Insurance premiums for construction workers at the highest of 1.2 million vnd

	Enterprises are worried about the new level of social insurance
	The coverage of health insurance reached 81.7% of national population
	Persist on litigating enterprises which attempt to avoid social insurance

Illustrative photo.

This Circular specifies regulations and terms on insurance premiums, financial institutions and the regime of reporting on compulsory insurance in construction investment, including: insurance during construction, professional construction investment liability insurance, insurance for construction workers and civil liability insurance to the third parties.

According to Decree No. 119, the minimum amount of insurance for workers at the construction sites is 100 million vnd per person.

Regarding the specific compensation levels, Circular No. 329 states: In the case where workers have a decline in working capacity from 5% to 80% are compensated 100 million vnd in accordance with the rate of decline in working capacity. The specific cases will be regulated by the Ministry of Finance.

The annual insurance premiums for construction workers are divided into 4 types with the rate of 0.6%; 0.8%; 1% and 1.2% of 100 million vnd, equivalent to 600,000 vnd; 800,000 vnd; 1 million vnd and 1.2 million vnd.

In particular, type 1 includes indirect labourers, mainly working in offices, rarely going on business. Type 2 includes labourers without physical work but the risk of type 2 is higher than type 1, requiring much travel or slightly manual labour.

Type 3 includes labourers with manual jobs and the risk of type 3 is higher than type 2, such as mechanical engineers, electrical engineers and workers at the construction sites. Type 4 includes dangerous occupations, easy to face with accidents and not regulated in the 3 occupational types above.

In the case where labourers work for 3 months per year, the insurance premiums will be 40%; from 3 months to 6 months, the insurance premiums will be 60%; from 6 months to 9 months, the insurance premiums will be 80%; and from 9 months to 12 months, the insurance premiums will be up to 100%.

The term of insurance premiums for workers at the construction sites starts from the date of implementation of the construction project to the end of the warranty period according to legal provisions.

Insurance companies have no liability to pay compensation for losses resulting from deliberate acts such as riots, strikes, acts of hostile forces, violations of the Law, design fault of contractors; random losses such as corrosion, abrasion, oxidation and rot; losses which cannot be calculated in money such as data, software and computer programs; catastrophic losses such as war, acts of terrorism, nuclear reactions, nuclear radiation, radioactive contamination and losses incurred in the event that the buyers of insurance have no rights to enjoy insurance services in accordance with Clause 9 of Article 3 of the Law on Insurance Business.

Insurance companies shall have to deal with insurance buyers and clearly specify the contents in the insurance contract.

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The Circular will take effect from 1st March 2017.