Baku, Azerbaijan, March 18
By Emin Aliyev - Trend:
Damage assessment for compulsory insurance of civil liability of vehicle owners (CTP) can be automated in Azerbaijan in the future, the head of the Azerbaijan Insurers Association (AIA), Orhan Bayramov told journalists on March 18.
" Since the beginning of the year, the fees on CTP decreased by one percent on an annual basis, and payments - on the contrary, increased by a quarter. This insurance becomes unprofitable," he said.
This situation is normal and observed in many markets, according to Bayramov.
"For confirmation, it is just enough to look through the market statistics of the Russian Federation and European markets, where un-profitability is higher by several times. Nevertheless, the companies continue to work in this segment because in parallel to the compulsory insurance package, they also sell the clients a voluntary package as well. In this case, CTP is nothing more than a business card of the insurers," he noted.
One of the main problems of this segment is customer complaints about the lack of payments to the extent of damage and the cost of compensation, according to Bayramov.
"A question of possible entry of the products of Aldotex into the local market came up during the discussions in the framework of the AIA. The essence of the product in the automated system is the assessment of the damage, which takes into account the average indicators of the market, and many other factors. Its application would solve the problem of discontent customers and arising misunderstandings," Bayramov said, adding that despite the fact that the Azerbaijani market is not large, however the issue is studied.
The CTP is regulated under the law of Compulsory types of insurance application of which the insurance companies started since December 16, 2011.
Translated by S.I.
Edited by C.N.
