Some lawmakers, including T.Ayursaikhan, Sh.Adishaa, B.Jargalmaa, J.Chinburen and M.Oyunchimeg, handed over a draft revision of the Law on Driver’s Liability Insurance to Speaker of Parliament G.Zandanshatar on Wednesday. The purpose of the law is to provide compulsory driver’s liability insurance to car owners, compensate for damage to life, health and property caused by traffic accidents, and protect the rights of victims.

In 2020, the number of vehicles eligible for compulsory driver’s liability insurance in Mongolia was about 900,000, of which 650,000 were covered by compulsory driver’s liability insurance. Last year, the number of drivers involved in traffic accidents was 27,983.

Between 2012 and 2020, a total of 230.5 billion MNT of insurance premiums were collected and 231,201 people received 121.9 billion MNT in compensation. In other words, insurance companies spend only half of their income on compensation, bill initiators said.

The draft revision stipulates that not-for-profit legal entities will be responsible for compulsory driver’s liability insurance without government involvement. It also provides for compensation without the involvement of the traffic police in the event of loss of life or health of citizens due to traffic accidents.

In accordance with the current law, an owner of a vehicle is covered by liability insurance, but his or her family, and friends are not covered if they get into an accident while driving the vehicle because they are not named in the insurance contract. Therefore, bill initiators view it necessary to change this regulation.

The bill reflects a possibility of electronic insurance without having to go to an insurance company in person and reduces fees for drivers who strictly follow the traffic rules and do not cause traffic accidents.

It also provides for new regulations, such as an inclusion of representatives of drivers in the board of directors of legal entities engaged in compulsory driver’s liability insurance.