Baku, Azerbaijan, June 27
By Anvar Mammadov – Trend
Azerbaijan has created a working group to draft rules for the direct regulation of insured events in road accidents, Zakir Karimzade, head of Audatex Azerbaijan, told Trend June 27.
He said that the introduction of direct regulation of insured events is one of the priority issues facing the insurance sector.
“This step will make it much easier to receive insurance payments, so now this issue is actively discussed by the Financial Market Supervisory Authority of Azerbaijan (FIMSA) and the Compulsory Insurance Bureau (ISB) of Azerbaijan,” Karimzade noted. “A special working group consisting of representatives of FIMSA, ISB and our company has been established. We intend to study international experience in this field. In particular, we are going to visit such countries as Belgium, Russia and Turkey. After this, we are going to create rules acceptable for the Azerbaijani market.”
Amendments to the Law on Compulsory Types of Insurance, which envisage introduction of direct regulation of insured events, were adopted in late 2015, but the rules were not specified. Direct regulation affects only compulsory third party liability insurance of motor vehicles.
The advantage of this method is that when insuring liability, the insured person knows in advance who to contact for getting payments in case of a road accident, Karimzade said.
“Now, in order to receive compensation in case of a road accident, the injured party must apply to the insurance company, the client of which is the culprit of the accident,” he added. “We suggest that in case of a road accident, the injured party would be able to apply for payments to its insurance company, which later itself would reimburse the paid amount from the insurance company of the guilty party.”
In January-May 2018, the insurance companies’ premiums for compulsory third party liability insurance of motor vehicles amounted to 34.93 million manats and payments stood at 20.34 million manats.
There are 21 insurance companies in Azerbaijan, 13 of which have the right to sell compulsory motor third party liability insurance policies.
(1.7 manats = $1 on June 27)
---
Follow the author on Twitter: @Anvar_Mammadov