Azerbaijan, Baku, July 4 / Trend A.Akhundov /
The State Insurance Supervision Service under the Azerbaijani Finance Ministry expects charges for compulsory insurance of liability of owners of motor vehicles (CTP) at the end of the year to be 60-70 million manat, the State Service head Namig Khalilov told reporters on Wednesday.
As from December 2011, since the beginning of application of the new CTP to July 1, contracts worth over 32 million manat were concluded on this type of insurance.
"Everything is good regarding the CTP. We now have about 400,000 insured under the new rules. I believe this reflects the proportion which should have been done to date and I think that before the end of the year all the cars that pass inspection and actually operate in the country, will be insured," Khalilov said.
He said that since mid-April, payments by the Bureau on compulsory insurance compensation to third parties for CTP have not taken place.
"There have been no complaints so far, which is surprising since every day, road accidents happen and there are uninsured vehicles. However, maybe over time the claims will come as there are legal procedures," Khalilov said.
As for the compulsory insurance of real estate, according to him the State Service worked hard to promote this type of product among the population.
"Some work in this direction is being carried out mainly in rural areas. We, on the other hand have held meetings in three regions and this process will cover 12 districts. Together with the local executive, meetings were held to explain the field of insurance. In this direction the AzerSigorta state insurance company is very active which also has been active in promoting home insurance for the poor funded by the state," Khalilov said.
From July 1, 2012, additional requirements for insurance companies to work for compulsory insurance came into force in Azerbaijan.
According to these requirements at least in one region or city of 10 economic regions of the country except in the occupied territories, the insurer must have a branch or representative office with all the features necessary for recovery of damages.
Branches and representative offices shall be established in the following economic areas: Apsheron, Aran, Nagorno-Shirvan, Ganja-Gazakh, Guba-Khachmaz, Lankaran, Nakhchivan, Kalbajar-Lachin, Sheki-Zagatala and the Nagorno-Karabakh.
Khalilov said by July 1 all companies provided information on the branches in the country. "We are now analysing this information, but in general, these requirements are fulfilled."
The Bureau on compulsory insurance was created in Azerbaijan in accordance with requirements of the new law On compulsory types of insurance.
The law regulates four types of compulsory insurance - real estate, liability of owners of vehicles, passenger insurance and liability insurance while touching on real estate. Insurance companies started using the law since December 16, 2011.
The Bureau founders are six companies - Pasha Sıgorta, Ateshgah Sıgorta, Ata Sıgorta, AXA MBASK, Xalq Sıgorta and Standard Insurance.
Later AzSıgorta, Alfa Sıgorta, State Insurance Commercial Company of Azerbaijan, Meqa Sıgorta, İpək Yolu Sıgorta and Azerbaycan Senaye Sıgorta jointed the Bureau.
The official exchange rate is 0.7856 AZN to $1 on July 4.