Compulsory motor insurance
22 July 2013 Reading: 3 min Views: 3 654
Why compulsory motor insurance is needed and what can replace it
Compulsory motor insurance, vehicle owner's civil liability insurance, or motor insurance.
None of the above is the same type of insurance, but drivers use all of these terms to refer to compulsory civil liability insurance (hereinafter, MTPL) for vehicle owners. Vehicle owners do not always like this type of insurance, as they see it as an extra, unnecessary expense; in the view of experts, this is a rather selfish approach. Experts are confident that few vehicle owners would be able to compensate quickly and without undue pressure for damage of 2 000 000 tenge that they have caused; as a rule, in such a case the vehicle owner starts avoiding the person to whom they owe compensation. A compulsory motor insurance policy provides social protection for vehicle owners and is designed to protect injured parties from accidental hazards on the road or from careless drivers by compensating, if not the moral, then the material part of the damage. If this article has not answered your questions, see other materials or other types of motor insurance.
Why compulsory MTPL insurance for vehicle owners is needed
Here are all the reasons:
- Compulsory motor insurance is regulated by law;
- Operating a car without compulsory insurance is prohibited
- A vehicle owner will suffer heavy losses in the event of a road accident if they do not have a motor insurance policy at the time.
Concluding a motor insurance contract
Stages:
- The insurance premium is calculated in accordance with the requirements of the law; the calculation is performed automatically by a unified program;
- An application form is completed;
- The compulsory motor insurance premium is paid;
- The compulsory motor insurance policy is issued.
How much a compulsory motor insurance policy costs
The price of a motor insurance policy is set by law and is mandatory and the same for all insurance companies, so vehicle owners do not need to rely on price when choosing an insurance company
What a compulsory motor insurance policy protects
A compulsory motor insurance policy covers the vehicle owner's civil liability, i.e. if harm is caused to the health or property of third parties while driving a motor vehicle, all the damage caused will be compensated by the insurance company.
What can replace a compulsory motor insurance policy
Nothing. In Kazakhstan there is no alternative that would exempt you from compulsory motor insurance, so you have to buy a policy in any case.