Insurance laws Afghanistan
The insurance sector in Afghanistan is regulated by the General Directorate of Takaful and Insurance (GDTI), which operates under the Ministry of Finance. The legal framework is primarily based on the Insurance Law of 2008.
Key Features of the Legal Framework:
Regulatory Authority: The GDTI is the main government body responsible for regulating, supervising, and developing the insurance sector. It issues licenses, monitors market activities, and is tasked with creating rules and laws for the industry.
Insurance Law (2008): This is the core piece of legislation that governs insurance activities in the country. It outlines the regulations for establishing insurance companies and conducting business.
Licensing: All insurance companies, both public and private, must be licensed by the GDTI to operate. The law specifies requirements for companies to be established, including minimum capital requirements.
Non-Admitted Insurance: The law generally prohibits non-admitted insurance, meaning that only companies licensed to operate within Afghanistan are permitted to provide coverage for risks within the country. However, reinsurance is an exception and is permitted if placed from outside the country.
Compulsory Insurance: There are certain types of compulsory insurance, such as motor vehicle third-party liability insurance.
Takaful: The GDTI's name, General Directorate of Takaful and Insurance, indicates that it also has a mandate to regulate the Takaful (Islamic insurance) sector, though specific regulations for this market may be in development or are still nascent.
Industry Structure: The market is composed of a mix of state-owned and private insurance companies, and a significant portion of the business is reinsured internationally due to limited domestic capacity.
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