Decision No. 99/2005/QD-BTC On the issuance of Rules, Tariff, and Liability Limits for Compulsory Civil Liability Insurance for Passenger Transporters and Cargo Carriers of Flammable and Explosive Goods on Inland Waterways

DECISION OF THE MINISTER OF FINANCE

Regarding the issuance of Rules, Tariff Tables, and Liability Limits for Compulsory Civil Liability Insurance

for Passenger Transport and Flammable and Explosive Cargo Operators on Inland Waterways

and prone to explode on inland waterways

THE MINISTER OF FINANCE

Pursuant to the Law on Insurance Business No. 24/2000/QH10 dated December 9, 2000;

Pursuant to the Law on Inland Waterway Traffic No. 23/2004/QH11 dated June 15, 2004;

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Government Decree No. 125/2005/NĐ-CP dated October 7, 2005 stipulating the compulsory civil liability insurance regime for passenger transport and flammable and explosive cargo operators on inland waterways;

At the proposal of the Head of the Insurance Department,

DECISION:

Article 1. The Rules, Tariff Tables, and Liability Limits for Compulsory Civil Liability Insurance for Passenger Transport and Flammable and Explosive Cargo Operators on Inland Waterways are hereby issued together with this Decision.

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

Article 3. The Head of the Insurance Department, the Director of the Ministry of Finance's Office, and the Heads of relevant units shall be responsible for supervising the implementation of this Decision.

RULES FOR COMPULSORY CIVIL LIABILITY INSURANCE

OF PASSENGER TRANSPORT AND FLAMMABLE AND EXPLOSIVE CARGO OPERATORS ON INLAND WATERWAYS

(Issued together with Decision No. 99/2005/QĐ-BTC dated December 22, 2005)

(Issued together with Decision No. 99/2005/QD-BTC dated December 22, 2005)

of the Minister of Finance)

PART I

GENERAL PROVISIONS

Article 1. Scope of Application and Coverage

1. Insurance companies and operators of passenger transport and flammable and explosive cargo on inland waterways must comply with the compulsory civil liability insurance regime as prescribed in these Rules.

2. The compulsory civil liability insurance regime for operators of passenger transport and flammable and explosive cargo on inland waterways as prescribed in these Rules includes:

a) Civil liability insurance for operators of flammable and explosive cargo transport on inland waterways for third parties;

b) Civil liability insurance for operators of passenger transport for passengers.

Article 2. Interpretation of Terms

In these Rules, the following terms are defined as follows:

1. Inland waterways: are channels, harbors, structures for passing through dams and rapids on rivers, canals, creeks, or channels on lakes, swamps, bays, coves, inlets, along the coast, to islands, connecting islands within the internal waters of the Socialist Republic of Vietnam that are organized for management and transportation operations.

2. Inland waterway vessels (hereinafter referred to as vessels): are ships, boats, and other floating structures, with or without engines, self-propelled or towed, operating exclusively on inland waterways, registered for business and inspected according to the provisions of the law.

3. Transport operator: is a person who contracts transport agreements with transport lessees to carry goods and passengers and charges transport fees.

4. Transporter: is an organization or individual using vessels to transport people and goods on inland waterways.

5. Third party in civil liability insurance for operators of flammable and explosive cargo transport on inland waterways are those individuals suffering bodily injury or property damage caused by inland waterway vessels, except for the following:

a) Owners of vessels, vessel drivers, pilots, and crew members of insured vessels;

b) Passengers.

6. Insured party: is the operator of passenger transport and flammable and explosive cargo transport on inland waterways.

7. Passenger: is anyone carried on a vessel under passenger transport contracts as specified in the Law on Inland Waterway Traffic.

8. Flammable and explosive cargo: are goods classified from Class 1 to Class 4 as stipulated in Article 4 and Appendix 1 issued together with Government Decree No. 29/2005/NĐ-CP dated March 10, 2005 on the list of dangerous goods and the transportation of dangerous goods on inland waterways.

9. Insurance liability limit: is the maximum amount that an insurance company may have to pay for losses to persons and property in each incident falling within the scope of insurance liability. The insurance liability limit is specifically set out in the Insurance Certificate in accordance with Appendix 4 issued together with Decision No. 99/2005/QĐ-BTC of the Minister of Finance.

Article 3. Insurance Contract

Based on the Insurance Request Form of the insurance buyer, the insurance company shall issue an Insurance Certificate to the insurance buyer. The Insurance Certificate serves as evidence of the conclusion of the insurance contract between the insurance buyer and the insurance company. The Insurance Certificate shall be prepared according to the model prescribed in Appendix 1 issued together with Decision No. 99/2005/QD-BTC of the Minister of Finance.

Article 4. Insurance Premiums and Liability Limits

The insurance company and the insurance buyer shall comply with the Premium Schedule and Liability Limits specified in Appendix 4 issued together with Decision No. 99/2005/QD-BTC of the Minister of Finance.

The insurance company and the insurance buyer may agree to apply higher premium schedules and liability limits or broader insurance coverage than those stipulated in the Rules, Premium Schedules, and Liability Limits issued together with Decision No. 99/2005/QD-BTC of the Minister of Finance.

