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Decree mandates construction insurance

Update: December, 10/2015 - 17:37
Workers at a construction site in Ha Noi. Contractors will have to purchase insurance for their complex projects and construction workers from February 10 next year. –– VNA/VNS Photo Vu Sinh

HA NOI (VNS) –– Contractors are now obliged to purchase insurance for complex projects and their construction workers.

The affected projects include any construction work that may affect community safety or the environment and work that is subject to special technical requirements.

This was outlined in a new governmental decree on mandatory construction insurance, which will take effect on February 10 next year.

Under the law, the insurance coverage period runs from the time the workers start their jobs on the construction site until the project is done. The specific insured days will be determined by the labour contract.

The insurance company will reimburse the contractors for any compensation owed to the labourers in cases of injury, work-related accidents, and occupation-related diseases.

The minimum compensation is VND100million (US$4,500) per person in each case.

According to the decree, contractors conducting a construction survey and creating a design for construction works of Grade II or higher are obliged to buy professional liability insurance, which must be equal to or less than the value of the survey and design contract.

The new regulation was adopted recently following a series of labour accidents. The most recent one occurred yesterday at a petrol station construction site in central Ha Tinh Province, where two workers were killed. –– VNS

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