Decision No. 305-TC/BH promulgates General Rules on Marine Cargo Insurance (GR-1990).

Pursuant to …;

OF THE MINISTER OF FINANCE

Issuing General Rules on

Marine Cargo Insurance (GRI - 1990)

THE MINISTER OF FINANCE

Based on Decree No. 35/CP dated February 9, 1981 of the Council of Ministers stipulating the tasks, powers, responsibilities of the Minister and functions of the Ministry in certain areas of state management;

Based on Decree No. 155/HĐBT dated October 15, 1988 of the Council of Ministers stipulating the functions, tasks, and organizational structure of the Ministry of Finance,

DECISION:

Article 1. These General Rules on marine cargo insurance (GRI-1990) are hereby issued together with this Decision.

Article 2. Abolishing the General Rules on marine cargo insurance issued in 1965.

Article 3. This Decision shall take effect from the date of signature. The General Directors of Vietnam Insurance Corporation, the Director of the Office of the Ministry of Finance, and the heads of relevant units are responsible for implementing this Decision.

GENERAL PROVISIONS
ON MARINE CARGO INSURANCE
(GRI - 1990)

PART I
GENERAL PRINCIPLES

Article 1. These general rules apply to all marine cargo insurance covering the value of goods, estimated profits if any, insurance premiums, freight charges, and other related expenses. These rules may also be applied to the insurance of goods transported by road, river, or air in succession.

PART II
SCOPE OF INSURANCE

Article 2.

Article 1. Insurance contracts may be concluded under one of the following conditions:

Condition A:

Under this condition, the insurer is liable for all risks causing loss or damage to insured goods, except for those cases excluded in Chapter III below.

Condition B:

Except for those cases excluded in Chapter III below, under this condition, the insurer is liable for:

a) Losses and damages occurring to insured goods that can reasonably be attributed to the following causes:

1. Fire or explosion;

2. Ship or barge stranding or capsizing;

3. Collision between ships or contact with any external object other than water;

4. Unloading at a port where the ship encountered an accident;

5. Road transport vehicle overturning or derailing;

6. Earthquake, volcanic eruption, or lightning strike.

b) Losses and damages occurring to insured goods due to the following causes:

1. Sacrifice and general average;

2. Throwing goods overboard or being washed overboard;

3. Seawater, lake water, or river water entering the ship, barge, hold, means of transport, container, or place of storage.

c) Total loss of any consignment falling off the ship or during loading onto or unloading from the ship or barge. d) Insured goods lost due to the disappearance of the ship or means of transport.

Condition C:

Except for those cases excluded in Chapter III below, under this condition, the insurer is liable for:

a) Losses and damages occurring to insured goods that can reasonably be attributed to the following causes:

1. Fire or explosion;

2. Ship or barge stranding, sinking, or capsizing;

3. Collision between ships or contact with any external object other than water;

4. Unloading at a port where the ship encountered an accident;

5. Road transport vehicle overturning or derailing;

b) Losses and damages occurring to insured goods caused by the following reasons:

1. Sacrifice and general average;

2. Throwing goods overboard;

c) Insured goods lost due to the disappearance of the ship or means of transport.

Article 2. Regardless of whether the goods are insured under Condition "A," "B," or "C," in each case, the insurer must also be liable for the following losses and expenses:

a) General average and salvage expenses adjusted or determined by the carriage contract and/or current laws and customs, aimed at avoiding or relating to avoiding potential losses caused by any cause except those excluded in Chapter III of these rules or other exclusions specified in the insurance contract. However, when there is general average, the insured must consult the insurer before declaring and agreeing to general average.

b) Reasonable expenses and wages incurred by the insured, their employees, and their agents to prevent or mitigate losses to insured goods to claim compensation and sue the carrier, the consignee, or any third party, provided that such expenses and wages are limited within the scope of losses for which the insurer is responsible.

c) Reasonable expenses for unloading, warehousing, and forwarding insured goods at intermediate ports or refuge ports due to a risk covered by the insurance contract.

d) Reasonable expenses for surveying and determining the amount of loss for which the insurer is liable to compensate.

e) The liability clause "Ship collision both parties at fault" recorded in the carriage contract is considered a type of loss within the scope of the insurer's liability. If the shipowner claims under this clause, the insured has the responsibility to inform the insurer. The insurer reserves the right to protect the insured against the shipowner's claim and bear the costs themselves.

Article 3. In the case of goods insured under Conditions "B" or "C," if the insured requests, the insurer may assume additional insurance liability for one or more of the following supplementary risks, subject to paying additional insurance premiums as agreed:

- Theft and/or non-delivery risk.

