About insurance

 
(Statements of the Mejlis of Turkmenistan, 2012, no. 3-4, p. 107)
 
(With amendments made by the Turkmenistan law dated 18.08.2015 № 275-V) the present law defines the basics of insurance in Turkmenistan as the direction of entrepreneur activity, regulates relations in the insurance market, as well as establishes the legal, economic and organizational foundations for State regulation and supervision in the field of insurance.
 
Chapter 1. GENERAL PROVISIONS Article 1. The basic concepts used in this law are used in this law the following concepts: 1) the beneficiary is an individual or legal person having the right to receive the sum insured or the insurance indemnity in accordance with the legislation of Turkmenistan or insurance contract;
2) co-insurance-activity and associated relations arising in connection with the adoption of the insurance risks (liability) insurance contract multiple insurers with the distribution of their responsibilities in accordance with the concluded contract between them coinsurance;
3) the policyholder is a natural person or legal entity party to the insurance contract or is in accordance with the legislation of Turkmenistan, pays an insurance premium (the premium), and has an interest in an insurance insurance insurance object;
4) insurer-entrepreneurial legal entity (insurance company) of Turkmenistan, which is a party to the contract of insurance (reinsurance), and is licensed to operate in the field of insurance pursuant to this Act, which in the case of the occurrence of the insured event (incident) as provided by the contract of insurance, is the obligation to pay the sum insured (insurance compensation) in the manner provided for in the insurance contract or the legislation of Turkmenistan;
5) insurance agent means a natural or legal person carrying out mediating activity in Turkmenistan on the conclusion of contracts of insurance on behalf of and on the instructions of the insurer, in accordance with its mandate;
6) insurance broker-entrepreneurial legal entity of Turkmenistan, implementing activities on providing advice on insurance and reinsurance, as well as brokering of contracts of insurance and/or reinsurance on its own behalf and on behalf of the insured (reinsured) based on appropriate license;
7) premium (premium)-the amount of money paid by the insured or other person on behalf of the insured to the insurer (re-insurer) in return for acceptance or allocating the risk insurance in the manner provided for in the insurance contract or the legislation of Turkmenistan;
8) insurance reserves-insurer (reinsurer) obligations under existing treaties of insurance (reinsurance), estimated on the basis of the actuarial calculations;
9) type of insurance is an insurance product, developed and provided by the insurer to the insured within compulsory (State) and voluntary (non-State) insurance through the conclusion of the insurance contract;
10) insured event is an event or circumstance has occurred or occurred during the period of validity of the insurance contract and in accordance with this agreement or the legislation of Turkmenistan is the basis for the payment of the sum insured or the insurance indemnity to the insured, the insured or the beneficiary;
11) Regulation of insurance-regulatory legal document, approved by and coordinated with the State insurance supervisory authority or in any other manner prescribed by the legislation of Turkmenistan, which defines the terms and conditions of insurance for a specific type of insurance;
12) insurance rate-the rate of insurance premium from unit of the sum insured or the insured object installed in size, providing formation of insurers sufficient funding for the payment of the sum insured (indemnity), the establishment of insurance reserve funds, the Fund preventive activities and other funds, as well as cover the costs of litigation and the development of insurers;
13) insurance compensation-monetary compensation paid by the insurer to the insured upon occurrence of an insured event in accordance with the contract of insurance and (or) the legislation of Turkmenistan;
14) the insured amount is the obligation of the insurer to the insured risks (liability), expressed as a monetary amount established by the legislation of Turkmenistan or the insurance contract on the basis of which establishes the size of insurance premiums (insurance premiums) and the insurance indemnity upon occurrence of an insured event;
15) insurance certificate (policy)-document issued by the insurer to the policyholder and/or insured person confirming the conclusion of the insurance contract;
16) insured person means a natural or legal person whose property interests insured under a contract of insurance;

17) an insurance contract is a contract between the insurer and the insured, in accordance with which establishes the procedure and conditions for the protection of property and other interests of individuals and legal entities at the expense of paid insurance contributions (premiums) insurers with a view to payment of the sums insured (insurance claims), or perform other actions in the contract down upon the occurrence of certain events (accidents);
18) insurance risk (responsibility)-possibility of alleged events with signs of probability and randomness of its occurrence, in case an insurance;
19) reinsurance-activity and associated relations arising in connection with the transmission of all or part of insurance risks (liability) insurance contract the insurer, re-insurer in accordance with the concluded reinsurance contract between them;
20) when (the assignor)-insurer or reinsurer, which implements the transfer of insurance risks taken (liability) reinsurance;
21) reinsurer-entrepreneurial legal entity (reinsurance organization), the main statutory activities which is the conclusion and performance of contracts of reinsurance based on appropriate license;
22) net retention is part of the sum insured, within which when (the assignor) is responsible for its own account in accordance with the contract of reinsurance;
23) cumulative life insurance-a form of life insurance, which provides for the accumulation of the insurer shall regularly paid the policyholder premiums as urgent accumulative funds;
24) franchise-part of the overall harm (prejudice), compensation which remains fully independent liability of the insured and is determined by agreement of the parties upon conclusion of the contract of insurance as a percentage of the sum insured or in absolute value. When setting a conditional franchise, the insurer is exempt from compensation (Indemnification), the amount of which does not exceed the deductible, and compensates for injury (harm), if its size exceeds the size of the franchise. When establishing the unconditional deductible liability insurer is determined by the size of the injury (harm) minus the deductible;
25) prudential norms-standards of solvency and financial stability established by the authority of State insurance supervision and mandatory insurers (reinsurers);
26) redemption amount-the amount of money that the policyholder has the right to receive upon early termination of the endowment insurance;
27) individual risk (liability on individual risk)-possible offensive of the alleged event (risk) for each of the objects of insurance specified in the insurance contract.
 
Article 2. The legislation of Turkmenistan in the field of insurance 1. The legislation of Turkmenistan in the area of insurance is based on the Constitution and consists of this law and other normative legal acts of Turkmenistan in the field of insurance.
2. the normative legal acts of the State insurance supervisory authority taken under this Act are binding on all participants in the insurance market.
3. If an international treaty to which Turkmenistan stipulates other rules than those contained in this Act, the rules of the international treaty shall apply.
4. This law shall not apply to state pension insurance, medical insurance, as well as on relations for compulsory insurance of deposits with credit institutions.
 
