In Azerbaijan average CTP payments on covering damages to vehicles exceeds $ 1,700

Business Materials 9 January 2014 11:54 (UTC +04:00)

Baku, Azerbaijan, Jan. 9
Abbas Akhundov -Trend:

In 2013, Azerbaijani insurance companies paid an average of 1348 manats per claim to cover damages to vehicles on insurance of civil liability of vehicle owners (CTP), the Compulsory Insurance Bureau (ISB) said.

Only ISB members have right to work on CTP. 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.

In 2013, these companies paid claims on CTP to the sum of 25.3 million manat, of which 23.4 million manat were directed to covering damages to vehicles.

According to the bureau, 58 percent of the payments are up to 1,000 manat, 30 percent - from 1,000 to 3,000 manat, 12 percent - from 3,000 to 5,000 manat, and the average amount of payment amounted to 1348 manat.

After the law 'On compulsory insurance' came into force in December 2011, the basic cost of an insurance policy on CTP amounts to 50 manat and is used in regard to cars with an engine capacity of up to 1500 cubic centimeters. With the increasing volume of the engine (from 1,500 to 5,000 cubic centimeters), coefficients from 1.5 to five are added up to the cost. Coefficient five is used for cars with an engine capacity of over 5,000 cubic centimeters.

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

The contract with the owners of vehicles registered abroad and imported to Azerbaijan for transit purposes was signed for a period of one month, and the insurance amount equals 25 percent of the annual premium for the vehicle.

The official exchange rate on Jan.9 is 0.7844 AZN/USD.

Translated by M.L.

Edited by C.N.