The American Chamber of Commerce does not agree with the law that obliges citizens to pay mandatory earthquake insurance for their homes. It calls for several provisions to be revised, particularly those affecting vulnerable groups.

The American Chamber of Commerce requests that the law on mandatory earthquake insurance for residential properties be reviewed. According to the Chamber, the draft under consultation defines residential buildings, but lacks clarity regarding mixed-use properties or structures that are only partially residential.

“These cases may lead to different interpretations and disputes during implementation. Also, the definition of an ‘earthquake event’ is tied to a magnitude above 5.0, but the process for recognizing and officially declaring it by the authorities is not specified, leaving room for disputes.”

Another issue raised by the Chamber concerns buildings inhabited by vulnerable populations.

“The draft law links mandatory insurance to access to essential services such as the cadastre or e-Albania. While this is a strong incentive to comply with the law, denying basic services to individuals who are not in compliance could undermine the principle of proportionality, especially for vulnerable groups. Exemptions or relief measures are needed for certain categories of the population.”

The Earthquake Fund will manage insurance premiums and compensation. According to the American Chamber of Commerce, the creation of the Earthquake Fund as a public joint-stock company is a positive step. However, the law grants the Ministry of Finance extensive powers over appointments and supervision, raising doubts about the Fund’s true independence.