- Loss caused by malicious acts or sabotage.

- Damage caused by rainwater, fresh water, condensation, and hot vapor absorption.

- Impact with other goods.

- Rust and oxidation.

- Breakage, warping, and/or flattening.

- Leakage and/or shortage of goods.

- Damage caused by cargo handling hooks.

- Dirty ropes due to oil and/or grease.

- And similar supplementary risks.

Article 4. The insurer is not liable for compensation for losses and damages to goods stowed on deck contrary to commercial practice. Goods stowed on deck in accordance with commercial practice can only be insured under Condition "C."

Article 5. If local custom requires the use of barges or other means of transport to carry insured goods from sea vessels to shore or vice versa, the insurer will also be liable for the risks associated with barges as stated in Article 2 of these rules. However, this provision does not include the use of barges for storing goods outside the normal transportation process.

CHAPTER III
EXCLUSIONS FROM INSURANCE

Article 6. Unless otherwise agreed, the insurer will not be liable for:

1. Losses, damages, or expenses caused by:

a) War, civil war, revolution, rebellion, or popular uprising when such events occur or due to any hostile acts of a belligerent force or against such a force.

b) Seizure, detention, or retention of property or restraint (except in cases of piracy and where condition "A" applies), and consequences or any attempt arising from these events.

c) Drifting mines, torpedoes, bombs, or other weapons of war.

2. Losses, damages, or expenses:

a) Caused by strikers or locked-out workmen or by persons participating in labor disturbances, riots, or disorders.

b) Arising from strikes, lockouts, labor disturbances, rebellions, or disorders.

c) Caused by any terrorist or by any person acting for political reasons.

3. Losses, damages, or expenses arising from the use of any kind of weapon of war employing nuclear, atomic, and/or nuclear reaction, radioactive, or similar energy.

4. Losses, damages, or expenses due to inherent vice or nature of the insured goods.

5. Goods or part thereof damaged or destroyed intentionally by the wrongful act of any person. Point 5 does not apply in case of insurance under Condition A.

Article 7. In all cases, the insurer shall not be liable for:

1. Losses, damages, or expenses attributed to the intentional wrongful act of the insurer.

2. Losses, damages, or expenses directly caused by delay, even if the delay occurs due to an insured risk (except for expenses compensated under Clause 2/2a of these Rules).

3. Losses, damages, or expenses arising from the unseaworthiness of the vessel or lighter and from the unsuitability of the vessel, lighter, means of transport, or container for safe carriage of the goods if the insured or their servants knew separately about such unseaworthiness or unsuitability at the time of loading the goods.

4. Losses, damages, or expenses arising from insufficient or unsuitable packaging or preparation of the insured goods and from improper stowage on board the vessel.

5. Ordinary leakage, weight loss, or volume reduction of insured goods, or natural wear and tear.

6. Losses, damages, or expenses arising from the insolvency or financial insufficiency of the shipowner, manager, charterer, or operator of the vessel.

PART IV
BEGINNING AND END OF INSURANCE LIABILITY

Article 8.

1. The insurance liability begins upon the departure of the insured goods from the warehouse or place of storage at the location specified in the insurance contract for commencement of transportation and continues throughout the normal course of transportation. The insurance liability ends at one of the following times, whichever occurs first: a) When the goods are delivered to the final warehouse or place of storage of the consignee or another person named in the insurance contract at the place of delivery.

b) When the goods are delivered to any other warehouse or place of storage, whether before or at the place of delivery specified in the insurance contract that the insured chooses to use as:

i/ A place for dividing or distributing the goods, or

ii/ A place of storage outside the normal course of transportation, or

c) Sixty days after the completion of unloading of the insured goods or lighter, if it is a LASH vessel, from the last discharge port listed on the insurance policy.

2. During the above transportation, if there is a delay that the insurer cannot control or if the vessel deviates from its course, compulsory unloading, extraordinary transshipment, or change of route occurs, this insurance remains effective provided that the insurer is immediately notified of the occurrence or change and additional premium is paid if required. The insured will lose the right to claim compensation if they fail to comply with this requirement.

3. If the insurance journey includes inland waterway or road transportation, the insurance liability is limited to risks specified in Sections 2 and 5 of Conditions B and C, even if the goods are insured under Condition A. For air transportation, the insurance liability is limited according to current terms for air cargo insurance agreed separately. In all such cases, the insured must notify the insurer in advance and pay additional premium if required.

