of approval by the reinsurance company.
The Decree also stipulates that the insurance compensation amount for damaged property shall not exceed the insurance amount of that property minus the insurance deductible as prescribed. A maximum deduction of 10% of the insurance compensation amount shall be applied in cases where the facility is at risk of fire or explosion and does not fully comply with the regulations, leading to increased damage when a fire or explosion occurs.
The insurance company is not responsible for compensating for additional amounts arising from insurance fraud as prescribed in the Penal Code.
Announcing the list of facilities with fire and explosion hazards
According to Decree No. 23, insurance companies have the right to refuse to sell compulsory fire and explosion insurance to establishments that have not been licensed.Fire prevention and fighting acceptanceaccording to the law. The facility does not have a fire safety inspection record from the Fire Prevention and Fighting Police Department or the inspection record is more than 01 year old from the time of preparation to the time of purchasing compulsory fire and explosion insurance. The facility is temporarily suspended or suspended from operation due to violations of fire prevention and fighting regulations.
The Decree also clearly states that the Ministry of Finance is responsible for handling violations of the law on compulsory fire and explosion insurance by insurance companies.
The Ministry of Public Security is responsible for inspecting and handling violations of the law on compulsory fire and explosion insurance of establishments with fire and explosion hazards.
The Decree also clearly states that the Ministry of Public Security is responsible for: "Publish the list of facilities at risk of fire and explosion (except facilities related to national defense, security and state secrets) no later than December 31 of each year on the Ministry of Public Security's electronic information portal".