More branches for Azerbaijani insurance company

Business Materials 11 January 2012 15:15 (UTC +04:00)

Azerbaijan, Baku, Jan 11 /Trend A.Akhundov/

The Azerbaijan International Insurance Company (IIC) is planning to expand its branch network in 2012 if it becomes a member of the compulsory insurance bureau set up in the country in accordance with the requirements of the new law on mandatory types of insurance, deputy chairman Elshad Aliyev told Trend.

"We can increase the number of branches to 10 if necessary," Mr Aliyev said.
The company has branches in Ganja, Sumgait and Sheki and has applied to the Ministry of Finance for primary permission to participate in the bureau. Additional requirements for insurance companies to work on compulsory insurance come into force in Azerbaijan on July 1 this year.

According to these requirements, the insurer must have a branch or representative office which has all the capabilities necessary for recovery of damages at least in one area or city of 10 economic regions of the country, except for the occupied territories.

Branches and representative offices shall be established in the following economic areas: Apsheron, Aran, Nagorno-Shirvan, Ganja-Gazakh, Guba-Khachmaz, Lankaran, Nakhchivan, Kelbajar, Lachin, Sheki-Zagatala and Nagorno-Karabakh. The insurer shall provide data on its branches and offices including their addresses and phone numbers on its official web page.
Insurance companies began to apply the new law on December 16, 2011. It regulates four types of compulsory insurance - real estate, civil liability in the operation of real estate, insurance and civil liability of vehicle owners and private passenger insurance. Only members of the Compulsory Insurance Bureau can sell these types of polices.

Six companies, Paşa Sığorta, Atəşgah Sığorta, Ata Sığorta, AXA MBASK, Xalq Sığorta and Standard Insurance are members along with latecomer AzSığorta.

There are 29 insurance and one reinsurance company trading in Azerbaijan.