Baku, Azerbaijan, Jan. 22
By Anvar Mamedov Trend:
More than one million contracts on compulsory motor third party liability (CMTPL) insurance were registered in Azerbaijan in 2017.
Fund raisings under these agreements grew by 14.2 percent over the year to 92.6 million manats.
Khayal Mamedkhanli, an insurance expert, believes that this market demonstrates growth every year but it will be saturated soon.
“CMTPL market annually grows by about 10 million manats. I do believe that the market will get oversaturated at a certain point and this may happen in 2018. All the vehicles in the domestic market may get compulsory insurance and afterwards market growth may stop unless any tariff changes happen,” said Mamedkhanli on Monday.
In accordance with the law “On compulsory types of insurance”, that enacted in December, 2011, the main cost of the insurance policy for CMTPL was 50 manats and applied to cars with engine displacement up to 1,500 cubic meters. As the volume of the engine increases from 1,500 to 5,000 cubic centimeter, the coefficients from 1.5 to 5 are applied to the total cost. A coefficient of 5 is applied to cars with an engine displacement equal to more than 5,000 cubic meters.
Earlier, the insurance fee for all the cars was 10 manats.
There are 22 insurance companies operating in Azerbaijan, 13 of which have the right to sell compulsory motor third party liability insurance policies.