Marina Zheynova: Authorized body has to develop regulatory framework to introduce CMTPL in DPR within two months
It is necessary to develop a regulatory framework in order to fully implement the provisions of a Law on mandatory insurance for third-party liability of vehicle owners. This was stated by the Deputy of the DPR’s People’s Council, Chairman of the Committee on Budget, Finance and Economic Policy Marina Zheynova in an interview to “Komsomolskaya Pravda”.
ʺIt should be noted that an authorized executive body has to develop a regulatory framework in order to properly guarantee the realization of the provisions of the law “On mandatory insurance for third-party liability of vehicle owners”. Particularly, the Republican executive body that implements a state policy in the areas of finance, has to pass statutory and regulatory enactments, which are needed to implement the provisions of the law within two months from the date of its official publication,ʺ the deputy said.
Marina Zheynova added that the DRP’s Law “On mandatory insurance for third-party liability of vehicle owners”, which came into force on June 5, 2019, provided for the compulsory civil liability insurance of all vehicles used in the Republic, except a few cases provided by the Law.
Also, the deputy elaborated on the content of Articles 14 and 25 of the above-mentioned Law.
ʺArticle 25 governs the registration procedure of an insurer, according to which a legal entity that intends to conduct insurance activity, is obliged to apply to a body responsible for insurance regulation and supervision in order to be entered in a single state register of insurance companies and obtain a license. The license is issued in accordance with the Law and its statutory and regulatory enactments issued thereunder.
According to Article 14 of the Law, compulsory insurance of vehicles by owners is implemented through taking out an insurance contract with an insurer. Then, an insurer hands over a certificate of insurance to a motor insuree,ʺ Marina Zheynova stated.
Summing up, she noted that it was necessary to establish and register an insurance company to comply with the provisions of the Law.
ʺVehicle owners will be able to insure liabilities after fulfilling the following conditions: the development of a regulatory framework by authorized executive bodies, and its approval by the government in the area of insurance, if necessary; approval of statutory and regulatory enactments by the Ministry of Finance; entering of insurance companies in a single state register and obtaining a license by them in accordance with approved statutory and regulatory enactments,ʺ the chairman of the relevant committee explained.