According to the Prime Minister, the law on mandatory insurance will come into effect on January 1, 2016. Therefore, starting next year, all residents of Kyrgyzstan will be required to insure their movable and immovable property.
– We are creating a state insurance company. It will start operating on January 1, 2016. From this date, mandatory insurance for homes and vehicles should begin. In the future, if a natural disaster occurs, compensation to the affected will be paid by the insurance company, not the government. This is the practice worldwide, – explained Temir Sariev.
The Kyrgyz Prime Minister also added that currently the government is only able to pay 200,000 soms (about 2,600 dollars) to citizens whose homes were damaged during the earthquake in southern Kyrgyzstan. However, this amount is clearly insufficient. In turn, the insurance company will be able to provide compensation based on the insured value of the property.