Requirements for work on compulsory insurance to be toughened in Azerbaijan from July 1

Business Materials 7 January 2012 17:06 (UTC +04:00)

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

Additional requirements will come into force for insurance companies to work on compulsory insurance from July 1, 2012.

According to these requirements, the insurer must have a branch or a representative office with all opportunities to recover the damage at least in one of the regions or towns of 10 economic regions of the country, except for the occupied territories.

Branches and representative offices must be established in the following economic areas: the Apsheron, Aran, Nagorno-Shirvan, Ganja-Gazakh, Guba-Khachmaz, Lankaran, Nakhchivan, Kalbajar-Lachin, Sheki-Zagatala and Nagorno-Karabakh.

The insurer must indicate the data on his branches and offices, including the addresses and phone numbers at his official web page.

The insurance companies have started using the new law on "Mandatory types of insurance" since December 16, 2011.

The law regulates four types of compulsory insurance - real estate, liability of owners of vehicles, passenger insurance and real estate liability.

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.

There are 29 insurance and one reinsurance companies in Azerbaijan.