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Uzbekistan may increase motor third party liability insurance compensation

Business Materials 16 March 2018 15:20 (UTC +04:00)

Baku, Azerbaijan, March 16

By Fikret Dolukhanov – Trend:

Uzbekistan may increase motor third-party liability (MTPL) insurance payments by 3.5 times, because current compensation of 12 million soums (roughly $1,500) is not enough to fully cover expenditures and losses of car owners, Uzbek media reported on March 16.

MTPL insurance payments in Uzbekistan are one of the lowest among the CIS countries. In Russia the amount is $13,000, in Belarus - $12,000, in Kazakhstan - $16,000, in Azerbaijan - $7000.

“Enough time has passed since adoption of the MTPL insurance legislation. There were many changes in our country. In particular, prices on car repair, spare parts and medical services rose significantly. That is why we propose to increase the MTPL insurance payment amount to 40 million soums,” Director of the Uzbek MTPL Insurance Payments Guaranteeing Fund Latif Zokirov told Sputnik Uzbekistan.

According to him, increase of the insurance payment amount will boost economical profitability of the compulsory insurance and will better financially protect the victims of road accidents.

He also noted that increase of the payment won’t negatively affect citizens, as MTPL insurance policy price will rise only marginally.

The compulsory MTPL insurance legislation was adopted in April 2008. It obliges a car owner to insure his vehicle no more than 10 days later after obtaining the car documents. The compulsory insurance agreement is valid for one year.

Uzbekistan also considers implementation of a simplified road accident registration system, the so-called europrotocol, which will allow registering documents, necessary for insurance, without Road Traffic Safety Department inspectors.

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