УКАЗ ПРЕЗИДЕНТА РЕСПУБЛИКИ БЕЛАРУСЬ

(Unofficial translation)

 

Edict of the President of the Republic of Belarus

No 530 of August, 2006
[Amended as of January 20, 2017]

On Insurance Activities

With a view to improve the state regulation of insurance activities:

1. To establish that:

1.1. legal persons of the Republic of Belarus, as well as foreign legal persons carrying out activities in the territory of the Republic of Belarus, citizens of the Republic of Belarus and stateless persons residing permanently in the territory of the Republic of Belarus, shall insure their property interests in the Republic of Belarus only with the commercial organizations that have been established for the purpose of carrying out insurance activities and have special permits (licenses) for carrying out insurance activities in the Republic of Belarus, unless otherwise established by the President of the Republic of Belarus.

The Republic of Belarus and its administrative and territorial units, state bodies, state legal persons, and also legal persons the decisions of which may be influenced by the State due to holding a controlling block of shares (stakes, contributions, interests) or insure their property interests according to the types of insurance not related to the life insurance in the Republic of Belarus only with insurance organizations – state legal persons or legal persons in the statutory funds of which more than 50 percent of stakes (common (ordinary) or other voting shares) are in the ownership of the Republic of Belarus and/or its administrative and territorial units, unless otherwise established by the President of the Republic of Belarus.

The Republic of Belarus and its administrative and territorial units, state bodies, state legal persons, and also legal persons the decisions of which may be influenced by the State due to holding a controlling block of shares (stakes, contributions, interests) shall carry out insurance of property interests on the types of insurance related to the life insurance in the Republic of Belarus only with the insurance organizations – state legal persons.

Foreign citizens staying in the Republic of Belarus, stateless persons temporarily staying or temporarily residing in the territory of the Republic of Belarus are entitled to insure their property interests in the Republic of Belarus with Belarusian commercial organizations that have been established for carrying out insurance activities and have special permits (licenses) for carrying out insurance activities in the Republic of Belarus, unless the duty to insure with the mentioned organizations is provided for in accordance with this Edict.

Activity in the territory of the Republic of Belarus of insurance organizations established outside the Republic of Belarus, without state registration with Ministry of Finance and obtaining the special permit (license) for carrying out insurance activities, is illegal and shall not be allowed, unless otherwise established by the President of the Republic of Belarus.

Activity in the territory of the Republic of Belarus of insurance brokers established outside the Republic of Belarus without state registration in the Ministry of Finance shall be illegal and not allowed, unless otherwise established by the President of the Republic of Belarus.

Transfer of obligations accepted by state insurance organizations and organizations in the statutory fund of which more than 50 percent of stakes (simple (ordinary) or other voting shares) are in the ownership of the Republic of Belarus and its administrative and territorial units under insurance contracts concluded with state insurance organizations and organizations in the statutory fund of which more than 50 percent of stakes (simple (ordinary) or other voting shares) are in the ownership of the Republic of Belarus and its administrative and territorial units, and also concluded at the expense of means of the republican and/or local budgets for re-insurance shall be carried out, in accordance with the legislation, to insurance organizations of the Republic of Belarus. Transfer of accepted obligations in subsequent reinsurance to insurance organizations created outside the Republic of Belarus, shall be carried out only by the insurance organization created by the Council of Ministers of the Republic of Belarus in the form of state legal person for carrying out insurance activity exclusively in the field of re-insurance  in the order established by the legislation.

1.2. as provided by legislative acts, the courts, other state bodies and other organizations, lawyers, notaries, and individual entrepreneurs are obliged to submit free of charge the documents and findings necessary for deciding the issue on awarding insurance payments upon requests of state insurance organizations, the Belarusian Transport Insurance Bureau, and/or insurance organizations, in the statutory funds of which more than 50 percent of stakes (common (ordinary) or other voting shares) are in the ownership of the Republic of Belarus and/or its administrative and territorial units.

1.3. disputes arising from relationships concerning insurance the regulation of insurance activities are settled in court.

2. [Excluded]

3. To establish that:

3.1. [excluded]

3.2. insurers and the Belarusian Transport Insurance Bureau are obliged to make insurance payments for the damage inflicted to the life, health of the victim regardless of the sums paid by the bodies of labor and social protection, paid under social insurance or according to other concluded compulsory or voluntary insurance contracts, unless otherwise established by the legislative acts.

