BAKU, Azerbaijan, March 10
By Zeyni Jafarov - Trend:
Compulsory insurance of civil liability on the use of real estate in Azerbaijan is carried out in accordance with the Law of Azerbaijan on Compulsory Insurance, the Central Bank of Azerbaijan (CBA) told Trend.
According to the law, people not only seek to prevent a negative impact on their real estate but also bear civil liability to a third party during its operation.
According to the CBA, this type of insurance is used to compensate for the harm caused to the health and property of third parties within the use of the relevant property, including during construction, repair, and reconstruction of the property.
“An insured event in this segment can be considered: a fire caused by the use of electrical or gas appliances, as well as the results of measures taken to prevent such fires; gas explosion; a short circuit in electrical wires and flooding as a result of an accident in water supply, heating and sewerage networks,” the CBA message reads.
“Upon compulsory insurance of civil liability on the use of the real estate, a fine of 5,000 manat ($2,941) is provided for harm to the health of one individual, and 50 manat ($29.4) for damage to property,” said the message.
The CBA noted that the premium rate for the aforementioned type of insurance is determined by the regulator of the Azerbaijani insurance market, the Central Bank, and consists of four risk groups.
Accordingly, for the first risk group, the insurance premium was determined at the level of 30 manat ($17.6), for the second group - 60 manat ($35.3), for the third group - 90 manat ($53), and for the fourth group - 120 manat ($70.6).
Compulsory insurance in Azerbaijan is carried out by insurance companies licensed for a certain type of compulsory insurance and included in the Compulsory Insurance Bureau.
Currently, 16 insurance companies of Azerbaijan have a license to carry out compulsory types of insurance.
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