Azerbaijan, Baku, Dec. 6 / Trend U. Ismayilova /
Azerbaijan will introduce the compulsory insurance of real estate, Namik Khalilov, the head of the State Service of Insurance Supervision under the Azerbaijani Finance Ministry, said in an interview with the magazine published by the NGO "Property Market Participants".
"Those, who will not insure the property, will not receive compensation from the state even in case of natural disasters," Khalilov said.
He said that the compulsory property insurance is provided in the draft law "Compulsory insurance". According to it, property owners, regardless of the number of real estate, will have to insure it.
Compulsory property insurance is used in many world countries, Khalilov said. Azerbaijani insurance companies offer to introduce real estate insurance in the country to develop the insurance business, as well as provide compensation in case of natural disasters.
"Real estate insurance is one of the cheapest forms of insurance. According to the estimates of local specialists, it is enough to pay only 0.1 percent of property cost to insure all major risks," Khalilov said.
Regarding with the control in this area, Khalilov said that one of the types of control is a requirement of insurance during a purchase-sale deal. But this method does not always justify itself, because sometimes people live in one apartment all their life and do not make deals on its sale. The other way can be used because of the ineffectiveness of this type of control. The state may refuse from giving compensation to the owners, who have not insured the property, during natural disasters.
"One of the advantages of this method of control is that if a citizen does not care for the property, then the state will not help him," Khalilov said.
There are 27 insurance and one reinsurance company in Azerbaijan. The total volume of premiums of companies of all types of insurance for the 10 months amounted to 130.30 million manat with payments worth 41.27 million manat.
The property insurance is the most popular type in Non-life insurance. The premiums of all the companies in the country in January and October totaled 75.92 million manat with payments worth 18.79 million manat.
The official exchange rate is 0,7995 manat to $1.