Article 5. Effectiveness of Insurance

The effectiveness of insurance begins and ends as specified in the Insurance Certificate, except in cases where the insurance contract is terminated in accordance with the law.

Article 6. Cancellation of Insurance Contract

In case of a request to cancel the insurance contract, the insurance buyer must notify the insurance company in writing at least fifteen (15) days in advance. Within fifteen (15) days from the date of receipt of the cancellation notice, if the insurance company does not object, the insurance contract will be automatically cancelled, and the insurance company must refund eighty percent (80%) of the corresponding insurance premiums, except in cases where an insured event has occurred during the validity period of the insurance contract.

Article 7. Obligations of the Insurance Buyer

In addition to the obligations stipulated in Article 9 of Decree No. 125/2005/NĐ-CP dated October 7, 2005 of the Government on compulsory civil liability insurance for operators of inland waterway passenger and cargo transport, flammable and explosive goods, the insurance buyer shall also have the following obligations:

1. Paying insurance premiums fully, on time, and in the agreed manner in the insurance contract.

2. When requesting insurance, the insurance buyer has the obligation to declare all relevant details related to the insurance contract truthfully and completely as required by the insurance company.

3. Reporting immediately any situations that may increase risks or generate additional liabilities for the insurance company during the implementation of the insurance contract.

4. The insurance buyer, the person operating the vessel, the pilot, and the crew members are responsible for complying with all provisions of the Law on Inland Waterway Traffic.

5. Upon occurrence of an insured event, the insured party has the responsibility to:

a) Rescue, limit casualties and property damage, and protect the scene of the insured event;

b) Immediately report to the nearest local authority, police, or inland waterway management unit to establish a record as prescribed;

c) Notify the insurance company immediately to cooperate in resolving the matter and inform the insurance company in writing no later than three (03) days from the date of the insured event or when the insured vessel arrives at the first port or wharf;

d) The insured party must immediately notify and transfer to the insurance company any information, claims for compensation, records, and legal documents related to the insured event upon receipt.

6. Implement preventive measures to limit losses as prescribed by law.

If the insured party breaches the obligations stipulated in this Article, the insurance company has the right to refuse partial or full compensation depending on the degree of fault of the insured party.

Article 8. Responsibilities of Insurance Enterprises

In addition to the responsibilities stipulated in Article 11 of Decree No. 125/2005/NĐ-CP dated October 7, 2005, of the Government on compulsory civil liability insurance for passenger and cargo transport businesses operating on inland waterways, flammable and explosive goods, insurance enterprises shall also have the following responsibilities:

1. Guide and create favorable conditions for the insured party to participate in insurance.

2. When an insurance event occurs, if deemed necessary, the insurance enterprise must closely cooperate with the insured party and relevant authorities to resolve the matter, collect necessary information related to determining the cause and extent of damage caused by the insurance event.

3. Upon receipt of a complete and valid compensation claim file, the insurance enterprise must settle the compensation within the time limit specified in Article 13 below.

Chapter II

SPECIFIC PROVISIONS

Article 9. Insurance Liability

Within the scope of the insurance liability amount stated on the Insurance Certificate, the insurance enterprise has the responsibility to pay to the insured party the amount that the insured party must compensate according to the law, specifically including:

1. For civil liability insurance for cargo transport businesses operating on inland waterways involving flammable and explosive goods:

a) For personal injury damage: The costs that the insured party must pay according to the law due to injuries or death caused by the insured vehicle to third parties, but not exceeding the amount specified in the Table of Compensation for Personal Injury Damage set out in Appendix 3 issued together with Decision No. 99/2005/QĐ-BTC of the Minister of Finance.

b) For property damage: Compensate actual losses based on the degree of fault of the insured party. The amount of compensation is determined based on the market value of the damaged property at the time and place of loss and the actual extent of damage.

c) Actual expenses incurred that the insured party must bear civilly according to the law and court decisions, including:

- Expenses incurred when performing obligations or necessary measures to save lives on inland waterways, provided that the insured party has a legal obligation to these expenses and they cannot be recovered from third parties.

- Expenses for cleaning up oil pollution, fines imposed by local authorities, and claims regarding the consequences of oil pollution.

- Necessary and reasonable expenses for preventing and limiting losses, providing assistance in rescue operations.

- Expenses related to litigation, disputes, and claims regarding third-party liability.

- Expenses for lighting, marking, destroying, or moving the wreck of the sunken vessel (if applicable). The insurance enterprise is only responsible for the cost of moving the wreck when the vessel owner declares abandonment of the vessel.

2. For civil liability insurance for passenger transport businesses:

a) The costs that the insured party must pay according to the law due to illness, injury, or death of passengers, but not exceeding the amount specified in the Table of Compensation for Personal Injury Damage set out in Appendix 3 issued together with Decision No. 99/2005/QĐ-BTC of the Minister of Finance. The insured party and the insurance enterprise may agree to choose an appropriate payment method according to the Table of Compensation for Personal Injury Damage set out in Appendix 3 issued together with Decision No. 99/2005/QĐ-BTC of the Minister of Finance.

b) The costs that the insured party must bear according to the law for passengers due to the consequences of accidents involving the insured vehicle (excluding risks already defined in point a, Clause 1 above), including the cost of transporting passengers to their destination or back to the departure point.

