BAKU, Azerbaijan, June 23
By Yusif Aghayev – Trend:
The expenses of the Azerbaijani Compulsory Insurance Bureau amounted to 3.2 million manat ($1.9 million) in 2019, which is 697,000 manat ($410,000) or 27 percent more than in 2018, Trend reports on June 23 referring to the published financial report of the Bureau.
The main expenses which greatly increased, accounted for IT costs, which amounted to 324,000 manat ($190,588) compared to 201,000 manat ($118,235) in 2018 (an increase of more than 61 percent).
This was primarily connected with the digitalization of the compulsory insurance system against disability as a result of industrial accidents and occupational diseases.
Moreover, a number of processes were automated as part of compulsory liability insurance of vehicle owners.
The marketing expenses (growth of 15 percent) increased up to 218,000 manat ($128,235) while printing costs increased by more than six times.
The costs associated with the Green Card system (international civil liability insurance system of vehicle owners) increased by almost six times, reaching 487,136 manat ($286,550) compared to 86,260 manat ($50,741) in 2018.
The main purpose of the system is to resolve the claims of those who suffered during road traffic accidents involving foreign vehicles in accordance with the conditions and rules envisaged by the domestic law of the country in which the accident occurred.
For this purpose, a unified system of civil liability insurance of vehicle owners traveling abroad has been created on the basis of mutual guarantees of the Bureau members.
As a result, the drivers, traveling to other countries in which the system is valid, purchase a Green Card from insurers in their countries, which fully covers their third party liability insurance throughout the trip and exempts them from receiving a new third party liability insurance policy on the border of each foreign country during the trip.
Currently, 48 countries are members of the Green Card system. This system has been in Azerbaijan since early 2016.
The Compulsory Insurance Bureau has been established and has been operating as an association of legal entities in accordance with the Azerbaijani Civil Code, taking into account the requirements established by the law "On Compulsory Insurance" to protect the interests of the insured people and third parties who suffered damage, to ensure stability and development of the compulsory insurance system, as well as for the implementation of other tasks established upon the relevant legislation.
