Through the receiving and responding system to businesses  recommendations, the Honda Vietnam Company would like to request functional agencies to clarify some contents about purchasing compulsory fire and explosion insurance as prescribed in Decree 23/2018 / ND-CP.

In Clause 1, Article 4 of Decree 23/2018 / ND-CP has the following provisions:           

"Article 4. Subjects of insurance

1. Compulsory fire and explosion insurance subjects are all properties of establishments with fire and explosion dangers, including:

a) Houses, works and properties associated with houses and works; devices.

b) Types of goods and supplies (including raw materials, semi-finished products, finished products) ... ”.

The company would like to ask, "How are the properties attached to houses and works understoodand be limited to"machines and equipment" are limited to what types of assets?, Because according to the above provisions, "Compulsory fire and explosion insurance subjects are all assets of establishments having fire and explosion dangers", there is a risk for businesses that are all properties of businesses, including very small value assets (such as stationery ...) are subject to compulsory fire and explosion insurance.

Regarding the determination of the declared value and time of declaration, the company would like to request to have a guidance on the declaration of assets that are "types of goods and supplies (including raw materials, semi-finished products, finished goods, etc."). products), with the characteristics of the Company's production and business, this type of asset always changes in nature in the production process and changes in the number and location of storage (the Company's warehouse and / or warehouse of other businesses) at each time.

On how to identify a unit of risk (adjacent locations combined into a place to buy insurance at the same fee), as prescribed in Decree 23/2018 / ND-CP and other provisions by law, the Company did not find grounds to determine what is a unit of risk (such as the maximum distance for two facilities to be considered as the same unit of risk ...).

Specifically, the case of Honda Vietnam is a dormitory for employees of the Company located outside the premises of the Company's headquarters (just by a national highway). The company is not sure whether the dormitory and its headquarter can be considered a risk unit for compulsory fire and explosion insurance.

Regarding this, the Ministry of Public Security gives the following opinion:

According to Clause 1, Article 4 of Decree 23/2018 / ND-CP, compulsory fire and explosion insurance subjects are all assets of establishments at risk of fire and explosion, including: houses and public works. processes and properties associated with houses and works; devices; assorted goods and supplies (including raw materials, semi-finished products and finished products).

As such, the compulsory fire and explosion insurance object is the whole property of the establishment that whose value is calculated in money.

Regarding the determination of the declared value and the time of declaration, the minimum compulsory fire and explosion insurance sum is the monetary value calculated according to the market price of the entire establishment's assets at risk of fire and explosion. At the time of signing the contract (Clause 1, Article 5 of Decree 23/2018 / ND-CP).

If the market value of the property cannot be determined, the sum insured shall be agreed upon by the parties (Clause 2, Article 5 of Decree 23/2018 / ND-CP).

The buyer is responsible for providing sufficient information related to the subject matter of insurance to the insurer and is responsible for the accuracy and truthfulness of that information (as prescribed in Clause 1, Article 19 of the Law on Business. insurrance).

How to determine the premium rate for properties located in another location

Materials and goods processed as well as machinery and equipment of the company located at the premises are not owned by the company and are required to buy compulsory fire and explosion insurance. grant quantity and value of supplies, goods, machinery and equipment for that establishment to buy compulsory fire and explosion insurance according to regulations. In this case, the premium rate is determined according to the risk level of the facility and work item where the property is located (Appendix II, Decree No. 23/2018 / ND-CP).

For how to identify a risk unit, there are many work items on the same campus of the company if it is determined that a facility is in danger of fire and explosion, it is required to buy compulsory fire and explosion insurancefor all properties in that work item.

For other works outside the campus, it is possible to buy compulsory fire and explosion insurance under the general fire and explosion insurance contract for the whole company or separate fire and explosion insurance contracts forcing if such items or works are on the list of establishments subject to compulsory fire and explosion insurance according to provisions,