In all cases, when an insurance event occurs as stipulated in Clauses 1 and 2 above, the total compensation amount shall not exceed the insurance liability amount stated in the Insurance Certificate and shall not exceed the actual amount the insured party must compensate to the injured party according to the judgment or decision of the court.

Article 10. Damage Appraisal

1. When an insurance event occurs, the insurance company or the organization authorized by the insurance company will conduct a damage appraisal to determine the cause and extent of the damage.

2. In cases where the insured person and the insurance company cannot agree on the cause and extent of the damage, an independent appraisal may be requested. If the parties cannot agree on the appointment of an independent appraiser, one of the parties may request the court at the place where the damage occurred or where the insured person resides to appoint an independent appraiser. The conclusion of the independent appraiser shall be binding on all parties.

Article 11. Exclusion of Insurance Liability

The insurance company shall not be liable for compensation if the damage occurs under any of the following circumstances:

1. Intentional actions causing damage by the victim, the insured person, or the representative of the insured person such as agents, representatives, or ship captains, officers, and crew members.

2. The insured vessel violates prohibitive orders issued by competent authorities or engages in illegal business operations.

3. Serious violations of inland waterway traffic regulations including:

a) The driver of the vessel, pilot, and crew members of the insured vessel while performing their duties are affected by alcohol, drugs, or similar stimulants;

b) The insured vessel enters prohibited routes or channels;

c) The insured vessel carries passengers or cargo beyond its capacity;

d) The insured vessel lacks operational capability, does not have valid technical safety certificates, and does not have other valid operational certificates required by the inspection authority;

đ) The insured vessel operates outside the prescribed area;

e) Other cases as provided by law.

4. The driver of the vessel, pilot, and crew members of the insured vessel do not hold the required licenses or certificates.

5. Due to the vessel's hull, machinery, or equipment being too old or worn out naturally.

6. The insured vessel runs aground due to tidal changes while moored.

7. Damage to property stolen or robbed during an accident;

8. Damage to goods transported on the insured vessel under a cargo transportation contract;

9. War and similar causes as war;

10. Damage to special assets including: gold, silver, precious stones, money, negotiable instruments, antiques, rare paintings, corpses, and bones.

11. The insurance company shall not be liable for compensation for the following expenses:

a) Expenses related to delays of the insured vessel or depreciation of goods, loss of market, or expenses related to the operation of the insured vessel;

b) The amount of insurance under the vessel insurance contract for damage caused to the vessel.

Article 12. Claim Documentation

1. The claim of the insured person according to the form prescribed in Appendix 2 issued together with Decision No. 99/2005/QĐ-BTC of the Minister of Finance.

2. Insurance certificate according to the form prescribed in Appendix 1 issued together with Decision No. 99/2005/QĐ-BTC of the Minister of Finance.

3. Registration certificate for inland waterway vessels;

4. Technical safety certificate for inland waterway vessels;

5. Passenger transport permit, passenger tickets, passenger list (if applicable) in cases of liability insurance for passenger transport operators;

6. Business permit for transporting flammable and explosive goods;

7. Captain’s license, engineer’s license, and crew member’s professional certificate (as appropriate);

8. Accident report or damage report and/or maritime protest confirmed by the competent authority at the location of the accident or the first port of call (if the accident occurs when the insured vessel is underway).

9. Damage appraisal report by the insurance company or the person authorized by the insurance company.

10. Accident report by local authorities, inland waterway traffic management agencies, or police according to inland waterway traffic regulations.

11. Documents proving personal injury such as medical certificates of victims, discharge certificates, surgery bills, and related documents regarding care and treatment costs, death certificates of victims, treatment receipts, funeral expenses, third-party claims related to compensation costs.

12. Documents proving property damage such as repair invoices, replacement invoices for damaged property due to accidents, and receipts proving necessary expenses incurred by the insured person to limit losses or to follow the instructions of the insurance company.

13. Other relevant documents and materials (such as extracts from logbooks, engine logs, weather logs, or other documents of the insured vessel) depending on specific circumstances.

Chapter III

DISPUTE RESOLUTION

Article 13. Time limit for claiming compensation and payment of compensation

1. The time limit for the insured person to claim compensation is one (01) year from the date of the accident, except in cases of delay due to objective and force majeure reasons as provided by law.

2. The time limit for insurance enterprises to pay compensation is thirty (30) days from the date of receiving complete and valid documents, and may be extended up to sixty (60) days if verification of the documents is required.

In case of refusal to compensate, the insurance enterprise must notify the policyholder in writing of the reasons within thirty (30) days from the date of receipt of all valid claim documents.

Article 14. Resolution of Disputes

Any disputes arising from insurance contracts, if not resolved through negotiation between the parties, shall be brought before the court where the defendant resides for resolution. The statute of limitations for initiating lawsuits related to these insurance contracts is three (03) years from the date of dispute occurrence. Claims beyond this period will lose their validity./.