Fire and explosion always bring enormous consequences to people and property. To share the risks caused by fire and explosion, there are laws regulating fire and explosion insurance. Next, LawFirm.Vn will specify that content through the Law on Fire Prevention and Fighting 2001, the Law on Fire Prevention and Fighting amended 2013, Decree 23/2018/ND-CP.
1. Fire and explosion insurance
Fire is an uncontrolled fire that can cause damage to people, property and the environment. (Clause 1, Article 3 of the Law on Fire Prevention and Fighting 2001)
Encourage agencies, organizations and individuals to participate in fire and explosion insurance. Establishments that are at risk of fire or explosion must have compulsory fire and explosion insurance for their assets.
The Government regulates and publishes the list of establishments at risk of fire and explosion; fire and explosion insurance conditions and fees; Minimum insurance amount. (Clause 5, Article 1 of the Law on Fire Prevention and Fighting amended 2013)
2. Principles for participating in compulsory fire and explosion insurance
– Agencies, organizations and individuals specified in Clause 1, Article 2 of Decree No. 23/2018/ND-CP (hereinafter referred to as “insurance buyers”) must purchase compulsory fire and explosion insurance at businesses. The insurance industry conducts fire and explosion insurance business in accordance with the law.
– The insurance buyer and insurance enterprise deploy compulsory fire and explosion insurance according to the conditions, insurance premiums, and minimum insurance amount specified in this Decree.
Note :In addition to participating in compulsory fire and explosion insurance according to the conditions, insurance premiums, and minimum insurance amount specified in the Decree, the insurance buyer and the insurance company can agree in the contract. Insurance policy on extension of insurance conditions, increased insurance amount and corresponding additional insurance premium. In this case, the insurance company is responsible for separating the mandatory fire and explosion insurance part in the insurance contract.
– Insurance companies have the right to refuse to sell compulsory fire and explosion insurance in the following cases:
+ The facility has not been accepted for fire prevention and fighting according to legal regulations.
+ The facility does not have a fire prevention and fighting safety inspection record from the Fire Prevention and Fighting Police agency or the inspection record is more than 01 year old from the time of preparation to the time of purchasing fire and explosion insurance. obligatory.
+ The facility is temporarily suspended or has its operations suspended due to violating regulations on fire prevention and fighting.
– The insurance buyer may include the cost of purchasing compulsory fire and explosion insurance in the cost of products and services (for production and business establishments) or in regular expenses (for state administrative agencies, public service units, socio-political organizations and other organizations).
– Encourage agencies, organizations and individuals who are not subject to purchasing compulsory fire and explosion insurance as prescribed in the Decree to purchase fire and explosion insurance on the basis of agreement with insurance enterprises and in accordance with the provisions of the Decree. with legal regulations. (Article 3 of Decree 23/2018/ND-CP)
3. Subject of insurance
Article 4 of Decree 23/2018/ND-CP stipulates insurance subjects as follows
– Compulsory fire and explosion insurance subjects are all assets of the facility that are at risk of fire and explosion, including:
+ Houses, structures and assets attached to houses and structures; devices.
+ All types of goods and supplies (including raw materials, semi-finished products, and finished products).
– The insured object and its location must be clearly stated in the insurance contract and Insurance Certificate.
4. Minimum insurance amount
Article 5 of Decree 23/2018/ND-CP stipulates the minimum insurance amount as follows
– The minimum amount of compulsory fire and explosion insurance is the monetary value according to the market price of the assets specified in Clause 1, Article 4 of Decree 23/2018/ND-CP at the time of entering into the insurance contract. dangerous.
– In case the market price of the asset cannot be determined, the amount of compulsory fire and explosion insurance shall be agreed upon by the parties as follows:
+ For assets specified in Point a, Clause 1, Article 4 of Decree 23/2018/ND-CP: The insurance amount is the monetary value of the asset according to the residual value or replacement value of the asset. assets at the time of entering into the insurance contract.
+ For assets specified in Point b, Clause 1, Article 4 of Decree 23/2018/ND-CP: The insurance amount is the monetary value of the asset based on valid invoices, documents or other documents. relevant documents.
5. Insurance premiums and insurance deductibles
Article 7 of Decree 23/2018/ND-CP regulates insurance premiums and insurance deductions as follows
– The insurance premiums specified in Section I, Appendix II issued with Decree 23/2018/ND-CP are applicable to facilities with fire and explosion hazards mentioned in Clause 1, Article 2 of the Decree. As follows:
+ For facilities at risk of fire and explosion (except nuclear facilities) with the total insurance amount of assets at one location under 1,000 billion VND: Insurance premiums specified in Clause 1, Section I, Appendix Appendix II issued together with the Decree.
On the basis of the insurance premiums specified in this point, the insurance enterprise and the insurance buyer can agree to increase the insurance premium applicable to each facility with fire or explosion danger based on the level of insurance. risks of each facility and according to legal regulations.
+ For facilities at risk of fire and explosion with a total insurance amount of assets at one location of VND 1,000 billion or more and nuclear facilities: The insurance company and the insurance buyer agree on the level. insurance premiums in accordance with the law and on the basis of approval by the reinsurer.
– The insurance deductible is the amount of money that the insurance buyer must bear in each insurance event, specified in Section II Appendix II issued with the Decree, specifically as follows:
+ For facilities at risk of fire and explosion (except nuclear facilities) with the total insurance amount of assets at one location under 1,000 billion VND: Insurance deduction level specified in Clause 1, Section II Appendix II issued together with Decree 23/2018/ND-CP.
The insurance company and the insurance buyer agree in the insurance contract on the insurance deductible level applicable to each facility at risk of fire or explosion based on the level of risk and history of losses. each facility.
+ For facilities at risk of fire and explosion with a total insurance amount of assets at one location of VND 1,000 billion or more and nuclear facilities: The insurance company and the insurance buyer agree on the level. Insurance deductible based on approval by the reinsurer.