Article 3. Insurance and insurance activities 1. Insurance-system of relations to protect the property and other interests of individuals and legal entities at the expense of paid insurance contributions (premiums) insurers which have money and other funds, with a view to payment of the sums insured (insurance claims) upon the occurrence of events or circumstances (accidents). 2. activities in the field of insurance-insurers, reinsurers and insurance brokers (hereinafter referred to as the subjects of insurance activities) related to the conclusion and performance of contracts of insurance (reinsurance), carried out on the basis of the license of the State insurance supervisory authority, in accordance with the requirements of the normative legal acts of Turkmenistan.
 


Article 4. Object of insurance 1. Object of insurance is a property and other interests of individuals and legal entities at the time of conclusion of the insurance contract.
2. The insurable interest (property, personal liability)-a measure of material interest in insurance.
3. Property interest is expressed in obtaining compensation from the value of the insured property, the insured who possesses, uses or disposes of (property insurance).
4. Personal interest is in obtaining the sum insured in case of insurance claims arising from the insurance contract and is linked to the life, health, disability or other personal interest of the insured person or the insured person (personal insurance).

5. Interests may be linked to the compensation of damage caused by the insured person or property of physical persons as well as damage caused to the legal entity (civil liability insurance).
6. The objects of insurance of individuals and legal entities, including foreign entities, including their branches and representative offices on the territory of Turkmenistan shall be exclusively insurance insurers licensed to operate in the field of insurance in the territory of Turkmenistan.
 
Article 5. Types of compulsory and voluntary insurance 1. Insurance is required by the legislation of Turkmenistan, which establishes the types, conditions and the order of compulsory insurance.
Obligatory types of insurance is vested in the Government insurance organizations of Turkmenistan.
2. Voluntary insurance is performed on the basis of agreements between insurers and insureds.
Voluntary insurance rules that define the conditions and procedures for its conduct, insurers are established in accordance with the provisions of this Act.
The insurer shall have the right to carry out activities on the mind of voluntary insurance for them only after the harmonization of insurance with public insurance supervisory authority and its inclusion in the licence. Specific insurance conditions are determined at the conclusion of the insurance contract.
Types of voluntary insurance are determined by the insurers.
 
Chapter 2. Article 6 INSURANCE MARKET. Participants of insurance market of 1. Participants of insurance market of Turkmenistan are: 1) insurer (reinsurer);
2) insurance broker;
3) insurance agent;
4) the policyholder, the insured person, beneficiary;
5) authorized audit Organization (authorised auditor);
6) body of State insurance supervision;
7) other natural or legal persons carrying out business activity associated with insurance.  
2. the State Insurance Supervisory Authority is the Ministry of Finance of Turkmenistan.
 
Article 7. Insurers, reinsurers and the conditions of their activity 1. Activities in the field of insurance in Turkmenistan is established in accordance with the legislation of Turkmenistan organizations whose main activity is insurance (reinsurance).
2. Insurers and reinsurers operate on the basis of their statutes and in accordance with the legislation of Turkmenistan are subject to state registration.
3. Along with insurance insurers and reinsurers may engage in other activities directly associated with insurance, namely: 1) implementation of additional activities (production of goods, performance of works) for insured persons and insured persons in connection with the peculiarities of the insurance object;
2) provision of advisory services, organization and conduct of training to improve the skills of professionals in the field of insurance (reinsurance);
3) insurance mediation as an insurance agent;
4) issuance of their insureds loans within the redemption amount under the relevant treaty endowment insurance (insurer);
5) investment (placement) of temporarily free insurance reserves for the purpose of obtaining additional income.
4. The insurer (re-insurer) prohibits the exercise of entrepreneurial activities in the forms of transactions and operations, not stipulated by the activities mentioned in this article.
5. Founders, members or shareholders of insurer (reinsurer) may be natural or legal persons of Turkmenistan, which meet the requirements provided for in this law and other normative legal acts of Turkmenistan. Foreign legal entities may act as founders, members or shareholders of insurer (reinsurer) in accordance with article 42 of this law.  
6. insurers (reinsurers) are created in the form of a State enterprise, closed joint-stock company or an open type, company, joint venture.
7. Minimum own capital (authorized Fund, assets and other reserves) insurer (reinsurer) must meet its organizational-legal form and volume of its insurance and reinsurance obligations.
8. Guarantee obligations towards insureds can also serve as a technical and organizational activities of the insurer (reinsurer).
Match equity, organizational, technical and other activities of the insurer (reinsurer) volume of its insurance obligations insurance supervision organ of State controlled.
9. the minimum amount of the authorized Fund of the insurer (reinsurer) is established in accordance with the legislation of Turkmenistan in agreement with the authority of State insurance regulation.
10. insurers (reinsurers) are not liable for the obligations of the State, and the State is not liable for the obligations of the insurer (reinsurer), except for the obligations of the insurer under the compulsory insurance.

11. Insurance organizations of Turkmenistan have the right to direct a portion of the profits, remaining at their disposal, according to the results of the financial year for replenishment of authorized Fund. The size of the otčislâemoj profit shall be agreed upon with the State insurance supervisory authority.
 


