Decree No. 20/2022/ND-CP amends and supplements certain articles of Decree No. 119/2015/ND-CP dated November 13, 2015, of the Government on mandatory insurance in investment construction activities.

Number: 20/2022/NĐ-CP Hanoi, March 10, 2022

DECREE

Amending and supplementing certain articles of Decree No. 119/2015/NĐ-CP dated November 13, 2015 of the Government on mandatory insurance in investment construction activities

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Insurance Business dated December 9, 2000; the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business dated November 24, 2010;

Pursuant to the Law amending and supplementing certain articles of the Law on Insurance Business and the Law on Intellectual Property dated June 14, 2019;

Pursuant to the Law on Construction dated June 18, 2014; the Law Amending and Supplementing Certain Provisions of the Law on Construction dated June 17, 2020;

At the proposal of the Minister of Finance,

The Government promulgates this Decree amending and supplementing certain articles of Decree No. 119/2015/NĐ-CP dated November 13, 2015 of the Government on mandatory insurance in investment construction activities.

Article 1. Amending and supplementing certain articles of Decree No. 119/2015/NĐ-CP dated November 13, 2015 of the Government on mandatory insurance in investment construction activities

1. Amending and supplementing Point c Clause 4 Article 3 as follows:

"c) For mandatory insurance for workers working on construction sites and mandatory civil liability insurance for third parties: The insurance premium shall be included in production and business costs."

2. Amending Point a Clause 1 Article 4 as follows:

"a) Construction works, parts of construction works having significant impact on safety and public interest as specified in Appendix X of Decree No. 15/2021/NĐ-CP dated March 3, 2021 of the Government detailing certain contents on project management in investment construction and any subsequent amendments, supplements, or replacements thereof (if any)."

3. Amend and supplement Clause 3 of Article 4 as follows:

"3. Contractors must purchase mandatory insurance for workers working on construction sites and mandatory civil liability insurance for third parties."

4. Supplementing Clause 4 after Clause 3 Article 5 as follows:

"4. The period of mandatory civil liability insurance for third parties is a specific time frame from the start date to the end date of the construction period based on the construction contract and recorded in the insurance contract."

5. Supplementing Point d after Point c Clause 1 Article 6 as follows:

"d) For mandatory civil liability insurance for third parties: The insurance company shall fulfill the obligation to compensate contractors for amounts that, according to the law, the contractors are responsible for compensating third parties for damages outside the contract regarding health, life, property arising directly during the construction process and related legal fees (if any), within the scope of insurance liability as agreed upon in the insurance contract."

6. Supplementing Point e after Point d Clause 2 Article 6 as follows:

"e) Losses according to international customs agreed upon by the parties involved in insurance if such customs do not contravene Vietnamese law."

7. Supplementing Clause 4 after Clause 3 Article 10 as follows:

"4. For mandatory civil liability insurance for third parties:

a) The minimum insurance amount for damage to health and life is one hundred (100) million VND per person in one incident without limitation on the number of incidents.

b) The minimum insurance amount for damage to property and related legal fees (if any) is determined as follows:

- For construction projects valued at less than 1,000 (one thousand) billion VND, the minimum insurance amount for damage to property and related legal fees (if any) is 10% of the value of the construction project for the entire insurance period without limitation on the number of incidents.

- For construction projects valued at 1,000 (one thousand) billion VND or more, the minimum insurance amount for damage to property and related legal fees (if any) is one hundred (100) billion VND for the entire insurance period without limitation on the number of incidents."

8. Amending and supplementing Clause 1 Article 12 as follows:

"1. Issuing rules, terms of insurance, and insurance premiums for the following mandatory insurance products:

a) Mandatory insurance for construction projects during the construction period;

b) Mandatory professional liability insurance for investment construction consulting;

c) Mandatory insurance for workers working on construction sites;

d) Mandatory civil liability insurance for third parties."

Article 2. Repealing Clause 6 Article 3 and Clause 1 Article 18 of Decree No. 119/2015/NĐ-CP dated November 13, 2015 of the Government on mandatory insurance in investment construction activities.

Article 3. Implementation Provisions

1. This Decree takes effect from July 1, 2022.

2. Contracts for mandatory insurance in investment construction activities and contracts for civil liability insurance for third parties concluded before the effective date of this Decree shall continue to be implemented in accordance with the laws applicable at the time of contract conclusion. In cases where the contracts are amended or supplemented with provisions stipulated in this Decree, they shall be implemented in accordance with this Decree.

3. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees, and entities subject to this Decree shall be responsible for its implementation.