KYRGYZSTAN: Compulsory MTPL will come into force in 2016. Rates will be lowest among the Customs Union countries

3 December 2015 — Olesea ADONEV
The Law on Compulsory motor third party liability insurance (MTPL) in Kyrgyzstan will come into force at the beginning of 2016, stated Sanzhar MUKANBETOV, Chairman of the State Service for Regulation and Supervision of the Financial Market.

According to their statement, "the need to introduce this type of insurance in the Kyrgyz Republic is due to the increase of number of vehicles purchased from the secondary market (older than 10 years), low driving culture, the general state of the roads, because all of these lead to an increase in the number of road accidents. So, according to the Ministry of Internal Affairs of the Kyrgyz Republic, annually, the number of road accidents exceeds 7,000, the number of human casualties exceeds 1,000 and approximately 10,000 are injured.

According to Dinara TEZEKBAEVA, Chairman of the Board, KYRGYZINSTRAKH (part of international group INGO), quoted by website 24kg, "only 15 percent of the population in Kyrgyzstan is aware of the Compulsory Motor Third Party Liability Insurance. Our company has conducted a study to find out whether the people are ready for MTPL insurance. Based on the results of this research it becomes clear that the southern region of the country is familiar with MTPL insurance, as a lot of people went to work in Russia, where this type of insurance has been mandatory for a long time. We have found out that not everybody in Kyrgyzstan understands what MTPL insurance is. Our task is to carry out explanatory work".

Thus, in July 2015 there was adopted the law for compulsory motor third party liability insurance (MTPL). The pre-calculated average tariff for MTPL policy is KGS 2,210/per yearequivalent in European currency EUR 28, which is the lowest level among the countries of the Customs Union. For example, in Russia the price for MTPL insurance ranges from RUB 10,982.40 (EUR 154.98) to RUB 13,177.60 (EUR 185.95)*, in Kazakhstan - KZT 25,626 (EUR 80)* and in Belarus BYR 903,400 (EUR 47.04)*.

It should be noted that the MTPL tariff will be calculated for each vehicle separately, depending on the type of car, motor size, age of the driver and his driving experience, the duration of accident-free driving.

*to calculate the average MTPL tariff it has been chosen the individual owner of vehicle, the validity of the policy to be 1 year, the age of driver to be in between 25-30 years old, the motor size till 2,500 cubic centimeters, without accidents and with a driving experience of over 3 years.

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