Insurance Now Mandatory for Construction Project Licenses: Housing Ministry

The Ministry of Construction, Housing and Infrastructure has announced that proof of insurance is now a mandatory requirement for obtaining a construction project license. The change, which came into effect on June 1, 2023, aims to strengthen safety standards and provide enhanced protection for workers and the public during construction activities.

According to the Ministry, under the revised regulation, insurance is compulsory for all projects with a contract value of MVR 1.5 million or more. This new measure was introduced as part of the Fifth Amendment to Regulation No. 2019/R-1019 on Regulation for Construction Workers and was officially enacted upon publication in the Government Gazette.

Under Article 21(c) of the amended regulation, insurance must be secured specifically for each project site. The required coverage must include protection against potential damages or losses involving construction workers, on-site buildings, nearby structures, pedestrians, public property, and vehicles in the surrounding area.

While the Ministry acknowledges that the updated regulation imposes additional responsibilities on contractors and developers, it emphasizes that the measure is intended to enhance accountability and workplace safety. The Ministry noted that this requirement ensures provisions are in place to compensate for any damages or incidents resulting from construction activities.