Decree 97 on Compulsory Fire & Explosion

Renewal Quotation confirmed by client on 10 Dec 2021 Period of Insurance: from 01/01/2022 to 31/12/2022 Coverage: Industrial all risks including Compulsory fire and Explosion Which Decree triggers to Compulsory Fire and Explosion (Premium rate and Deductible)

• Decree 23 only

• Decree 97 only

• Above 1) or 2) which is chosen by both parties (The insurer and The Insured)

Which are key changes by Decree 97. Choose multiple answers.

• Premium tariff and deductibles

• Add/revise List of facilities facing risk of conflagration

• Reports on the status of collection and payment from CFI business for FPF activities to be sent to Ministry of Finance

• The minimum premium for fire and explosion-prone establishment with total sum insured of assets at one location from VND 1,000 billion or more (except for nuclear facilities): negotiable but not be lower than the premium corresponding to VND 1,000 billion multiplied (x) the premium rate specified in the tariff

• E-insurance certificate is not legally accepted

Policy A covers for period from 01/10/2021 to 30/9/2022; coverage: Industrial all risks including Compulsory Fire and Explosion.

Endorsement No.1 signed on 1/5/2022 with effective date from the confirmation date to increase Sum Insured (new machines and equipment) of Location 1 from VND600 mil to VND1,000 Mil. Which information is compulsory required for BP to proper checking and booking. Choose multiple answers.

• Premium rate for new additional Sum insured under Decree 97 and change of Deductible

• Premium rate for new additional Sum insured under Decree 23

• Property list

• Occupancy code for new addional Sum inusred under Decree 23

• Occupancy code for new addional Sum inusred under Decree 97

Policy A covers for period from 01/01/2022 to 31/12/2022; coverage: Industrial all risks including Compulsory Fire and Explosion with Total Sum Insured is VNM1,200Mil Code: 16.1a Which is accepted by Decree 97

• CFI annual tariff rate @ 0.1% as negotiated; voluntary: Nil CFI minimum annual premium@VND2Bil; Voluntary@VND0.00 CFI Deductible: USD5000

• CFI annual tariff rate @ 0.1% ; Voluntary@0.1%; total@0,2% CFI annual premium@VND1.2Bil; Voluntary@VND1.2Bil CFI Deductible: USD5000

• CFI annual tariff rate @ 0.1% as negotiated; voluntary: Nil CFI annual premium@VND1.2Bil; Voluntary@VND0.00 CFI Deductible: USD5000

2 years policies from 01/01/2021 to 31/12/2022 with annual break and review clause Policy information for 1st year (from 1/1/2021 to 31/12/2021)

- Total Sum insured: VND1500Bil

- Business: Textile factory

- Occupancy code: 18.1a followed Decree 23

- Deductible grade B; Deductible for F&E@ VND100,000,000

- Premium rate: CFI: 0.1% and Nil for Voluntary

- Premium for 2nd year will be reviewed by end of 1st year.

How to calculate premium. It is assumed that Sum Insured remains unchanged.

Choose wrong answers (multi-selections)

• - 1st year annual premium: CFI: VND1.5Bil and Nil for Voluntary; followed Decree 23 - 2nd year annual premium:  CFI: VND1.5Bil and Nil for Voluntary; followed Decree 23

• - 1st year annual premium: CFI: VND1.5Bil and Nil for Voluntary; - 2nd year annual premium: Premium and rate should follow Decree 97 and Client agreed as below calculation + Occupancy code@16.1a + Premium rate: CFI@0.2%; Voluntary: Nil + CFI minimum premium@VND1.5 Bil; Voluntary@1.5Bil; Total premium: VND3Bil

• - 1st year annual premium: CFI: VND1.5Bil and Nil for Voluntary; - 2nd year annual premium:  Premium and rate should follow Decree 97 and Client agreed as below calculation + Occupancy code@16.1a + Premium rate: CFI@0.2%; Voluntary: Nil + CFI minimum premium@VND2Bil,; Voluntary@nil

• - 1st year annual premium: CFI: VND1.5Bil and Nil for Voluntary; - 2nd year annual premium: SI increased from 1/1/2022 to 1.8Bil. Premium and rate can follow Decree 23 + Occupancy code@18.1a + Premium rate: CFI@0.1%; Voluntary: Nil + CFI premium@VND1.8Bil,; Voluntary@nil

• - 1st year annual premium: CFI: VND1.5Bil and Nil for Voluntary; - 2nd year annual premium: SI increased from 1/1/2022 to 1.8Bil. Premium and rate should follow Decree 97 and Client agreed as below calculation + Occupancy code@16.1a + Premium rate: CFI@0.1%; Voluntary: Nil + CFI mimium premium@VND2Bil,; Voluntary@nil

1. New Business Policy A covers for period from 01/06/2021 to 31/05/2022. Coverage: Fire Industrial including Compulsory Fire and explosion; Business: Weaving factory (cotton, viscose); Occupancy code: 18.1a followed Decree 23 - a) Industrial business with fire risk of grade A, B, C Sum Insured: USD50,000,000 in which,

- Building: USD30,000,000

- Machinery and Equipment: USD15,000,000

- Stock: USD5,000,000 (75% deposit)

Annual Premium rate: 0.1% for Compulsory F&E; 0.005% for voluntary; plus 10% VAT

Exchange rate USD/VND: 22900

Annual Premium: VND1,172,193,750 + 10% VAT; In which: 

CFI: VND 1,116,375,000 + 10% VAT; Voluntary@VND55,818,750 + 10% VAT

2. Endorsement No.1 to extend period of insurance 30 days from 01/06/2022 to 30/06/2022.

Please choose the answer that is reasonable and does not break the Law for Endorsement No. 1

• Premium: VND1,1,72,193,750*30 days/365 days = VND96,344,692+ 10%VAT. In which, premium for CFI@VND91,756,849 + 10%; Voluntary@VND4,587,843 + 10% VAT 

• Minimum premium for CFI for Endorsement 1 to follow Decree 97: VND2,000,000,000 * 30 days/365 days = VND164,383,562 + 10%

• Occupancy code for EN1: 16.1a - Minimum premium for CFI from Inception date to end of 30/6/2022 (End of Endorsement 1): VND2,000,000,000 + VND2,000,000,000 * 30 days/365 days = VND 2,164,383,562 plus 10% VAT - Paid premium in New Business for CFI: VND1,116,375,000 - Balance premium for CFI premium for Endorsement No.1 : VND 2,164,383,562- VND1,116,375,000= VND1,048,008,562 plus 10% VAT

• All above

Which statements are correct according to Decree 97/ND-CP, select multi answers

• Policy schedule or Insurance contract could replace for Compulsory Fire and Explosion Insurance Certificate if it include all information required in Decree 97 - Article 4- amended for Article 7a of Decree 23

• Property list could be waived

• Quotation signing date by Client is not required any more in Compulsory Fire and Explosion Insurance Certificate

• All above