The Cabinet of ministers determined, how will insure their responsibility notary
Date: 17.08.2015. Section: Press Review, Trends in Insurance, Top
The Cabinet of ministers determined how will insure their responsibility notary
By the end of August, notaries will be able to enter into contracts of compulsory insurance of liability on the basis of the decision of the Cabinet “On Approval of the Procedure and the rules of the compulsory insurance of civil liability of private notary”, the draft of which was approved yesterday at the government committee. Next week, the decision will be made and come into force, according to expert estimates, at the end of the month. “The adoption of this regulatory act will establish a common procedure and the general rules for this type of insurance,” – said a member of National regulator Alexander Zaletov. Also decided to allow the long-standing conflict, which has arisen due to the fact that the law provides for compulsory liability insurance of notaries, and the terms of its implementation of the government is not determined.
Notary assistance
The fact that the law “On Notary” private notary is obliged before starting its activities to conclude a contract of insurance of civil liability to compensate the customer for damages in case of providing poor quality services for registration of rights to immovable property. Compulsory insurance of liability of private notary stipulated in the law “On insurance”.
But the decree of the Cabinet, which would define specific license terms of compulsory insurance, the typical form of the contract, the insurance amount and the insurance rates or method of actuarial calculations, is still not there.
To somehow solve the problem National regulator issued a clarification, which allowed to consider policies for voluntary liability insurance sufficient condition for the start of notaries. But lawyers have begun to doubt the competence of the Committee to interpret the law. There were doubts and the regulator itself. Therefore National regulator prepared a draft decree of the CMU.
According to this document the maximum amount of liability of a notary is 1 thousand. Minimum wage, the rate of 0.1% (in the presence of the franchise up to 5%) to 0.3% (if the franchise is not). That is an annual notaries will have to pay for the insurance a little more than 1-3 thousand. UAH, that in the case of low-quality services to their customers to receive compensation amounting to 1.2 million USD.
Small market
Insurance notaries can bring insurers in a year about 20 million USD of premiums. “This is a small market. Included in the list of those that occupy less than 1% in the total volume of premiums. It’s not as interesting, such as insurance, mandatory health insurance of their property. Therefore, increasing competition in this segment after the decision of Cabinet of Ministers if it is, then a minor, “- says chairman of the board of ” Knazhia” Dmitry Gritsuta.
At the same time, according to the chairman of the commission Insurance Ukrainian Society of Financial Analysts Vyacheslav Chernyakhovsky, to compete for this market wants a lot of insurers. Not least because in many other segments of the insurance premiums are now in recession. “But the introduction of another type of protection problem of compulsory insurance in Ukraine will not solve. The state should make demands to the same notaries, lawyers, health care workers to maintain liability insurance. And decide the terms on which they will do, for some contracts and public companies, should the market rather than bureaucrats, “- said Chernyakhovsky.
Phantom right
As for the notaries, many of them do not understand what innovations will bring into their lives the decision of the Cabinet. “We insure our responsibility for a long period of time, as by law, we must do it without fail,” – said the Kiev notary Anna Trach.
As it turned out, buy insurance, many notaries are not voluntary, but mandatory. And nearly a dozen insurance companies in Ukraine already have a license for the mandatory liability insurance of notaries issued by national regulator. Although government regulations was not. “Yes, before the Commission to issue such licenses to insurers, but without the right to carry out activities, – says Alexander Zaletov. – And for companies which have violated this ban, the impact of the measures. ” In particular, the three insurance companies have prescription charges for violation of the prohibition to sell policies of compulsory insurance.
“Then why did you issue a license?” – Is perplexed Vyacheslav Chernyakhovsky. According to him, cases of issuance of the license control in the absence of government regulations are found in other types of compulsory insurance. For example, there is a license, but there is CMU in the case of liability insurance guardians of pesticides and agrochemicals, transboundary hazardous waste transporters, owners of water transport. This approach to licensing, according to Chernyakhovsky, creates conditions for the next “schemes” in the insurance market.
According to Alexander Zaletova to solve the problem, the Commission intends to prepare draft regulations of Cabinet of Ministers and other types of compulsory insurance, the conditions of work which has not yet been approved by the government.
Tatiana Terekhova