Afghanistan enforces mandatory commercial property insurance
By Mirwais Adeel - Tue Jan 08 2013, 1:13 pm
Head of the Insurance Regulatory Body in Afghan Finance Ministry Fazal Bari Mumtaz following a press conference along with the representatives of the Insurance companies said the finance ministry has sent a regulation that enforces compulsory insurance for all the commercial zones to Afghan justice minitry.
He said the regulation will be approved in the near future and the business owners will not be able to continue to their operations unless they do not insure their properties.
The implementation of the new regulation will pour a large amount of money to insurance companies accounts however Fazal Bari Mumtaz head of the insurance regulatory body said, “We have also prepared a regulation which monitors the investments of the insurance companies in Afghanistan.”
However there are also concerns regarding the operations and liabilities of the insurance companies but head of the insurance regulatory body in Afghan finance ministry says that the companies will deposit $2 million as security in the finance ministry.
He insisted that the earnings through insurance companies was 99 million Afghanis last year.
In the meantime representatives of the insurance companies who attended the press conference vowed that they will be able to compensate all the losses to Afghan business owners.
A spokesman for the Afghan finance ministry Wahidullah Tawhidi said the insurance companies paid around $4.5 million worth of claims last year.
The representatives of the insurance companies also urged to prevent operations of the foreign insurance companies in Afghanistan who are paying any taxes to the Afghan government.
They also urged the Afghan government to assist the insurance companies with the tax payments and the government should not charge the local companies to pay taxes for at least 10 years.
But head of the Afghan insurance regulatory body in Afghan finance ministry said that only one foreign insurance company legally operates in Afghanistan and the finance ministry is looking to increase the earnings of the Afghan government will not be able to exempt insurance companies from taxes.
The issue of compulsory insurance regulation comes after millions of dollars were lost following a fire incident in a market in capital Kabul recently.