KAZAKHSTAN: for January, 2019 vehicle owners issued over 300 thousand of e-policies amid the aging fleet of the country
The most active use of e-policy was recorded in compulsory insurance of vehicle owners - in January over 300 thousand of e-policies were issued, according to the Association of Financiers of Kazakhstan. At that GWP under all agreements on compulsory insurance of vehicle owners (including paper policies) for January amounted to KZT 3.8 billion (~EUR 8.73 million).
Making a policy online allows vehicle owners to get a discount up to 10% of the insurance cost. Also, now drivers are not obliged to have a paper policy. "As of today, we have over 4 million of vehicles registered in Kazakhstan, and the owners must insure their civil liability in accordance with the law. By the end of the year we expect to achieve full coverage of all vehicles by e-policies, its advantages are obvious and e-policy allows owners to save not only time, but also money", said Yerlan BURABAEV, the managing director of the Association of Financies of Kazakhstan.
Although, on the one hand, the policy issuance procedure has become more convenient and accessible, moreover e-policies reduce the level of fraud, on the other hand, the country's vehicle fleet is rapidly aging. According to the Association of Kazakhstan Autobusiness, in January, 2019 the total number of registered vehicles went up by 21.8% y-o-y. At that the biggest part of those vehicles (93.7%) is represented by vehicles of secondary registration (i.e. older ones).
In January, 2019 the share of vehicles older than 20 years increased from 38.7% to 43.8% y-o-y, which means the vehicle fleet aging. Technical condition of used vehicles, quality of Kazakh roads, not-certified service and spare parts of questionable quality, according to the market experts, increase the level of accidents and, thus, the volume of paid claims, as allinsurance.kz informed.