Azerbaijan, Baku, Jan. 14 / Trend, A. Akhundov /
Charges for compulsory insurance in Azerbaijan in 2012 amounted to 127.52 million Manat, an increase of 2.4 times over a one year period, their share in total charges increased from 24.4 to 37.22%. Payments for these types rose compared to 2011 by 52.44% to 93.86 million Manat, the report of the Ministry of Finance of Azerbaijan on the activities of insurance companies in 2012 said.
The law 'On mandatory types of insurance' regulates four types of compulsory insurance - real estate, vehicle owner liability, passenger insurance and real estate liability insurance. Insurance companies started using the law since December 16, 2011.
The companies [numbering 12], all members of the Bureau of Compulsory Insurance, who have the right to engage in such activities, contributed 72.28 million Manat to the CTP in 2012, which exceeds the figure for 2011 by 16.28 times.
In general, the CTP in 2012 accounted for 56.68% of fees for compulsory insurance (2.08% in 2011) and 21.1% of all premiums collected in the market over this period (8.54% 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 calculate value. For vehicles with an engine capacity of more than 5000cc, the ratio five is used.
Earlier, insurance premiums for all cars were 10 Manat.
From compulsory insurance of immovable property, civil liability in real estate and passenger insurance, companies have collected respectively 11.41 million Manat (individual payment for this type amounted to 909.07 Manat), 309.23 Manat (without payment), 118,29 Manat (without payment).
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.
Six companies founded the bureau: 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 2012, payments at 7.32 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 2012 0.58 million Manat were paid.
Three companies that have the right to engage in life insurance sales 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 20.46 million manat. This is higher than the same period last year by 16.85%.
In April 2012, the Bureu started paying compensation claims to third parties who suffered insurance incidents.
Affected persons may apply for compensation to the Bureau on compulsory insurance in the following cases:
- If the damage to the health of the person has been caused by unknown motor vehicle;
- If the damage to the health of a third party has been caused through the use of a motor vehicle by a person without agreement on compulsory insurance of civil liability, provided that claims for damages made by the victim have not been satisfied by the culprit causing the road accident.
The three companies that have the right to engage in life insurance sales in Azerbaijan - Pasha Heyat, Ateshgah Heyat and Qala Heyat - on compulsory disability insurance resulting from occupational diseases and accidents in the first five months of 2012 collected 21.73 million manat. This is higher than last year by 15%.
In the structure of compulsory insurance in 2012, premiums for individual state insurance for servicemen was at 15.77 million Manat with payments of 7.29 million Manat, the state individual insurance of judicial and law enforcement agencies' employees was at 5.77 million Manat with payments at 818,950 Manat, Auditors' liability insurance was at 814,000 Manat without payments, compulsory personal insurance of MPs was 112,260 thousand manat without payments.
The total volume of premiums of all companies operating in the country was 342.52 million Manat (growth in the year by 60.8%), and payments for the reporting period were made at 93.86 million Manat (52.45% growth).
The Ministry of Finance report has not given the results from the only reinsurance company AzRE.
The official exchange rate on Jan. 14 is 0.7848 AZN/USD