Azerbaijan, Baku, November 15 / Trend, A. Akhundov /
The issue of policies on four compulsory kinds of insurance, suspended in Azerbaijan in the middle of September in connection with the passage of the new law "On Compulsory Kinds of Insurance" and with that respective legal acts on each of these four kinds no longer have the force of the law, will be restarted in the near future, Mahir Abdullayev, Head of Division of the Finance Ministry's State Insurance Supervision Service, told Trend on Tuesday.
"Normative documents related to the new law have already been completed and submitted for consideration to respective agencies, and we hope that they will be approved in the near term," Abdullayev said.
Straight after the new law takes effect, insurance companies will be notified of this, he noted.
As the President's September 15 order on application of the Law "On Compulsory Kinds of Insurance" envisioned, the Finance Minister was given two months to calculate the size of payment and security deposit for those insurers who want to join the Compulsory Insurance Bureau.
The Finance Ministry was also instructed to define the order of formation of reserve of Bureau member insurers' liabilities and calculate sum of the reserve. In addition, the Finance Ministry was given two months to define the order of calculation of insurance tariffs on compulsory insurance of real estates, and settle other matters.
"Only insurers, which will join the Compulsory Insurance Bureau, will be authorized to deal with these four kinds of compulsory insurance regulated by the new law," Abdullayev said.
The Law "On Compulsory Kinds of Insurance" regulates the following four kinds of compulsory insurance - real estate insurance, civil liability of vehicle owners (OSAGO), insurance of passengers, and real estate civil liability insurance.
A total of nine kinds of compulsory insurance are effective in the country. Executive Director
Azer Aliyev, Executive Director of the Association of Insurers of Azerbaijan, says OSAGO collections are not yet so essential to affect anyhow the insurance market as a result of temporary suspension of the issue of policies on this kind of insurance.
"This may only affect companies where most of tax collections covers OSAGO but will not provide any substantial impact on general situation. The State Insurance Supervision Service works actively over the new law so I think the new system of sale of OSAGO-related policies will be launched within one month," Aliyev noted.