Analysis of Issues in Improving the Compensation Payment Mechanism under Compulsory Insurance for Civil Liability of Vehicle Owners: Uzbekistan and Global Experiences

This article examines the compensation mechanisms under compulsory civil liability insurance for vehicle owners, focusing on the legislation and practices in Uzbekistan and comparing them with international standards. The aim is to identify challenges and opportunities for optimizing these mechanisms to ensure prompt and fair compensation for third-party damages caused by traffic incidents. The methodology includes a comparative analysis of Uzbekistan’s legal framework and case studies with selected countries known for their effective insurance practices. Key findings reveal several inefficiencies in the existing system, including procedural delays, limited claim coverage, and administrative challenges that hinder timely compensation. The study concludes with recommendations for enhancing the compensation process through legislative reforms, adopting best practices, and leveraging technology for better claim processing. Optimising these mechanisms is critical for increasing policyholder confidence, improving insurer accountability, and aligning Uzbekistan’s insurance practices with global standards.