Headlines 24/04/2018 14:36 CH

New regulation on compulsory fire insurance deductible

Quỳnh Như

The Decree No. 23/2018/ND-CP prescribes the minimum compulsory fire insurance deductibles (which means that the amount an insured person must pay in each occurrence) as follows:

- Insurable value of up to VND 2 billion: VND 4 million.

- Insurable value ranging from more than VND 2 billion to VND 10 billion: VND 10 million.

- Insurable value ranging from more than VND 10 billion to VND 50 billion: VND 20 million.

- Insurable value ranging from more than VND 50 billion to VND 100 billion: VND 40 million.

- Insurable value ranging from more than VND 100 billion to VND 200 billion: VND 60 million.

- Insurable value of more than VND 200 billion: VND 100 million.

Additionally, Paragraph 1 Subparagraph 1 of the Appendix to this Decree specifies that the deductible amount is not allowed to exceed:

- 1% of the insurable value with respect to insured establishments exposed to class-A fire and explosion risks.  

- 10% of the insurable value with respect to insured establishments exposed to class-B fire and explosion risks.  

The abovementioned regulation is applied to insured establishments facing fire and explosion risks (except nuclear facilities) of which total insurable value of property existing at a single location is less than VND 1,000 billion.    

The Decree No. 23/2018/ND-CP will come into effect on April 15, 2018.

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