Decree No. 125/2005/ND-CP on compulsory civil liability insurance for passenger transport businesses and goods that are flammable and explosive on inland waterways

DECREE

Regulations on Compulsory Civil Liability Insurance for Business Operators Engaged in Passenger and Flammable and Explosive Cargo Waterway Transport

On Inland Waterways

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Inland Waterway Traffic dated June 15, 2004;

Pursuant to the Insurance Business Law dated December 9, 2000;

Considering the proposal of the Minister of Finance,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

These Decrees stipulate the compulsory civil liability insurance regime for business operators engaged in passenger and flammable and explosive cargo waterway transport on inland waterways.

Article 2. Applicability

1. Organizations and individuals engaged in passenger and flammable and explosive cargo waterway transport on inland waterways (hereinafter referred to collectively as "business operators of inland waterway transport").

2. Insurance enterprises permitted to operate compulsory civil liability insurance for business operators of inland waterway transport.

Article 3. Explanation of Terms

1. "Inland waterway" means channels, harbors, structures for vessels to pass through dams, rapids on rivers, canals, creeks, channels on lakes, swamps, bays, coastal areas, islands, connecting islands within the internal waters of the Socialist Republic of Vietnam that are organized for management and exploitation of transportation.

2. "Transport business operator" means organizations and individuals operating transport who enter into transport contracts with transport customers to carry goods and passengers and charge transport fees.

3. "Passenger" means persons carried on inland waterway transport vessels according to passenger transport contracts as prescribed in Article 81 of the Law on Inland Waterway Traffic.

4. "Flammable and explosive goods" means goods classified from Class 1 to Class 4 as prescribed in Article 4 and Appendix No. 1 attached to Government Decree No. 29/2005/NĐ-CP dated March 10, 2005 on the list of dangerous goods and the transport of dangerous goods on inland waterways.

5. The policyholder is the business operator of inland waterway transport.

Article 4. Principles for Participation in Compulsory Civil Liability Insurance for Business Operators of Inland Waterway Transport

1. The objects specified in Clause 1 of Article 2 of this Decree must participate in compulsory civil liability insurance for business operators of inland waterway transport.

2. The State encourages non-object entities not specified in Clause 1 of Article 2 of this Decree to voluntarily participate in compulsory civil liability insurance for business operators of inland waterway transport.

Article 5. Insurance Enterprises Permitted to Operate Compulsory Civil Liability Insurance for Business Operators of Inland Waterway Transport

All insurance enterprises permitted to operate hull insurance and shipowner's liability insurance may operate compulsory civil liability insurance for business operators of inland waterway transport.

Chapter II

CONTENT OF COMPULSORY CIVIL LIABILITY INSURANCE FOR BUSINESS OPERATORS OF INLAND WATERWAY TRANSPORT

Article 6. Compulsory Civil Liability Insurance Regime for Business Operators of Inland Waterway Transport

1. Insurance for liability to compensate third parties for damages caused by business operators transporting flammable and explosive goods.

2. Insurance for liability to compensate passengers for damages caused by business operators transporting passengers under passenger transport contracts.

Article 7. Implementation of the Compulsory Civil Liability Insurance System for Domestic Waterway Transport Businesses

1. Domestic waterway transport businesses and insurance enterprises shall implement the compulsory insurance system stipulated in this Decree through the conclusion of insurance contracts in accordance with the rules, terms, and premium rates issued by the Ministry of Finance.

2. The insurance certificate is evidence of the compulsory civil liability insurance contract between domestic waterway transport businesses and insurance enterprises.

Article 8. Rights of Domestic Waterway Transport Businesses

1. To choose to purchase compulsory civil liability insurance for domestic waterway transport businesses from any insurance enterprise permitted to operate such insurance in Vietnam.

2. To request the insurance enterprise to explain and provide information related to the conclusion, implementation, and termination of the insurance contract.

3. To demand prompt, full, and adequate compensation according to the agreement in the insurance contract.

4. The compulsory civil liability insurance premium for domestic waterway transport businesses shall be included in the service cost.

5. Other rights as prescribed by law.

Article 9. Obligations of Domestic Waterway Transport Businesses

1. To purchase compulsory civil liability insurance for domestic waterway transport businesses in accordance with this Decree.

2. To present the valid civil liability insurance certificate for domestic waterway transport businesses when requested by competent authorities.

3. To comply with regulations on conditions for transporting flammable and explosive goods and passenger transportation on domestic waterways.

4. To cooperate with insurance enterprises during the implementation of the insurance contract.

5. To apply measures to protect and ensure safety for passenger and flammable and explosive cargo transportation.

6. To fully perform all obligations stipulated in the compulsory civil liability insurance contract for domestic waterway transport businesses.

7. To promptly notify the insurance enterprise of factors that change the level of insured risk.

8. Other responsibilities as prescribed by law.

Article 10. Rights of Insurance Enterprises

1. To refuse to sell compulsory civil liability insurance for domestic waterway transport businesses if the buyer does not meet the conditions for operating domestic waterway transport as prescribed by law.

2. To collect premiums according to the compulsory civil liability insurance contract for domestic waterway transport businesses.

