The Government has just issued Decree 97/2021/ND-CP amending and supplementing a number of articles of Decree No. 23/2018/ND-CP dated February 23, 2018 of the Government regulating fire and explosion insurance Obligatory.
Decree 97/2021/ND-CP amending regulations on compulsory fire and explosion insurance premium rates as follows:
For facilities at risk of fire and explosion, the total sum insured of the assets at one location is 1,000 billion VND or more (except for nuclear facilities): The insurer and the insurance buyer agree on the premium rate based on the approval of the reinsurer. In all cases, the insurance premium must not be lower than the insurance premium corresponding to 1,000 billion VND multiplied by (X) the premium rate specified in Clause 1, Section I, Appendix I issued together with this Decree.”
For nuclear facilities: The insurance enterprise and the insurance buyer agree on the premium rate based on the approval of the reinsurer.
Additional regulations on compulsory fire and explosion insurance certificates
Decree 97/2021/ND-CP supplementing regulations on compulsory fire and explosion insurance certificates. Accordingly, the insurance enterprise must issue the certificate of compulsory fire and explosion insurance to the insurance buyer.
The compulsory fire and explosion insurance certificate designed by the insurance enterprise on its initiative and must include the following contents:
a) Name and address of the insurer, the insurance buyer, the insured;
b) Belongs to the list of establishments (specify which establishments are on the list of establishments having any fire and explosion hazards according to the law on fire prevention and fighting);
c) The address of the property insured;
d) The property is insured;
dd) Amount insured;
e) Insurance deductible;
g) Term of insurance;
h) Rate of insurance premiums and insurance premiums;
i) Name, address, and telephone number of the insurance company's hotline;
k) Date of issue of the Certificate of Insurance.
In case of issuance of an electronic insurance certificate, the insurer must comply with the provisions of the Law on Electronic Transactions and guiding documents; The electronic certificate of insurance must fully comply with current regulations and fully reflect the above provisions.
Use of revenue from compulsory fire and explosion insurance
Use revenues from compulsory fire and explosion insurance for fire prevention and fighting activities:
a) Support in equipping fire prevention and fighting means and equipment for the fire prevention and fighting police force. Expenditure on this content does not exceed 65% of the actual amount obtained from compulsory fire and explosion insurance of insurance enterprises in the fiscal year.
b) Support in propagating and disseminating the law, knowledge of fire prevention and fighting, and compulsory fire and explosion insurance. Expenses for this content must not exceed 15% of the actual amount obtained from compulsory fire and explosion insurance of insurance enterprises in the fiscal year.
c) Assist the Fire Prevention and Fighting Police force in the following activities: Investigate the cause of the fire; provide professional training, inspect fire prevention and fighting safety; supervise the participation in compulsory fire and explosion insurance of establishments having fire and explosion danger. Expenditure for this content does not exceed 15% of the actual amount obtained from compulsory fire and explosion insurance of insurance enterprises in the fiscal year.
Support and reward the achievements of organizations and individuals directly participating in and coordinating in fire prevention and fighting. Expenditure for this content does not exceed 5% of the actual amount obtained from compulsory fire and explosion insurance of insurers in the fiscal year.
Determination of fire and explosion hazard class of industrial production establishments
The Decree also supplements regulations on the responsibilities of agencies, organizations, and individuals whose premises are at risk of fire and explosion. Specifically, these agencies, organizations, and individuals are responsible for determining fire and explosion hazard classes A, B, C, D, E of industrial production facilities for establishments having fire hazards, explosions according to the provisions of the law on fire prevention and fighting.
The Ministry of Public Security is responsible for recording fire and explosion hazard classes for industrial facilities with fire and explosion hazard classes A, B, C, D, E in the minutes of acceptance or inspection of fire prevention and fighting safety based on the determination of fire and explosion hazard classes of agencies, organizations and individuals having establishments having fire and explosion hazards.
Decree 97/2021/ND-CP takes effect from December 23, 2021.
Collected from the source
Thanh Quang