AIA: Compulsory insurance in Azerbaijan increases public confidence in insurance

Azerbaijan, Baku, May 20 / Trend A.Akhundov /

The introduction of compulsory insurance increases public confidence in the insurance, Executive Director of the Azerbaijani Insurers' Association Azer Aliyev said.

"The compulsory insurance types have two main objectives: to provide social security in general, and to attract people to the insurance process. If a man had not thought about insurance in general, now he knows that he is insured under compulsory insurance type, and he will receive compensation in case of incident in work," Aliyev said.

After the person receives compensation under an insurance case, he will be confidence in insurance. "Over time, the number of such people will grow," Aliyev said.

Azerbaijani President Ilham Aliyev approved the law on compulsory insurance on labor ability loss in July 2010.

The Azerbaijani parliament discussed the bill on compulsory types of insurance in the third reading.

Aliyev said the increase in premiums on compulsory insurance does not mean that its share in the total portfolio will increase, because voluntary insurance will be tightened then.

"Of course, in the early days following the adoption of the new law, the compulsory insurance would occupy a major share of the portfolio. But after a while, it is difficult to call the exact time, the share of the voluntary insurance will exceed the compulsory obey," Aliyev said.

He cited as an example the introduction of compulsory insurance of employees in the workplace, due to which about 90 percent of premiums on life insurance fell to the compulsory forms.

"But, this percentage will decrease in the future," Aliyev said.

Total premiums of all companies operating in the country amounted to 155.59 million manat and payments 53.83 million manat in 210.

The amount of premiums for compulsory insurance for the period totaled 31.283 million manat (20.1 percent) for payments of 8.56 million manat (15.9 percent).

The Azerbaijani insurance companies' premiums on life insurance hit about 10 million manat (on compulsory insurance on labor ability loss in production hit 8.7 million manat and voluntary life insurance - 1.15 million manat) in January-April 2011. The figure was only 1.457 million manat in 2010.

This draft law regulates the four types of compulsory insurance - real estate, liability of owners of motor vehicles, passenger insurance, and liability insurance while exploiting the real estate.

Under the bill, regardless of the housing cost the insurance sum is set at 25,000 manat for Baku, and the release amount at 250 manat. The figures are 20,000 manat and 200 manat, respectively, for Sumgait, Ganja and Nakhchivan and 15,000 manat and 150 manat - for other regions.

The insurance fee for Baku's resident will hit 50 manat a year with insurance rate at 0.2 percent for this type of insurance. One who seeks a higher amount of insurance compensation has the opportunity to buy voluntary property insurance policy that will allow development of this insurance type.

Under the bill, the compulsory insurance of real estate will be distributed to all types of buildings, houses and apartments belonging to individuals, offices, legal entities, public property. In this case the insured event will be considered the facts related to damage to this property as a result of fire, explosion, lightning, short circuit in the electrical system, an accident in the sewer or water system, natural disasters, etc.

Compulsory insurance of civil liability associated with the exploitation of real estate provides insurance protection for third parties from harm caused by using this property. This kind of insurance will apply to legal and physical entities engaged in entrepreneurial activity. The rate of insurance coverage for this type of insurance for damage to health will hit 50,000 manat (per person, 5,000 manat), property - 50,000 manat.

Compulsory insurance for passengers will relate to people using the vehicles, regardless of its form. The amount of the insurance coverage will hit 5,000 manat per person. Until now, this type of insurance is regulated by the law adopted in 2003, but the acting form is unacceptable today and creates problems in obtaining compensation.

The bill provides for a differentiated approach while determining the insurance rate, depending on the vehicle. The rate of insurance coverage on property will amount to 5,000 manat (1,000 manat today) and 50,000 manat (5,000 manat today) for health. This activity is regulated by the law dated 1996.

Twenty seven insurance companies and one reinsurance company operated in Azerbaijan in the report period.

