| Royal
Government of Cambodia Ministry
of Economy and Finance
Ministry of Public Works and Transport
Ministry of Tourism
Ministry of Interior
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| No.
655 PrKr. SHV. DNS. PH |
Phnom
Penh, 16th October, 2002 |
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Referring
to the constitution of Kingdom of Cambodia |
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Referring to Royal
Decree No NS/RKT/1198/96 dated 25 November
1998 on nomination of |
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Prime Minister of
the Royal Government of Cambodia. |
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Referring to the
Royal Decree N0 NS/RKT/1198/72 dates
30 November, 1998 on formation of |
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Royal Government of
the Kingdom of Cambodia |
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Referring to Preah
Reach Kram No 02/NS/94 date 20July 1994
on Promulgation of the Law on |
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organization and
Functions of the Council Ministers |
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Referring to the
Preah Reach Kram No NS/RKM/0196/08 date
January 24, 1996 promulgating |
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the law on formation
of the ministry of Interior |
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Referring to Preah
Reach Kram No NS/RKM/0196/18 dated 24
January 1996 promulgating the |
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law on establishment
of the Ministry of Economy & Finance |
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Referring to Preah
Reach Kram No NS/RKM/ 0699/ 09 dated
on 23 July 1999 promulgating the |
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law on Ministry of
Land and Management Urban Planning &
Construction. |
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Referring to Letter
permission of Construction No 86/ANkr/BK
dated 19 December 1997 |
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Referring to Preah
Reach Kram No NS/RKM/0700/02 dated 25
July 2000 Promulgating the law |
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insurance. |
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Referring to Sub-Decree
on Insurance No106 ANKr.BK dated 22
October, 2001 Introduction of |
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Implementation of
Insurance Law |
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Pursuant of the proposal
of the Ministry of Economy and Finance
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Hereby decides |
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The insurance for Construction
Liability is intended to protect
the interests of Third Parties
living on or around, passing by,
or crossing over a construction
site.
All physical or legal persons
acting as contractors or sub-contractors
shall bear liability for accidental
bodily injury, death or property
damage to third Parties caused
by the construction operation. |
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Unless exempted below, every
contractor or sub-constructor
engaged in construction activity,
including the rehabilitation of
existing construction, must purchase
construction liability insurance.
The following construction activities
are exempted from the compulsory
insurance requirement: |
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-Construction
activity conducted by a government institution;
-Any part of a construction activity
involving a legal person engaged in
a public works project if the Ministry
of Economy and Finance determines that
the contractor is able to quickly and
adequately satisfy any liability;
-Small scale construction projects which
do not require the approval of any governmental
authority. |
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The Minimum
amount of insurance required shall be
-$5,000.00 per person for bodily injury
or death per person
-$25,000.00 per occurrence of an accident
for bodily injury or death
-$10,000.00 for property damage. |
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Upon the authorization of a
private construction project,
the Ministry of Land Management
Urban Planning and Construction
or the Provincial-Municipal Department
of Land Management Urban Planning
and construction and Cadastre
shall advise the project owner
to deal with a contractor or sub-contractor
that has the required construction
liability insurance. The construction
site shall be not allowed to open
until the required insurance is
in place. |
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For projects that are not exempted
by compulsory insurance as stated
in item 2 and funded by the government
budget or loans, the successful
bidder must submit, together with
the bidding documents, the insurance
cover note issued by an insurance
company authorized to write construction
insurance in the kingdom of Cambodia
confirming that the required insurance
is in place.
If the bidder fails to obtain
the required insurance, construction
may not begin.
The cover shall be replaced by
the insurance policy when the
construction site is opened.
The Ministry of Economy and Finance
shall not release any fund unless
evidence of insurance is attached
to the payment voucher for the
construction project. |
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On applying for construction,
owner shall show insurance policy
of insurance company which has
license in the Kingdom of Cambodia.
Any application without cover
not or insurance policy will be
rejected by the Ministry of Land
Management Urban Planning and
Construction and the Province
– Municipal Land Management
Urban Planning and Construction.
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Whenever any construction work
is in progress, the Ministry of
Land Management Urban Planning
and Construction and the Province-Municipal
Department of Land Management
Urban Planning and Construction
and Cadastre and any local competent
authorities shall have the duty
to inspect the construction site
and demand evidence that the required
insurance is in effect. Unless
the construction project is exempt
from the compulsory insurance
requirements, the authority shall
temporarily suspend the construction
work if evidence of the required
insurance cannot be shown and
the contractor or sub-contractor
shall be required insurance. The
failure to provide such evidence
shall be fined as provided in
Article 52 of the Insurance Law. |
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Whenever any required construction
liability insurance is cancelled
by the insurer for non-payment,
the insurer shall provide notice
of such cancellation to the Ministry
of Land Management Urban Planning
and Construction and the Province-Municipal
Department of Land Management
Urban Planning and Construction
and Cadastre and any local competent
authorities |
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If a construction site accident
is caused by an insured motor
vehicle, the motor vehicle insurance
shall be the primary insurance
covering the accident and the
construction liability insurance
shall be secondary. |
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Any regulation contradicting
this inter-ministerial Prakas
shall be deemed null and void
to the extent of such contradiction. |
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All concerned authorities or
organizations relating to these
three ministries shall respectively
and effectively implement this
Prakas from the date of its signature. |
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