Citizens of Dornod, Uvs aimags now more interested to get insurance for gers and houses

09 May 2014

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“For citizens of our aimag, whose gers and houses have high risk to be damaged by fire, low premium insurance service is very important and timely undertaking. So I will not only get insurance for my ger and house but will talk and explain the benefits of insurance to my relatives, neighbors to take insurance services too” said Ts.Baigalmaa, resident of the Kherlen soum of Dornod aimag at the property micro insurance product launching ceremony in Dornod.

In 2013 in Dornod aimag about 60 cases of facility fires caused damage for 130 million tugriks, also more than 40 steppe and forest fires caused 1 billion tugriks damage to nature and ecology and 230 million tugriks property damage.     

The statistics of the National emergency management agency show that in the first three months of 2014 from total numbers 34,5 percent of fires were caused by ashes left in open, 25,4 percent by  sparks from chimneys, 15,4 percent by inappropriate power usage, 2,8 percent by defective electricity structures, 2,3 percent by usage of candles, cigarettes and matches and 1 percent by careless actions of children.

Deputy governor of the Dornod aimag M.Badamsuren said “It is very common for people suffer the loss of their gers, houses and property due to own careless actions or natural disasters. This launching is an important undertaking to prevent, protect people from risks and grave damage by providing access to ger, house micro insurance for the low and medium income residents, who constitute the majority of aimag’s population. As we implemented many projects to develop small and medium production enterprises we will support the delivery of micro insurance services for low income population. We will fully cooperate on the project and engage state and administrative organizations, primary cells and units, governors of districts and local activists in advertizing insurance services and activities to the public”.

The best way to protect your property from risks, provide security, preserve the value is insurance of gers and houses. The insurance companies will cover following risks in ger, house property insurance:

  • Fires (all types of fire, explosion damage)
  • Water, moisture (damage from moisture and watering)
  • Natural disasters (strong winds, snow and dust storms, floods, earthquake, collapse, slide or cracks of soil and land)
  • Power and electricity (abnormal oscillation of power, overload, distributor break, short circuit risks)

A citizens can pay a monthly premium of 1500-3000 tugriks for ger and house micro insurance to protect the property from above mentioned risks.

“A lot of unforeseen damage is caused by careless or irresponsible actions. I got a clear understanding at the training organized by the "Capacity development for the micro insurance market" project that the most reliable prevention and protection from the potential risks is insurance. Many people have no understanding on insurance, don’t know where, how to get insurance. Getting insurance coverage for gers and houses paying monthly premiums of 1500 to 3000 tugriks is affordable and not causing financial problems. Residents of Uvs aimag appreciate this insurance product  designed to protect the people of remote regions from risks and providing secure living environment. We encourage our fellow residents to get ger and house insurance to protect the property from risks” say residents of Ulaangom soum of Uvs aimag. 


One of the goals of the Capacity development for the micro insurance market project is to enhance public education and awareness of insurance. The National project manager J.Tsetsegsuren says that “The market research done by the project in 2013 revealed that public education and knowledge of insurance is very insufficient. We are paying attention to public education and opened Information centers in districts and aimags implementing the project”.

About 5000 residents of  Ulaangom soum of Uvs aimag visited the Information center which opened there last December. The numbers are quite impressive for the Ulaangom soum with 26000 residents and 7000 households. This is a successful undertaking to enhance the insurance public education to provide knowledge and capacity to overcome any potential risks. 

It should be noted that flexible property micro insurance product launching activities in the framework of the Capacity development for the micro insurance market project funded by the Luxembourg Government and jointly implemented by the UNDP and the Financial Regulatory Commission in Mongolia are an important mission to advertize and elucidate benefits of insurance to population.

The launching activities are aimed at delivering property micro insurance product to low and medium income population through selected insurance companies to enhance public capabilities and regulation of risks, provide information and boost understanding and knowledge on insurance sector.

Representatives of project implementing organizations, officials of Nomin Insurance, Khaan Insurance, Ulaanbaatar city Insurance, Tenger Insurance companies delivering the property micro insurance product for the low income sector, local administration leadership and residents attended the product launching ceremonies held in Dornod aimag on 5 May and in Uvs aimag on 9 May of 2014.   

“In 2009 the Financial Regulatory Commission conducted a study to develop an insurance product and services for low income population group and sent its proposal to implement a project to the UNDP. The UNDP supported the project and the Luxembourg Government provided funding.

The main goal of the project was provision of insurance of gers and small houses for residents of  ger districts, who make up the majority of population, thus enhancing citizens’ security environment. During the project implementation activities to develop an insurance product suitable for low and medium income people, enhance access to insurance for public and  increase numbers of insurants were done. Today the project is successfully implemented in four aimags (Huvsgul, Selenge, Dornod and Uvs), two districts (Nalaikh and Khan-Uul)”, said deputy director of the Financial Regulatory Commission and the National  Director of the Capacity development for the micro insurance market project G.Kherlen.

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