Tajikistan introduces compulsory vehicle insurance

6 months ago Web Desk 0

The National Bank of Tajikistan notes that compulsory vehicle insurance has been introduced in the country.


A statement released by Tajik central bank says the law on the compulsory civil liability insurance of vehicle owners was adopted in August this year.


The cost of this type of insurance is set in the amount of two to three calculation indices. The calculation index will amount to 60.00 somonis beginning on January 1, 2021.


Thus, insurance premium for cars, minivans, tractors and other self-propelled vehicles is set at amount of two calculation indices.


The insurance premium for buses, trolleybuses and truck is set at the amount of three calculation indices.


The insurance premium for motorcycles is set at the amount of one calculation index.


The NBT notes that only the insurance companies, which meet the government minimum capital requirements, are allowed to insure vehicles.


Recall, in late March this year, the Tajik government revised minimum capital requirements for insurance companies upwards to 10 million somonis.


18 insurers now operate in Tajikistan insurance market, including two state-run insurance companies (Tojiksughurta – 5.2 million somoni and Tojiksarmoyaguzor – 15.6 million somoni), 15 non-state insurers and one mutual insurance support center.


The most active insurers of the private sector are Spitamen-Sughurta (87.7 million somoni) and MUIN (2.4 million somoni).


Among the prevailing classes in the market it is worth noting property insurance, personal insurance, liability insurance and life insurance.


In February last year, the National Bank of Tajikistan announced the creation of the National Association of Insurance Companies, which aims to support the development of insurance activity in the country. The Association reportedly sustains insurance market development and competition, as well as protects the rights of all insured objects.


Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. Vehicle insurance may additionally offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.


Source: Asia Plus