Objects Subject To Mandatory Fire And Explosion Insurance

Mandatory fire and explosion insurance coverage, as prescribed by Article 23 of Decree No. 67/2023/NĐ-CP, encompasses all property of entities posing fire and explosion hazards, including:

 – Buildings, structures, and assets attached to buildings and structures, such as machinery and equipment,

 – Various types of goods and materials, comprising raw materials, semi-finished products, and finished products.

The insured objects and the location of the insured objects must be explicitly specified in the insurance contract and the insurance certificate.

Insurance Premium Rates For Mandatory Fire And Explosion Insurance

• For establishments with fire and explosion hazards (excluding nuclear facilities) where the total insurance coverage for assets at a single location is less than 1,000 billion Vietnamese dong, the insurance premium rates are stipulated in Section 1 of Appendix II accompanying Decree No. 67/2023/NĐ-CP.

• The insurance premium amount is calculated as the minimum insurance coverage amount (x) multiplied by the insurance premium rate.

• The insurance premium rate is agreed upon based on the risk level of each facility in danger of fire and explosion. Details of insurance premium rates are specified in Appendix II issued with Decree 136/2020/ND-CP and documents amending, supplementing, and replacing (if any).

• Appendix II issued with Decree 136/2020/ND-CP stipulates categories with fire and explosion risks and the insurance premium rate for each category is specifically presented in the Insurance premium details section: Mandatory fire and explosion hazards. See details here

Fire and explosion always pose a great risk and can cause unexpected damage to both life and property. Therefore, fire insurance is not only a personal concern but also a social responsibility. Please contact Viet Australia Audit for support and advice if you have any problems!

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.