The government has revised construction regulations to enforce mandatory builders risk insurance in the Maldives.
The Ministry of Construction, Housing and Infrastructure said the amendment was introduced to ensure the safety of construction sites and to ensure protection against bodily injury or property damage to the third party.
According to the revised regulation, contractors must obtain insurance for damage to the surrounding area, workers, pedestrians, property and vehicles of third parties if the value of the project is USD 97,276 or more.
The Ministry has amended the regulation to ensure mandatory coverage for each project to cover damage to the surrounding area, workers, buildings, pedestrians, property and vehicles of third parties during construction. The Ministry said this is a step to hold contractors accountable and reduce the risks to bodily injury or property damage to the third party.
The revised regulation also specifies that contractors must present the insurance certificate when applying for a project license. This change will strengthen the regulations and ensure that every construction project is insured before it is approved, the Ministry said.
The revised amendment is now in effect.