3. To refuse to settle claims for cases not covered by the insurance.

4. To propose amendments and supplements to the rules, terms, and premium rates for compulsory civil liability insurance for domestic waterway transport businesses in line with business realities.

5. Other rights as prescribed by law.

Article 11. Obligations of Insurance Enterprises

1. To sell compulsory civil liability insurance for domestic waterway transport businesses if the buyer meets all conditions for operating domestic waterway transport as prescribed by law.

2. To provide full and prompt compensation according to the insurance contract and relevant legal documents.

3. To comply with the rules, terms, premium rates, and commission ratios for compulsory civil liability insurance for domestic waterway transport businesses as currently prescribed.

4. To fully explain to the buyer information related to the rights and obligations of the buyer and the insurance enterprise.

5. To provide the buyer with the rules, terms, and premium rates for compulsory civil liability insurance for domestic waterway transport businesses; and the compulsory civil liability insurance certificate for domestic waterway transport businesses with complete contents as prescribed by law.

6. To be subject to inspection and supervision by competent state agencies in the implementation of compulsory civil liability insurance for domestic waterway transport businesses.

7. To regularly and widely disseminate information about participating in compulsory civil liability insurance for domestic waterway transport businesses.

8. To coordinate with functional agencies during the implementation of the compulsory civil liability insurance system for domestic waterway transport businesses.

9. To report to the Ministry of Finance on the results of compulsory civil liability insurance business for domestic waterway transport businesses periodically or upon request.

10. Other obligations as prescribed by law.

Chapter III

OBLIGATIONS OF STATE AGENCIES IN IMPLEMENTING THE COMPULSORY CIVIL LIABILITY INSURANCE SYSTEM FOR DOMESTIC WATERWAY TRANSPORT BUSINESSES

Article 12. Responsibilities of the Ministry of Finance

1. To issue regulations on insurance conditions, premium rates, and minimum insurance amounts (hereinafter referred to collectively as the rules, terms, and premium rates for insurance) for the compulsory civil liability insurance systems mentioned in Article 6 of this Decree.

2. To inspect and guide enterprises in implementing the compulsory civil liability insurance system for domestic waterway transport businesses.

3. To handle insurance enterprises violating the compulsory civil liability insurance system for domestic waterway transport businesses in accordance with the law.

Article 13. Responsibilities of the Ministry of Transport

1. Coordinate with competent agencies and localities to inspect, supervise, and urge organizations and individuals required to purchase mandatory civil liability insurance for inland waterway transport business operators under this Decree to comply with the conditions for conducting inland waterway transport business.

2. Coordinate with competent agencies to inspect and handle organizations and individuals required to purchase mandatory civil liability insurance for inland waterway transport business operators but who have not purchased such insurance.

3. Coordinate with competent agencies to analyze causes and handle inland waterway traffic accidents to facilitate insurance companies in properly implementing mandatory civil liability insurance for inland waterway transport business operators.

4. Coordinate with competent agencies to apply preventive and loss-limiting measures in inland waterway transport in accordance with the provisions of the Law on Inland Waterway Traffic.

5. Promote and encourage organizations, individuals, and inland waterway transport business operators to purchase insurance in accordance with this Decree and guiding documents.

Article 14. Responsibilities of the Ministry of Public Security

1. Lead and coordinate with the Ministry of Transport and localities to organize and direct supervision and inspection of vessel owners in implementing mandatory civil liability insurance for inland waterway transport business operators.

2. Handle organizations and individuals violating mandatory civil liability insurance for inland waterway transport business operators.

3. Investigate and provide necessary documents and papers to determine fault, responsibility of related parties, and the results of inland waterway traffic accident investigations to insurance companies to ensure prompt, reasonable, and lawful compensation resolution.

Article 15. Responsibilities of Ministries, Agencies Equivalent to Ministries, and Government Agencies Related to the Matter

Ministries, agencies equivalent to ministries, and government agencies within their respective functions and authorities shall organize inspections, guidance, and implementation of mandatory civil liability insurance for inland waterway transport business operators as stipulated in this Decree.

Article 16. Responsibilities of Provincial People's Committees and Municipal People's Committees under Central Government

1. Organize the dissemination and promulgation of this Decree to organizations, individuals, and inland waterway transport business operators in their respective jurisdictions.

2. Coordinate with the Ministry of Finance, the Ministry of Transport, and the Ministry of Public Security to apply preventive and loss-limiting measures caused by inland waterway transport business operations.

3. Create favorable conditions for insurance companies to promptly, reasonably, and lawfully resolve consequences caused by inland waterway transport business operators, aiming to quickly stabilize the economic and social lives of affected organizations and individuals.

Chapter IV

IMPLEMENTING PROVISIONS

Article 17. Guidance on Implementation

The Ministers of Finance, Transport, Public Security, and the Chairpersons of Provincial People's Committees directly under the Central Government shall be responsible for guiding and organizing the implementation of this Decree within their respective functions and tasks.

Article 18. Effectiveness and Responsibility for Enforcement

1. This Decree shall take effect fifteen days after its publication in the Official Gazette.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities are responsible for implementing this Decree./.