What changes in the legislation of the Kyrgyz Republic come into effect in 2016?
Insuring Everything!
First of all, the republic will be affected by the already widely accepted practice of insurance in the global community. Starting from February 1, the State Insurance Company will begin operations, where all Kyrgyz citizens will be required by the law "On Mandatory Insurance of Residential Buildings Against Fire and Natural Disasters" to insure their housing.
- The insurance premium amounts to 600 soms for housing in rural areas, with payouts in the event of an insured event being 500,000. In urban areas, it is 1,200 soms with a payout of one million soms, - explained Sanjar Mukambetov, Chairman of the State Service for Regulation and Supervision of the Financial Market, to journalists at a press conference. - Insurance for housing against natural disasters and fires will be carried out by the State Insurance Company for four months. By February, branches will open in all regions of the country.
If a family does not take care of insuring their roof over their heads, the state refuses to compensate them for damages in the event of a natural disaster, emergency, or other calamities. The government is also discussing the issue of administrative responsibility for refusing to insure housing.
From February 7 to mid-April 2016, it will be necessary to purchase a policy for mandatory insurance of motor vehicle liability (OSAGO). This type of insurance was one of the mandatory conditions for the republic's accession to the EAEU, and now it will affect all vehicle and motorcycle owners in the republic. Insurance will be handled by private companies.
- The amount of the insurance premium is still being discussed, but it will be approximately 3,000 soms per year. The total payout will amount to 550,000 soms, of which 150,000 will be for property damage recovery, 200,000 for injuries, and 200,000 in the event of death. The priority is life and health, meaning that physical damage is prioritized over material damage, - clarified Asel Jamansarieva, Chairwoman of the Association of Insurers of the Kyrgyz Republic.
The question of how feasible it is to meet the deadlines remains open. There are over one million registered vehicles in Kyrgyzstan, with about 700,000 in use. There are only 17 private insurance companies for them, of which only 13 are currently operational. It is planned that OSAGO can be purchased from only 8-10 of them. If there are too many citizens who do not manage to obtain insurance, the issue of extending the deadline will be raised at the level of the Kyrgyz Republic government.
Life on Credit
For those who often do not have their own car, let alone their own home – budget workers – the State Mortgage Company began operations on January 1, 2016. It issues loans for the purchase of housing in the national currency, at a lower interest rate (12% per annum) and with a longer repayment period (15 years) than commercial banks can offer. It is planned to attract 10 billion soms from the budget for the authorized capital, as well as funds from the Russian-Kyrgyz Development Fund. With this money, houses with 1-, 2-, and 3-room apartments will be built throughout the republic. The down payment for doctors, teachers, military personnel, police officers, or social workers will be 30% of the apartment's cost.
- We calculated that on average this will be a three-room apartment with an area of 70 square meters and a cost of three million soms. In this case, a person will have to pay an average of 12-15 thousand soms per month. For single individuals looking to buy a one-room apartment, the payments will be even lower. Considering that the rent for a one-room apartment currently costs no less than $150, which is the same as 12-13 thousand soms, a person will pay the same amount, but not for rent, but for their own apartment. It is planned that over time, all citizens will be able to benefit from the program. But in the first phase, mortgages will be granted to workers in the healthcare, education, and social development systems. A mandatory requirement is a work experience of at least three years. Savings banks will also be created, where those interested can accumulate funds for the down payment, - said Temir Sariev, Prime Minister of the republic.
Support for Workers
Certain guarantees will also be provided for the labor migrants of the republic. As of January 1, 2016, the Agreement on Pension Provision within the EAEU came into force. Now citizens of the Union countries will receive a guarantee of pension accruals and work experience if they legally work in one EAEU country while being citizens of another. All contributions made abroad will be transferred to the Social Fund of the country of which the worker is a citizen and paid out upon reaching retirement age. Moreover, in the coming years, Kyrgyz citizens wishing to earn money in Russia will cease to be migrant workers without rights and with numerous obligations. They will receive equal rights with Russians in the labor market, as well as all social guarantees and access to medical services. Work is also underway regarding so-called "blacklists." Several tens of thousands of Kyrgyz citizens who violated migration requirements or committed minor offenses on the territory of the Russian Federation have already regained their right to enter the country. However, if a migrant has grossly violated the law, for example, illegally staying in the territory of the Russian Federation for more than 3 or 5 years and committing other offenses during that time, they will not be able to exit the list.
