In Kyrgyzstan, amendments to the legislation regarding the insurance of residential properties against fire and natural disasters are planned to be introduced. The draft law has been submitted for public discussion.
According to the Financial Market Regulation and Supervision Service, the introduction of a mandatory housing insurance system is a matter of state importance.
"This will allow providing citizens with timely compensation for damage in case of emergencies, maintaining financial stability, as well as forming a non-state source of damage coverage," as stated in the explanatory note.
The law "On Mandatory Insurance of Housing against Fires and Natural Disasters" was adopted in 2015, however, there is no liability for non-compliance with the document.
Officials note the need to involve indirect mechanisms to encourage citizens to purchase insurance policies. When conducting real estate transactions, it is proposed to include an insurance policy in the mandatory list of documents submitted to the Land Resources Service.
Article 13 of the "On Pledge" Law proposes to indicate that if the law or the pledge agreement provides that the pledger must insure the pledged property, then he must provide an insurance policy.
The State Financial Supervision Service believes that the draft law will contribute to increasing the population coverage of mandatory housing insurance; reducing the expenses of budgets at all levels for the elimination of the consequences of emergencies in the housing and communal services sector; gradually raising the insurance culture of citizens; creating a statistical database in Kyrgyzgosstrakh and increasing the revenue side of the budget.
Furthermore, in Article 15 of the "On Road Traffic" Law, it is proposed to state that vehicle owners, regardless of ownership form, are obliged to maintain them in good technical condition and to conclude an insurance contract. This is necessary to ensure road safety and protect the interests of road traffic participants, as well as to comply with the legislation.
It is worth reminding that MTPL (compulsory motor third party liability insurance) for individuals in the Kyrgyz Republic will be introduced from January 1, 2025.
