Azerbaijan, Baku, 15 May / Trend A.Akhundov /
Charges for compulsory insurance in Azerbaijan in January-April 2013 amounted to 47.5 million manat, an increase of 21.64 percent over a one year period; their share in total charges increased from 33.73 percent to 34.24 percent. Payments for these types rose compared to 2012 by 3.54 times to 11.1 million manat, the report of the Ministry of Finance of Azerbaijan on the activities of insurance companies in January-April 2013 said.
The new law on "Compulsory insurance" entered into force on December 16, 2011. It regulates four types of compulsory insurance - real estate, vehicle owner liability, passenger insurance and real estate liability insurance.
12 companies included in the Compulsory Insurance Bureau and entitled to engage in such services collected 20.13 million manat in January-April 2013 by CTP, which is one percent more than in January-April 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 manat and is used with regards 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 of over 5,000 cubic centimetres.
Previously, insurance premium for all passenger cars was 10 manat.
The companies collected 3.53 million (payment for this type amounted to about 600,000 manat) and 129.54 manat (without payments) on compulsory insurance of immovable property and liability for the operation of real estate, respectively.
The compulsory insurance bureau was established in Azerbaijan in accordance with the law on "Compulsory types of insurance". Azerbaycan Senaye Sıgorta was the last company to join the register of the bureau on June 27, 2012.
Paşa Sığorta, Ateshgah Sıgorta, Standard Insurance, AtaSıgorta, Xalq Sıgorta, AXA MBASK are the founders of the bureau and participants of the compulsory insurance market.
AzSigorta, Alfa Sıgorta, State Commercial Insurance Company 'Azersıgorta', Meqa Sıgorta and İpek Yolu Sıgorta joined the bureau later.
In January-April 2013, payments in the amount of 7.36 million manat were made on compulsory civil liability insurance of vehicle owners, or by 16 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.
Three companies with the right to engage in life insurance in Azerbaijan - Pasha Heyat, Ateshgah Heyat and Qala Heyat, collected 12.46 million manat on compulsory insurance against disability resulting from occupational diseases and accidents at work, or 13.89 percent more than the same period last year.
In the structure of compulsory insurance in January-April 2013, premiums for individual state insurance for military servicemen was at 7.166 million manat with payments of 2.3 million manat, the state individual insurance of judicial and law enforcement agencies' employees was at 4 million manat with payments at 274,930 manat.
The total volume of premiums of all companies operating in the country amounted to 138.71 million manat (a 20 percent growth over the year), and payments for the reporting period were made at 38.21 million manat (a 44.4 percent growth).
The report of the Ministry of Finance has not provided the results of performance of the only reinsurance company AzRE.
The official exchange rate on May 15 is 0.7846 AZN / USD.