BAKU, Azerbaijan, Mar. 19
By Yusif Aghayev - Trend:
Due to the cancellation of international flights and the restriction of Azerbaijani citizens traveling abroad, domestic insurance companies decided to support their customers by refunding the full amount of paid insurance premiums upon termination of travel insurance contracts, Trend reports.
In connection with the spread of the coronavirus pandemic (COVID-19) in the world, some measures have been taken in Azerbaijan to ensure social isolation. In accordance with the current situation, international flights were postponed, many events were canceled.
In this regard, many citizens who had previously planned trips abroad, were forced to abandon them.
When traveling abroad, citizens often constitute a travel insurance contract. When traveling to the EU, having a medical insurance policy is a prerequisite for issuing a visa. In connection with the cancellation of planned trips, the restriction on traveling abroad due to the threat of the spread of coronavirus, many insurance companies have experienced a sharp increase in the termination rate for contracts for this type of insurance.
In accordance with the norms of the current legislation, as well as insurance rules, in case of early termination of the insurance contract, the insurer is entitled to withhold from the policyholder administrative expenses, the amount of which is usually in the range of 10 -15 percent of the paid insurance premium.
Understanding the situation, the Azerbaijani insurance companies - PASHA Insurance OJSC, A-Group Insurance Company, AtaInsurance OJSC and some others, decided to terminate the insurance premiums paid in full without terminating the amount of administrative expenses.
Azerbaijani insurance companies collected insurance premiums for this type of insurance in the amount of 4.8 million manat ($2.8 million) in 2019, which is 1.1 million manat ($0.6 million) or 29.8 percent more compared to 2018.
Today, 22 insurance companies and one reinsurance company operate in Azerbaijan.
(1 USD = 1.7 AZN on March 19)