Questions and answers

Frequently asked questions
Insurance terms
In the insurance contract who is an Insured, and who is the Insurer?

The Insurer is an insurance organization, and you are an Insured.

Is it possible to sign the insurance contract for the term of less than a year?
Yes, it is possible. At the conclusion of the contract for term less than one year the insurance premium is paid in the following rates from the estimated sum of an annual premium: - at insurance for the term of 1 month - 20 %, 2 months - 30%, 3 months - 40%, 4 months - 50%, 5 months - 60%, 6 months - 70%, 7 months - 75%, 8 months - 80%, 9 months - 85%, 10 months - 90%, 11 months - 95%.
There was an accident. Who has to report about it to the Insurer?
At an insured event occurrence the Insured or his representative is obliged to report immediately in writing insured event to the Insurer.
Whether effect of the insurance policy at sale of property terminates?
No. Upon passing of property to the insured property to other person, the insurance contract in coordination with insurance organization can be renewed on the person who came into possession of property.
Is it possible to pay for the insurance policy by installments?
If the contract of insurance is signed for a period of 1 year the Insured has the right to pay an insurance premium in two terms: 50% - at the conclusion of the contract and 50% no later than 3 months after coming of the contract into effect. If the insurance contract is signed for some years, payment of an insurance premium can be made annually.
What to do if during effect of the insurance policy car documents were lost?
It is necessary to inform urgently insurance organization, and when obtaining the duplicate of documents, to report their data to insurance organization.
Is it possible to insure property not for an overall cost?
It is possible. On each of objects of insurance the insured sums are determined by agreement of the parties.
During what term it is possible to submit the application for insured event?
Within three days.
During what term payment is carried out?
Insurance indemnity is paid within seven days after receiving all necessary documents by the Insurer.
What is the deductible?
The deductible is part of the total injury (damage) which indemnity completely remains on independent responsibility of the Insured and is defined by agreement of the parties at the conclusion of the insurance contract as a percentage of the insured sum or in an absolute value.
What difference between unconditional deductible and conditional?
At establishment of the conditional deductible the Insurer is discharged from indemnification (damage) which rate doesn't exceed the deductible rate, and compensates injury (damage) completely if its rate exceeds the deductible rate. At establishment of the unconditional deductible Insurer liability is defined by the measure of injury (damage) with minus of deductible.
Is it possible to return the policy if the trip is cancelled?
At voluntary insurance of health of the citizens leaving abroad in case of early termination of the insurance contract on request of the Insured Insurer returns her/him an insurance premium (payment) completely for the unexpired term of the contract.
How to restore the lost policy?
In case of loss of the insurance certificate (policy) on the basis of Insurer written application, the duplicate is given her/him, and then the lost policy is considered invalid.
From what moment the insurance contract is considered as concluded?
The insurance contract is considered as concluded from the moment of payment of an insurance premium (payment).
In law “On insurance” the following key meanings are used:

The Law “On Insurance” uses the following basic concepts:

  • Insurance beneficiary – individual or legal entity, possessing the right of reception of insurance sum or insurance compensation according to the legislation of Turkmenistan or insurance contract;
  • Co-insurance - activity and relations arising in connection with acceptance of insurance risks (liability) under the insurance contract simultaneously by several insurers with distribution of their liability according to concluded co-insurance contract between them;
  • Insured - capable individual or legal entity who is the part of the insurance contract or being that according to the legislation of Turkmenistan, paying insurance payment (premium) and possessing insurance interest in insurance of object of insurance;
  • Insurer – entrepreneurial legal body (the insurance organization) of Turkmenistan, being the party of the contract of insurance (reinsurance) and possessing the corresponding license for realization of activity in the field of insurance on the basis of the present law which in case of approach of the insured event, provided by the insurance contract, bears obligation on payment of the insured sum (insurance compensation) in order provided by the insurance contract or the legislation of Turkmenistan;
  • Insurance agent – individual or legal entity of Turkmenistan who is carrying out intermediary activity on conclusion of insurance contracts on behalf of the insurer according to given authorities;
  • Insurance broker– entrepreneurial legal body of Turkmenistan who carries out activity on offering of advisory services in issues of insurance and reinsurance, and also intermediary activity on conclusion of insurance contracts and (or) reinsurance on his own name and on instruction of insurer (reinsurer) on the basis of the corresponding license;
  • Insurance payment (insurance premium) - a sum of money paid by insurer or other person on behalf of the insurer to the insurer (overcautious person) instead of acceptance or distribution of risks on insurance in order, provided by the contract of insurance or the legislation of Turkmenistan;
  • Insurance reserves - obligations of the insurer (overcautious person) under operating contracts of the insurance (reinsurance), estimated on basis of actuarial calculations;
  • Insurance type - the insurance product developed and given by the insurer to the insured within obligatory (state) and voluntary (none state) insurance by means of concluding of the insurance contract;
  • Insured event - event or circumstance which occurred during period of validity of the insurance contract and according to this contract or the legislation of Turkmenistan being basis for payment of the insurance sum or insurance compensation to the insurer, the insured person or insurance beneficiary;
  • Insurance rules - the standard legal document confirmed by the insurer and co-ordinated with body of the state insurance supervision or in other order, provided by the legislation of Turkmenistan, defining conditions of insurance on certain kind of insurance;
  • Insurance tariff - the rate of insurance payment from unit of the insurance sum or object of the insurance, fixed in rates providing formation at insurers of sufficient financial assets for carrying out payments of the insurance sums (insurance compensation), creations of insurance reserve funds, fund of precautionary actions and other funds, and also coverings of expenses on conducting business and development of insurers;
  • Insurance compensation - the monetary compensation paid by the insurer to the insurer at approach of insured event according to the contract of insurance and (or) legislation of Turkmenistan;
  • Insurance sum - obligation of the insurer on the insured risks (responsibility), expressed in a sum of money fixed by the legislation of Turkmenistan or the insurance contract proceeding from which the sizes of insurance payments (insurance premiums) and insurance compensations are established at insured event approach;
  • The insurance certificate (policy) - the document which is given by the insurer to the insurer and (or) the insured person, confirming fact of the conclusion of the contract of insurance; the insured person – legal entity or individual whose property interests are insured on the basis of the insurance contract;
  • Insurance contract - the contract concluded between the insurer and the insured according to which established order and terms of protection of property and other interests of legal entity and individual for the account of insurance payments (insurance premiums) paid by them to insured for the purpose of payment of the insurance sums by them (insurance compensation) or performance of other action stipulated in the contract at approach of certain events (insured events);
  • Insurance risk (liability) - possibility of approach of the prospective event possessing signs of probability and accident of its approach, to which case is insurance led;
  • Reinsurance - activity and relations connected with it arising in connection with subsequent transfer of all or a part of insurance risks (responsibility), accepted by the insured under the insurance contract, overcautious person according to concluded between them reinsurance contract;
  • Re insurer (assignor) - the insurer or overcautious person who is carrying out transfer of insurance risks (liability) accepted by it in reinsurance;
  • The overcautious person - the entrepreneurial legal body (safety organization), which basic authorized activity is conclusion and execution of contracts of reinsurance on the basis of the corresponding license;
  • Own retention - a part of the insurance sum in which limits the reinsurer (assignor) bears liability on own account according to the reinsurance contract;
  • Accumulation life insurance - the form of life insurance providing accumulation at the insured of insurance payments regularly paid by the insured as urgent accumulation means;
  • Deductible - the part of general trespass (damage), which compensation completely remains on independent liability of the insured and is defined under the agreement of parties at conclusion of insurance contract in percentage terms to the insurance sum or in absolute rate. At establishment of conditional deductible the insured is released from compensation of trespass (damage) which rate does not exceed the rate of deductible, and compensates trespass (damage) completely if its rate exceeds the rate of deductible. At establishment of unconditional deductible risk is defined by the rate of trespass (damage) behind deductible minus;
  • Prudent specifications - specifications of solvency and the financial stability, established by body of the state insurance supervision and obligatory for observance by insured (overcautious persons);
  • Ransom - a sum of money which the insured has right to receive at preschedule cancellation of the contract of accumulation insurance;
  • Individual risk (liability on individual risk) - possible approach of prospective event (a risk type) on each of the objects of insurance defined by the insurance contract.