Article 8. Insurance intermediaries

 
1. the conclusion and execution of insurance contracts can be carried out through insurance intermediaries (insurance agents and insurance brokers).
2. the powers of the insurance agent for intermediary activities in the insurance market are determined by the relevant documents of the insurer. Activities of insurance agent as such in case of absence of the necessary powers are not allowed.
Commitments made by an insurance agent within the Authority received on behalf of the insurer, the latter are performed as if they were his own.
Conditions required for compliance with insurance agents, including on issues of accounting and storage of forms of insurance documentation, work with cash, the insurer's internal documents are established taking into account the requirements of the legislation of Turkmenistan.
3. the insurer shall maintain a register of insurance agents, authorized them to conduct the operations of insurance mediation.
4. Powers and responsibilities of the insurance broker for insurance (reinsurance) contracts concluded with his participation, identifies relevant treaties with parties to a contract of insurance (reinsurance).
Insurance brokers may be created in the form of a State enterprise, closed joint-stock company or an open type, company, joint venture.
The minimum authorized share capital of an insurance broker shall be established in accordance with the legislation of Turkmenistan in agreement with the authority of State insurance regulation.
5. mediation of insurance, except insurance of the civil liability arising from the conclusion of contracts of insurance on behalf of foreign insurers on the territory of Turkmenistan is not allowed.
6. do not attend insurer (reinsurer) or its employees in the establishment and activities of an insurance broker.
7. Foreign legal entities in accordance with the requirements of article 42 of this law may make the founders, members or shareholders of the insurance broker.  
8. Insurance Broker shall promptly inform the authority of the State insurance supervision they identified facts insolvency insurer (reinsurer).
 


Article 9. Insurers

 
1. Insurers have contracts of obligatory and voluntary insurance of personal interests, property interests, responsibility.
2. Insured persons may contract third party personal insurance in favour of the latter (insured persons).
3. to obtain insurance reimbursements under insurance policyholders are entitled to conclude contracts of voluntary and obligatory insurance point of third persons (beneficiaries), as well as replace them on your own during period of insurance agreement validity. The replacement of the beneficiary under insurance agreements of mortgage, and the mortgage can be made with the consent of the pledgee or ipotekarâ.


 



Article 10. The State guarantees the rights and legitimate interests of insurance activity

 


1. The State shall guarantee respect for the rights and legitimate interests of insurance activity.

2. the intervention of the State, public and other organizations in the activities of the insurance activity is not allowed if it does not affect the right of a public body to implement the insurance supervision provided for in this law and other normative legal acts of Turkmenistan.
3. Disputes about compensation of losses, were the subjects of insurance activities unwarranted interference in their activity of bodies of State authority and administration, the local authorities or their officials shall be settled in the courts.
4. Public authorities and administrative bodies of local executive authorities and officials may give the subjects of insurance activity specifying only in accordance with their competence, established by the legislation of Turkmenistan. In the case of publication by a public authority and local authority management Executive of an act not in conformity with its remit or the requirements of the legislation of Turkmenistan in the field of insurance, the insurance business may apply to the Court.
 
Chapter 3. FUNDAMENTALS of INSURANCE Article 11. Co-insurance

 
1. Object of insurance may be insured under insurance contract one insurer or more simultaneously (co-insurance). When sostrahovanii rights and duties between insurers vis-à-vis the insured are distributed in the agreed shares.
2. If the agreement between insurers in coinsurance one can represent all insurers in the relationship with the insured, while remaining accountable to the latter only by its lobe.

3. When sostrahovanii the terms of the insurance contract shall be determined in accordance with the rules of insurance of the insurer that takes over the functions and powers of the leading insurer on terms specified in the contract of coinsurance. Insurers participating in the contract, the contract shall be entitled to co-insurance insurance on other terms than their rules on this kind of insurance.
4. In sostrahovanii prohibited from participating insurer whose license is not specified this type of insurance.
 
Article 12. Reinsurance 1. The insurer is entitled to by way of reinsurance to cover part of their obligations to insurance with another insurer (reinsurer).
2. Reinsurance is subdivided into proportional, disproportionate and other species. Reinsurance license entitles the licensee to operate both on proportional and disproportionate reinsurance.
3. Proportional reinsurance is where the reinsurer assumes the obligation to perform the insurance indemnity upon occurrence of the conditions provided for by the relevant insurance contract, in proportion to the percentage of insurance commitments from the assignor reinsurance treaty.
4. Disproportionate is reinsurance, in which the reinsurer assumes the obligation to perform the insurance indemnity upon occurrence of the conditions provided for by the relevant insurance contract, in an amount exceeding the total amount of damages to be recovered over the amount of their own retention assignor reinsurance treaty.
5. relations between the insurer, transferring some of its responsibilities (assignor) and the insurer, receiving on this responsibility (reinsurer), regulated by treaty reinsurance. The obligations of the assignor to remain insured in full.
6. subsequent transmission parts risk reinsurance treaty payments from the reinsurer to reinsurers (retrocession).
7. Reinsurance is required for insurers not cover taken by insurance undertakings at their own expense.
8. Reinsurance is conducted from reinsurers or insurers of Turkmenistan and uncovered risk from foreign subjects of insurance activity in order to be determined by the authority of State insurance supervision upon agreement with the Cabinet of Ministers of Turkmenistan.
9. The insurers operating in Turkmenistan have the right to accept reinsurance risk on those types of insurance, for which they received the license.
 
Article 13. Insurance pool 1. Insurance pool-agreement between insurers (reinsurers) on joint and several liability on insurance reimbursements. Insurance pool is used when sostrahovanii and reinsurance large insurance risks in order to protect the interests of policyholders, as well as ensuring the financial stability of insurers (reinsurers).
2. The number of participants is not limited to the insurance pool.
3. Information and other information about insurance pools are subject to bring to the attention of the State insurance supervisory authority indicating the directions of activity, the composition of the pool of participants and annex a copy of the contract about joint activity (the pool).


 



Article 14. Insured event

 
1. list of insured events by types of compulsory insurance shall be established by the legislation of Turkmenistan, and on the types of voluntary insurance is determined by the rules for this type of insurance or the conditions of the concluded insurance contracts with insurers.
2. With the onset of the insured loss from the insured to the insurer the right of claim arises on payment of the appropriate amount of insurance (indemnity) and performing other obligations under the insurance agreement or the legislation of Turkmenistan, and insurer-a corresponding duty.
3. the insured event shall be established on the basis of relevant documents and any other data that you doubt their veracity, the decisions of the courts, investigative and other bodies, as well as, where necessary, are based on expert opinions.


