Over 20 percent rise in compulsory type insurance fees in Azerbaijan
Baku, Azerbaijan, March 26
By Abbas Akhundov - Trend:
Fees for compulsory types of insurance in Azerbaijan amounted to 19.89 million manat in January-February 2014, an increase of 21.5 percent over a year and their share in total fees increased from 20.8 to 21.7 percent. The payments for these types of insurance increased by 12.47 per cent amounting to 6.11 million manat compared to the same period in 2013, the Azerbaijani Ministry of Finance report on the activities of the insurance companies in January-February, 2014 said.
The application of the new law on 'Compulsory insurance' started on Dec. 16, 2011, under which new types of compulsory insurance introduced to the Azerbaijani market, such as real estate insurance, civil liability in the commissioning of real estate, as well as the insurance amounts were increased on the compulsory insurance of civil liability of vehicle owners (CTP) and passenger insurance.
Some 14 companies including those in the Compulsory Insurance Bureau and entitled to deal with these types of services, collected 7.58 million manta on CTP in January-February 2014 which is less than one percent in the same period in 2013.
In total, the CTP in January-February 2014 accounted for 38.1 per cent of compulsory fees (46.65 percent - in January -February, 2013) and 8.27 percent of the total premiums collected in the market over the reported period (9.7 percent - in January-February, 2013).
Following the entry of the law on 'Compulsory Insurance', the base cost of insurance for CTP amounted to 50 manat and applies to vehicles with an engine capacity of up to 1500cc. With an increasing engine volume from 1500 to 5000cc, coefficients from 1.5 to 5 are added up to the cost. Coefficient 5 is used for cars with an engine capacity over 5000cc.
Previously the insurance premium for all passenger cars was 10 manat.
Some 4.33 million manat payments were made to CTP in January-February, 2014 which is 21.6 percent exceeding the same period in 2013.
Some1.98 million manat (payment for this type made up 243.830 manat) and 70.350 manat (without payment) was collected respectively on compulsory insurance of immovable property and civil liability in the commissioning of real estate.
The compulsory insurance bureau was established in Azerbaijan in accordance with the law on 'Compulsory Types of Insurance'. Some 14 companies are the members of the bureau.
The three companies that have the right to engage in life insurance sales in Azerbaijan are Pasha Hayat, Ateshgah Hayat and Qala Hayat collecting 5.41 million manat in January-February, 2014, on compulsory disability insurance resulting from occupational diseases and accidents. This is higher than the same period by 23 percent.
The total volume of premiums of all companies operating in the country was 91.62 million manat in January-February, 2014 (16.33 percent growth for a year ) and payments for the reporting period were made up to 19.02 million manat (17.29 percent growth).
The Ministry of Finance report has not shown the results from the only reinsurance company AzRE.
The official exchange rate on March 26 is 0.7843 AZN / USD.
Translated by S.I.
Edited by S.M.