In line with the Resolution of the President of the Republic of Uzbekistan of 10 April 2007 "On measures to further reform and develop the market for insurance services", the State Insurance Inspectorate under the Ministry of Finance has prepared the draft of the Law of the Republic of Uzbekistan "On compulsory insurance of employer’s civil liability."

The bill envisages the introduction of compulsory insurance of employer’s liability, which may arise in case an employee dies or suffers damages to health due to injury at work, occupational disease, or any other damage to health related to the performance of labour obligations.

The draft law envisages that the responsibility for the insurance of its liability is compulsory for all employers, regardless of the form of ownership, UzReport.com reported.

This type of compulsory insurance is new to the insurance market of Uzbekistan, and will be provided by the insurance companies licensed to provide services on mandatory insurance of civil liability according to the license issued specifically by the authorized state agency through the procedure established in the legislation.

The draft law also envisages that in order for the insurance company to provide this type of insurance services, it must have its agents authorized to sign contracts on compulsory insurance, consider the requirement and make insurance coverage payouts in the Republic of Karakalpakstan, the regions and the city of Tashkent.
The sum of the insurance coverage and the rates for compulsory insurance will depend on the degree of risk associated with the employer’s activity.

Also, due to the specificity of this type of insurance, the draft law also obliges the employer to sign life insurance and annuity agreements benefiting the employee who has suffered damages, or if the latter has died, benefiting persons who have the right for the coverage of damages as a result of accident.

Life and annuity insurance agreements should be signed in case of the determination of monthly payouts to the employee who has suffered damages to health at work, or if the latter died to persons who have the right for the coverage of damages, for the period of over one year.

The draft law has an important social meaning in the conditions of modern development of the labour market, which is why at this time nearly all insurance organizations of the country and the Association of the Professional Participants of the Insurance Market are involved in its consideration and discussion.