Article 15. Sum insured and insurance compensation

 
1. When property insurance sum insured determined in agreement with the insurer of the insured person on the basis of the book or market value of similar property or expert assessment may not exceed its value at the time of conclusion of the contract.
2. the parties may not contest the value of the property specified in the insurance contract, except in cases where the insurer proves that it was intentionally introduced misled.
3. If the sum insured defined in insurance contract exceeds the value of the property, the contract is invalid insofar as the insured amount, which exceeds the value of the property at the time of conclusion of the contract. Parties may reduce the sum insured and the insurance premium respectively (insurance premium), if it is revealed, that the sum insured exceeds the value of the insured property.
4. payment of the sum insured (insurance compensation) on property insurance in the case of an insured event cannot exceed the sum insured, the insurance contract does not stipulate otherwise.

5. If the sum insured is lower than the insurance value of property, indemnity shall be reduced in proportion to the ratio of the sum insured and the insurance value of property, if the insurance contract does not stipulate otherwise.
6. If the property is insured with several insurers for the amount exceeding in total insurance value of the property (double insurance), indemnity received from all insurers under this insurance shall not exceed the insured value of the property. Each of the insurers pays is proportional to the size of the sum insured in case of insurance contract they signed.
7. The insurance contract may provide for the replacement of indemnity compensation in kind within the limits of the sum of insurance compensation.
8. Insurance contracts related to the life, health, disability, and other personal interests, the sum insured is determined by agreement with the insurer and the policyholder. Payment of the sums insured on these treaties are made regardless of the recipient of the amounts owed in compensation for injury or damage.
9. If the nature of the occurrence of the insured event the insurer's obligation to pay the sum insured (the indemnity) is not in doubt, but the necessary technical and organizational actions within three months to be completed, a person entitled to receive such amount may require its payment in advance in the amount payable unconditionally.
10. The grounds for the decision on indemnity statement serve the insured deed of an insured event and other documents evidencing the occurrence of the insured event.
11. indemnity by the insurer under the terms of the produced voluntary personal insurance may not exceed the sum insured.
12. Upon payment of the sum insured (insurance compensation) the insurer is entitled to sell the mortgaged property, taken by both reduce the sum insured, without recourse to the courts.
13. The amounts to be paid to the beneficiary, cannot be seized for the debts of the insured person or the insured person if it itself is not a beneficiary. Insurance sum payable to the beneficiary under the contract of personal insurance in case of death of the insured person or the insured person is not included in the assets of the merging.
14. Payment of the sum insured (insurance claims) are carried out on the basis of documents and medical opinions, investigative, judicial and other institutions, submitted by them on a mandatory basis.
 
Article 16. Features of accumulative insurance activities 1. The insurer, carrying out activities on your savings insurance is entitled to 50 per cent within the redemption amounts to provide loans to their insureds, putting this amount, provided that the contract remains in force insurance with savings not less than 3 years. In this case, the loan may not be granted for a period longer than the period remaining until expiry of the insurance contract.
2. loan Rules provided for in paragraph 1 of this article shall be established taking into account the requirements of the normative acts of the State insurance supervisory authority.
 
Article 17. Insurance premiums (insurance premiums) 1. Order of calculation and payment of premiums (insurance premiums) is established by the insurer. Payment of premiums (insurance premiums) is made in cash or cashless forms of calculation.
2. employers are obliged to legal entities on behalf of their employees, concluding the insurance agreement, deduct from the amounts of their earnings (income) insurance premiums (insurance premiums) and list them on the current account of the insurer.  
3. The premium (premium) for voluntary insurance shall be determined by agreement of the parties and on compulsory insurance-legislation of Turkmenistan. Insurance (insurance premium) is paid in the currency in which the sum insured is determined, unless otherwise provided by the regulations or the terms and conditions of insurance.
4. Insurance premiums (insurance premiums) on compulsory insurance policyholder will be included in the cost of production (works, services). In case of non-payment of premiums (insurance premiums) on compulsory insurance of their recovery is performed in the manner prescribed by the tax laws of Turkmenistan.
5. The insurer is entitled to upon agreement with the insured to increase the size of the premium (the premium) while increasing the risk of occurrence of the insured object.
6. the insurer shall have the right to take the property pledged as security for the reduction of the sum insured and may reduce, in accordance with the size of the premium (the premium).
7. the insurer insurance premiums (insurance premiums) are its property. The arrest of these funds can be frozen and their recovery (or otherwise not under the terms of commitments before the insured person) may be made only in the case of recognition of this insurance obligation null and void on the grounds and in the manner provided by this Act.
8. The insurance premiums (insurance premiums), during the period of validity of the insurance contract cannot be levied except for cases stipulated by the legislation of Turkmenistan.

9. the insurance premium (premium) for the agreement of the insurer and the insured person may be provided for his recurrent portion which is paid to the policyholder upon the termination of the insurance contract, the insured event.
10. Insurance premiums (insurance premiums) paid before the conclusion of the contract, in case of invalidation of the insurance contract concluded in respect of movable and immovable property acquired by deliberate acts against objects protected by the legislation of Turkmenistan, as well as logistical and other funds intended for the financing of terrorist acts are not returned.
11. the policyholder shall have the right to stop making premiums (insurance premium) If after conclusion of the insurance contract, it is determined that the insurer's economic situation worsened so much that there is a real danger of non-observance of undertaken duties upon occurrence of an insured event.


 



Article 18. Insurance tariff

 
1. Insurance tariff for the relevant types of compulsory insurance is established by legislation of Turkmenistan, on voluntary kinds of insurance by the insurer in accordance with the approved them rules of voluntary insurance for each particular type.
2. If necessary, bring the financial obligations of the insurers in line with the obligations of the insurer with the account of changing conditions, cost-of-living index resizing insurance rates to be agreed with the State insurance supervisory authority.
 
Article 19. Obligation to prevent the legalization of income obtained by criminal way and terrorism financing 1. In order to prevent the use of the insurance system for the legalization of criminal proceeds and financing of terrorism, the insurers (reinsurers) in accordance with the Turkmenistan law "on counteracting the legalization of proceeds from crime and financing of terrorism" must implement appropriate activities, as well as to provide relevant information to the authorized State body.
2. the list of insurance operations to be monitored in order to prevent the laundering of criminal proceeds and financing of terrorism, the State insurance supervisory authority is established.
 
