Ulaanbaatar
Coverage for Driver’s Insurance in Border Regions to be Increased
Society
Ulaanbaatar, March 25, 2025 /MONTSAME/ The regulation on requiring owners of vehicles transiting through or temporarily entering the territory of Mongolia to be insured under driver’s insurance has been revised.
As a result, owners of vehicles coming from abroad will be fully covered by the compulsory driver’s liability insurance in the border zone. If, during their stay, they cause a traffic accident resulting in harm to citizens’ lives, health, or property, they can be held liable for compensation, thereby safeguarding the victims’ rights and interests. In addition, the steps and government involvement required to obtain permission to operate in border areas and corridors will be reduced, while access to insurance in these areas will be improved. This, in turn, helps strengthen the implementation of driver’s insurance.
Furthermore, the “Procedure for selecting an insurance brokerage company to operate at border checkpoints” has been annulled. Previously, only one insurance brokerage company could operate in each border area. Now, without a tender process, any insurance brokerage company wishing to operate at the checkpoint can apply to the General Authority for Border Protection, obtain permission in line with relevant laws and regulations, and conduct insurance brokerage activities. To protect the rights and interests of both insurers and the insured, the broker is required to represent multiple insurance companies, as provided for in the new regulations.
According to a report by the Financial Regulatory Commission, the Ministry of Justice and Home Affairs, the Financial Regulatory Commission, and the General Authority for Border Protection have jointly introduced these amendments to improve the implementation of the Law on Drivers’ Insurance in border areas, increase insurance availability, and protect the rights and interests of both policyholders and victims.
