| THE GOVERNMENT ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
| No: 130/2006/ND-CP | Hanoi, November 08, 2006 |
DECREE
PROVIDING FOR THE COMPULSORY FIRE AND EXPLOSION INSURANCE REGIME
THE GOVERNMENT
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the December 9, 2000 Law on Insurance Business;
Pursuant to the June 29, 2001 Law on Fire Prevention and Fighting;
At the proposal of the Minister of Public Security and the Minister of Finance,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- Scope of regulation
This Decree provides for the regime of compulsory fire and explosion insurance for assets of establishments prone to fire or explosion; responsibilities of insurance enterprises and establishments obliged to purchase compulsory fire and explosion insurance in implementing the compulsory fire and explosion insurance regime; and responsibilities of ministries, ministerial-level agencies, government-attached agencies and provincial/municipal People's Committees.
Article 2.- Subjects of application
This Decree applies to:
1. Agencies, organizations and individuals that have establishments prone to fire or explosion as defined in Appendix 1 to the Government's Decree No. 35/2003/ND-CP of April 4, 2003, detailing the implementation of a number of articles of the Law on Fire Prevention and Fighting.
2. Insurance enterprises which are licensed to conduct compulsory fire and explosion insurance business in accordance with law.
3. When a treaty to which Vietnam is a contracting party contains different provisions, the provisions of that treaty prevail.
Article 3.- Purchase of compulsory fire and explosion insurance
1. Agencies, organizations and individuals obliged to participate in compulsory fire and explosion insurance shall purchase insurance at insurance enterprises licensed to conduct compulsory fire and explosion insurance business and operating in Vietnam from the time a fire or explosion arises.
2. The State encourages agencies, organizations and individuals that are not obliged to participate in compulsory fire and explosion insurance under the provisions of this Decree to purchase fire and explosion insurance on the basis of voluntariness and compliance with relevant laws.
Article 4.- Enterprises conducting compulsory fire and explosion insurance business
Insurance enterprises licensed conduct fire and explosion insurance business under the provisions of this Decree are enterprises which have founding and insurance business permits granted by the Finance Ministry.
Chapter II
COMPULSORY FIRE AND EXPLOSION INSURANCE REGIME
Article 5.- Subjects obliged to purchase compulsory fire and explosion insurance
1. Agencies, organizations and individuals that have establishments prone to fire or explosion as defined in Appendix 1 to the Government's Decree No. 35/2003/ND-CP of April 4, 2003, detailing the implementation of a number of articles of the Law on Fire Prevention and Fighting, shall purchase compulsory fire and explosion insurance for assets of their establishments.
2. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Public Security and the Ministry of Construction in, defining and guiding specific objects subject to compulsory fire and explosion insurance such as dormitories and condominiums.
3. Based on the actual situation, the Ministry of Public Security shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, submitting establishments to the Prime Minister for addition to or exclusion from the list of establishments prone to fire or explosion which are obliged to participate in compulsory fire and explosion insurance under the provisions of this Decree.
Article 6.- Assets subject to compulsory fire and explosion insurance
Assets subject to compulsory fire and explosion insurance include houses and architectural works and their attached equipment; machinery and equipment; other goods, supplies and assets the value of which can be calculated in monetary terms.
Article 7.- Minimum sum covered by compulsory fire and explosion insurance
A minimum sum covered by compulsory fire and explosion insurance means the monetary value based on the market price of an asset subject to compulsory fire and explosion insurance at the time of participation in insurance. If the market price of that asset cannot be determined, the sum covered by compulsory fire and explosion insurance shall be agreed by the parties.
Article 8.- Implementation of the compulsory fire and explosion insurance regime
The obligation to participate in the compulsory fire and explosion insurance regime under the provisions of this Decree is expressed by the entry by the insurance purchaser and the insurance enterprise into a compulsory fire and explosion insurance contract.
An insurance certificate is the proof of entry into a compulsory fire and explosion insurance contract.
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