Chapter 4. ORDER and contract INSURANCE Article 20. Procedure of conclusion of the insurance contract 1. To conclude the insurance agreement the insured submits a written application to the insurer or otherwise declares its willingness to enter into a contract of insurance.
2. The insurance contract is concluded for a term determined by the insurer, or by agreement of the parties is considered concluded from the moment of payment of the insurance premium (the premium) if the legislation of Turkmenistan and the insurance regulations for the respective type of insurance provides otherwise.
3. Upon payment of the premium (the premium), the insurer shall issue the policyholder with an instance of the insurance contract concluded between them, or insurance certificate (policy), or any other document confirming the conclusion of the contract.
4. Treaty on behalf of the insurer is authorized by a person who does not have the right to modify the terms and conditions of the insurance, if it is not vested in the relevant right.
5. the policyholder during period of insurance agreement validity shall have the right to make changes to it, if it is stipulated by insurance regulations in a particular type of insurance or agreement of the parties.
6. the policyholder shall have the right, upon execution of insurance contract designate beneficiaries to receive indemnities under contracts of insurance, as well as replace their discretion before the occurrence of the insured event.


 



Article 21. The contents of the insurance contract (insurance policy certificate)

 
1. The insurance contract is concluded in writing by writing either handing the insurer to the policyholder the insurance policy certificate.
2. a contract of insurance or insurance certificate (policy) should contain: 1) the name of the document;
2) name, address and bank details of the insurer;
3) full name and address of the policyholder who is a natural person or the name, address and bank details of the policyholder who is a legal person;
4) full name and address of the insured person (in case of its availability);
5) full name and address of the beneficiary is a natural person or the name, address and bank details beneficiary-a legal entity (if any);
6) specifying the insured (insured object) and the insured risk;
7) the amount of the sum insured;
8) premium (the premium), order and payment;
9) period of validity (starting date-12:00 am on the day of conclusion of the contract and the end-12:00 am on the last day of term) of the insurance contract;
10) term of payment of the sum insured (insurance compensation) and the insurer's liability for non-observance of this term;
11) information about the knowledge of the insured of the rules specified types of insurance;
12) signatures of the parties.
3. the insurance contract (insurance certificate-policy) can be made conditional or unconditional franchise.

4. For certain types of insurance may be established other prerequisites that must be specified in the insurance contract or insurance certificate (policy).
5. During the period of validity of the insurance contract, the policyholder shall be entitled to declare the make changes to it in part of its period of validity, the amount of the sum insured, the person designated to receive it, if it is not contrary to the legislation of Turkmenistan rules or conditions of insurance of this type established by the insurer or by agreement of the parties.
 


Article 22. Replacement of the insured in the insurance contract

 
1. In case of death of the insured, Contracting and property or personal insurance in favour of the third persons, the rights and obligations of the insured may go to: 1) to the person who the insured property by inheritance;
2) to third parties;
3) persons who exercise responsibility for protection of the rights and legitimate interests of insured persons.
2. In the case of a sale, Exchange, donation, lease or other disposition of the insured property, reported to the insurer, the policyholder's rights and obligations under the contract of insurance may go to the person taking the property.
3. In case of reorganization of the policyholder who is a legal person during the period of validity of the insurance contract, the rights and obligations under an insurance contract shall pass to his successor in title.
4. If during the period of validity of the insurance contract, the policyholder is recognized incapable by court or limited in dispositive capacity, protection of their rights and legitimate interests of its legal representative.
 


Article 23. Responsibilities of the insurer

 
1. the insurer is obliged to: 1) policyholder prior to the conclusion of the contract of insurance with the terms and conditions of insurance;
2) renegotiate the insurance contract the insured person upon application if you increase the value of the insured property or reduce the risk of the occurrence of the insured event or resize possible damage as a result of activities carried out by the insured, as well as in connection with the replacement of the insured;
3) upon occurrence of an insured event within the time-limit fixed in the Treaty or the legislation of Turkmenistan, pay to the policyholder, the insured or the beneficiary the sum insured (indemnity), except as provided for in article 28 and 29 of this Act;
4) not to disclose confidential information of the insured, which became known to him during insurance, except for the cases stipulated by the legislation of Turkmenistan.
The legislation of Turkmenistan or the insurance contract may also provide for other obligations of the insurer.
2. the insurer shall bear property liability for late payment of the sum insured (insurance compensation), as well as for the early termination of the insurance contract due to the fault of the insurer's employees by paying a forfeit, the size of which is determined by the rules or conditions of insurance of the insurer on a case-by-case basis or by agreement of the parties.


 



Article 24. Safety monitoring of the property insured

 
1. The insurer is entitled to monitor the safety of insured property.
2. In case of ascertaining the facts of mismanagement or improper storage of insured property, the insurer gives policyholders a binding requirement on Elimination of discovered deficiencies.
3. In the event of failure to comply with the prescriptions of the insurer is entitled to reduce the insurance liability.


 



Article 25. Obligations of the insured

 
The policyholder shall: 1) notify the insurer when concluding the insurance contract about all known circumstances essential for assessment of the obligations under the insured object as well as any significant change occurred with insured property (including property rights), as well as increasing the risk of damage or destruction. In the latter case, the insurer may require increasing the size of the premium (the premium) or terminate the insurance contract unilaterally;
2) make in the prescribed manner an insurance fee (insurance premium);
3) report on the occurrence of an insured event within the time limits and under the conditions laid down in the regulations or in the insurance contract;
4) transmit the information and documents available to the insurer for making a claim for indemnification to the person responsible for the damage caused to the insured;
5) take the measures to prevent the occurrence of the insured event and reduce losses arising from its onset.
 Turkmenistan legislation, regulations or conditions of insurance may be provided and other obligations of the insured.


 



Article 26. Move to the rights of the insured against the insurer of the person responsible for the damage

 
1. In case of insured accident to the insurer, which produced the indemnity under the insurance contract, within this amount goes right to a claim for indemnification to the person responsible for caused harm or damage before the insured or a third party.
If the policyholder waives to the specified person or from rights ensuring the fulfilment of these requirements, the insurer shall be exempted from payment of the portion of the insurance compensation that he would have to recover from that person.

