OSAGO premiums in Azerbaijan increase by almost half

Business Materials 2 September 2014 12:21 (UTC +04:00)

Baku, Azerbaijan, Sept.2

By Zulfiyya Kurbanova - Trend:

Azerbaijani insurance companies concluded more than 9862,000 insurance contracts on compulsory insurance of vehicle owners' liability (OSAGO) in August 2014 and collected premiums worth 5.7 million AZN, states the report published Sept.2 on the website of Compulsory Insurance Bureau (ISB), which was established in accordance with the law "On mandatory types of insurance."

Compared to August 2013, the number of policies on OSAGO increased by 44.36 percent, while the volume of premiums collected by 49.99 percent.

By 24, 700 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 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.

In general, more than 614,000 of insurance contracts during the first 8 months of 2014 on compulsory insurance of vehicles owners' liability were concluded, and the total amount of premiums amounted to 45.7 million AZN. The number of contracts in January-August increased by 5.94 percent, while the volume of insurance premiums on OSAGO - by 6.33 percent compared to the same period of last year.

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 totalled 50 AZN. 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 AZN for all cars.

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 official exchange rate on September, 2 is 0,7844 AZN / USD.