CHAPTER V
CONTRACTING FOR INSURANCE

Article 9.

1. When there is a need for insurance, the applicant must submit a request form containing the following details:

a) Name of the insured.

b) Name of the goods to be insured.

c) Type of packing, method of packaging, and marking of the insured goods.

d) Weight or quantity of the insured goods.

e) Name of the vessel or type of means of transport.

f) Method of stowing the insured goods on board (on deck, in hold, loose stowage, etc.).

g) Place of commencement of transportation, transshipment, and place of delivery of the insured goods.

h) Date and time the means of transport carrying the insured goods departs.

i) Value of the insured goods and amount insured.

j) Insurance conditions.

k) Place of payment of indemnity.

Additionally, the applicant must inform the insurer of any other significant situations they know to assist the insurer in assessing the risk.

If the insurance contract is signed before the applicant can provide all necessary information, they are responsible for promptly informing the insurer of any missing details once they become available.

2. The insurance contract is deemed to have been concluded when the insurer accepts the insurance in writing.

The insurer will issue an insurance policy or certificate based on the insurance application.

3. Unless otherwise agreed, the insured person must pay the insurance premium to the insurer immediately upon receipt of the insurance application or insurance certificate. The insurer has the right to terminate the insurance contract if the insurance premium is not paid within the prescribed time limit.

4. If, after the insurance contract is signed, there is any change in the risk covered, particularly if such change increases the danger, the insured person is responsible for promptly informing the insurer of such change once they become aware of it.

Upon receiving this notification, the insurer will issue an amendment or supplement certificate and may request the insured person to pay additional insurance premiums based on the changed circumstances.

Article 10. If the insured person makes false declarations or conceals matters specified in the insurance application form or changes that have been reported to the insurer, the insurer is exempt from liability stipulated in the insurance contract but retains the right to collect the insurance premium.

Article 11. If the insurance contract is signed after a loss within the scope of the contract's liability has occurred, the contract remains valid if the insured person was unaware of the loss. However, if the insured person was aware of the loss, the insurer will not be liable for compensation but retains the right to collect the insurance premium.

If the insurance contract is signed after the insured goods have safely arrived at the destination specified in the insurance contract, the contract remains valid if the insurer was unaware of this fact. However, if the insurer was aware of this fact, the insurance contract will become void and the insurer must refund the entire insurance premium received to the insured person.

Article 12. The insurance application or insurance certificate can be transferred to another person after the insured person or their authorized representative signs on the back of the application or certificate.

Chapter VI
INSURED VALUE AND INSURANCE AMOUNT

Article 13.

1. The insurance amount of the insured goods must be the value declared by the insured person and acknowledged by the insurer.

2. If the insured person cannot declare the insurance amount, the following methods for determining the insured value may be applied:

The insured value of the insured goods includes the purchase price stated on the sales invoice (or the actual price at the place of shipment if there is no invoice), plus transportation costs and insurance fees.

Article 14. Unless otherwise agreed, in the declared insurance amount, the insured person may include estimated interest. However, this interest shall not exceed 10% of the insured value.

Article 15.

1. If the insurance amount of the goods is lower than the insured value, the insurer will compensate for losses, damages, and expenses as stipulated in Clause 2b and 2c of Article 2, Chapter II, according to the ratio between the insurance amount and the insured value.

2. If the insurance amount of the goods is higher than the insured value, the excess amount will not be recognized.

Chapter VII
DUPLICATE INSURANCE AND INCREASED VALUE INSURANCE

Article 16.

1. If the same goods are insured with multiple insurers and the total of the insurance amounts exceeds the insured value, the liability of all insurers is limited to the insured value, and the liability of each insurer is calculated according to the ratio between their respective insurance amount and the total of the insurance amounts.

If the insurance liability has not yet commenced, the insured person may request termination of the insurance contract or reduction of the insurance amount and return of the corresponding insurance premium, provided that in the case of contract termination, the insurer has the right to require the insured person to pay administrative fees.

2. If the insured person insures the increased value of the insured goods under this insurance contract, the agreed value of the goods must be considered as having increased to the total insurance amount under this insurance plus all additional value insurance amounts for loss protection; and the liability under this insurance must be calculated according to the ratio between the insurance amount under this insurance contract and the total insurance amount mentioned above.

In case of dispute, the insured person must provide the insurer with evidence of the insurance amounts under all other insurances.

Chapter VIII
PACKAGE INSURANCE CONTRACT

Article 17.

