In Kyrgyzstan, the Compulsory Motor Third Party Liability Insurance (CMTPL) system will be fully operational from 1 January 2025, including fines for the policy's absence. Currently, CMTPL insurance is mandatory only for vehicle registration and re-registration.

The law on compulsory motor insurance can be called one of the most long-suffering. Adopted in 2015, its implementation has been delayed for almost a decade. Paradoxically, it was opposed by car owners themselves. However, it is they, who should be more interested in CMTPL insurance than anyone else.

ABOUT CAR INSURANCE

How many stories do we hear that a road accident victim cannot get compensation for damages because the guilty party has no money? In the best case, you can receive money in parts. On the flip side, if you are at fault, you will have to find money in your budget to compensate for the damages. These problems can be avoided if you take out a CMTPL insurance policy.

The CMTPL policy costs 1,680 KGS per year and more, and the price depends on a driver's age, his/her driving experience, the volume of the car engine and other factors (its cost can be calculated on our website). When compared to petrol expenses, which is how much drivers spend per week, the insurance price looks quite small. At the same time, it provides financial protection in case of accidents. Some insurance companies even offer instalment payments, which makes the policy even more affordable.

Buying a CMTPL policy at a relatively affordable price can save you up to 450,000 KGS - the maximum amount of insurance payout under the policy.

However, many people are stopped not so much by the cost of the policy, but by a lack of confidence in insurance companies that they will pay out money when an insured event occurs. It is not uncommon to hear stories about how acquaintances of acquaintances have had problems receiving compensation from insurance companies. However, no one knows these people, but, for some reason, we believe them unconditionally. I decided to share not someone else's, but my experience as a car owner who has been using an insurance company's services for four years.

Ever since I first got behind the wheel in 2020, I've realised that car insurance is more than just a legal requirement, it's a lifeline. My driving experience started with two policies: public liability insurance (VCMTPL, as CMTPL was not available at the time) and voluntary comprehensive insurance (CASCO), which my husband insisted on. VCMTPL (since this year it is CMTPL) costs me about 2,300 KGS per year, while CASCO costs $210. When I was buying them I didn't realise it was one of my most sensible decisions.

FIRST EXPERIENCE: A CAR ACCIDENT RIGHT AFTER GETTING INSURANCE

Right after my policies' processing, I was driving away from the insurance company, contented, when my first auto incident happened. Trying to avoid a pothole in the pharmacy car parking lot, I drove too close to the stairs and scratched my car's right door.

I was told by my insurance company the accident perpetrator would also benefit. If necessary, they will give him an instalment for the damage amount payment, which can be up to 12 months. And if he had insurance, like me, his insurance company would cover everything for him. It seems to me after this case he will take out CMTPL because he asked me everything in detail for a reason.

So for me, car insurance is not just a legal formality, it is a reliable protection for my car. My CASCO policy has proved invaluable in cases where the responsible party could not be identified and the insurer has consistently provided quick repair solutions. The combination of CMTPL and CASCO saved me time, money and, most importantly, nerves.

That was my first insurance case. Following the insurance company's instructions, I immediately called the accident commissioner. The specialist quickly came to the place, took photos, fixed the damage and arranged for repair at a partner car repair shop. I had a choice between a cash payout or repair by the insurance company itself. I chose the latter and the repair was done quickly and efficiently.

This experience confirmed my CASCO value.

For a while after this incident, my driving life went on without incident until, in the parking lot where I work, someone taking an unfortunate turn scratched my car and fled.

In this situation, as with any off-roading incident, I had to contact the police. After hours of paperwork, I applied to the insurance company and was offered a choice again - repairs or money. Again, I chose repair and was happy with the outcome.

A SERIOUS ACCIDENT: A REAL CHALLENGE FOR INSURERS

The biggest accident happened to me on 29 February this year. Returning home from work, travelling along Zhibek Jolu Street, I stopped before a crosswalk to let pedestrians pass. At that moment, a car crashed into my car from behind at quite a high speed. Fortunately, I always wear my seatbelt. This allowed me to avoid serious injury, but the damage to my car was substantial.

The driver who had hit my car tried to shift the responsibility onto me, blaming me for braking too sharply and failing to switch on my hazard lights. However, witnesses confirmed that the collision occurred when my car was stationary and became a buffer to his dangerous manoeuvre as he almost hit pedestrians.

Having realised his guilt, the driver switched from accusations to persuasion to solve everything on the spot without the traffic police and the insurance company. He gave a cursory estimate of the damage to my car at $300, and with the words here is my phone number, I will pay later, he was about to leave. However, knowing my rights and having insurance, I insisted on the official procedure.

As a result, after night measurements at the accident scene, transporting the car to the impound lot and undergoing a drug test, the documents were handed over to the police. There the driver's guilt was officially confirmed and I proceeded with the insurance indemnity.

An independent appraiser assessed the damage several times more than the accident perpetrator. I received the money on my card within a month after the accident.

After the dialogue in the police office, I did not see the accident perpetrator, but I did not need it. After all, he now has financial obligations to the insurance company, and I, having received the money, quietly started repairing my car.

I was told by my insurance company the accident perpetrator would also benefit. If necessary, they will give him an instalment for the payment of the amount of damage, which can be up to 12 months. And if he had insurance, like me, his insurance company would cover everything for him. It seems to me that after this case he will take out CMTPL insurance because it was not for nothing that he asked me everything in detail.

So for me, car insurance is not just a legal formality, it is a reliable protection for my car. My CASCO policy has proved invaluable in cases where the responsible party could not be identified and the insurer has consistently provided quick repair solutions. The combination of CMTPL and CASCO saved me time, money and, most importantly, nerves.