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Increasing tariffs on OSAGO discussed in Azerbaijan

Business Materials 26 July 2010 20:00 (UTC +04:00)

Azerbaijan, Baku, July 26 /Trend, I.Khalilova/

The Ministry of Finance of Azerbaijan discusses with the insurance companies to increase 4-5 times the fees for compulsory insurance of civil liability of vehicle owners (OSAGO).

The chairman of the Board of Directors of the Alfa Sigorta Company Khayal Mammadkhanli said that given the presence of very low tariffs on insurance for cars, the insurance fee is 10 manat today in Azerbaijan.

"In this regard, the current insurance coverage for this type of insurance is 6,000 manat, including 1,000 manat for damage to property, and 5,000 manat - damage to health," said Mammadkhanli.
If this amount is increased to 25-50,000 manat, then the growth of insurance premiums can increase on the insurance market of the country.

Today in Russia the tariffs on OSAGO vary in the range from $90 to $200.
"A single tariff on this type of insurance has been introduced in Azerbaijan, while on the Russian insurance market, the base rate of around $80 is introduced, and different rates have been established depending on the conditions and place operation of the vehicle," Mammadkhanli said.
Discussions to increase the tariff for OSAGO in Azerbaijan are conducted within the draft law on compulsory types of insurance, which is prepared by the Ministry of Finance.

Official rate on July 26 is 0.8036 AZN/USD.

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