Compulsory insurance bureau participants’ list expands in Azerbaijan

Business Materials 27 December 2011 16:35 (UTC +04:00)

Azerbaijan, Baku, Dec. 27 / Trend A. Akhundov /

Azerbaijani insurance company Era Trans Sıgorta plans to become a member of the bureau on compulsory insurance, created in the country in accordance with the requirements of the new law on "Obligatory types of insurance", deputy chairman of board Imran Abdullayev told Trend today.

The law regulates the four types of compulsory insurance - real estate, liability of owners of vehicles, passenger insurance, liability insurance while exploiting the real estate. The insurance companies have started using the law since December 16, 2011.

"We plan to engage in all kinds, except compulsory insurance of passengers," he said. "We have appealed to the Finance Ministry to get the initial permission. We expect to receive it in January. Afterwards, we will appeal to the bureau and transfer the required 600,000 manat."

He said that the share of compulsory insurance in the companies' fees hits about 10 percent. It is planned to increase it to 20-25 percent in 2012.

Six companies are the founders of the firm, Paşa Sığorta, Atəşgah Sığorta, Ata Sığorta, AXA MBASK, Xalq Sığorta and Standard Insurance. Insurance companies Atəşgah Sığorta, Xalq Sığorta and Standard Insurance, as well as two representatives of the Ministry of Finance, Head of Tax Policy and the head of legal department are elected as a board of trustees.
Fees worth 200,000 manat for obligatory liability insurance of vehicle owners, 200,000 manat for insurance of passengers, 100,000 manat for property insurance and 100,000 manat for liability insurance of real estate operation defined to obtain permission to engage in these kinds of insurance.
Besides the contributions for participation, permits and fees to the amount of five percent on each transaction, there will be additional benefits in the course of the activities.
The number of participants in the compulsory insurance Office established in Azerbaijan may increase to 15, State Service for Insurance Supervision offiical Namig Khalilov said earlier.
"About 10-15 companies have the capabilities to meet the requirements for entry into office. List of participants can further expand with increasing ability of firms in the future" Khalilov said earlier.
Khalilov noted that, the number of participant bureau can increase to 10 by late 2011- early 2012.
There are 28 insurance and 1 reinsurance companies in Azerbaijan. At the same time the licenses of Fidan Sığorta Günay Sığorta companies in the insurance business suspended.

Operating since 1994, "Era Trans Sıgorta" insurance company renders services on 24 types of voluntary and four types of compulsory insurance.

The official exchange rate is 0,7863 AZN/USD.