2. If the insured or the person in favor of whom the insurance indemnity is made, received full compensation for harm (harm) of the person responsible for the damage caused by injury (harm), the insurer shall be exempted from the implementation of the insurance compensation. In partial compensation for damage (damage) perpetrator insurer pays indemnity taking into account the amounts received by that person from the perpetrator.
 


Article 27. Termination of insurance contract

 
1. The insurance contract is ceased in case of: 1) expiration;
2) implementation of treaty obligations by the insurer in full;
3) non-payment of premiums by insured (insurance premiums) in the contract size and timing;
4) suspension, termination or liquidation of a legal person, except in the case provided for in article 22, paragraph 3 of the present law;
5) death of the insured, except in the case provided for in the first part of article 22 of this law;
6) non-compliance by the insurant obligations under paragraph 1 of article 25 of this law.
2. The insurance contract may be discontinued early on demand of the insured or the insurer, if it is stipulated in the agreement.
3. the insurer shall have the right to suspend or terminate it when you increase the risk of the occurrence of the insured event.
4. the agreement may be suspended, and the insurer is released from responsibility for partial or complete non-performance of obligations, if this failure resulted from force majeure circumstances arising after conclusion of the contract as a result of extraordinary events which the parties could not have foreseen and prevented.
5. in case of premature termination of a contract of insurance on demand of the policyholder, the insurer gets him premiums (insurance premiums) for unfinished contract term minus incurred costs. However, if the requirement of the insured due to violation of insurance regulations, the insurer he fully returns to the insured made them insurance contributions (premiums).
6. When advance termination of the insurance at the request of the insurer, he fully incorporated the policyholder them insurance contributions (premiums). However, if the insurer's demand due to failure by the insured insurance rules, he returns to the policyholder premiums (insurance premiums) for unfinished contract term minus incurred costs.
 


Article 28. The invalidity of the contract of insurance

 
The insurance contract shall be void if he concluded: 1) legally incompetent persons or persons limited in dispositive capacity;
2) with a person who, at the time of conclusion of the contract in a State of insanity or incapable of giving a report of its actions;
3) with a person without legal capacity to enter into a contract on behalf of the insurer;
4) in respect of property acquired in a manner prohibited by law, subjected to inventory, arrest or subject to confiscation in accordance with the Court's decision, which entered into legal force, or rendered them in accordance with the legislation of Turkmenistan, an order of confiscation of property;
5) after the insured event, the insurance contract provides for the payment of the sum insured (insurance compensation);
6) non-compliance with the written form of the contract of insurance;
7) with a view to deliberately directed against the interests of the State;
8) with insurers who have not been registered and not obtaining a license;
9) with respect to movable and immovable property acquired by the perpetration of acts against objects protected by the legislation of Turkmenistan;
10) with regard to the logistic and other funds intended for the financing of terrorist activities;
11) with conditions contrary to the legislation of Turkmenistan.
2. In the case of annulment of a contract of insurance in accordance with the procedure established by the legislation of Turkmenistan, the insurer policyholder designated insurance (insurance premium), except when the insurance contract the insured aimed against the interests of the State.
 


Article 29. Denial of insurance claims

 
1. the insurer shall have the right to refuse fully or partly in the insurance indemnity in case of untimely notification of an insured event the insured, as well as if the insurance case occurred as a result of: 1) intentional actions of the insured or the person in favor of whom the insurance contract is concluded, to increase the risk of the occurrence of the insured event. This does not apply to activities related to the implementation of civic duty or protection of life, health, honour and dignity;
2) committing the insured or the insured's intentional crimes for which they were prosecuted and convicted;
3) committing the insured or the insured's action is in condition of alcohol, narcotic or toxic inebriation;
4) reports the insurer false information about the circumstances of the insurance if the concealing circumstances is in causal relation with the occurrence of the insured event.
2. the amount of the partial refusal is determined by insurer and may be specified in the regulations or the conditions of insurance.
 
Article 30. Reinsurance treaty
 

1. reinsurance treaty shall apply under this chapter, the rule applicable in respect of insurance business risk reinsurance contract provides otherwise. While the insurer under the insurance contract (the basic agreement), signed the reinsurance contract is considered in this latest contract by the policyholder.
2. it is the consistent conclusion of two or more contracts of reinsurance.
3. Insured event under the contract of reinsurance is that payment of the sum insured (insurance compensation) on the main treaty.
4. in addition to the reinsurance contract as evidence of the agreements reached between the insured and the reinsurer reinsurance conditions or agreements on the settlement of claims of insured persons, beneficiaries on the implementation of the payment of the sum insured (insurance claims) are documents used in international traffic and business practices in the field of reinsurance.
 
Chapter 5. Financial and economic activity of INSURERS (REINSURERS) article 31. Basics of financial-economic activity of insurers (reinsurers)

 
1. Financial and economic activity of the insurer, reinsurer aims at ensuring performance of obligations to the insured and shall be carried out on the complete economic independence.
2. the main indicator of generalizing the results of financial-economic activity of insurers (reinsurers) is profit, defined as the difference between revenues (insurance premiums) and deductions provided for by the tax legislation of Turkmenistan, as well as profits from the investment, brokering or other activity related to insurance.
3. Profits of insurers (reinsurers) after payment of taxes and other obligatory payments to the State budget of Turkmenistan remains in their possession.


 



Article 32. Solvency and financial stability of the insurer (reinsurer)

 
1. Validity of the insurer (reinsurer) is determined by its ability to timely and fully meet their financial obligations.
2. Indicators of solvency insurer (reinsurer) is their compliance with normative correlations between commitments made and assets (liquidity). These ratios calculation technique establishes a body of State insurance regulation.
3. The financial stability of the insurer (reinsurer) is determined by its ability to maintain solvency throughout the duration of the commitments on insurance and reinsurance treaties, taking into account the possible adverse effects of external financial and other factors.
4. Financial soundness indicators insurer (reinsurer) include: 1) the minimum size of the authorized capital and insurance reserves, as well as equity capital;
2) assets and their degree of diversification;
3) indicators of capacity to pay;
4) ratio of insurance and reinsurance obligations;
5) profitability provided insurance and reinsurance services;
6) coefficient of effectiveness of investment activity.
5. in determining the authority of State insurance supervision level of solvency and financial stability of the insurer (reinsurer) the value of its assets is calculated according to their classification by quality and liquidity.
6. Shareholders ' equity of the insurer (reinsurer) is defined as the value of all assets less the amount of insurance reserves and other liabilities.
7. the methodology of calculation of the value of the assets according to their liquidity and quality classification is set by the State insurance supervisory authority.
 
