The Government has just 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 stipulating compulsory civil liability insurance for motor vehicle owners, compulsory fire and explosion insurance, compulsory insurance in construction investment activities.
Decree No. 220/2026/ND-CP amends a number of Articles in Chapter IV stipulating compulsory insurance in construction investment activities.
Regarding insurance subjects, Decree No. 220/2026/ND-CP amends and supplements as follows: Investors are responsible for purchasing compulsory insurance for projects during construction for the following projects:
1. The project has a great impact on safety and community interests according to the provisions of the law on construction.
2. Construction works with a high risk of adverse environmental impacts or with a risk of adverse environmental impacts according to the provisions of law on environmental protection.
3. Large-scale, complex technical works according to the provisions of law on construction.
Decree No. 220/2026/ND-CP amending Article 33 stipulates the minimum insurance amount.
Accordingly, the minimum insurance amount for compulsory construction insurance during construction is the full value of the project when completed, including all materials, labor costs, equipment installed on the project, transportation costs, other taxes and fees and other items provided by the investor. The minimum insurance amount for the project during construction must not be lower than the total value of the construction contract, including the value of adjustment and supplementation (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 the adjustment of the value of the construction project, the insurance buyer is responsible for informing the insurance company within 05 working days from the date of adjustment of the construction project value or as agreed in the Insurance Contract.
Decree No. 220/2026/ND-CP also amends and supplements points a and b, clause 1, Article 37 stipulating the insurance premium and insurance deduction level.
The Decree also stipulates the level of insurance premiums and the level of compulsory insurance deduction for works during construction.
Insurance businesses must base on the level of risk of the insured subject to determine the maximum increase or decrease of insurance premiums of 25% calculated on the premium.
Insurance enterprises are responsible for establishing an exploitation and appraisal process for compulsory insurance in construction activities, which clearly shows the bases and criteria for assessing the level of risk of insurance subjects, authority, decentralization of authority to increase or decrease premiums and must ensure that in all cases applying the basis for increasing or decreasing premiums, it is not exceeding 25% calculated on the insurance premium.
The above regulations take effect from July 1, 2026.
