BELARUS: significant changes expected in the insurance sector from September 1

Presidential Decree #175 "On insurance" d/d May 11, 2019 calls for a number of significant changes for the insurance market from September 1, 2019, Minsk-News reports.

According to the head of the main insurance supervision department of the Ministry of Finance, Sergey OSENKO, the changes will affect, first, the minimum amount of charter capital for insurance companies, which will be set not in EUR, but in BYN, at BYN 11 million instead of EUR 5 million. Amounts of compulsory insurance will be also set in the national currency, except for contracts on liability insurance of vehicle owners and health insurance of foreign citizens staying in the country.

Another innovation is the electronic MTPL policy. Drivers will no longer be obligated to have a paper insurance policy with them. In addition, the average amount of insurance indemnity in cases of road accidents will increase from EUR 400 to EUR 800, and the cost of a reconditioning repair for steering, brake and active safety systems will be calculated wear and tear excluded. "This will encourage vehicle owners to replace damaged parts with new high-quality items, rather than looking for used ones in order to save money", OSENKO explained.

Changes will also affect life insurance. Life insurers will be given an opportunity to conclude contracts on insurance of medical expenses, thus providing their clients with comprehensive customer service. Private life insurers will now be able, on an equal basis with state life insurers, to obtain documents free of charge from courts and other authorities to make decisions about indemnity payments. The minimum term of life insurance contracts will be reduced from 3 years to 1 year.

Also, the decree provides for the reduction of some insurance rates, such as rates for owners of electric vehicles and hybrid cars (from EUR 43.1 to EUR 23.9 and from EUR 59.7 to EUR 33.2 as expressed in the European currency, per year respectively). Tariffs for compulsory insurance of citizen buildings will decrease from 0.14% to 0.13%.



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