Article 33. Prudential norms and other mandatory to comply with norms and limits 1. Supervision of solvency and financial stability of the insurer (reinsurer) and persons subject to supervision on a consolidated basis, is made for them by establishing prudential norms and other mandatory standards and regulations.
2. Prudential norms are set by the State insurance supervisory authority and include: 1) solvency ratios;
2) standards of financial stability.
3. The maximum amount of the obligations of the insurer (reinsurer) according to individual risks (applicable only when voluntary insurance), as well as regulations of the ratio between commitments made and assets according to their liquidity, mandatory insurer (reinsurer), are established by the Cabinet of Ministers of Turkmenistan.
4. The insurers (reinsurers) making commitments in volumes, exceeding the ability to perform them at the expense of the statutory fund and insurance reserves, should cover part of their obligations to insurance with another insurer or reinsurer.
5. Means of premiums (insurance premiums) and other legitimate sources insurer generates insurance reserves: 1) premiums on insurance undertakings attempted taking into account limitations;
2) declared but unpaid obligations;
3) on long-term life insurance;
4) liability insurance and property insurance;

5) for payment of remuneration to the workers of enterprises, organizations and institutions contributing to the development of voluntary types of insurance;
6) other reserves, based on the characteristics of specific types of insurance.
6. The reinsurer must also develop insurance reserves, contributions which should coordinate with the State insurance supervisory authority.
7. Ensure the financial sustainability of the insurer (reinsurer) is also carrying out preventive measures to reduce the likelihood of accidents. Activities to reduce the probability of accidents can be both insurer and by financing its activities by others.
8. the funds credited in insurance reserves and financing preventive activities are included in the cost of insurer (reinsurer). Requirements for methodology of calculation of insurance reserves and stacking order of insurance provisions are established by the authority of State insurance regulation.
9. The insurers engaged in life insurance in conjunction with other types of insurance, in particular, property, liability insurance, financial risks, are required to maintain separate accounting and balance.
10. placement of insurance reserves should be insurers (reinsurers) in terms of diversification, recovery, profitability and liquidity.
 


Article 34. Central Provident Fund

 
1. in order to provide financial assistance to insurers (reinsurers), in cases of occurrence of extreme events, which are massive, and lack of financial means and assets to perform obligations to the insured, as well as to finance preventive activities insurers (reinsurers) form a Centralized insurance fund by deductions of funds from insurance contributions (premiums).
2. The procedure for the formation and use of Central Provident Fund is determined by the State insurance supervision authority upon agreement with the Cabinet of Ministers of Turkmenistan.
 
Chapter 6. State regulation and STATE SUPERVISION OVER the ACTIVITIES in the field of insurance Article 35. The tasks of the State regulation of activities in the field of insurance 1. The main tasks of the State regulation of activities in the field of insurance are: 1) the creation and maintenance of stable insurance system of Turkmenistan and the formation of the insurance market infrastructure;
2) insurance market regulation and supervision in the field of insurance;
3) protection of the rights and legitimate interests of policyholders, insured persons, beneficiaries.
2. Implementation of the State policy in the field of insurance, including the provision of State monitoring of the situation on the insurance market, is carried out by the public insurance supervisory authority and other State bodies within their competence.
 


Article 36. State supervision over insurance activities

 
1. State regulation and supervision of insurance activities carried out by the authority of State insurance regulation.
2. State supervision over the activities of entities of insurance activity is carried out in order to comply with the legislation of Turkmenistan in the field of insurance, effective development of insurance activity, protect the rights and interests of policyholders, insurance entities, and other stakeholders.
3. The core functions of the State insurance supervisory authority for the supervision of insurance activities are: 1) the implementation of State policy to ensure the operation of the insurance system of Turkmenistan, the insurance market infrastructure, protection of the legitimate interests of insurers and other participants in the insurance market;  
2) define principles and methods of regulating the insurance market, the Organization of the State supervision in the field of insurance;
3) the granting of licences to entities of insurance activities on the implementation of activities in the field of insurance;
4) conducting the State Register of insurers, reinsurers and insurance brokers;
5) define the maximum size accepted responsibility towards private insurance reserves;
6) harmonization of insurance rules for specific types of compulsory and voluntary insurance;
7) establishing prudential norms and other mandatory standards and limits for the insurer (reinsurer), monitoring their observance;
8) monitor the validity of insurance rates and ensuring the solvency of insurers (reinsurers);
9) establishing rules of formation and placement of insurance reserves, as well as rules of insurance rates and profit at insurer (reinsurer);
10) definition of qualification requirements for subjects of insurance activity;
11) establishes the rules of accounting entities insurance activities insurance (reinsurance) contracts, insurance policies;
12) adjusting system of accounting and financial reporting;
13) establishing, in agreement with a public authority on statistics list of forms and deadlines for the submission of statistical reporting subjects of insurance activity;
14) audits (inspections) subjects of insurance activity;

15) the imposition of sanctions on participants of insurance market;
16) development of normative legal acts and methodological documents governing the activity of insurance activity;
17) monitoring compliance with the subjects of insurance activity of this law and other normative legal acts of Turkmenistan in the field of insurance;
18) decisions on the suspension of the licenses issued to subjects of insurance activity;
19) generalization of practices in the areas of insurance, development and representation in the established order proposals on perfection of legislation of Turkmenistan in the field of insurance;
20) promoting new types of insurance and the development of proposals for the improvement of activities in the field of insurance.
4. the authority of the State insurance supervision has the right to: 1) require from subjects of the insurance business of the statistical and other reports on activities in the field of insurance, information about their financial situation;
2) to verify compliance with the subjects of insurance activity in the field of insurance legislation of Turkmenistan and the veracity of their reporting;
3) at revealing of infringements by subjects of insurance activities with the requirements of the present law give them prescriptions to address them, and in case of failure to comply with requirements to suspend their licences until the Elimination of revealed violations or apply to the Court for annulment of the license;
4) inform through the media about the subjects of insurance activities which violate the legislation of Turkmenistan.
5. the State Insurance Supervisory Authority ensures the prevention, control and suppression of monopolistic activity and unfair competition in the insurance market of Turkmenistan.