1. The insured person may enter into a package insurance contract with the insurer in advance for goods that need to be insured, specifying the name of the insured goods, type of cargo ship, method of calculating the insured value of the goods, maximum insurance amount for each voyage, insurance conditions, premium rate, and other points agreed upon by both parties.

2. When loading begins or upon receiving notice of loading, the insured person must promptly inform the insurer of all relevant information that the insurer needs to know, although this notification should not delay beyond when the first cargo is unloaded at the final port listed on the insurance application.

If loss or damage within the scope of the insurance occurs before notification, the insurer still bears the responsibility for compensation. The compensation amount will be calculated according to the principle of determining the insured value as stipulated in the insurance contract.

3. If the insured person intentionally fails to notify or notifies late or inaccurately, the insurer has the right to terminate the contract immediately upon discovering this situation and collect the full insurance premium due before the contract ends.

4. At the request of the insured person, the insurer may issue separate insurance applications or certificates for each voyage. If the content of these separate documents does not match the content of the package insurance contract, the separate documents will be the basis for resolution.

CHAPTER IX
OBLIGATIONS OF THE INSURED PERSON WHEN LOSS OCCURS
When loss or damage within the scope of the insurance contract's liability occurs, the insured person must immediately notify the insurer or the surveyor designated by them. If the insurer does not have a local agent, the insured person may request a registered surveyor in that area to conduct the survey.

Article 18. When loss or damage within the scope of the insurance contract's liability occurs, the insured person must immediately notify the insurer or the surveyor designated by them. If the insurer does not have a local agent, the insured person may request a registered surveyor in that area to conduct the survey.

Unless otherwise previously agreed, the insurer has the right to refuse to settle a claim that is not substantiated by an inspection report.

Article 19.

1. In case of loss or damage within the scope of the insurance contract's liability, the insured or their agent must take all feasible measures to prevent or mitigate the loss of the insured goods. The insurer shall not be liable for compensation for losses or damages arising from the insured's failure to fully comply with their obligations as stipulated herein.

2. When a loss occurs within the scope of the insurance contract's liability, the insurer may themselves or direct the insured to participate in salvage work and protect the insured goods.

3. Any measures taken by the insurer or the insured as mentioned above cannot be considered as a sign of renunciation or acceptance of abandonment of the goods.

Article 20. In all cases, the insured or their agent is responsible for ensuring the execution and retaining full rights for the insurer to lodge claims against the carrier, the consignee, or any third party. Specifically, they must follow the provisions below:

1. Lodge a complaint directly with the carrier, port authority, or consignee regarding any lost consignment.

2. Request the carrier's representative or consignee to witness the inspection immediately upon discovering any loss or damage to the goods, and if actual loss is confirmed through the inspection, file a complaint against them.

3. Unless there is a protest letter, in all cases, do not issue a complete receipt for suspicious goods.

4. Send a notice to the carrier's representative or consignee within three days after receiving the goods if the loss is difficult to detect at the time of delivery.

If the insured fails to fulfill the obligations as prescribed in this Article, the insurer has the right to refuse claims against the carrier, consignee, or any third party.

Article 21. When claiming compensation from the insurer for losses or damages within the scope of the insurance contract's liability, the insured must submit sufficient proof documents, including:

1. The original insurance application or certificate of insurance.

2. The original or copy of the shipping invoice, along with a detailed list of goods and/or weight slip.

3. The original bill of lading and/or other types of transport contracts.

4. Inspection reports and other documents clearly indicating the extent of the loss.

5. Receipts or certificates issued by the ship acknowledging delivery and weight slips at the final place of receipt.

6. Copies of marine reports and/or extracts from the ship's logbook. 7. Correspondence exchanged with the carrier and other parties regarding their responsibility for the loss.

8. Demand letters for compensation.

Chapter X
DETERMINATION OF DAMAGE

Article 22.

Total loss referred to in these Rules includes actual total loss and constructive total loss.

When a loss or damage occurs within the scope of the insurance contract's liability, if the insured goods are completely destroyed or damaged so severely that they are no longer the original items, or if the insured loses ownership of the goods entirely, it is considered an actual total loss.

When the insured goods suffer a loss or damage within the scope of the insurance contract's liability, if it is deemed unavoidable to incur an actual total loss or if the costs of salvaging, repairing, and transporting the goods to the destination specified in the insurance contract exceed the value of the goods at that destination, it is considered a constructive total loss.

4. Any loss or damage not falling into the categories mentioned above shall be considered partial loss.

Article 23. If the cargo-carrying vessel is missing, the insured goods will be considered an actual total loss.

