Fees for compulsory insurance in Azerbaijan increase by 2.34 times
Azerbaijan, Baku, Oct 22 /Trend A.Akhundov/
Charges for compulsory insurance in Azerbaijan in January-September amounted to 96.216 million manat, an increase of 2.34 times over a year, their share in total charges increased from 24.91 to 37.54 percent. Payments for these types rose, compared with the same period of last year, by almost 64.36 percent to 11.82 million manat, the report of the Ministry of Finance of Azerbaijan on the activities of insurance companies in January-September 2012 said.
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 companies [numbering 12], members of the Bureau of compulsory insurance and having the right to engage in these types, collected by CTP in January-September 53.425 million manat, which exceeds the figure for the same period of 2011 by 15.6 percent.
In general, the CTP in January - September accounted for 55.53 per cent of fees for compulsory insurance (8.32 per cent in the corresponding period last year) and 20.84 percent of all premiums collected in the market over this period (2.07 per cent last year).
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.
On compulsory insurance of immovable property, civil liability in the operation of real estate and passenger insurance companies have collected respectively 7.72 million manat (payment for this type amounted to 542,24 manat) 231,8 manat (without payment), 122,29 manat (without payments).
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.
In January-September payments at 3.35 million manat were made on new CTP, and on CTP policies, signed during the period of the old law, which expired in October 2011, in January-September this year 0.52 million manat were 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 five months of 2012 collected 20.167 million manat. This is higher than the same period last year by 23.44 percent.
In the structure of compulsory insurance in January-Sept 2012 premiums for state individual insurance of servicemen were at 11.1 million manat with payments of 5.6 million manat, the state individual insurance of judicial and law enforcement agencies' employees- 3.39 million manat with payments at 514,87 manat, auditors' liability insurance - 8,06 manat without payments, compulsory personal insurance of MPs - 51,35 manat without payments.
The total volume of premiums of all companies operating in the country was, in January - September, some 256.33 million manat (growth in the year by 55.1 per cent), and payments for the reporting period were mate at 67.65 million manat (growth by 64.23 percent).
The report of the Ministry of Finance of Azerbaijan has not given the results of the only reinsurance company AzRE.
Official exchange rate on Oct 22 is 0.785 AZN/US