Baku, Azerbaijan, Sept. 12
By Anvar Mammadov - Trend:
The work on the creation of rules for direct regulation of insurance cases has begun in Azerbaijan, the Managing Director of Audatex Azerbaijan LLC Zakir Kerimzade told Trend.
He noted that a special working group has been established to prepare the rules, which included representatives of the Financial Markets Supervision Chamber of Azerbaijan, the Compulsory Insurance Bureau (CIB) and Audatex Azerbaijan LLC.
"The rules are under development, and reportedly the Financial Markets Supervision Chamber will approve them before the end of October this year," Kerimzade said.
The amendments to the law "On compulsory types of insurance", providing for the introduction of direct regulation of insurance cases, were adopted as early as at the end of 2015, but the rules were not spelled out. The direct regulation affects only the mandatory liability insurance of vehicle owners (OSAGO).
Kerimzade said the advantage of this method is that when getting a liability insured, the insured person knows in advance whom to contact in order to receive payments in case of a road traffic accident.
"Now, in order to receive compensation in case of a road traffic accident, the injured party must apply to the insurance company, the client of which is the culprit of the accident. We propose that in case of a road traffic accident, the injured party could apply for payments to his insurance company, which then will reimburse the amount paid from the insurance company of the guilty party," Kerimzade said.
After the entry into force of the law "On compulsory types of insurance" (in December 2011), the basic cost of the insurance policy for OSAGO is 50 manats, and it is applied to vehicles with an engine capacity of up to 1,500 cubic centimeters.
As the capacity of the engine increases (from 1,500 to 5,000 cubic centimeters), the coefficients from 1.5 to 5 shall be applied to the cost of the insurance policy.
Previously, the insurance premium for all cars amounted to 10 manats.
In January-July 2018, the country's insurance companies' CTP fees amounted to 55.46 million manats, and payments – to 29.21 million manats.
To date, 21 insurance companies operate in Azerbaijan, 13 of which have the right to sell compulsory motor third party liability insurance policies.