Decree No. 97/2021/ND-CP Amending and supplementing some articles of Decree No. 23/2018/ND-CP dated February 23, 2018 of the Government on mandatory fire and explosion insurance

DECREE

Amending and supplementing certain articles of Decree No. 23/2018/NĐ-CP

dated February 23, 2018 of the Government

on mandatory fire and explosion insurance

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 Fire Prevention and Fighting dated June 29, 2001 and the Law amending and supplementing certain articles of the Law on Fire Prevention and Fighting dated November 22, 2013;

At the proposal of the Minister of Finance;

The Government promulgates this Decree amending and supplementing certain articles of Decree No. 23/2018/NĐ-CP dated February 23, 2018 of the Government on mandatory fire and explosion insurance.

Article 1. Amending and supplementing certain articles of Decree No. 23/2018/NĐ-CP dated February 23, 2018 of the Government on mandatory fire and explosion insurance

1. Amend and supplement Clause 1 of Article 2 as follows:

“1. Agencies, organizations, and individuals having premises with fire and explosion hazards as prescribed by laws on fire prevention and fighting.”

2. Amend and supplement Point b Clause 1 Article 7 as follows:

“b) For premises with fire and explosion hazards where the total insured value of assets at one location is 10 trillion VND or more (excluding nuclear facilities): The insurance company and the policyholder shall agree on the insurance premium based on the approval of the reinsurer. In all cases, the insurance premium shall not be lower than the insurance premium corresponding to 10 trillion VND multiplied by (x) the insurance premium rate prescribed in Clause 1 Section I Appendix I attached hereto.”

3. Supplement Point c following Point b Clause 1 Article 7 as follows:

“c) For nuclear facilities: The insurance company and the policyholder shall agree on the insurance premium based on the approval of the reinsurer.”

4. Supplement Article 7a following Article 7 as follows:

“Article 7a. Certificate of Mandatory Fire and Explosion Insurance

1. The insurance company must issue a Certificate of Mandatory Fire and Explosion Insurance to the policyholder. The Certificate of Mandatory Fire and Explosion Insurance must be designed proactively by the insurance company and must include the following contents:

a) Name, address of the insurance company, policyholder, and insured party;

b) Belongs to the list of premises (specify which type of premises with fire and explosion hazards according to the laws on fire prevention and fighting);

c) Address of the insured asset;

d) Insured asset;

đ) Insured amount;

e) Deductible amount;

g) Insurance period;

h) Insurance premium rate, insurance premium;

i) Name, address, hotline number of the insurance company;

k) Date of issuance of the Certificate of Insurance.

2. In case of issuing an electronic Certificate of Insurance, the insurance company must comply with the provisions of the Law on Electronic Transactions and guiding documents; the electronic Certificate of Insurance must comply with all current regulations and reflect all contents stipulated in Clause 1 of this Article.”

"5. Amend and supplement Clause 3 of Article 10 as follows:"

"3. Revenue from mandatory fire and explosion insurance for fire prevention and firefighting activities shall be used as follows:

a) To support the provision of fire prevention and firefighting equipment and devices for the Fire Prevention and Fighting Police Force. Expenditure for this purpose shall not exceed 65% of the actual revenue from mandatory fire and explosion insurance collected by insurance companies in the fiscal year.

b) To support the dissemination and popularization of laws, knowledge on fire prevention and firefighting, and mandatory fire and explosion insurance. Expenditure for this purpose shall not exceed 15% of the actual revenue from mandatory fire and explosion insurance collected by insurance companies in the fiscal year.

c) To support the Fire Prevention and Fighting Police Force in the following activities: Investigating causes of fires; training, inspecting fire safety; supervising participation in mandatory fire and explosion insurance by premises with fire and explosion hazards. Expenditure for this purpose shall not exceed 15% of the actual revenue from mandatory fire and explosion insurance collected by insurance companies in the fiscal year.

d) To reward achievements of organizations and individuals directly involved or cooperating in fire prevention and firefighting work. Expenditure for this purpose shall not exceed 5% of the actual revenue from mandatory fire and explosion insurance collected by insurance companies in the fiscal year.”

