Parliament yesterday decided to send back to the Standing
Committee on Justice a draft law on insurance for drivers of vehicles. The
draft proposes that drivers paying an annual premium of MNT53,000 would be
eligible to receive MNT5 million from insurance companies in case of an accident
caused by another drivers’ mistake.

During the discussion, L.Gundalai said insurance for drivers was not suitable
for Mongolia and it would be better to have insurance cover for vehicles. He
feared insurance companies would face bankruptcy risks if such schemes are
approved.

Ts.Bayarsaikhan said Mongolia has 270,000 motor vehicles and many people have
more than one car or motorcycle, giving them an unfair advantage by paying one
annual premium as a driver. Also, the premium amount cannot be the same for citizens
with different incomes. He agreed with Gundalai on the points he had made.

The initiators of the draft said they had studied the practice in countries
such as the USA, Germany and Japan and felt insurance for drivers was necessary
here because in many cases the injured driver does not receive any compensation
after an accident for which he was not to blame.