3.3. for every day of delay of the insurance payment through the fault of the insurer, the Belarusian Transport Insurance Bureau they shall pay a penalty in the amount of 0.1 percent to a legal person or 0.5 percent to a natural person of the sum payable.

4. To approve the annexed Regulations on Insurance Activities in the Republic of Belarus. [Translation is not provided]

5. [Repealed]

6. To establish that:

6.1. bringing the insurer to liability for the failure to conclude a compulsory insurance contract or make changes and/or additions in cases provided for by the Regulations on Insurance Activities in the Republic of Belarus approved by this Edict, does not exempt the insurer from concluding or changing (adding) the respective compulsory insurance contract, unless otherwise established by the President of the Republic of Belarus.

Fines to be charged for the operation or bringing into operation of the means of transport without concluding a contract for compulsory insurance of civil liability of owners of means of transport are credited;

50 percent – into the account of the Belarusian Transport Insurance Bureau for replenishment of the funds for social guarantees and protection of the victims of traffic accidents, formed by the Bureau;

50 percent – into the republican budget;

6.2. contracts of compulsory insurance of civil liability of owners of means of transport, buildings belonging to citizens or compulsory medical insurance of foreign citizens and stateless persons temporarily staying or residing in the territory of the Republic of Belarus, having been concluded before entry into force of this Edict, are in effect until the end of their term on the conditions in which they have been concluded, and are not subject to being brought into conformity with this Edict;

6.3. legal acts regulating insurance relations, before being brought into conformity with this Edict, are in effect in the part not contradicting this Edict.

If the norms of treaties which are in effect for the Republic of Belarus establish other rules than those provided for in this Edict, the rules of the treaty are to be applied.

6.4. 50 percent of the profit gained by the Belarusian Republican Unitary Enterprise “Belgosstrakh” as a result of investing special insurance reserve funds for compulsory insurance against industrial accidents and occupational diseases, is annually directed before 1 January 2018 to increase its statutory fund and the statutory funds of subsidiary enterprises established by the former, for carrying out life insurance activities according to the types of insurance relating to life insurance and from 1 January 2018 that amount is transferred monthly to the republican budget.

A part of the profit gained by state insurance organizations from investing their statutory funds, allocated to them from the republican budget, is directed for the increase of those funds in the amount determined by the Ministry of Finance.

7. To recognize as invalid, Decrees and Edicts of the President of the Republic of Belarus, certain provisions of Decrees and Edicts of the President of the Republic of Belarus according to the appendix [Translation is not given].

8. Insurance organizations, insurance brokers, and associations of insurers established prior to the entry into force of this Edict shall bring their constituent documents in conformity with this Edict before August 2, 2007.

6. The constituent documents of insurance organizations, insurance brokers, and associations of insurers, before bringing in conformity with this Edict, are in effect in the part not contradicting this Edict.

Insurance organizations established prior to the entry into force of this Edict are obliged to form their statutory funds:

until the 1st of May 2008 – in the amount of at least one half of the minimum amount of the statutory fund fixed in clause 15 of the Regulations of Insurance Activities in the Republic of Belarus, approved by this Edict;

until the 1st of May 2011 – in the amount not less than the minimum amount of the statutory fund fixed in clause 15 of the Regulations of Insurance Activities in the Republic of Belarus, approved by this Edict.

Non-fulfillment of the requirements set forth in parts one-three of this clause shall be a ground for liquidation of insurance organizations, insurance brokers, and associations of insurers.

Insurance organizations established after the entry into force of this Edict are obliged to form their statutory funds according to the minimum amounts of statutory funds fixed in clause 15 of the Regulations of Insurance Activities in the Republic of Belarus approved by this Edict. 

9. The Council of Ministers of the Republic of Belarus shall, within two months, establish an insurance organization performing insurance activities exclusively in the field of re-insurance having included in its statutory fund the monetary contribution in the amount equivalent to 20 million Euros from the funds provided for in the republican budget for the increase of the State’s interest in the statutory funds (including the purchasing of shares) (Appendix 1 to the Law of the Republic of Belarus of 31 December 2005 “On the Budget of the Republic of Belarus for 2006”,  and take other measures necessary for the implementation of this Edict.

10. This Edict enters into force from the day of its official publication.

Clause 5 of this Edict remains effective until the entry into force of the laws on introducing changes and/or additions into the Code on Administrative Offences of April 21, 2003, and/or the Procedural and Executive Code of the Republic of Belarus on Administrative Offences of December 20, 2006.

 

President of the Republic of Belarus

A. Lukashenko

 

* unofficial translation *