Iran’s AEOI must implement decision of the Iranian parliament
Iran’s AEOI must implement decision of the Iranian parliament
Iranian government must suspend additional control mechanisms of nuclear deal - Iranian parliament
Iranian government must suspend additional control mechanisms of nuclear deal - Iranian parliament
Iran say it would welcome US returning to nuclear deal
Iran say it would welcome US returning to nuclear deal
Loading Bars
Latest
Iran to expand trade with Azerbaijan
Iran to buy 42 million doses of COVID-19 vaccine
Armenian acts of terrorism on previously occupied territories of Azerbaijan must be condemned by European countries - US expert
Georgia reveals profit of microfinance sector
South Korea, China top diplomats vow to work on North Korea, COVID-19
Turkey mulls new support measures for businesses hit by COVID-19
Tehran-Najaf flights resumed
Kazakhstan detects 820 new coronavirus cases in 24 hrs
Incumbent MP Sopio Kiladze elected member of UN Committee on the Rights of the Child
Canada police supervisor denies effort to deceive Huawei CFO about indictment
Georgia E-Space to create synergy of solar power plant and electric car charging infrastructure
Amazon workers in Germany to go on strike on 'Black Friday'
Kazakhstan's KazMunayGas forecasts annual oil output decrease
More migrants relocated from Malta to EU countries
U.S. grants ByteDance new seven-day extension of TikTok sale order
82 bandits killed in Nigerian airstrikes
China, Kyrgyzstan to boost pragmatic cooperation
AzerGold CJSC talks plans for extraction of precious metals
Kazakhstan’s Almaty Power Stations JSC opens tender to buy compressors
Volume of funds allocated to fixed capital increases in Azerbaijan’s Nakhchivan
Retail trade turnover of Azerbaijan’s Nakhchivan Autonomous Republic drops
Azerbaijani MoD unveils footage depicting advancement of Azerbaijani armyuits to liberated Kalbajar region (VIDEO/PHOTO)
Resolution of France's Senate nothing more than piece of paper for Azerbaijan - top official
Resolution adopted by France's Senate has no legal force - MFA
IKEA investment arm in talks to buy city-centre retail property in big European cities
Kazinform and IRNA news agencies hold joint online conference
China increases import of Turkish cars
Iran to compensate for Ukraine plane crash according to int'l norms
Oil tanker hit by blast at Saudi terminal, Saudi Arabia confirms
National Bank of Georgia sells funds at foreign exchange auction to stabilize lari
First Turkish Trade House to open in Azerbaijan
Azerbaijani president signs law renaming Tsakuri village in Khojavend district
Azerbaijani president signs law renaming Gushchubaba village of Khojaly district into Baharli village
Azerbaijan to monitor fields in Kalbajar - Head of National Geological Exploration Service (Exclusive)
EU allocates macro-financial assistance to Georgia to tackle COVID-19
Turkmen FM gives speech at 13th Central Asia-Korea Cooperation Forum
Turkmenistan advocates cooperation in resolving regional and global environmental problems
Azerbaijan confirms 1,229 more COVID-19 recoveries
Iranian Energy Exchange announces products to be on sale November 28
Austria provides Uzbekistan with railway equipment
U.S. weekly jobless claims increase again
Produce in Georgia agency selects business ideas for micro and small entrepreneurship grant program
Kazakhstan eyes to fully put up produced LPG on electronic trading platforms in 2021
Uzbekistan’s food production to grow by end of 2020
Fergana region becomes main textile producer in Uzbekistan
More countries allow import of Uzbek-grown products
Volume of lending in Azerbaijan’s Nakhchivan in annual circulation greatly increases
Lari depreciation among possible reasons for fuel price increase in Georgia
Azerbaijan prepares projects to restore road infrastructure in liberated territories
Production of Iran’s Sefid Dasht Steel Company increases
Kazakhstan's Kuryk port boosts cargo handling, launches direct link to Iran
Turkmenistan has sufficient reserves to mitigate effects of pandemic - IMF
Volume of cargo transportation of Azerbaijan’s Nakhchivan Autonomous Republic drops
Kazakhstan to localize production of German agricultural machinery's popular models
Iran’s Bahar Azadi gold coin price continues to fall
Georgian-produced ski equipment to be exported to Europe
Kazakhstan decreases exports to Italy year-on-year
Volume of goods released from Iran’s customs checkpoints announced
Turkmengas opens tender for purchase of instrumentation
Investments in Iran’s Kerman Province increase
Azerbaijani refugees from Kalbajar visit Martyrs Alley (PHOTO)
FM talks on possible Azerbaijan-Armenia peace treaty to French Le Point
Azerbaijan shows new footage of Azerbaijani army units entering Kalbajar (PHOTO/VIDEO)
Armenia must answer for war crimes - Azerbaijani FM
Iran’s South Pars Gas Company opens tender to buy equipment
Uzbekistan eyes to maintain macroeconomic stability in 2021
Volume of loans issued by commercial banks down in Georgia
Cable TV operators ready for full deployment in liberated Azerbaijani territories
Activities of private sector in Iran can put end to economic problems - analyst
Georgia increases export of precious metal ores and concentrates
During Karabakh hostilities, Turkey responded to political pressure exerted on Azerbaijan - ambassador
Oil shrugs off U.S. inventory gain helped by vaccine hopes
Total volume of non-bank deposits in Georgian banking sector down
Return of Kalbajar region to Azerbaijan has not only important political but also economic significance - Georgian expert
Number of bank accounts registered in Nakhchivan over 10M2020 unveiled
Azerbaijan's gold company reveals profits
Two facilities in Iran’s oil sector to be put into operation
Baku residents hold rally celebrating Kalbajar's liberation (PHOTOS)
Georgia reveals data on persimmons and caraway seeds exports
Turkmenistan’s growth model relies on large-scale public investments - IMF
Four dead as migrant boat capsizes off Canary Islands, more missing
Kazakhstan’s joining UPOV could help improve lives, provide for economic dev't
SOCAR reveals volume of transshipment through Kulevi terminal
First VP Mehriban Aliyeva congratulates Azerbaijani people on liberation of Kalbajar (PHOTO)
Cargo handling at Kazakhstan's Aktau seaport decreases over 10M2020
Foreign trade turnover of Azerbaijan’s Nakhchivan Autonomous Republic increases
Iran reveals its COVID-19 data for November 25
Life insurance in Azerbaijan occupies about half of all insurance fees - association
SOCAR and LUKOIL eye expanding co-op
Baku Stock Exchange hosts auction for CBA's short-term notes
Concerns of some OSCE MG co-chairing countries don't matter - Erdogan
Kazakhstan boosts passenger cars manufacturing within 10M2020
Turkmen IT company to create first online platform of Union of Industrialists, Entrepreneurs
Azerbaijan to export medical masks to Russia and Germany
UNESCO to take part in protection of cultural, religious heritage in Karabakh
Iran says ready to return to Jan 20, 2017
Iran talks banking obstacles
Azerbaijan disclose data on investments in local renewable energy projects
Iran prevented release of German home appliances from customs
Kazakhstan’s oil producing company opens tender to buy spare equipment parts
All news