The Ministry of Economy and Commerce of Kyrgyzstan initiates amendments to the laws on road traffic, on state registration of rights to real estate and transactions with it and on pledge. The document has been submitted to the Parliament for consideration.
The ministry notes that it was developed as part of the implementation of the Presidential Decree «On Measures to Develop the Insurance Market in the Kyrgyz Republic» and the Law «On Compulsory Insurance of Residential Premises against Fire and Natural Disasters».
The introduction of a system of compulsory insurance of residential premises against fire and natural disasters is an event of national importance, the initiators emphasize.
They added that strengthening the compulsory insurance system will bring positive results, will allow citizens to receive timely compensation for damage in emergency situations, will maintain financial solvency, and will also allow the formation of a non-governmental source of damage coverage.
Amendments to the Law «On State Registration of Rights to Real Estate and Transactions with It» will allow achieving maximum coverage of the population with compulsory housing insurance and provide citizens with both social and insurance protection against unforeseen circumstances and damage caused to real estate in the event of emergencies.
The Ministry of Economy believes that «today there is a need to use indirect mechanisms to encourage citizens to purchase housing insurance certificates.»
Officials propose that when making real estate transactions or during state registration of rights and encumbrances (restrictions) of rights to real estate, include an insurance certificate in the list of documents submitted to the State Registration Service, that is, specify a rule obliging citizens who own real estate to insure their housing under compulsory insurance.
Now, when making real estate transactions, it will be mandatory to have an insurance certificate for compulsory insurance of residential premises.
«It is proposed to specify in Article 13 of the Law «On Pledge»: if the law or the pledge agreement stipulates that the pledger must insure the pledged property, then he or she is obliged to provide the pledgee with an insurance certificate. This clarification is important in order to emphasize not only the fact of property insurance, but also the need to provide the relevant documents to the pledgee, which ensures greater transparency and control in situations of loss or damage to property,» the background statement says.
The developers also add that such measures will contribute to:
- A gradual increase in the insurance culture of the population;
- Ensuring compensation for possible material damage to housing and the restoration of damaged residential premises;
- Replenishment of the revenue side of the budget.
In addition, it is proposed to specify in Article 15 of the Law «On Road Traffic» that the owners of transport and motor vehicles, regardless of the form of ownership, are obliged to maintain them in good technical condition. Owners of motor vehicles must conclude an insurance contract(s) in accordance with the legislation of the Kyrgyz Republic in the field of compulsory insurance of civil liability of motor vehicle owners. This is necessary to ensure road safety and protect the interests of road users, the Ministry of Economy clarified.
