COMPULSORY FIRE AND EXPLOSION INSURANCE BY BAO VIET
According to the Government’s Decree No. 23/2018 / ND-CP of February 23, 2018 on compulsory fire and explosion insurance, effective on April 15, 2018,
– Establishments at risk of fire and explosion, such as apartment buildings, hotels, guest houses and rest houses of 5 floors or more; kindergartens and preschools with 100 children or more; petrol stations with one or more pump poles … must buy compulsory fire and explosion insurance.
– Compulsory fire and explosion insurance means all properties of establishments having fire and explosion dangers, including: houses, works and properties attached to houses and works; devices; types of goods and supplies.
– For an establishment at risk of fire and explosion (except for nuclear facilities) with the total sum of the insurance sum of properties at one location of less than VND 1,000 billion, the insurance premium shall be determined to be equal to the insurance sum. The minimum is multiplied by the insurance premium rate specified in the Decree. Insurance enterprises and insurance buyers may agree to increase insurance premiums based on the risks of each establishment and according to law provisions.
– Insurance businesses will not have to pay compensation in cases such as earthquakes or other fluctuations of nature; political, security and social order events; due to intentional acts of fire or explosion of the insured; damage to data, software and computer programs …
Specifically, the agencies that must participate in compulsory fire and explosion insurance are prescribed as follows
Agencies, organizations and individuals with establishments at risk of fire and explosion include these schools
– Institutes, universities, colleges, intermediate schools, vocational schools, schools and educational centers with classroom volumes of 5,000 m3 or more in volume; kindergartens and preschools with 100 children or more.
– Provincial, Ministry and branch hospitals; sanatoriums and other medical examination and treatment establishments with 21 or more beds.
Convention center, gymnasiums and other entertainment facilities
– Conference centers, theaters, cultural houses, cinemas and circuses with a capacity of 300 seats or more; indoor sports halls with a design of 200 seats or more; stadiums with a capacity of 5,000 seats or more; crowded dancing halls and entertainment service establishments with a volume of 1,500 or more; other public works with a volume of 1,000m3 or more.
Museums, libraries, historical sites
– Museums, libraries, exhibitions and archives of the district or higher level; historical relics, cultural works, fair houses of the provincial level or higher or under the direct management of the ministries, ministerial-level agencies and agencies attached to the Government.
Markets, trade centers, supermarkets, department stores
– Solid and semi-solid markets under the direct management of the district-level People’s Committees or higher; other solid and semi-solid markets, shopping malls, supermarkets and department stores with a total area of pavilions of 300 m2 or more or a volume of 1,000 m3 or more.
Radio and television stations
– Radio, television, post and telecommunications establishments of the district or higher level.
– Centers for command, moderation, administration and control of the provincial or higher scale in all fields.
– Airports, seaports, inland ports, bus stations of the provincial or higher level; parking lot with 200 cars or more; garage with a capacity of 05 seats or more; railway passenger stations of grades I, II and III; railway stations of grade I and II.
– Apartment; multi-function houses, hotels, guest houses, motels with a height of 5 floors or more or a volume of 5,000m3 or more.
State agency headquarters
– Headquarters of state administrative agencies; institutes, research centers, working offices of professional agencies, enterprises, socio-political organizations and other organizations with 05 floors or more or with a volume of 5,000 m3 or more.
Mining tunnel, underground traffic works
– Pit for coal mining, pit for exploiting other combustible minerals; underground traffic works with a length of 100 m or more; works in bunkers with activities of producing, preserving and using inflammables and explosives and having a volume of 1,000m3 or more.
– Nuclear facilities, explosive production facilities, facilities for extraction, processing, production, transport, trading, use and storage of petroleum, petroleum products, and gas; establishments producing and processing other flammable goods with a volume of 5,000m3 or more.
Arsenal, petroleum products and gas
– Warehouse of weapons, explosives and combat gears; oil and gas product depots; import and export of explosives, petroleum, petroleum products, gas. Petrol and oil shops having at least 1 pumping column; a gas trading store with a total gas volume of 70 kg or more.
– Electric Factory; transformer stations of 110 KV or higher. Ship building and repairing plant; aircraft repair and maintenance factory.
– Warehouses of flammable goods or materials or non-flammable goods and materials in flammable packages with a volume of 1,000m3 or more; yards of flammable goods and materials with an area of 500m2 or more.
– Works of industrial production with fire, explosion classes A, B, C, D, E belonging to the main production technology lines with a volume of 1,000m3 or more.
– Facilities, works with main items or parts, if there is a fire or explosion there will seriously affect the whole facility, works or have a total area or volume of items or parts accounting for 25 % of total paid area or volume of the whole facility or work that these items or parts of the regular process of operation has a quantity of dangerous inflammables and explosives
Those subject to compulsory fire and explosion insurance
Also according to Decree 23/2018 / ND-CP, compulsory insurance is the entire property of a facility at risk of fire and explosion, including houses, works and properties associated with houses and works; devices; assorted goods and supplies (including raw materials, semi-finished products and finished products). The subject matter of the insurance and the location of the subject-matter insured must be clearly stated in the insurance contract or insurance certificate.
The amount of money involved in compulsory fire and explosion insurance
The minimum compulsory insurance indemnity amount is the cash value calculated according to the market price of these assets at the time of entering into the insurance contract. In case the market price of the asset cannot be determined, the compulsory insurance premiums shall be agreed upon by the parties.
Specifically for houses, works and properties associated with houses and works; devices; The sum insured is the monetary value of the property according to its residual value or replacement value at the time of entering into the insurance contract.
For goods and supplies (including raw materials, semi-finished products and finished products); The sum insured is the monetary value of the property based on valid invoices, documents or relevant documents.
These cases exclude the sale of compulsory fire and explosion insurance
In addition, insurance-selling enterprises have the right to refuse to sell BHCN when establishments have not yet checked and taken over fire prevention and fighting (FPF) according to law provisions; the establishment does not have a record of fire safety inspection by the Fire Prevention and Fighting Police or a inspection record which is more than 1 year from the time of making to the time of compulsory compulsory insurance; establishments are temporarily suspended or suspended from operation due to violations of regulations on fire prevention and fighting.
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