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Decree No. 220/2026/ND-CP of the Government clearly stipulates that projects must purchase compulsory insurance during construction. Download Projects that have a major impact on safety and community benefits, according to the law on construction, must purchase compulsory insurance for the project during the construction period. The Government issued Decree No. 220/2026/ND-CP amending and supplementing a number of articles of Decree No. 67/2023/ND-CP dated September 6, 2023 of the Government regulating compulsory insurance for civil liability of motor vehicle owners, insurance Compulsory fire and explosion, compulsory insurance in construction investment activities. Projects must purchase compulsory insurance during the construction period. Decree No. 220/2026/ND-CP amends a number of Articles in Chapter IV regulating compulsory insurance in construction investment activities. Specifically, regarding the subject of insurance, Decree No. 220/2026/ND-CP amends and supplements as follows: The investor is responsible for purchasing insurance Compulsory construction works during the construction period for the following projects: 1- Construction works that have a major impact on safety and community benefits according to the provisions of construction law. 2- Construction works that have a high risk of adverse impact on the environment or have a risk of adverse impact on the environment according to the provisions of law on environmental protection. 3- Large-scale works with complex techniques according to the provisions of law on construction. Minimum insurance amount for the project during the construction period. Construction must not be less than the total value of the construction contract. Decree No. 220/2026/ND-CP amends Article 33 regulating the minimum insurance amount. Accordingly, the minimum insurance amount for compulsory insurance for works during the construction period is the full value of the work when completed, including all materials, labor costs, equipment installed in the work, transportation costs, taxes, other fees and other items. provided by the investor. The minimum insurance amount for the project during the construction period must not be lower than the total value of the construction contract, including adjusted and additional values (if any). The minimum insurance amount is specified in the Insurance Contract. In case there is a change in the minimum insurance amount due to adjusting the value of the construction work, the insurance buyer must be responsible for informing the insurer within 05 working days from the date of adjustment of the value of the construction work or as agreed in the Insurance Contract. Change in insurance premium and insurance deduction level In addition, Decree No. 220/2026/ND-CP also amends and supplements Points a and b, Clause 1, Article 37 Regulations on insurance premiums and insurance deductions are as follows: 1. The insurance premiums and compulsory insurance deductions for works during the construction period are specifically regulated as follows: a) For construction works with a value of less than 1,000 billion VND, the installation of construction equipment and technological equipment (hereinafter referred to as equipment installation) is not included or includes the installation of equipment but the value of the equipment installed in the construction is lower. 50% of the total value of the insured construction work items: Insurance premiums and insurance deductions are specified in Clause 1, Section I, Appendix III issued with this Decree.b) For construction works with a value of less than 1,000 billion VND, including equipment installation work and the equipment installation value accounts for 50% or more of the total value of the insured construction works items: Insurance premiums and insurance deductions are specified in clause 1. 1 Section II Appendix III issued with this Decree. In parallel with the amendments to the above regulations, Decree No. 220/2026/ND-CP also amends and supplements Clause 2, Article 37 as follows: 2. For construction works specified in Points a and b, Clause 1 of this Article: Insurance enterprises must base on the risk level of the insured object to determine the maximum increase or decrease in insurance premiums of 25% calculated on the premium. insurance. Insurance enterprises are responsible for establishing a process of exploitation and appraisal for compulsory insurance in construction activities that clearly shows the bases and criteria for assessing the risk level of the insured objects, the authority and decentralization of authority to increase or decrease fees and must ensure that in all cases the basis for increasing or reducing fees is not more than 25% of the insurance premium. This exploitation and appraisal process must be confirmed by actuaries and must be checked annually Internal audit performs audits on compliance, safety and efficiency. Decree No. 220/2026/ND-CP also amends Point d, Clause 1, Article 37 as follows: d) For nuclear power plants and construction works not specified in Points a, b, c of this Clause: Insurers and insurance buyers can agree on rules, terms, insurance premiums and insurance deductions on the basis of Evidence proving that the leading foreign insurance enterprise or organization receiving reinsurance confirms receipt of reinsurance in accordance with the rules, terms, insurance premiums and insurance deductions that the insurance enterprise provides to the leading foreign insurance enterprise or organizationReceiving reinsurance and foreign insurance enterprises and organizations receiving reinsurance from 10% of the total liability of each reinsurance contract must meet the provisions of Clause 9, Article 4 of this Decree. Cases in which enterprises are not entitled to reduce insurance premiums At the same time, Decree No. 220/2026/ND-CP also adds Clause 2a after Clause 2, Article 37 as follows: 2a. Insurance enterprises are not allowed to reduc
