Azerbaijan, Baku, Feb. 17 / Trend, A. Akhundov /
Charges for compulsory insurance in Azerbaijan in Jan. 2013 amounted to 5.34 million Manat, an increase of 56.14 percent over a one year period, their share in total charges increased from 9.24 percent to 9.9 percent. Payments for these types rose compared to 2012 by 6.56 times to 2.453 million Manat, the report of the Ministry of Finance of Azerbaijan on the activities of insurance companies in Jan. 2013 said.
The process of using the new law on "Compulsory insurance" started on Dec. 16, 2011. According to it, types of compulsory insurance - real estate insurance, civil liability while exploiting real estate were introduced. The insurance amount on compulsory liability insurance of vehicle owners and passenger insurance were increased.
The companies [numbering 12], all members of the Bureau of Compulsory Insurance, which have the right to engage in such activities, collected 3.7 million Manat on the compulsory civil liability insurance of vehicle owners in Jan. 2013, which exceeds the figure for Jan. 2012 by 82.27 times.
In general, the compulsory civil liability insurance of vehicle owners in 2012 accounted for 70 percent of fees for compulsory insurance (60 percent in Jan. 2012) and 6.86 of all premiums collected in the market over this period (5.5 percent in Jan. 2012).
After the law 'On compulsory insurance' came into force in December 2011, the basic cost of an insurance policy on compulsory civil liability insurance of vehicle owners amounted to 50 manats and is used in regard to cars with an engine capacity of up to 1500 cubic centimetres. With the increasing volume of the engine (from 1500 to 5000 cubic centimetres), coefficients from 1.5 to 5 are added up to the cost. Coefficient 5 is used for cars with an engine capacity over 5000 cubic centimetres.
Previously, insurance premium for all passenger cars was 10 manat.
From compulsory insurance of immovable property, civil liability in real estate and passenger insurance, companies have collected respectively 616,600 Manat (individual payment for this type amounted to 148,700 Manat) and 25,120 Manat (without payment).
The compulsory insurance bureau was established in Azerbaijan in accordance with the law on "Compulsory types of insurance". Azerbaycan Senaye Sıgorta was the last included in the register of the bureau on June 27, 2012.
Paşa Sığorta, Ateshgah Sıgorta, Standard Insurance, AtaSıgorta, Xalq Sıgorta, AXA MBASK are founders of the bureau. They are participants of the compulsory insurance market.
Later, AzSigorta, Alfa Sıgorta, State commercial insurance company 'Azersıgorta', Meqa Sıgorta and İpek Yolu Sıgorta joined the bureau.
In Jan. 2012, payments at 1.68 million manat were made on compulsory civil liability insurance of vehicle owners or by 33.6 times more than the same period of last year.
In April 2012, the Bureau started paying compensation claims to third parties who suffered insurance incidents.
Affected persons may apply for compensation to the Bureau on compulsory insurance in the following cases:
- If the damage to the health of the person has been caused by unknown motor vehicle;
- If the damage to the health of a third party has been caused through the use of a motor vehicle by a person without agreement on compulsory insurance of civil liability, provided that claims for damages made by the victim have not been satisfied by the culprit causing the road accident.
The three companies that have the right to engage in life insurance sales in Azerbaijan - Pasha Heyat, Ateshgah Heyat and Qala Heyat - on compulsory disability insurance resulting from occupational diseases and accidents in Jan. 2013 collected 897,550 manat. This is higher than last year by 71.49 percent.
In the structure of compulsory insurance in Jan. 2013, premiums for individual state insurance for servicemen was at 43,290 Manat with payments of 500,200 Manat, the state individual insurance of judicial and law enforcement agencies' employees was at 56,560 Manat with payments at 66,590 Manat.
The total volume of premiums of all companies operating in the country was 53.92 million Manat (growth in the year by 45.72 percent), and payments for the reporting period were made at 7 million Manat (59 percent growth).
The Ministry of Finance report has not given the results from the only reinsurance company AzRE.
The official exchange rate on Feb. 17 is 0.7847 AZN/USD.
