Average premium on compulsory insurance of vehicle owners’ liability hits $ 100 in Azerbaijan

Business Materials 3 August 2013 16:07 (UTC +04:00)

Azerbaijan, Baku, August 3 / Trend A. Akhundov /

Azerbaijani insurance companies concluded more than 72,800 insurance contracts on compulsory insurance of liability of owners of vehicles in July and collected premiums worth 5.6 million manat.

The liability of owners of cars registered outside of Azerbaijan, but in the territory of Azerbaijan for transit purposes was insured in 23,100 contracts. These agreements are concluded for a period of one month.

The Compulsory Insurance Bureau has been established within the law on compulsory types of insurance. This law began to be used by the insurance companies on December 16, 2011. The law regulates the compulsory liability insurance of vehicle owners, compulsory insurance of real estate, compulsory liability insurance for the operation of real estate and the compulsory insurance of passengers.

The average premium on compulsory insurance of vehicle owners' liability was 77 manat in July.

The number of insurance policies on compulsory insurance of liability of vehicle owners increased by 5.9 percent, the amount of collected premiums - by 7.2 percent in July compared to June 2013. But a decline of 1.9 and 6.7 percent respectively was registered compared to July last year.

Some 12 companies are participants of the Compulsory Insurance Bureau: Pasa Sıgorta, Atesgah Sıgorta Sirketi, Standard Insurance Sıgorta Sirketi, AtaSıgorta, Xalq Sıgorta, AXA MBASK Sıgorta Sirketi, AZSIGORTA, Alfa Sıgorta, the state commercial insurance company Azersıgorta, Meqa Sıgorta, İpek Yolu Sıgorta and Azerbaycan Senaye Sıgorta.

After the law 'On mandatory types of insurance' became effective on December 2011, the base cost of insurance for compulsory insurance of civil liability of vehicle owners totaled 50 manat. This applies to vehicles with an engine capacity of up to 1500 cubic centimetres. With the increasing size of engines, from 1500-5000 cubic centimetres, coefficients from 1.5 to 5 are added up to the cost. Coefficient 5 is used for cars with an engine capacity over 5000 cubic centimetres.

Previously, the insurance premium was 10 manat for all cars.

The contract is concluded for one month with the owners of vehicles registered abroad and imported to Azerbaijan for transit purposes.

The insurance amount is equal to 25 percent of the annual premium for such a vehicle.

The official exchange rate is 0,7845 AZN/USD on August 3.