INSURANCE ENTERPRISES MUST ISSUE COMPULSORY FIRE AND EXPLOSION INSURANCE CERTIFICATES TO INSURANCE PURCHASERS
On November 08, 2021, the Government issues the Decree No. 97/2021/ND-CP dated November 08, 2021 of the Government amending and supplementing a number of articles of the Government’s Decree No. 23/2018/ND-CP of February 23, 2018, providing compulsory fire and
explosion insurance.
Specifically, insurance enterprises shall issue compulsory fire and explosion insurance certificates to insurance purchasers. A compulsory fire and explosion insurance certificate may be designed by an insurance enterprise and must have the following contents: Names and addresses of the insurance enterprise, insurance purchaser and the insured; A content clearly stating the insurance purchaser is on what list of establishments prone to fire and explosion; Address(es) of the insured asset(s); Insured asset(s), etc.
Revenues from compulsory fire and explosion insurance premiums reserved for fire prevention and fighting activities shall be used to support the provision of fire prevention and fighting devices and equipment for the fire prevention and fighting police force. The expense for this content must not exceed 65% of the compulsory fire and explosion insurance premium actually collected by an insurance enterprise in a fiscal year, increased 25% compared to that in the previous regulation.
Besides, revenues from compulsory fire and explosion insurance premiums reserved for fire prevention and fighting activities shall be used to support the commendation of achievements recorded by organizations and individuals directly participating or coordinating in fire prevention and fighting activities. The expense for this content must not exceed 5% of the compulsory fire and explosion insurance premium actually collected by an insurance enterprise in a fiscal year.
This Decree takes effect on December 23, 2021.
