Are apartments compulsory to buy fire and explosion insurance?

As of April 15, all assets of the establishment which are fire and / or explosion-prone, including houses, works and attached assets, must be covered by compulsory fire and explosion insurance.

According to Decree 23/2018 / ND-CP, effective from April 15, the compulsory purchase of fire and explosion insurance applies to all properties of fire and explosion establishments, including: , works and assets attached to houses and works; devices; types of goods and materials.

Insurance enterprises shall not have to pay compensation in case of earthquakes, volcanic eruptions or other disturbances of nature; damage caused by political events or security; property burned; Insurance property is struck by lightning directly; Explosive fire caused by …

Determining premium rates

For establishments with fire and / or explosion dangers (except for nuclear facilities), which have a total insurance amount of assets at a place of under VND 1,000 billion, the insurance premiums shall be determined by the minimum insurance sum This is multiplied by the premium rate specified in the decree.

On the basis of the prescribed insurance premium rate, insurance enterprises and insurance buyers may increase the insurance premiums applicable to each fire and explosion-prone establishment on the basis of the risk level of the insurance enterprises. Each establishment and in accordance with the law.

For establishments with fire and / or explosion dangers with the sum of insurance sums of assets at a place of VND 1,000 billion or more and nuclear facilities, the insurance enterprises and the insurance buyers shall agree on the charge rates insurance in accordance with the law. This is on the basis of acceptance by the reinsurer. Learn more: To be safe in the event of fire, tenants living in the apartment must know these 10 things.

Determining the level of insurance compensation

The amount of insurance indemnity against the damaged property does not exceed the insured amount of the property minus deductible insurance as prescribed. To deduct up to 10% of the insurance indemnity in cases where the establishments are in danger of fire or explosion fail to fully comply with the regulations, thus leading to increased damage caused by fire and explosion.

The insurer shall not be liable for any compensation arising from the act of insurance fraud under the provisions of the Penal Code.

From April 15, apartment buildings are required to purchase fire and explosion insurance.

Activities using revenues from fire and explosion insurance:

• To provide equipment and equipment for fire prevention and fighting. Payment for this content does not exceed 40% of the actual amount collected from the insurance.
• Assist in the propagation and dissemination of the law and spend no more than 30% of the sum insured.

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• Support the police in fire prevention and fighting in the following activities: professional training, investigation into the cause of fire, fire safety inspection … The expenditure for this content does not exceed 20% of the insurance collected .
• To reward and reward achievements of organizations and individuals directly involved in fire prevention and fighting. Payments do not exceed 10% of the sum insured.

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