TURKMEN parliament approves insurance bill

The Majlis (Turkmen Parliament) at the next meeting of the fourth convocation of the country has approved the law on Insurance, an official Turkmen source said today.

Local experts say that economic reforms in Turkmenistan gave a powerful impetus to rethink the role of insurance which is one of the main financial instruments of a market economy.

The bill was prepared within the implementation of the provisions of the state programe of insurance and insurance activity development in Turkmenistan for the period till 2015.

The new law will determine the basic provisions for implementing the insurance, challenges of state regulation of the insurance market and the principles of control and supervision of insurance activity, especially the establishment, regulation and termination of insurance (reinsurance) organisations' activity and the conditions of activity in the insurance market.

It was reported that Turkmenistan is working to establish the insurance company and the closed joint stock company in July 2012.

The Turkmen President Gurbanguly Berdimuhamedov emphasised that insurance is an important factor promoting economic and business activity, new areas of investments, helps to prevent the significant diversion of working capital for compensation and to ensure continuity of the production cycle in terms of transiting to a market economy.

"Insurance also has social significance as an effective mechanism to protect physical and legal entities from the risks," the Turkmen president said. "It is the source of domestic long term investments in the country."

The Turkmen State Insurance Organisation has an extensive network in the country of more than 40 offices. At this stage, the organisation is expanding partnerships with leading international insurance and reinsurance companies and insurance brokers.

A considerable part of the reinsurance is implemented through such large insurance brokers in London insurance market as Marsh Ltd, AON Ltd, Colemont Ltd, HSBC and Willis Ltd. This allows ensuring prompt and adequate compensation for damage caused by an insured case.

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