Azerbaijan, Baku, Nov.28 / Trend A.Akhundov /
Attractiveness of compulsory insurance of real estate in Azerbaijan is growing, the head of the State Insurance Supervision Service under the Ministry of Finance Namig Khalilov.
This type of insurance was introduced in the country by the new law "On mandatory types of insurance " which also regulates the compulsory liability insurance of vehicle owners (CTP), passenger insurance, civil liability insurance for use of real estate. The law took effect on December 16, 2011.
According to the State Insurance Supervision Service, in January-September, market has collected 7.72 million manat and paid 542.240 manat on the compulsory insurance of real estate, 231.800 manat was collected on liability insurance on the use of real estate apart from payments.
"The process is underway. State-funded compulsory insurance of houses and apartments owned by poor families is carried out at a good pace. There are no questions. Also a number of those willing to use this type of insurance has increased. Attractiveness of this type of insurance will gradually grow. This is considered not as a liability, but as an opportunity to receive services for a small amount of money that cannot be received in voluntary insurance "Khalilov told reporters on Tuesday.
In February, Azerbaijani Cabinet of Ministers has approved the regulation on payments for premiums for compulsory insurance of houses and apartments belonging to poor families, who are assigned with social aid, from the budget. According to the regulation, the funds are allocated as an equivalent to financial aid, pledged annually in the state budget for indemnity, and stored in a special account of the Finance Ministry.
One of conditions for allocation of financial aid is the fact that these funds can not be used for other purposes. Part of financial aid not used within a year, is returned to the budget at the end of the year.
To provide greater social protection of population for each region provides a minimum level of compensation, some 25 000 manats for Baku, some 20 000 manats for Ganja, Sumgayit, Nakhchivan, and 15 000 manat for other regions. The cost of insurance respectively amounts to 50, 40 and 30 manat.
The official exchange rate on November 27 is 0.7849 AZN / USD.
