UZBEKISTAN: Authorities stipulate penalty rates for errant insurers

7 August 2013 —
Several government agencies have adopted a joint resolution to levy penalties on insurers, amounting to 0.09% of the minimum share capital for each unjustified refusal by an insurer to pay claims, reports the Azernews website.

The resolution was taken up by the Uzbek Finance Ministry, State Tax Committee and State Committee on Privatisation, De-monopolisation and Competition of Uzbekistan.

The resolution reads that the insurer's refusal is considered unjustified when it is recognised by the court in accordance with the statement of the insured.

In addition, a surcharge of 0.05% of the minimum capital will be applied in the case of failure by an insurer to meet the deadline set by the Ministry of Finance for submitting the report on the results of activities to combat proceeds from crime and terrorism financing.

In case of failure by the insurer to present information requested by the Finance Ministry on cash received and liabilities as well as other information within its competence, to acknowledge the insurant of the change of the insurer's corporate name, legal form or location, to undertake mandatory audit in prescribed manner, to invite the actuarial organisations to conduct an actuarial examination once a year, a fine of 0.09% of the minimum amount of the authorised capital will be imposed on the insurer.

The minimum authorised capital for non-life insurers operating in Uzbekistan is
EUR1.125 million (US$1.49 million); life insurers - EUR1.5 million; insurers functioning in the field of compulsory insurance - EUR2.25 million and reinsurers - EUR5 million.

In 2012, 33 insurers were operating in Uzbekistan. The aggregate amount of the authorised capital of Uzbek insurers exceeded $150 million, while the growth of the insurance market amounted to 145%.

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UZBEKISTAN: Authorities stipulate penalty rates for errant insurers
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