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Uzbekistan introduces penalties for violation of law on compulsory insurance of civil liability of employer

Business Materials 22 December 2010 12:13 (UTC +04:00)

Uzbekistan, Tashkent, Dec. 22 / Trend D.Azizov /

The law "on introduction of changes and amendments to Code of Uzbekistan on administrative responsibility" came into force in the country, aiming to regulate issues on administrative responsibility for violating the mandatory insurance of civil responsibility of employers.

The law had been passed by the Legislative Chamber of Oliy Majlis of Uzbekistan on Oct.1 2010 with the Senate approving it on Dec.3 2010.

The law introduces article 49-2 which pertains to reimbursement of damage to life and health in connection with injury during work time, disease contracted due to work or other damage to health during work hours.

The law creates normative-legal base for ensuring control over the fulfillment of the employers' obligations to ensure that they are aware of their civil responsibilities.

It is also being said that the administrative violations related to defaults on compulsory insurance of civil liability would be investigated by the state technical inspectors.

According to experts, the introduced additions will help to strengthen social safety guarantees for workers.

In Uzbekistan, the Law on Mandatory Insurance of Employer's Civil Liability came into force in April 2009.

The law regulates relations between employers and employees regarding compensation for the harm caused to life or health of the employee in connection with an industrial injury, occupational disease or death in duty, determine the procedure and conditions for this type of insurance.

The base rate of the insurance tariff is the same for all employers and insurers, rates of insurance tariffs are set depending on the degree of risk activities undertaken by the employer. The severity of the activities of the employer is established in accordance with the classification of degrees of danger, approved by the government.

About 33 insurance companies operate in Uzbekistan, including two companies in the field of life insurance, one reinsurance company, three insurance brokers, one actuarial organization, four companies that provide services on insurance assistance, and four adjust and survey organizations.

It was reported that, in 2009,  the Uzbek insurers increased collection of premiums by 62.2 percent compared up to 142.7 billion soums in 2008. Total premiums increased by 28.4 percent - up 14.4 billion soums.

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