Post by account_disabled on Jan 24, 2024 6:53:34 GMT
The Albanian government has submitted for public consultation the draft law on the mandatory insurance of housing against earthquakes. The draft law provides for the obligation to insure all apartments and sections located within the apartments that are used as sales units, offices or for similar purposes. Dev Inf Real Estate Company brings you all the details of this law. It is learned that, from the obligation to be insured, only buildings that are made of clay/brick, cane fiber structure or similar and buildings with mobile or temporary placement will be exempted.
The obligation to purchase the insurance policy against earthquakes is also Job Function Email Database the subjects of social housing for rent, including the housing in the process of legalization, as well as the local self-government units, which finance the premium from their budget. For social classes in need, the compulsory insurance premium will be financed from the state budget. The insurance will only cover damage to the home, but not other property damage (furniture, interior fittings, etc.), damage to people, including death, or other types of damage. The amount of insurance or limit of liability to be insured will be equal to its mandatory limit, which is determined by decision of the Council of Ministers, with the proposal of the Board of Directors of the National Earthquake Fund, through the minister responsible for finances.
After determining the amount of insurance, the level of the insurance premium must be calculated with actuarial methodology, based on the earthquake risk model developed for Albania , which is approved by decision of the Council of Ministers, after receiving the opinion of the Financial Supervision Authority . In determining the insurance premium, among other things, the maximum possible loss for the specified return period, the expenses related to the ceding in reinsurance, as well as other operational expenses of the National Earthquake Fund, must be taken into consideration. The compulsory earthquake insurance scheme will not include private insurance companies , but will be managed by the National Earthquake Fund, organized in the form of a joint-stock company, owned by the state. The fund is financed by insurance policies, commissions received from reinsurance transactions, investment income, the state budget, other legal income such as grants and donations.
The obligation to purchase the insurance policy against earthquakes is also Job Function Email Database the subjects of social housing for rent, including the housing in the process of legalization, as well as the local self-government units, which finance the premium from their budget. For social classes in need, the compulsory insurance premium will be financed from the state budget. The insurance will only cover damage to the home, but not other property damage (furniture, interior fittings, etc.), damage to people, including death, or other types of damage. The amount of insurance or limit of liability to be insured will be equal to its mandatory limit, which is determined by decision of the Council of Ministers, with the proposal of the Board of Directors of the National Earthquake Fund, through the minister responsible for finances.
After determining the amount of insurance, the level of the insurance premium must be calculated with actuarial methodology, based on the earthquake risk model developed for Albania , which is approved by decision of the Council of Ministers, after receiving the opinion of the Financial Supervision Authority . In determining the insurance premium, among other things, the maximum possible loss for the specified return period, the expenses related to the ceding in reinsurance, as well as other operational expenses of the National Earthquake Fund, must be taken into consideration. The compulsory earthquake insurance scheme will not include private insurance companies , but will be managed by the National Earthquake Fund, organized in the form of a joint-stock company, owned by the state. The fund is financed by insurance policies, commissions received from reinsurance transactions, investment income, the state budget, other legal income such as grants and donations.