Number of policies on OSAGO increased by 77 percent in Azerbaijan in October

Business Materials 6 November 2013 10:47 (UTC +04:00)

Baku, Azerbaijan, Nov. 6/

Abbas Akhundov -Trend: Azerbaijani insurance companies concluded more than 125,350 insurance contracts on compulsory insurance of vehicle owners' liability (OSAGO) in October and collected premiums worth over 10.3 million manat.

By 22,000 contracts was insured liability of the owners of cars registered outside of Azerbaijan, but in the territory of Azerbaijan for transit purposes. These agreements are concluded for a period of one month, the Compulsory Insurance Bureau reported.

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 in Azerbaijan was 82.4 manat in October, while in September it was at 81.5 manat.

Compared to September 2013, the number of policies on OSAGO increased by 77 percent, while compared to October 2012 - by 14 percent.

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 on November 6 is 0,7843 AZN/USD.