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Minimum compulsory fire insurance amount according to Decree 67/2023
Pursuant to Article 24 of Decree 67/2023/ND-CP, the amount of compulsory fire and explosion insurance is stipulated as follows:
- The minimum compulsory fire and explosion insurance amount is the monetary value calculated according to the market price of the assets specified in Clause 1, Article 23 of Decree 67/2023/ND-CP at the time of entering into the insurance contract.
- In case the market price of the property cannot be determined, the amount of compulsory fire and explosion insurance shall be agreed upon by the parties as follows:
+ For properties that are houses, buildings and properties attached to houses, buildings; machinery and equipment: The insurance amount is the monetary value of the property according to the remaining value or replacement value of the property at the time of entering into the insurance contract.
+ For assets that are goods and materials (including raw materials, semi-finished products, finished products): The insurance amount is the monetary value of the asset based on valid invoices, vouchers or related documents.
Scope of coverage and exclusions of liability for compulsory fire and explosion insurance
Pursuant to Article 25 of Decree 67/2023/ND-CP, the scope of insurance coverage and exclusion of liability for compulsory fire and explosion insurance are as follows:
(1) Scope of coverage:
Insurance companies shall be responsible for indemnifying for damages occurring to the insured objects specified in Clause 1, Article 23 of Decree 67/2023/ND-CP arising from fire and explosion risks, except for the cases specified in Clause 2 and Clause 3, Article 25 of Decree 67/2023/ND-CP.
(2) Cases of exclusion of insurance liability for facilities with fire and explosion hazards according to the provisions of the law on fire prevention and fighting (except nuclear facilities): Insurance companies are not responsible for insurance compensation in the following cases:
- Earthquakes, volcanic eruptions or other natural disturbances.
- Damage caused by political, security and social order and safety incidents.
- Property burned or exploded according to the decision of a competent state agency.
- Self-fermenting or self-heating assets; assets subjected to a heat-using process.
- Lightning strikes directly on insured property but does not cause fire or explosion.
- Nuclear weapons materials cause fire and explosion.
- Machinery, electrical equipment or parts of electrical equipment damaged due to direct impact of overload, overpressure, short circuit, self-heating, electric arc, electric leakage due to any cause, including lightning.
- Damage caused by intentional fire or explosion by the insured; intentional violation of fire prevention and fighting regulations and being the direct cause of fire or explosion.
- Damage to data, software and computer programs.
- Damage caused by burning forests, bushes, grasslands, or burning for the purpose of clearing fields or land.
Note: Cases of insurance liability exclusions for nuclear facilities: The insurer and the insured agree on cases of insurance liability exclusions based on the acceptance of the reinsurance enterprise.
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