Construction contractors in Vietnam will have to buy compulsory civil liability insurance for third parties from July.
|Civil liability insurance for a third parties will soon be required |
On March 10, the government issued Decree No.20/2022/ND-CP, amending and supplementing some regulations of Decree No.119/2015/ND-CP from 2015. They govern compulsory insurance in the construction sector.
The latest decree adds the regulation on compulsory civil liability insurance for third parties in the field. Construction contractors will be required to buy compulsory insurance for workers on construction sites and civil liability insurance for third parties.
The cost of the cover will be met by the contractor, and it must be valid for the full duration of any construction contract.
The amendment also adds a regulation on the insured amount for third parties. The minimum insurance to cover damage to health and loss of life is around $4,300 per person per case.
For projects of less than $43.5 million, the minimum cover for property damage and relevant legal costs is 10 per cent of the construction value. For construction work of $43.5 million and higher, it is set at $4.3 million.
The decree will take effect from July 1.