A cargo-carrying vessel is considered missing when it does not reach its destination and there is no news about it, and the time elapsed exceeds three times the usual duration required for the vessel to travel from its last stopover to the destination. However, the period necessary to determine the vessel's disappearance shall not be less than three months. If information is affected by war or military activities, the aforementioned period is extended to six months.

CHAPTER XI
CALCULATION AND PAYMENT OF COMPENSATION

Article 24. When the insured goods suffer a total loss, the amount of compensation is determined by subtracting the remaining value of the goods at the destination after the loss from the original value of the goods, based on the ratio between the insurance amount and the insured value.

Article 25. In the event of a common loss within the scope of the insurance contract's liability, the insurer shall fully compensate the insured for their contribution to the common loss. However, if the insurance amount of the goods is lower than the value of the contribution to the common loss, the insurer shall only be liable to compensate the contribution to the common loss according to the ratio between the insurance amount and the value of the contribution.

Article 26. The insurer's liability is limited to the insurance amount. However, the insurer remains liable for the loss amount plus salvage expenses, inspection fees, valuation costs, and sale proceeds of the damaged goods, costs of pursuing third-party compensation, and contributions to common losses, even if the total compensation exceeds the insurance amount.

Article 27. The insurer has the right to be exempted from all liabilities stipulated in the insurance contract by renouncing the benefits of the insured goods and the right to claim against third parties, while compensating the insured the full insurance amount.

Upon exercising the right as provided above, the insurer must notify the insured within seven days from the date of receiving the insured's notification of the peril and its consequences. Necessary and reasonable expenses incurred by the insured before receiving such notification to prevent or mitigate the loss shall be reimbursed by the insurer.

Article 28.

1. After reviewing the documents related to the claim submitted by the insured and confirming the loss, the insurer shall pay compensation to the insured.

2. Unless otherwise agreed, the payment of compensation shall be made in the currency specified in the insurance contract or Insurance Certificate.

3. When paying compensation, the insurer may deduct from the compensation amount any income of the insured from the sale of salvaged goods and claims against third parties.

CHAPTER XII
TRANSFER OF CLAIM RIGHTS

Article 29.

1. After the insurer has paid compensation under the insurance contract, all claims and claim rights of the insured against third parties shall be transferred to the insurer, limited to the amount of compensation paid.

Upon receipt of the compensation from the insurer, the insured shall be responsible for transferring to the insurer all relevant documents and evidence and must complete all procedures necessary to facilitate the insurer's exercise of its subrogation rights.

2. If the insured waives their right to claim against a third party or if due to their fault such right cannot be exercised (such as missing the deadline for filing a claim against the party responsible for the loss, etc.), the insurer shall be relieved of liability for compensation to an appropriate extent, and if the insurance compensation has been settled, the insured shall have the obligation to return to the insurer part or all of the compensation received, depending on the specific circumstances.

Article 30. Provided that the above provisions are complied with, when the insurer compensates for a total loss, they may compensate for all or part of the insured goods, and they also have the right to recover the remaining portion of the goods compensated in this manner.

CHAPTER XIII
ABANDONMENT OF GOODS

Article 31.

1. In case the insured wishes to claim a total loss for the insured goods, they must notify the insurer of the abandonment of the goods. Failure to comply with this requirement will result in the loss being settled on a partial loss basis.

2. The notice of abandonment must be in writing and in all cases must indicate the insured's intention to unconditionally abandon all rights to the insured goods to the insurer.

3. If the notice of abandonment is given in accordance with the requirements, the insured's claim rights shall not be prejudiced by the insurer's refusal to accept the abandonment. Once the abandonment is accepted, it cannot be changed.

CHAPTER XIV
OTHER PROVISIONS

Article 32. The insurance contract is void as to the interests of the carrier, consignee, or fire insurer.

Article 33. The insured must act promptly and reasonably in situations where action can be taken, and the insurer has the right to refuse compensation for losses arising from the insured's failure to fulfill this obligation.

CHAPTER XV
LIMITATION PERIOD FOR CLAIMS

Article 34. The insured's right to claim compensation shall expire two years from the date the right arises.

CHAPTER XVI
DISPUTE RESOLUTION

Article 35. Any dispute related to an insurance contract that cannot be resolved through negotiation between the insured and the insurer shall be referred to the Court, State Arbitration, or any other arbitration organization agreed upon by the parties for resolution, or the Vietnam Maritime Arbitration if one of the parties to the contract is a foreign national. The conclusion of the Court or Arbitration shall be the final decision binding on both parties.