 



Article 37. Licensing of activities in the field of insurance

 
1. licensing of activities in the field of insurance is carried out by the public insurance supervisory authority in accordance with the legislation of Turkmenistan.
2. subjects of insurance are entitled to carry out activities in the field of insurance from the date of receipt of the appropriate license.
 
Article 38. Taxation in insurance Taxation in insurance activity is carried out in accordance with the tax laws of Turkmenistan.
 


Article 39. Accounting and reporting 1. Insurance entities provide accounting, preparation and presentation of financial and statistical reporting in accordance with the legislation of Turkmenistan.
2. subjects of insurance are required to provide mandatory annual audited financial statements.  
Mandatory audit of annual financial statements the subjects of insurance activity is carried out by the auditor with the appropriate license, in accordance with the legislation of Turkmenistan.
Requirements for auditing of insurance organizations shall be established by the legislation of Turkmenistan.
Subjects of insurance activity in the terms established by the legislation of Turkmenistan, are in the relevant bodies of State statistical reporting and Auditor's report, which is an indispensable element in their financial statements. For insurance activity binding is also the presentation of the audit report in the body of the State insurance supervision.
3. The auditor shall immediately notify the State insurance supervisory authority regarding violations of the legislation of Turkmenistan, identified through mandatory audit activity of the subject of insurance activity.
4. the insurer (reinsurer) must have in its structure the internal control service, which is not subject to licensing.
5. Procedure for conducting internal audit is defined in the internal documents of the insurer (reinsurer) taking into account the requirements of the authority of State insurance regulation.
6. subjects of insurance activities and their officials are responsible for the accuracy of the information contained in the financial and statistical reporting, and the timeliness of its presentation.
 
Article 40. Sanctions for violation of the legislation of Turkmenistan in the field of insurance 1. For violation of this law and other normative legal acts of Turkmenistan in the field of insurance provided for penalties: 1) in respect of subjects of insurance activity: a) written warning;
b) fine;
ç) license suspension;
d) treatment with legal action for annulment of the license;
2) in respect of the insured-fine.
2. the sanctions referred to in paragraph 1 of this article shall be applied by a State insurance supervision all have violated the legislation of Turkmenistan in the field of insurance to individuals and legal entities, as well as to foreign legal entities, including their branches and representative offices, and are carrying out their activity on the territory of Turkmenistan.
3. the amount of the fines and order their penalties are established by the Cabinet of Ministers of Turkmenistan.
 
Chapter 7. FEATURES of the APPLICATION OF THIS LAW Article 41. Insurance interests of natural and legal persons of Turkmenistan

 

1. Natural and legal persons of Turkmenistan have the right to conclude insurance contracts with insurers licensed to operate in the field of insurance in the territory of Turkmenistan.
2. list of types of insurance, for which legal persons of Turkmenistan may conclude treaties with foreign insurance companies is determined by the Cabinet of Ministers of Turkmenistan.


 



Article 42. Activities in the field of insurance involving foreign investors 1. Foreign investors (insurers, reinsurers, insurance brokers) have the right to insurance, reinsurance and brokerage activities through the establishment of joint ventures and obtain relevant licence for insurance activities on the territory of Turkmenistan.
2. percentage of participation of foreign capital (the investor) in the joint insurers, reinsurance and insurance brokers should not exceed 49 percent of the statutory fund.
3. Minimum authorized share capital insurers, reinsurers and insurance brokers with foreign investors is established by the Cabinet of Ministers of Turkmenistan.
4. it is forbidden to participate in the creation of an insurance broker on the territory of Turkmenistan of the non-resident organizations of Turkmenistan, which is not an insurance broker, as well as the opening of branches and representative offices of non-resident insurance broker of Turkmenistan on the territory of Turkmenistan.
 


Article 43. Insurance of foreign natural and legal persons and stateless persons in Turkmenistan

 
1. Foreign legal entities, including their branches and representative offices, registered or operating in the territory of Turkmenistan, as well as foreign natural persons and stateless persons on the territory of Turkmenistan are entitled to insurance coverage and carry the responsibility for violation of legislation of Turkmenistan in the field of insurance on the same footing as natural and legal persons of Turkmenistan.
2. Located on the territory of Turkmenistan of foreign legal persons property, including property, their branches and representative offices registered or operating in the territory of Turkmenistan, foreign natural persons and persons without citizenship shall be insured in accordance with this law and other normative legal acts of Turkmenistan in the field of insurance only insurers licensed to operate in the field of insurance in the territory of Turkmenistan.


 



Article 44. Participation of entities of insurance activity in international associations

 
Subjects of insurance activity in Turkmenistan have the right to participate in international associations of insurers (reinsurers).
 
 


Chapter 8. FINAL PROVISIONS

 


Article 45. Resolution of disputes

 
1. any disputes arising out of relations in the field of insurance, shall be settled in the manner prescribed by the legislation of Turkmenistan.
2. When considering recourse claims of insurers (reinsurers) of Turkmenistan shall be exempt from payment of State fees.
 
Article 46. The entry into force of this law 1. This law shall enter into force on the day of its official publication.
2. the void: the law of Turkmenistan "on insurance" from November 24, 1995 onwards (statements of the Mejlis of Turkmenistan, 1995, no. 3, p. 42);
Part VII of the Act of Turkmenistan on July 2, 2009 year "O the introduction of amendments and additions to some legislative acts of Turkmenistan" (records of the Mejlis of Turkmenistan, 2009 г., no. 3, p. 45).
3. Normative-legal acts of Turkmenistan contrary to this law are liable to bring into line with them within one month from the date of its entry into force.
 
 
    Turkmen President Gurbanguly Berdimuhamedov mountains. Ashgabat December 22, 2012 year no. 356-IV.