Real estate compulsory insurance annual revenues in Azerbaijan estimated at 50 million manat

Azerbaijan, Baku, April 8 (Trend, I. Khalilova)
As the real estate compulsory insurance has been introduced in Azerbaijan, annual revenues are calculated at up to AZN 50 million, Ziyad Samedzadeh, Chairman of the Parliament's Committee on Economic Policy reported on Friday. He was speaking at the sidelines of the second reading of the bill "On Compulsory Kinds of Insurance".
"This is not too large sum, which makes up AZN 5-6 per capita. The launch of the real estate compulsory insurance will allow to increase insurance premiums up to AZN 25 per capita in Azerbaijan", Samedzadeh said.
According to the latest edition of the bill, it is decided to introduce the fixed sum of insurance of AZN 25,000 for Baku, with disposal sum of AZN 250, regardless from real estate's value. For the cities of Sumgayit, Ganja an Nakhchivan, the insurance sum is AZN 20,000, with disposal sum of AZN 200, and for the rest regions, it is equivalent to AZN 15,000 (AZN 150).
Under the previous option of the bill, insurance sum for the real estate insurance had to be calculated according to real estate restoration-related costs.
"In accordance with amendments, under the insurance tariff of 0.2 percent on this kind of insurance, insurance sum to be paid by resident of the capital will make up AZN 50 a year while those hoping for a higher insurance compensation can also acquire a real estate voluntary insurance policy to help develop this direction of insurance as well. The United States, Germany and Norway, which have already passed all these stages, have reached a level, under which the insurance market is the second biggest source of investments", said Samedzadeh.
According to him, the procedure of real estate insurance respecting the interests of pensioners, families of martyrs and other poor layers of population is being examined jointly with the executive power, according to him.
In addition, Samedzadeh has asked the Ministry of Finance to tighten control of insurance companies and provide transparency of their operation.
"Two years ago, the profit of insurance companies spent for capitalization purposes was freed from taxation, an important measure at the time. However, as the new law takes effect new rules of the game will emerge", he said.
In the course of discussions, a series of MPs suggested, following the enactment of the law, issuing permissions for real estate compulsory insurance to companies having more than 10-year experience of work with property voluntary insurance, and appropriate logistics and resources.
Under the bill, real estate compulsory insurance will cover all kinds of constructions, living buildings, physical persons-owned living apartments, offices of legal entities, and state property.
Insurance case will be facts related to aforesaid property's damage as a result of fire, explosion, thunderstorm, short circuit, sanitation or water pipeline system accident, natural cataclysms, etc.
Currently, ten kinds of compulsory insurance are applied in Azerbaijan. However, the combined collection of compulsory insurance premiums is equivalent to only 20 percent of the insurance market's premiums, which is a low indicator showing the necessity of improvement of legal provisions in the field of compulsory insurance.
The official rate is 0.7923 manat to $1 on April 8.

Presidents of Uzbekistan, Russia consider strengthening of strategic partnership
Presidents of Uzbekistan, Russia consider strengthening of strategic partnership
Trade turnover between Uzbekistan and Belarus significantly increases
Trade turnover between Uzbekistan and Belarus significantly increases
Uzbekistan reveals financial performance of Uzbek mobile operators
Uzbekistan reveals financial performance of Uzbek mobile operators
Loading Bars
Latest
Death toll in Mexico City metro overpass collapse rises to 26
About 200 Palestinians injured in clashes with Israeli police in East Jerusalem
Latvia invites Georgian companies to use its ports for logistics services
Biden administration joins global campaign against online extremism
Brazil welcomes U.S. call for talks on vaccine patents
Libya armed groups raid hotel where presidency met, its spokeswoman says
Cybercriminals developing "smart" swarm attack technologies - Fortinet
EU calls on U.S. and others to exports their vaccines
Brazil eyes new Pfizer deal next week for 100 million more COVID-19 shots
Biden concerned about Iran's seriousness in Vienna talks
Israel reports 41 new COVID-19 cases, 838,858 in total
Russia continues analyzing situation around possible Putin-Biden summit — Kremlin
Number of COVID-2019 cases across globe up by over 839,000 in past day — WHO
UK records another 2,490 coronavirus cases, 15 deaths
Azerbaijan, 10 other OSCE countries call to prevent Nazi glorification - joint statement
"You are free, dear Shusha!" - this May 8 we are in Shusha
Azerbaijani wrestler Alice Manolova wins license for 2020 Summer Olympics in Tokyo
Iran's CBI warns people of losses of trading cryptocurrencies
Large-scale Covid vaccination sites to be set up in 4 main cities of Georgia
New daily COVID-19 cases in Turkey drops to 20,107
Azerbaijani FM holds meeting with ADB Director for Azerbaijan (PHOTO)
Difficulty of my exercises at World Cup in Baku higher than in two previous competitions - Azerbaijani gymnast Arzu Jalilova
Biden says he’s confident in one-on-one meeting with Putin
Azerbaijani embassy denounces decision of Latvian parliament on events of 1915
