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Insurance for real estate use in Azerbaijan to depend on its purpose

Business Materials 7 January 2012 16:26 (UTC +04:00)
The Azerbaijani Finance Ministry announced the procedure for calculating the amount of insurance premium for compulsory insurance of civil responsibility while using the real estate. The procedure was approved within the new law on "Mandatory types of insurance". The insurance companies have started using it since December 16.
Insurance for real estate use in Azerbaijan to depend on its purpose

Azerbaijan, Baku, Jan. 7 / Trend A. Akhundov /

The Azerbaijani Finance Ministry announced the procedure for calculating the amount of insurance premium for compulsory insurance of civil responsibility while using the real estate. The procedure was approved within the new law on "Mandatory types of insurance". The insurance companies have started using it since December 16.

The insurance amount payable while concluding a contract of this kind for a period of one year is determined by a risk group, which depends on the type of economic activity, which involves real estate.

Risk group

Insurance sum (in manat)

1

30

2

60

3

90

4

120

Administrative buildings, regardless of economic activities carried out by their owners or other persons are the owners, referring to the first risk group.

A risk group of real estate is determined, depending on the type of economic activity, as follows:

Risk group

Type of economic activity

1

Financial and insurance activity

State governance and protection, compulsory social maintenance

Activity of organizations, having the right of inviolability

Transactions connected with real estate

2

Rendering administrative and additional services

Education

Professional, scientific and technical activity

Information and communication

Rendering of services in other spheres

Rendering medical and social services to the population

Activity in the sphere of rest, entertainment and art

3

Agriculture, forestry and fishery

Transport and warehousing

Wholesale and retail trade, repair of cars and motor bikes

Water supply, sewage treatment

4

Provision with electricity, gas, steam

processing industry

organization of housing and public life

Extractive industry

Construction

Besides this kind, the new law regulates three types of compulsory insurance - real estate, liability of owners of motor vehicles, obligatory passenger insurance.

Insurance policies for these kinds can be sold by the companies-members of the bureau on compulsory insurance.

Pasa Sıgorta, Atesgah Sıgorta, Ata Sıgorta, AXA MBASK, Xalq Sıgorta and Standard Insurance are the founders of the bureau. AzSıgorta joined the bureau later.

All these companies, except Atesgah Sıgorta, will render services for three types of compulsory insurance - liability of owners of motor vehicles, real property and insurance of liability while using real estate. Atesgah Sıgorta will work only on liability of owners of motor vehicles.

According to the Code of Administrative Offences, penalties for the failure to conclude an insurance contract on compulsory insurance in Azerbaijan for physical entities hit 10 manat, officials - from 60 to 80 manat, legal entities - from 150 to 200 manat.

The official exchange rate is 0,7865 AZN/USD on Jan. 7.

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