Over 20 percent of Azerbaijani market falls to compulsory insurance of motor vehicle owner’ civil liability
Azerbaijan, Baku, Sept. 27 / Trend A.Akhundov /
The fees for compulsory insurance in Azerbaijan in January-August hit 87.199 million manat, increasing by 2.27 times per year. Their share of the total amount of fees increased from 28.56 to 38.1 percent. The payments for these types increased by 53.97 percent to 9.976 million manat compared to January-August 2011, the Azerbaijani Ministry of Finance's report on the activity of insurance companies in January-August 2012 said.
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.
Around 12 companies, included in the bureau for compulsory insurance and having the right to engage in these kinds, collected 47.218 million manat in compulsory insurance of civil liability of motor vehicle owners in January-August. This exceeds the figure by 15.63 times for the same period of 2011.
Around 54.15 percent on compulsory fees (7.87 percent in the same period of last year) and 20.63 percent of the premiums collected in the market over the same period (2.25 percent of last year) fell to compulsory insurance of civil liability of motor vehicle owners in January-August 2012.
After the new law 'On mandatory types of insurance' came into force, the basic cost of insurance was 50 manat and accepted in respect of cars with an engine capacity of up to 1500 cubic centimetres (cc). With increasing engine volume (from 1500 to 5000cc) ratios from 1.5 to 5 are used to value. For vehicles with an engine capacity of more than 5000cc the ratio five is used.
The companies collected 6.784 million (payment on this type - 344,180 manat), 202,680 manat (without payment), 121,970 manat (without payment) on compulsory insurance of real estate, civil liability while exploiting the real estate and passenger insurance.
The bureau of compulsory insurance was established in Azerbaijan in accordance with the law on "Compulsory types of insurance". Azerbaycan Senaye Sıgorta was the last company included in the bureau's registry on June 27.
The founders of the bureau 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, İpek Yolu Sıgorta, Azerbaycan Senaye Sıgorta and Meqa Sıgorta entered the bureau.
According to the new compulsory insurance of civil liability of motor vehicle owners, the payments worth 2.507 million manat were made in January-August.
In April, the bureau began to pay compensation to the third parties injured as a result of the insurance claims.
There are three companies eligible for life insurance in Azerbaijan - Pasha Heyat, Ateshgah and Qala Heyat.
19.148 million manats was collected on the mandatory insurance of disability resulting from professional diseases and accidents at work within the first eight months of 2012. These figures exceed the indicators for the same period of last year by 29.04 per cent.
The total volume of premiums of all companies acting in the country amounted to 228.87 million manats according to the totals of first eight months of 2012, an increase of 70.24 per cent within a year, whilst the fees during the same period amounted to 58.87 million manat, an increase of 62.1 per cent.
The report of the Ministry of Finance didn't mention the activity totals of the only reinsurance company in the country, AzRE.
There are 28 insurance companies in Azerbaijan.
The official exchange rate as of Sept. 27 is 0,7853 AZN/USD.