According to the amendments at clause 2 Article 1 of this Decree, if the total sum insured for all assets in a single location of facilities facing a risk of conflagration is at least VND 1,000 billion: Insurance enterprises and policyholders shall agree on insurance premiums on the basis of approval of reinsurers. In any case, insurance premiums must not be lower than the product of VND 1,000 billion multiplying with insurance rate specified under Clause 1 Section I Annex I attached to this Decree.
Insurance enterprises must issue Certificate for compulsory fire and explosion insurance for the policyholders, either electronic Certificate of insurance or paper-based Certificate of insurance provided that it has all contents according to the regulations at clause 4 Article 1 of this Decree.
In addition, industrial facilities, they have to identify A, B, C, D, and E fire grade according to regulations and law on fire prevention and firefighting. Fire grade must be specified in the Inspection record or Fire safety and firefighting inspection record.
This Decree takes effect from December 23rd, 2021.
|Published||Vietlaw's Newsletter No. 537|