The Ministry of Economy and Commerce of Kyrgyzstan proposes a draft law on state registration of rights to real estate and transactions with it. It was developed in order to implement another document on compulsory insurance of residential premises against fire and natural disasters.
It is proposed to introduce a system of compulsory insurance of residential premises against fire and natural disasters. The ministry noted that this is an event of national importance.
The authors of the draft law are sure that strengthening of the compulsory insurance system will provide citizens with the opportunity to receive timely compensation for damage in case of emergency.
The Ministry of Economy believes that the purpose of the changes is to maximize coverage of the population with compulsory home insurance and provide citizens with both social and insurance protection against unforeseen circumstances and damage to real estate in case of an emergency.
The State Registration Service can provide great assistance in the development of this type of insurance. More than 300,000 real estate transactions are made annually at the State Registration Service.
If the draft law is adopted, amendments will be required to the Cabinet’s resolution on the approval of the rules for state registration. The authors note that it is necessary to use indirect mechanisms to encourage citizens to purchase compulsory home insurance certificates.
The proposed draft law states that when making transactions with real estate or state registration of rights and restrictions on rights to real estate, inclusion of an insurance certificate in the list of documents submitted to the State Registration Service will be mandatory.
