Bill on insurance passes first reading

The draft law on insurances (recently drafted), submitted on June 19 as legislative initiative by the Government, was approved in the first reading by the Parliament at the sitting held on Thursday November 9. The bill brings certain novelties on the insurance market of Moldova. For instance, it is required that the insurance companies are constituted, registered and run their activity as joint stock companies. Another amendment is the classification of the insurance activity in compliance with the categories and classes of insurances stipulated by the acquis: general insurances, life insurances and reinsurances. A new amount of the social capital that an insurance company shall hold was also established. Thus, for general insurances it was set the quantum of 15 mln lei, for life insurances – 22.5 mln lei, while for the reinsurance activity - 30 mln lei. Head of the Parliamentary Commission for economic policy, budget and finances Nicolae Bondarciuc stated that while examining the bill, the commission found that it corresponds to the EU Directives and is accepted by the International Monetary Fund and World Bank, meeting the concept of the structural reforms promoted by international organizations. A number of opposition MPs objected to certain provisions, especially as regards the amount of the social capital, while the MP representing “Moldova Noastra” Alliance Valeriu Cosarciuc proposed to reexamine it at the specialized commission. But the Parliament rejected his proposal.