Compulsory auto insurance rates are expected to increase in Uzbekistan

A revision of the compulsory civil liability insurance tariff for vehicle owners, last approved in 2019, is currently in progress. This update comes from the National Agency of Prospective Projects of the Republic of Uzbekistan.

Several factors are driving the need to revise the insurance tariff:

• In recent years, vehicle owners have increasingly complained that insurance organizations delay compensation payments and that the maximum payout is insufficient to cover vehicle damages.
• Analysis indicates that the insurance premium of 56,000 soums, set in 2019, is inadequate to cover insurance organizations' losses, leading to payment delays. In Tashkent, for instance, the harm level reached 146 percent in 2023.
• Since 2019, the fixed insurance amount of 40 million soums has been insufficient to adequately cover damages to victims of road traffic accidents.

According to World Bank statistics, the consumer price index in Uzbekistan has risen by 160% over the last five years. Additionally, the minimum wage has increased by 265%, and the base rate by 168%.

Currently, insurance premiums and payouts in Uzbekistan are among the lowest compared to neighboring and other countries.

"To address this issue, it is planned to determine acceptable insurance rates and sums for vehicle owners and insurance organizations through reasonable calculations," stated the report.

The National Agency of Prospective Projects has invited citizens to submit their suggestions and comments via the Napp_connect_bot on Telegram.