The Ministry of Finance has recently issued a legal document to specify cases in which insurers are not responsible for paying compensation for losses arising in construction investment activities.
The Ministry of Finance has recently issued a legal document to specify cases in which insurers are not responsible for paying compensation for losses arising in construction investment activities.
As per Circular 50 dated August 11, losses caused by wars, riots or industrial strikes; acts of terrorism; nuclear reaction or radiation or radioactive contamination will not be entitled to compensation by insurers.
Insurers will be also unliable to compensate for losses caused by intentional violations of the law by insurance buyers or the insured.
In addition, losses arising from the cessation of construction work and loss of data, software and computer programs will not get paid by insurers.
Under the new regulation, contractors are obliged to buy insurance for their construction workers, with the payable insurance amount of at least VND 100 million per person upon the occurrence of an occupational accident. Workers who are injured or dead due to site accidents or occupational diseases will receive compensations from insurers through their contractors.
This Circular will take effect on October 1, 2022.
(Source:VLLF)
