Kazakhstan to introduce mandatory real estate insurance schemes

Kazakhstan plans to introduce mandatory insurance of real estate owned by individuals, KazTAG reports. Respective draft law has been prepared by the country’s Ministry of Economic Affairs and Budget Planning. According to the draft law, insurance will be obligatory for all types of housing up to 35 square metres per person; for the rest of the floor area there will be voluntary insurance schemes in place. World War 2 veterans, the disabled and the retired will be exempted. Real estate shall be insured against earthquakes, landslides, winds, snowfall, avalanches, floods, cases of subsidence in areas of extraction of natural resources, other natural disasters, and man-caused explosions and fires. Foreigners and stateless citizens owning real estate in Kazakhstan will enjoy the benefits of insurance indemnity equally with Kazakhstan’s citizens. The insurance schemes will be administered by the government-owned non-for-profit State Fund for Real Estate Insurance. The Government shall define the maximum fee payable to the Fund and the order of calculating insurance indemnity. Disposable assets of the Fund will be invested into financial instruments through the National Bank (Central Bank of Kazakhstan).