Mandatory Insurance In Vietnam

Mandatory insurance aims to protect the public interest. Under the new Insurance Law¹, there are four sectors where mandatory insurance applied: (i) the construction industry; (ii) civil liability of vehicle owners; (iii) fire and explosion insurance; and (iv) various classes of mandatory insurance prescribed in other laws. This Article discusses types of mandatory insurance and the minimum coverage required.

Construction industry. Construction insurance is required before a construction project may be commenced, and it must be maintained throughout construction. Decree 119², Decree 15³ and Circular 329⁴, all apply:

• Workers' compensation covers risk of death or injury of workers. The minimum coverage is VND100,000,000⁵ per occurrence.