BAKU, Azerbaijan, Dec. 20
By Nargiz Ismayilova – Trend:
Local executive bodies will implement the mechanism for introducing and supervising the implementation of the law "On Compulsory Types of Insurance" regarding compulsory insurance of real estate owned by individuals, Azerbaijani expert in the field of insurance Khayal Mammadkhanli told Trend.
“Despite the law has been in force in Azerbaijan since 2011, the process of compulsory insurance of real estate owned by individuals has not been controlled and fines were not applied to the individuals who did not draw up the contracts on compulsory real estate insurance,” the expert added.
"In accordance with the legislation, the relevant local executive bodies will supervise over compliance with the law regarding compulsory insurance of real estate owned by individuals, as well as impose the fines,” Mammadkhanli said. “Presently, it is unknown which local executive bodies will directly deal with regulatory issues of the compulsory real estate insurance of individuals."
"After the introduction of digitalization in the real estate accounting system, the process of imposing fines will be simplified,” the expert added. “It will be possible to track people who have not entered into an obligatory real estate insurance contract and to impose fines in one click."
“Regarding the issue of notifications, which are sent out by agents of insurance companies, with a description of laws and fines, I would like to stress that in principle they are not illegal,” the expert added. “If these notifications do not contain elements of intimidation and include only excerpts from regulations governing this sphere, this does not violate any laws."
Other Azerbaijani expert in the field of insurance Kamran Babayev said that he is skeptical about the expectation that from January 1, 2020, the general process of penalizing the individuals who did not draw up a compulsory insurance contract before that date would begin as the e-registration system of real estate owned by individuals must be completely ready and integrated with the system of the Compulsory Insurance Bureau.
“This is a long and rather complicated process,” Babayev said.
In general, both experts stressed that there were no changes at the legislative level in the field of compulsory insurance of real estate owned by individuals.
There has been a stir recently associated with the dissemination of information on general imposing of fines in respect of the individuals who did not draw up a compulsory insurance contract for their property before January 1, 2020. This hype is mainly fueled because agents of many insurance companies have begun to distribute the notifications of similar content.
To date, no state agency has made an official statement in this regard.
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