Fine for fire and explosion insurance violations from July 2025

Lawyer Nguyen Thi Thuy, YouMe Law Firm LLC, replied:

Article 17, Decree No. 106/2025/ND-CP regulating administrative sanctions for violations in the fields of fire prevention, fire fighting and rescue (effective from July 1, 2025) stipulates violations of compulsory fire and explosion insurance as follows:

1. Fine from VND 10,000,000 to VND 15,000,000 for one of the following acts:

a) Buying compulsory fire and explosion insurance not equal to the compulsory fire and explosion insurance premium as prescribed for establishments that must buy compulsory fire and explosion insurance;

b) Pay from 50% to less than 100% of the total amount allocated for fire prevention, fire fighting, rescue and relief activities from compulsory fire and explosion insurance according to regulations.

2. Fines from VND 20,000,000 to VND 30,000,000 for the act of paying less than 50% of the total amount allocated for fire prevention, fire fighting, rescue activities from compulsory fire and explosion insurance according to regulations.

3. Fines from VND 30,000,000 to VND 40,000,000 for failure to purchase compulsory fire and explosion insurance for establishments with fire and explosion hazards in group 2 according to the provisions of the law on fire prevention, fire fighting and rescue.

4. Fine from VND 40,000,000 to VND 50,000,000 for one of the following acts:

a) Not to purchase compulsory fire and explosion insurance for establishments with fire and explosion hazards in Group 1 as prescribed by law on fire prevention, fire fighting and rescue;

b) Failure to pay the proceeds for fire prevention, fire fighting, rescue and relief activities from compulsory fire and explosion insurance according to regulations.

Article 4 of Decree No. 106/2025/ND-CP stipulates as follows:

1. The maximum fine for the field of fire prevention, fire fighting and rescue for individuals is up to 50,000,000 VND. For organizations with the same violation, the fine is 02 times the fine for individuals.

2. The fine level prescribed in Chapter II of this Decree is the fine applied to an administrative violation by an individual.

3. Households, business households, and communities that violate the provisions of this Decree will be subject to fines for individuals who violate administrative regulations.

Thus, from July 1, 2025, the fine for violations of compulsory fire and explosion insurance shall be implemented in accordance with the above regulations.