Azerbaijan, Baku, Sept. 11 / Trend A.Akhundov /
Azerbaijani company Buta Sıgorta is determined to join the compulsory insurance bureau before the end of the year, company chairman Abbas Babayev told Trend on Tuesday.
Bureau on compulsory insurance is 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.
"We are going to engage in all these types, except insurance of passengers," Babayev said.
He said the company has already applied for a permit to the Ministry of Finance.
"Now we are solving institutional issues associated with the introduction of our own software and the expansion of the branch network," Babayev said.
The participants of the Bureau of compulsory insurance are Pasha Sıgorta, Ateshgah Sıgorta, Standard Insurance, AtaSıgorta, Xalq Sıgorta, AXA MBASK, AzSıgorta, Alfa Sıgorta, state commercial insurance company Azersıgorta, Meqa Sıgorta, Ipek Yolu Sıgorta and Azerbaycan Senaye Sıgorta.
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.
Babayev said the company has already started to set up branches and representative offices.
"Today, six representative offices in Yevlakh, Khachmaz, Sumgait, Lankaran and so on, as well as a branch in Ganja have been registered," he said.
Earlier, owner of a 49-percent stake in the company was the British Glencarron Group Limited. Temza Sıgorta Qrupu (formerly Buta Sıgorta) has operated in the insurance market since 1996. Azerbaijan's share was owned by local individual and legal entity (Gala Investment).
Now, the company has six shareholders - Bank of Baku, Baku Electronics, Baku Service Company, Auto Azerbaijan and Qafqaz Lizinq, which own 19 percent each, and NAB Holding with a five per cent participation.
The official exchange rate is 0.7852 AZN to $1 on Sept. 11.