Fire and explosion insurance is a solution to help protect property and people against unforeseen risks. With the rapid development of urbanization and industrialization, participating in fire insurance has become more important than ever. The following article by Long Phan will provide detailed information about benefits, mandatory participants, where to buy insurance, fees and related regulations.

Benefits when participating in fire and explosion insurance

Fire and explosion insurance brings many practical benefits to participants. First, insurance protects property from damage caused by fire and explosion. The insurance company will pay the cost of repairing or replacing damaged property within the scope of insurance. In addition, insurance also protects people from injuries caused by fire and explosion accidents.

When participating in fire and explosion insurance, the insured person is supported with medical expenses for people injured in a fire or explosion. In case the property is severely damaged, insurance will support the cost of rebuilding. Besides, insurance can extend the scope of protection to the property of relatives or neighbors.

Fire and explosion insurance helps stabilize finances for businesses and individuals when an incident occurs. Insurance participants are compensated for property damage and related costs, reducing unexpected financial burdens.

In what cases is it mandatory to participate in fire and explosion insurance?

Pursuant to Article 9 of the Law on Fire Prevention and Fighting 2001, amended and supplemented in 2014, establishments at risk of fire or explosion must carry out compulsory fire and explosion insurance for the assets of that establishment.

The list of facilities at risk of fire and explosion is specified in Appendix 3, Article 3 of Decree 136/2020/ND-CP.

Where to buy fire and explosion insurance?

Currently, many insurance companies provide compulsory fire and explosion insurance products according to law. To ensure compliance with the law and get benefits quickly resolved when an incident occurs, organizations and individuals should choose reputable insurance companies in the market to buy fire and explosion insurance.

How much is the mandatory fire insurance premium?

Compulsory fire and explosion insurance fees are specified in Article 26 of Decree 67/2023/ND-CP. Specifically as follows:

1. For facilities at risk of fire and explosion (except nuclear facilities) with a total insurance amount of assets at a location of less than 1,000 billion VND: Compulsory fire and explosion insurance premium = Minimum insurance amount Minimum (x) Insurance premium rate

Based on the level of risk, insurance companies can increase or decrease the mandatory fire and explosion insurance premium by up to 25%.

Insurance premiums and insurance deductions are specified in Clause 1, Section I, Appendix II and Clause 1, Section II, Appendix II issued with Decree 67/2023/ND-CP

1. For facilities at risk of fire and explosion, the total insurance amount of assets at one location is VND 1,000 billion or more (except nuclear facilities). Compulsory fire and explosion insurance premiums are subject to agreement but are guaranteed not to be lower than the following amounts:

Minimum mandatory fire and explosion insurance premium = 1,000 billion VND x 75% of insurance premium rate

1. For nuclear facilities: The mandatory fire and explosion insurance premium is agreed upon by the insurance company and the insurance buyer.

Consulting services for participation in fire and explosion insurance

Fire and explosion insurance consulting services play an important role in helping customers choose the appropriate insurance package. Consultants will analyze needs, assess risks and propose optimal insurance plans for each subject. With his experience, Long Phan will advise and support you in making wise decisions, ensuring your benefits when participating in mandatory fire and explosion insurance. Services at Long Phan include:

• Consulting on choosing suitable insurance packages for customers.
• Support and guide customers to fill out insurance requests and collect necessary documents.
• Consulting on customers’ rights and obligations when participating in insurance.
• Support and guidance in resolving compensation claims.

Fire and explosion insurance is an important measure to protect property and people. For detailed advice on fire and explosion insurance to suit your needs, please contact Long Phan via hotline. 0906735386. Long Phan will assist you in choosing the optimal insurance package, ensuring regulatory compliance and comprehensive protection against fire and explosion risks.