Policies on vehicle owners’ liability insurance rise 4% in Azerbaijan

Business Materials 3 March 2014 16:14 (UTC +04:00)

Baku, Azerbaijan, March 3

By Abbas Akhundov - Trend:

In February 2014, Azerbaijani insurance companies concluded over 48,000 insurance contracts for compulsory insurance of vehicle owners' civil liability and collected premiums totalling over 3.7 million manats.

Some 15,200 contracts included insurance of liability of vehicle owners registered outside Azerbaijan, but who are in the country for transit purposes. These contracts were signed for a period of one month, according to a message from the Azerbaijani Compulsory Insurance Bureau (CIB), which was established in line with the 'Law on compulsory insurance'.

The insurance companies began implementing this law starting from December 16, 2011.

Aside from compulsory insurance of vehicle owners' civil liability, the law also regulates compulsory insurance of liability in operating real estate and compulsory insurance of passengers.

The average premium for compulsory insurance of vehicle owners' civil liability in Azerbaijan in February, 2014 stood at 77.3 manats, according to the message.

The number of policies on this type of insurance increased by 3.9 percent, while the volume of premiums went up by 3.5 percent as compared to figures for February 2013.

CIB includes 14 companies.

When the 'Law on compulsory insurance' came into force, the cost basis of compulsory insurance of vehicle owner's civil liability stood at 50 manats when implemented with regard to those vehicles with an engine capacity of up to 1500 cubic centimetres.

With an increased engine size from 1500 to 5000 cubic centimetres, the value ratios ranging from 1.5 to five are implemented with regard to prices.

The value ratio of five is implemented for vehicles with an engine capacity over 5000 cubic centimetres.

Previously the insurance premium for all cars was 10 manats.

The contract with the owners of motor vehicles registered abroad and imported to Azerbaijan for transit purposes is signed for one month and the insurance amount is equal to 25 percent of the annual premium for such motor vehicles.

The official exchange rate on March 3 is 0.7844 AZN/USD.

Translated by E.A.

Edited by S.M.