Payments for compulsory insurance grow by almost half in Azerbaijan

Azerbaijan, Baku, Aug. 17 / Trend A.Akhundov /

Charges for compulsory insurance in Azerbaijan in January-July amounted to 74.572 million manat, an increase of 2.05 times over a year and their share in total charges increased from 31.25 per cent to 37 per cent. Payments for these types rose compared to January-July 2011, by 47.55 per cent to 8.385 million manat, the report of the Ministry of Finance of Azerbaijan on the activities of insurance companies in January-July 2012 said on Friday.

The companies which number 12, are members of the bureau of compulsory insurance and have the right to engage in these types of insurance collected by CTP in January-July 41.095 million manat, which exceeds the figure for the same period of 2011 by 15.36 times.

In general, the CTP in January-July 2012 accounted for 55.11 per cent of charges for compulsory insurance (7.35 per cent in the corresponding period last year) and 20.39 per cent of all premiums collected in the market over this period (2.3 per cent last year).

On compulsory insurance of immovable property, civil liability in the operation of real estate and passenger insurance companies the amount collected respectively is 5.53 million manat (payment for this type amounted to 189,330 manat), 202,110 manat (without payments) and 54,540 manat (without payments).

In January-July payments of 1.729 million manat were made on the new CTP and on CTP policies signed during the period of the old law which expired in October 2011 and in January-July this year 446,870 manat was paid.

Three companies that have the right to engage in life insurance in Azerbaijan - Pasha Heyat, Ateshgah Heyat and Qala Heyat on compulsory insurance of disability resulting from occupational diseases and accidents in the first seven months of 2012 collected 17.269 million manat. This is higher than the same period last year by 18.85 per cent.

Under the structure of compulsory insurance in January-July 2012 premiums for state individual insurance of servicemen were at 8.161 million manat with payments of 4.426 million manat. The state individual insurance of judicial and law enforcement agencies' employeeswas 2.136 million manat with payments of 388,360 manat, auditors' liability insurance - 7,650 manat without payments and compulsory personal insurance of MPs - 51,350 manat without payments.

The total volume of premiums of all companies operating in the country was, following the first seven months of 2012, some 201.509 million manat (growth in the year by 73.01 per cent), and payments for the reporting period were made at 49.469 million manat, a growth of 51.7 per cent.

The report of the Ministry of Finance of Azerbaijan has not given the results of the only reinsurance company AzRE.

There are 28 insurance companies in Azerbaijan.

The official exchange rate is 0.7854 AZN to $1 on Aug. 17.