Insurance laws Belarus
The insurance sector in Belarus is highly regulated by the state, with the Ministry of Finance as the primary regulatory and supervisory body. The main legal framework is established by the Law of the Republic of Belarus "On Insurance Activity" and other presidential decrees and legal acts.
Here are the key aspects of insurance laws in Belarus:
1. State Regulation and Supervision:
Ministry of Finance: This ministry is responsible for implementing state policy in the insurance field, exercising state supervision, and licensing insurance companies. It ensures the solvency and stability of insurers and protects the interests of policyholders.
State-owned insurers: The Belarusian insurance market is dominated by state-owned companies, such as Belgosstrakh, which is the largest insurer, and Beleximgarant, which specializes in export and import insurance.
2. Forms of Insurance:
Belarusian law distinguishes between three forms of insurance:
Voluntary Insurance: This is performed by concluding a contract between the insurer and the insured, and the conditions are determined by the parties.
Compulsory Insurance: This is mandated by acts of the President and is required for certain individuals or activities, such as civil liability, health, or property.
Imputed Insurance: This is also a compulsory form of insurance, but it is a prerequisite for carrying out a specific business activity or receiving certain benefits.
3. Compulsory Insurance:
Several types of insurance are mandatory in Belarus, including:
Compulsory Medical Insurance: This is required for foreign citizens and stateless persons temporarily staying in Belarus. The policy must have an insured amount of at least €10,000 and be valid for the entire period of their stay.
Motor Third-Party Liability Insurance: Vehicle owners are required to have this insurance, which covers personal injury and property damage to third parties.
Agricultural Insurance: A presidential decree mandates insurance with state support for crops, livestock, and poultry. Belgosstrakh is the designated insurer for this type of insurance.
4. Foreign and International Companies:
The Belarusian insurance market is largely domestic-focused. Foreign insurance companies can operate, but they must comply with Belarusian law.
Non-admitted insurance (insurance purchased from an insurer not licensed in the country) is generally not permitted.
Non-admitted reinsurance is allowed, but only after an offer has been rejected by Belarus Re, the national reinsurance organization.
The state-owned Belarusian National Reinsurance Organization ("Belarus Re") has a significant role in the reinsurance market.
5. Other Regulations:
Composite Insurance: Insurers are not permitted to offer both life and non-life insurance. They must specialize in one or the other.
Solvency and capital requirements: The Ministry of Finance sets specific rules regarding the capital and solvency of insurance companies to ensure they can meet their obligations.
"Cooling-off period": The law establishes a period, not exceeding 10 days, during which an individual can cancel an insurance contract and receive a full refund of the premium, provided that no insured event has occurred.
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