On January 1, 2021, the Law “On Compulsory Civil Liability Insurance for Vehicle Owners” came into force in Tajikistan. This decision was made after it became clear that the government decree on compulsory insurance did not meet current requirements.
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There are two types of vehicle insurance in Tajikistan: comprehensive vehicle insurance [briefly called KASKO in Russian – Tr.], and compulsory civil liability insurance for vehicle owners [briefly called OSAGO in Russian – Tr.].
Comprehensive vehicle insurance [KASKO] is optional for the vehicle owners. It is also called the voluntary vehicle insurance.
This type of vehicle insurance is provided at the request of the vehicle owner. In the case of the occurrence of an insured event, the insurance company fully covers the repair of its client’s vehicle.
The risks covered under comprehensive vehicle insurance are:
- Road traffic accidents;
- Damage caused by falling objects (stones, tree branches, shatters, etc.);
- Fire and explosion of a vehicle;
- Natural disasters;
- Unlawful actions of third parties aimed at damaging the vehicle;
- Collision with animals.
Compulsory civil liability insurance for vehicle owners [OSAGO] is mandatory for every driver, and the law prohibits driving a vehicle without it on the territory of Tajikistan.
The KASKO implies the vehicle insurance, but OSAGO implies liability insurance of the vehicle owner.
The Law of the Republic of Tajikistan “On Compulsory Civil Liability Insurance for Vehicle Owners” was adopted in 2020 and came into force in the beginning of 2021.
Compulsory civil liability insurance for vehicle owners: what can an insured person count on? Read below.
OSAGO provides for the compensation of the damage inflicted to other people’s property and health. Compensation of damage under this insurance is carried out only if you are responsible for an accident that involved two vehicles. In addition, not you, but the injured party will receive the compensation. OSAGO covers the costs of the injured party for the repair of vehicles and medical treatment, if they were injured in an accident. For example, if a road traffic accident occurred, and the examination showed that you are responsible for it, the OSAGO insurance you obtained will function for the injured party, but not for you. In this case, the insurance company will pay for the repair of the injured party’s vehicle. If people were injured in an accident, then your OSAGO will cover their medical treatment. In case if you were injured or your car was damaged in this accident, OSAGO will not cover your costs. The point of OSAGO is that this insurance protects only those who suffered from your actions. If the examination showed that you did not cause the accident, the OSAGO of the person responsible for an accident will cover your costs. Therefore, it is important that all drivers obtain a compulsory vehicle insurance. The absence of compulsory vehicle insurance in Tajikistan entails an administrative fine of one indicator for calculations (60 somoni, or $5.2); in addition, your driver’s license is suspended until you obtain this insurance.
Previously, the compulsory vehicle insurance existed in Tajikistan as well. It was in force for 24 years, established by the Resolution of the Government of the Republic of Tajikistan “On state compulsory civil liability insurance of vehicle owners”. It was adopted in 1996, and has become obsolete over the years.
This Resolution did not contain a detailed description of the insured events, there was no information on tariffs and amounts of compensation, and there were no benefits. To determine the tariffs and the amount of compensation, the government was adopting a separate annex to the Resolution annually. In addition, the rights and obligations of the insured person and the insurer were not clarified.
Before the adoption of the law, State Insurance Company “Tajiksughurta” was a monopoly in the field of compulsory vehicle insurance. Now, there are three insurance companies under the law. In addition to the state-owned company, Spitamen Insurance LLC and Sughurtai Avvalini Milli CJSC received a license from the National Bank of Tajikistan to provide OSAGO.
After the new law adoption in 2020, the cost of insurance and the compensation amounts in case of an insured event changed. In addition, they became constant; they can change only if the government decides to raise or lower the indicator for calculations.
Earlier, when the Government Resolution was in force, the cost of compulsory civil liability insurance for vehicle owners in Tajikistan was 147 somoni ($12.8), and the maximum compensation payment was about 9,000 somoni ($784.4).
Now, everything is calculated with the indicator for calculations. In 2021, it is 60 somoni ($5.2). The cost of insurance is two indicators for calculations, that is, 120 somoni ($10.4) and the maximum compensation payment is 818 indicators for calculations or 49,080 somoni ($4,277.9).
