Azerbaijan, Baku, Dec. 29 / Trend U.Ismayilova /
It was too early to introduce compulsory insurance of real estate in Azerbaijan, CEO of consulting company "MBA Group" Nusret Ibrahimov said, adding that "the introduction of compulsory insurance of immovable property in the country may be relevant after the completion of an inventory of all facilities in the country," Ibrahimov said.
First thing to do, he said, was to carry out an inventory of all immovable property and land, after which all information should be transferred to e-maps. After creating the database, the government should decide on the demolition or registration of certain immovable properties.
"Only after all these important works, compulsory insurance of immovable property can be introduced in Azerbaijan," he added.
Azerbaijan is going to introduce the compulsory insurance of real estate, Azerbaijani Finance Ministry's State Insurance Supervision Service Head Namig Khalilov said earlier.
"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, according to which property owners, regardless of the number of real estate, will have to insure their properties.
Compulsory property insurance is used in many world countries, Khalilov said. Azerbaijani insurance companies have offered to introduce real estate insurance in the country to develop the insurance business, as well as providing 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 the control the law would offer, Khalilov said that at least one type of control is a requirement of insurance during a purchase-sale deal. However, the method does not always justify itself, because many people live in one apartment all their life and do not make deals on its sale.
The other way, according to him, could be that the state may refuse from giving compensation to the owners with uninsured property during natural disasters.