Kazakhstan boosts goods import from Denmark
Georgian State Electrosystem plans to issue bonds
Establishment of free trade zone in Iran's Ardabil Province to improve trade - MP
Chief of ADB's Energy Sector Group unveils details on ADB Draft Energy Policy
Azerbaijani team express satisfaction for participating in Rhythmic Gymnastics World Cup
Azerbaijani team in group exercises reaches final of Rhythmic Gymnastics World Cup in Baku
Revenues from customs duties increase in Azerbaijan
Austrian IT company discloses volume of entire internet traffic accounting for people in 2020
Azerbaijan's 4M2021 revenues from State Customs Committee unveiled
Azerbaijan almost doubles export of aluminum
Azerbaijan partially resuming traditional form of education
Armenia experiences continuous population decline
EU to continue activity in Azerbaijan in field of green economy - Head of EU delegation
Head of EU Delegation to Azerbaijan talks possibilities of resuming int'l travel
Group teams perform at National Gymnastics Arena as part of Rhythmic Gymnastics World Cup in Baku (PHOTO)
Azerbaijan names finalists in exercises with ball within Rhythmic Gymnastics World Cup in Baku
Azerbaijan names finalists in exercises with hoop within Rhythmic Gymnastics World Cup in Baku
Rhythmic Gymnastics World Cup in Baku - results of performance of Azerbaijani gymnasts in exercise with hoop and ball (PHOTO)
Italian gymnast talks about friendly relations with Azerbaijani gymnast
Best moments of first day of Rhythmic Gymnastics World Cup in Baku (PHOTO)
World Cup in Baku - most long-awaited competition, says Lithuanian gymnast
WB plans to issue loan for road project in Azerbaijan
Georgian SME program aims digitization and environmental initiative to address climate change
Georgia to build enterprise for production of cleaning and detergents
Presidents of Uzbekistan, Russia consider strengthening of strategic partnership
Trade turnover between Uzbekistan and Belarus significantly increases
Hungarian lab confirms reliability of Sputnik V jab delivered to Slovakia
France's Macron: Vaccine patents not the issue, it's getting jabs out
Monday.com files for Wall Street IPO
Georgia, Ukraine emphasize European and Euro-Atlantic integration aspirations
Organizing committee of World Cup in Azerbaijan’s Baku doing its job perfectly - Hungarian gymnast
Hotel price index up in Georgia for April 2021
Qatar Airways to resume flights from Doha to Baku soon
Uzbekistan reveals financial performance of Uzbek mobile operators
Iran's sees increase in petrochemical exports
Indian Embassy in Baku introduced a new Sanskrit learning App, ‘Little Guru’ (PHOTO)
Azerbaijan discloses number of views of President Aliyev’s interview on Twitter (VIDEO)
Azerbaijan shares data on number of vaccinated citizens for May 7
Azerbaijan issues data on 1Q2021 export of fruits, vegetables
Azerbaijan confirms 722 more COVID-19 cases, 1,854 recoveries
Iran-Syria trade increases - Chamber of Commerce
Heydar Aliyev Foundation to organize legendary Khary Bulbul music festival in Shusha
Azerbaijan State Security Service talks arrest of illegal armed groups' members
VISA, Central Bank of Azerbaijan sign agreement on development of non-cash payments in Azerbaijan
Pakistan PM Khan in Saudi Arabia to discuss relations
Georgian Formula Construction exports building materials to Lithuania
Firefighters tackle blaze at 19-storey London tower block
Iran increases amount of jobs in free economic zones
Azerbaijan creates best conditions in National Gymnastics Arena - Uzbek gymnast
Greece, Estonia have biggest decrease in CO2 emissions from energy use
Iran says no need for direct or indirect talks with US
Georgia sees increase in international visitors
AzerGold discloses results of tender for software installation
Highest rate of inactive loans recorded in Georgian Cartu Bank
Russia documents 8,386 COVID-19 cases in past 24 hours
U.S. administers nearly 252 mln doses of COVID-19 vaccines
Georgia needs investments for faster economic recovery - PM
Azerbaijan has lower COVID-19 death rate compared to global indicators - professor
Kazakhstan sees decrease in petroleum oil exports to Spain
Baku hosts opening ceremony of Rhythmic Gymnastics World Cup (PHOTO)
Former serviceman accused of treason and espionage in Armenia
Azerbaijan plans to withdraw its peacekeepers from Afghanistan – Defense ministry
India grants permission for 5G trials to telecom service providers
Armenian side does not fulfill obligations upon int’l humanitarian law - MFA
Japan pledges $50.3 million to help India combat COVID-19
Uzbekistan and Kazakhstan developing analogy of Schengen visa for Silk Road countries
Azerbaijan forming perspective industrial complex
Azerbaijan - important int’l transport hub - chairman of Azerbaijan Railways CJSC (PHOTO)
ADB to no longer finance coal mining, oil, and natural gas field exploration
Successful policy on development of sports in Azerbaijan bearing fruit - Deputy Sports Minister
All gymnasts provided with necessary time to train for Rhythmic Gymnastics FIG World Cup in Baku - Greek gymnast
Germany says production capacity, not patents, key to upping vaccine output
Saudi to make COVID-19 vaccinations mandatory for all workers
Georgia shares data on number of citizen registered for temporary employment in Germany and Israel
Uzbekneftegaz increases natural gas output at field of Gazli oil and gas production dep’t
Uzbekistan to increase copper sulfate exports to Poland
All news