TAJIKISTAN: More insurers are now allowed to offer compulsory MTPL insurance

2 July 2020 — Marina MAGNAVAL
At the end of June 2020, the lower house of the Tajik Parliament approved the law "On compulsory insurance of liability of vehicle owners", aimed at increasing competition in the segment, the Tajik news agency reported.

Compulsory liability insurance of vehicle owners previously was provided only by two insurers - the state-owned Tajiksugurta and the private insurance company Sugurtai avvalini milli. The Chairman of the National Bank, Jamshed Nurmuhammadzoda, noted that the monopoly of those companies was the reason for the lack of competition on this market. Now other companies in Tajikistan (following the requirements established by the government) can provide this insurance type.

The new law obliges companies to increase the amount of compensation for damage to life and health from TJS 5800 (~USD 580) to TJS 31610 (over USD 3160), and the amount of compensation for damage to property of victims should be increased in the same way.

As of now, according to the National Bank, 18 companies are operating on the insurance market of Tajikistan, 16 of them are non-state and 2 state. Insurance in this country is underdeveloped and the level of interest in insurance services is quite low. At the same time, motor insurance is considered as one of the most profitable insurance types, the agency noted.

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