Azerbaijani Insurance Fraud on CASCO

Business Materials 18 February 2008 12:42 (UTC +04:00)

Azerbaijan, Baku, 18 February / Trend corr. U.Ismaylova / The Azerbaijani insurance market like other world insurance markets is being defrauded. Insurance fraud in Azerbaijan is not as widespread as in the US where clients falsely claimed from the insurers the amount of $85bln so far.

According to data by a special criminal statistics department in Germany, about 9,000 insurance fraud cases are registered annually.

Fraud is happening frequently in the insurance market of post Soviet countries. Vacheslav Chernakhovski, the deputy chairman of the largest Ukrainian insurance company Providna, stated to Trend that leaders of the insurance market of the country submitted to the Cabinet of Ministers proposals on injection of supplements to the Criminal Code concerning insurance fraud in the country.

Russian insurance experts stated that 5 to 20% of the public of Russia attempt to defraud insurers. Insurance fraudsters attempt to claim against insurance companies frequently. According to the Russian Insurance Union, Russia is a world leader in the volume of insurance payments to fraudsters.

The most popular and advanced type of insurance in Azerbaijan is automobile insurance (CASCO insurance) and false claims are frequently made in this type of insurance.

According to the Finance Ministry of Azerbaijan, insurance premiums on CASCO made up AZN 40mln in 2007.

The largest insurance fraud happened with Az Sigorta insurance company, where a client attempted to claim about AZN 40,000from the company.

"The court recognized the client's guilt," Khayal Mammadkhanli, the deputy chairman of Az Sigorta, said.

Aydin Rahmanov, deputy chairman of one of the largest insurance companies in Azerbaijan Standard Insurance, stated that the company manages to prevent fraud by clients legally.

Anar Bayramov, the chairman one of the largest insurance company A-Group, believes that one may prevent fraud during the insurance process if you hold close control over documents.

Jamil Malikov, the chairman of one the largest insurance company MBASK, stated that one should hold a cruel war against insurance fraudsters as they give up easy.

Insurance fraudsters in some European countries make money on life or medical insurance.

Life and compulsory medical insurance are less favorable in Azerbaijan. Total premiums of Azerbaijani insurance companies on life insurance compromised AZN 2.19mln in 2007.