Insurance companies in Azerbaijan offer to reduce membership fees to Bureau of compulsory insurance of vehicles

Business Materials 2 June 2011 20:54 (UTC +04:00)

Azerbaijan, Baku, June 2 /Trend, A.Akhundov/

The insurance companies in Azerbaijan offer to reduce membership fees to the Bureau of compulsory insurance of vehicles, of which establishment is envisaged in Azerbaijan within the Law on Compulsory Insurances," chairman of the parliamentary committee on economic policy Ziyad Samadzade told Trend on Thursday.

Under the bill, third reading of which will be held in late June, members of the Bureau will be the insurance companies that are licensed for the provision of compulsory motor TPL insurance. Insurance companies - member of the Bureau should make a calendar payment in the amount of three percent of the premiums received under contracts on compulsory motor TPL insurance. Calendar payments must be made to the account of the Bureau within 15 days after the reporting period.

Among the sources of reserve for the payment of insurance cases, a deposit of guaranteeing should also be made to the Bureau. The insurance companies wishing to become members of Bureau should pay one-time fee - deposit of guaranteeing, the amount of which is determined by State Insurance Supervision.

"Now we are discussing the amount of the fund, many insurance companies want the contributions to be less," said Samadzade.

The draft law contains a differentiated approach in determining the insurance rate, depending on the type of vehicle. The fee for compulsory motor TPL insurance on the property amounts to 5,000 manat (currently 1,000 manat), health - 50,000 manat (5,000). At present, this activity is regulated by the law of 1996.

Official rate on June 2 is 0.7893 AZN/USD.