6. Supplement Clause 4 following Clause 3 Article 12 as follows:

“4. Record the fire and explosion hazard category for industrial premises with fire and explosion hazard categories A, B, C, D, E in the Inspection Report or Safety Inspection Report on Fire Prevention and Fighting based on the determination of the fire and explosion hazard category by agencies, organizations, and individuals having premises with fire and explosion hazards.”

7. Amend and supplement Clause 1 of Article 15 as follows:

“1. Prepare and submit reports on mandatory fire and explosion insurance as follows:

a) Operational report: The insurance company must prepare and submit an annual operational report to the Ministry of Finance according to the model prescribed in Appendix II attached hereto, specifically as follows:

Data closing date: From January 1 to December 31 of the reporting year.

Deadline for submission: Not later than March 31 of the next fiscal year.

Method of submission: Submit directly, send via postal service, send via email, or submit through the Ministry of Finance's information reporting system (when the Ministry of Finance's information reporting system is operational).

b) Report on revenue and payment from mandatory fire and explosion insurance for fire prevention and firefighting activities: The insurance company must prepare and submit a report to the Ministry of Public Security according to the model prescribed in Appendix III attached hereto, specifically as follows:

Data closing date: Mid-year report (from January 1 to June 30 of the reporting year); annual report (from January 1 to December 31 of the reporting year).

Deadline for submission: Mid-year report (not later than July 31 each year); annual report (not later than January 31 of the next fiscal year).

Method of submission: Submit directly, send via postal service to the Ministry of Public Security (Fire Prevention and Fighting Police Department).

c) In addition to the reports prescribed in points a and b of this clause, the insurance company shall be responsible for preparing and submitting ad hoc reports upon the request of the Ministry of Finance in the following cases: Reports requested by the National Assembly, the Standing Committee of the National Assembly, the Government, the Prime Minister; reports summarizing and evaluating to develop mechanisms and policies; reports when there is information about violations of mandatory fire and explosion insurance regulations and other ad hoc reports to meet the requirements for information on unexpected issues.”

8. Supplement Article 15b after Article 15 as follows:

“Article 15b. Responsibilities of agencies, organizations, and individuals with premises that pose fire and explosion hazards

Classify the fire and explosion hazard categories A, B, C, D, E of industrial production premises according to the provisions of the law on fire prevention and fighting.”

Article 2. Repeal and replace certain provisions of Decree No. 23/2018/NĐ-CP dated February 23, 2018, of the Government on mandatory fire and explosion insurance.

1. Replace the term "fire prevention and firefighting police agency" in Decree No. 23/2018/NĐ-CP with the term "competent public security agency" in this Decree.

2. Repeal and replace certain annexes as follows:

a) Repeal "Annex I Model Certificate of Mandatory Fire and Explosion Insurance" and "Annex IV Report on Business Results of Mandatory Fire and Explosion Insurance" of Decree No. 23/2018/NĐ-CP.

b) Replace "Annex II Premium Rates and Deductibles for Mandatory Fire and Explosion Insurance" of Decree No. 23/2018/NĐ-CP with "Annex I Premium Rates and Deductibles for Mandatory Fire and Explosion Insurance" of this Decree.

c) Replace "Annex III Report on Revenue and Compensation for Mandatory Fire and Explosion Insurance" of Decree No. 23/2018/NĐ-CP with "Annex II Report on Revenue and Compensation for Mandatory Fire and Explosion Insurance" of this Decree.

d) Replace "Annex V Report on Collection and Payment from Mandatory Fire and Explosion Insurance" of Decree No. 23/2018/NĐ-CP with "Annex III Report on Collection and Payment from Mandatory Fire and Explosion Insurance for Fire Prevention and Fighting Activities" of this Decree.

Article 3. Implementation Provisions

1. This Decree takes effect from December 23, 2021.

2. Contracts for mandatory fire and explosion insurance concluded before the effective date of this Decree shall continue to be implemented in accordance with the laws at the time of conclusion of the insurance contract. In case of amendments and supplements to the mandatory fire and explosion insurance contract containing amendments and supplements provided for in this Decree, such amendments and supplements shall be implemented in accordance with this Decree.

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