Tiraspol, 27 December. /Novosti Pridnestrovya/. Last week the Supreme Council drafted by the second reading the bill «On mandatory insurance of civil liability of vehicle owners» (OSAGO). Discussion on the introduction of the OSAGO insurance has been under way since 2013. The government twice submitted OSAGO bills to the parliament, but each time they were rejected following long debates. However, the OSAGO insurance was introduced in June 2015 by President Shevchuk's decree after a corresponding agreement between Moldova and Pridnestrovie had been reached in April 2015. The protocol decision on that issue allowed Pridnestrovie's motorists to travel in Moldova with Pridnestrovie-issued insurance policies. Earlier, they had had to acquire them in Moldova.
In April 2016, Supreme Council members submitted their own bill on OSAGO, although it is still under discussion in connection with constantly proposed amendments. The MPs' bill may be approved soon and its embedding in Pridnestrovian legislation will require amendments to other laws, President Vadim Krasnoselsky said yesterday, proposing several amendments to the current regulations that may contradict the law on OSAGO: «On insurance business», «On corporate tax» and the Code of the PMR on Administrative Offences.
Additions to the law «On insurance business»
Krasnoselsky has proposed to stipulate mandatory types of insurance, including OSAGO, and determine what fundamental rules should underline this insurance. In addition, the presidential amendments set out the requirements for OSAGO insurance companies — the minimum amount of their paid-up authorised capital shall be 750,000 calculated levels of the minimum salary. Meanwhile, the MPs' bill suggests that an insurer can sell OSAGO policies provided his paid-up authorised capital is no less than 1,000,000 calculated levels and his insurance funds to 500,000 calculated levels. In the autumn, President Shevchuk had already proposed to decrease the amount of the authorised capital to 350,000 calculated levels, which is why the parliament is likely to modify their bill soon, taking into account the sitting president's initiatives.
Amendments to the law «On corporate tax»
The president has also proposed to exempt from taxation insurers' revenues received as reimbursement for claimed insurances. This income shall correspond to the amount of insurance benefits paid as direct reparation of damages to victims
«Besides, it will be necessary to exempt from taxation the revenues of insurance companies transferred by NGOs to form a fund for compensation payments. In other words, the part of revenues which insurance companies must transfer to ASAS to form a fund of compensation payments," reads the explanatory note to the draft law.
Changes in the Code on Administrative Offences
In order to comply with the principle of civil liability of vehicle owners, Krasnoselsky proposes administrative sanctions against those who drive a vehicle without OSAGO policies, with overdue policies and policies with no driver's name indicated. Fines will vary from 2 to 10 calculated levels, depending on an offence.
According to the explanatory note to the presidential amendments, additions to the law «On insurance business» and the Code on Administrative Offences are similar to the current regulations stipulated in Russian federal laws. Russia's tax code, however, does not provide for tax benefits for OSAGO insurers as is the case with Pridnestrovie. This is due to the difference between the Pridnestrovian and Russian tax systems.
Vadim Krasnoselsky has submitted his bills in the regime of legislative necessity, which means they are to be considered until 28 December.
