BAKU, Azerbaijan, June 23
By Yusif Aghayev – Trend:
The amount of calendar contributions deducted by insurance companies to the Azerbaijani Compulsory Insurance Bureau greatly increased in 2019, Trend reports referring to the Bureau’s financial report.
According to the data, the total amount of these contributions amounted to 9.2 million manat ($5.4 million) in 2019, which is 1.3 million manat ($764,705) or 17 percent more than in 2018.
At the same time, calendar contributions for compulsory liability insurance of motor vehicle owners amounted to 4.9 million manat ($2.9 million), which is 252,000 manat ($148,235) or 5.3 percent more than in 2018; on compulsory insurance against loss of ability to work as a result of industrial accidents and occupational diseases - to 2.2 million manat that’s $1.3 million (an increase of 470,000 manat that’s $276,470 or 28 percent); and on compulsory real estate insurance - to 2.07 million manat ($1.2 million), which exceeds the figures for 2018 by 622,000 manat ($365,882) or 43 percent.
The calendar contributions for compulsory insurance of liability associated with the operation of real estate amounted to 16.4 million manat ($9.6 million), increasing by three million manat ($1.8 million) compared to 2018 (an increase of 23 percent) while contributions for compulsory insurance of passengers decreased by 165 manat ($97), amounting to five million manat ($2.9 million).
In accordance with the Azerbaijani legislation on compulsory insurance, insurance companies involved in this segment make periodic calendar contributions to the Compulsory Insurance Bureau in the amount of five percent of the total insurance premiums for the reporting period within the corresponding type of compulsory insurance, which is one of the main revenues of the Bureau.
The Compulsory Insurance Bureau has been established and has been operating as an association of legal entities in accordance with the Azerbaijani Civil Code, taking into account the requirements established by the law "On Compulsory Insurance" to protect the interests of the insured people and third parties who suffered damage, to ensure stability and development of the compulsory insurance system, as well as for the implementation of other tasks established upon the relevant legislation.
There are five compulsory types of insurance in the non-life segment and one type in the life insurance segment in accordance with the legislation in Azerbaijan.
Moreover, several special types of compulsory insurance are envisaged for military personnel, law enforcement officers and other groups, which are dealt with exclusively by the State Insurance Commercial Company of Azerbaijan.
The compulsory insurance in Azerbaijan is carried out by the insurance companies licensed for a certain type of compulsory insurance included in the Compulsory Insurance Bureau.
Currently, there are 15 insurance companies licensed to carry out compulsory types of insurance, four of which are involved in the field of life insurance, eleven - in the field of non-life insurance.
Today, 21 insurance companies and one reinsurance company operate in Azerbaijan.
(1 USD = 1.7 AZN on June 23)
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