UZBEKISTAN: Regulations on the procedure for applying penalties to insurers approved

14 May 2024 — Marina MAGNAVAL
Uzbekistan has approved the Regulations on the procedure for applying penalties to insurers to ensure implementation of the Resolution of the President “On comprehensive measures for further development of the insurance market”, the National Agency for Prospective Projects of Uzbekistan (NAPP) reports.

It is noted that the regulations define the grounds, procedure, and terms for applying penalties to insurers, as well as the procedure for appealing a decision to apply penalties.

Considering the minimum amount of charter capital established for insurers (MRUKS), the following penalties are provided:

- failure to review applications (insurance claims) within the time limits established by law for compulsory types of insurance - a penalty in the amount of 0.005% of the MRUKS for each case, that is, UZS 1.75 million, for all identified cases in the amount of no more than 0.1% of the MRUKS, that is UZS 35 million.

- failure to pay insurance compensation within the time limits established by law for compulsory types of insurance - a penalty in the amount of 0.01% of the MRUKS for each case, that is, UZS 3.5 million, for all identified cases in the amount of no more than 0.1% of the MRUKS, that is, UZS 35 million.

- appointment of managers and chief accountants of insurers without agreement with the authorized body - a penalty in the amount of 0.09% of the MRUKS for each case, that is, UZS 31.50 million, for all identified cases in the amount of no more than 0.1% of the MRUKS, that is, UZS 35 million.

- failure to comply with mandatory instructions of an authorized government body, including failure to comply on time - a penalty in the amount of 0.09% of the MRUKS for each case, that is, UZS 31.50 million, for all identified cases in the amount of no more than 0.1% of the MRUKS, that is, UZS 35 million.

- failure to comply with the requirement for availability of funds in the account (currency) and other insurer’s bank accounts in the amount of at least 3% of the amount of insurance compensation accrued over the last twelve months – a penalty of 0.1% of the MRUKS, depending on the charter capital of an insurer from UZS 20 million – up to UZS 45 million.

*EUR 1 = UZS 13694,80



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