Compulsory insurance regulations in construction investment

The Government has just issued a Decree regulating compulsory insurance in construction investment activities.

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Accordingly, except for projects related to national defense, security and state secrets, investors or contractors in cases where construction insurance premiums have been included in the contract price must purchase construction insurance during the construction period for the following projects:

- Construction works and construction items that affect community safety are specified in Appendix II of Decree 46/2015/ND-CP dated May 12, 2015 of the Government on quality management and maintenance of construction works and amendments, supplements and replacements (if any).

- Construction investment projects that have a major impact on the environment and are included in the list of projects that must conduct environmental impact assessments according to the provisions of Appendix II and Appendix III of Decree 18/2015/ND-CP dated February 14, 2015 of the Government regulating environmental protection planning, strategic environmental assessment, environmental impact assessment and environmental protection plans and amendments, supplements and replacements (if any).

- Projects with specific technical requirements and complex construction conditions according to regulations of construction law and other relevant laws.

Consulting contractors must purchase professional liability insurance for construction investment consulting for construction survey and design work of construction works of level II or higher. Construction contractors must purchase insurance for workers working on construction sites.

Term, scope of insurance

The construction insurance period during construction is a specific period of time, calculated from the start date to the end date of construction based on the document of the competent authority deciding on the investment (including adjustments and supplements, if any) and stated in the insurance contract.

For construction insurance during construction, the insurance company is responsible for compensating for losses of construction works arising from all risks, except for specified losses.

The term of professional liability insurance for construction investment consulting starts from the date of performing consulting work until the end of the construction warranty period as prescribed by law.

The insurance company will compensate the construction investment consultancy contractor for the amounts that the consultancy contractor is responsible for compensating for third party losses and related costs as prescribed by law arising from the performance of construction investment consultancy work, except for specified losses.

The insurance period for workers working on construction sites begins from the date of performing construction work on the site until the end of the construction warranty period as prescribed by law. The specific insurance period for workers is determined based on the labor contract.

The insurance company is responsible for compensating the construction contractor for the amounts that the construction contractor is responsible for compensating for employees who are injured or die due to work-related accidents or occupational diseases that are covered by the insurance.

Insurance for employees at least 100 million VND/person/case

Regarding the minimum insurance amount, for construction insurance during construction, the minimum insurance amount is the full value of the project upon completion but must not be lower than the total value of the construction contract, including adjusted and supplemented values ​​(if any).

For construction investment consultancy professional liability insurance, the minimum insurance amount is equal to the value of the consultancy and design contract.

For insurance for workers working on construction sites, the minimum insurance amount is 100 million VND/person/incident. The specific compensation level in case of workers being injured or dying due to work-related accidents or occupational diseases is implemented according to the guidance of the Ministry of Finance.

According to Chinhphu.vn