Headlines 29/08/2022 10:51 SA

7 losses not covered by insurance in construction investment

Dương Phạm

On August 11, 2022, the Minister of Finance of Vietnam promulgated Circular No. 50/2022/TT-BTC guiding Decree No. 119/2015/ND-CP and Decree No. 20/2022/ND-CP on compulsory insurance in construction investment.

According to Circular No. 50/2022/TT-BTC insurers do not have the responsibility to indemnify the following losses:

- Losses caused by wars, riots, strikes, actions of hostile forces, rebellions, malicious actions on behalf of or related to organizations of politics, confiscation, escheat, requisition, etc., according to orders of competent authorities.

(Compared to current regulations, Circular No. 50/2022/TT-BTC has added losses caused by riots and malicious actions on behalf of or related to organizations of politics, etc.)

- Losses caused by terrorism actions.
 
- Losses caused by nuclear reaction, nuclear radiation, and radiation contamination.

- Losses caused by intentional acts of violating laws of the policyholder or the insured.

(This regulation does not apply to compulsory insurance for workers working on construction sites in cases where they have to defend themselves, save lives, save properties, or use stimulants for treatment prescribed by doctors).

- Losses due to policyholders do not have benefits eligible for insurance.

- Losses caused by stopping the construction work or losses caused by consequences of stopping the construction work (partially or wholly).

- Losses of data, software, and computer programs.

Circular No. 50/2022/TT-BTC comes into force as of October 1, 2022 and replaces Circular No. 329/2016/TT-BTC dated December 26, 2016.

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Above are the summary and notification of new documents for customers of THU VIEN PHAP LUAT. For more information, please send an email to mailto:info@thuvienphapluat.vn.

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