Azerbaijan, Baku, Feb. 23 / Trend A.Akhundov /
Since the beginning of use of a new law in Azerbaijan "On compulsory types of insurance", i.e. since Dec 16, 2011 more than 54,000 contracts were signed by the Information System of the Bureau on compulsory insurance on compulsory insurance of liability of owners of motor vehicles, the Bureau told Trend on Thursday.
"The volume of insurance premiums on these contracts exceeded 4.2 million manat," the bureau said.
According to the State Service of Insurance Supervision under the Ministry of Finance of Azerbaijan, since the beginning of 2011 until mid-October, that is, until the old law became invalid, 4.343 million manat were collected on this kind in the country. Issuance of policies has been resumed from December 16 on new terms and 98,320 manat were collected on the vehicles insurance till the end of the year.
That is, in 2012 more than 4.1 million manat have been collected, which exceeds the figure for January-February 2011 by more than 6.6 times, and is almost close to figure of the whole 2011.
Such increase in premiums for vehicle insurance in Azerbaijan accounts for a significant increase in the amount of premium for this type.
After the new law "On mandatory types of insurance" came into force basic cost of insurance is 50 manat and is accepted in respect of cars with engine capacity up to 1500 cubic centimeters. With increasing engine size (from 1,500 to 5,000 cubic centimeters) ratios from 1.5 to 5 are used to value. For vehicles with engine capacity more than 5,000 cubic centimeters ratio five is used.
The official exchange rate is 0.7864 AZN to $1 on Feb. 23.