According to the law, a road traffic accident resulting in damage to health is compensated by 545 indicators for calculations or 32.7 thousand somoni ($2850.2), and property damage is compensated by 237 indicators for calculations or 14 thousand 220 somoni ($1239.4).
Annual payment for OSAGO:
– Passenger cars and minibuses: two indicators for calculations or 120 somoni ($10.4).
– Buses and trolleybuses: three indicators for calculations or 180 somoni ($15.6).
– Trucks: three indicators for calculations or 180 somoni ($15.6)
– Tractors and other self-propelled vehicles and mechanisms: two indicators for calculations or 120 somoni ($10.4)
– Motorcycles: one indicator for calculations or 60 somoni ($5.2).
OSAGO covers both the repair of the injured party’s vehicle, and the damage to the health. Any party involved in a traffic accident can be considered injured: the driver, passengers or pedestrians.
In addition, insurance is paid in case if road traffic accident caused damage to health resulting in disability or death.
In case if the damage to the accident victim’s health resulted in death, the insurance compensation is 545 indicators for calculations or 32,700 somoni ($2,843.5).
If the damage to the victim’s health resulted in disability, a one-time insurance compensation is:
– Disability of Category 1– 380 indicators for calculations or 22,800 somoni ($1,982.6);
– Disability of Category 2 – 300 indicators for calculations or 18,000 somoni ($1,565.2)
– Disability of Category 3 – 220 indicators for calculations or 13,200 somoni ($1,147.8).
The maximum compensation payment is 49,080 somoni ($4,277.9). If the insured event exceeds this amount, for example, if the accident is serious and there are many injured people, the exceeding amount must be paid by the person responsible for the accident.
A special commission of the Ministry of Justice or the Ministry of Internal Affairs of Tajikistan carry out the examination immediately after the accident. This commission assesses the amount of damage and identify the responsible person.
The compensations paid by insurance companies must not be lower or higher than the tariffs set by the state.
For example, the State Insurance Company “Tajiksughurta” published the following tariffs on the company’s website:
1) In case of the victim’s death, the compensation payment is 31,610 somoni ($2,755.2);
2) In case if the accident resulted in the victim’s disability – from 12,760 somoni ($1112.1) to 22,040 somoni ($1,921), depending on the disability category;
3) In case of damage to the victim’s property, the compensation payment is 15,834 somoni ($1,380)
The other two companies did not published the information on their websites.
Are there any benefits for insurance fee?
The law provides for benefits for certain categories of citizens.
For the Great Patriotic War participants and persons of equal status, participants in liquidation of the Chernobyl accident consequences, people with disabilities of categories 1 and 2, the insurance cost is 50% of the established amount.
There are also benefits for drivers who never violated the driving regulations. However, to receive this benefit, you need a confirmation certificate from the State Road Traffic Safety Inspectorate of the Ministry of Internal Affairs of Tajikistan.
If you have no violations:
– for 5 to 10 years, the insurance cost is reduced by 5%;
– for 10 to 15 years, the insurance cost is reduced by 10%;
– for 15 to 20 years, the insurance cost is reduced by 15%;
– for 20 years and more, the insurance cost is reduced by 20%.
The Law of the Republic of Tajikistan “On Compulsory Civil Liability Insurance for Vehicle Owners” clearly defines the cases when the compensation payment is impossible:
– If the responsible person’s actions were deliberate, and aimed at the occurrence of an insured event;
– If the person responsible for the accident was under the influence of alcohol, drugs, psychotropic or other intoxicating substances;
– If the responsible person drove a vehicle without a license;
– If the person responsible for the accident fled or left the accident scene;
– If the vehicle’s measures of passenger capacity and carrying capacity were violated;
– If the vehicle was operated without passing the mandatory technical inspection;
– In other cases specified by the contracting parties.
– If the road traffic accident occurred outside Tajikistan, the damage would not be compensated. The insurance coverage area is the territory of the Republic of Tajikistan.
If a driver arrived in Tajikistan in own vehicle, then he/she is obliged to obtain OSAGO immediately upon arrival.
If a driver arrived in Tajikistan for less than 15 days, OSAGO is provided for 15 days. If the period of stay exceeds 15 days, the insurance is provided for 1 year. The insurance cost for foreigners is the same as for Tajikistan citizens.