MBASK Announces Economic Inexpediency of One of Types of Obligatory Insurance

Azerbaijan, Baku / Trend , corr. U. Ismayilova/ MBASK, one of Azerbaijan's leading insurance companies, has reduced the number of its office branches, which offers services on obligatory insurance of the owners of autos and vehicles to the population.

Jamil Malikov, the Director General of MBASK, said that at the end of 2006, the Insurance Company had suspended its activity in five of their regional office branches: Shaki, Mingachavir, Ismayilli, Imishli, and Shamkir, where 95% of the incoming proposals were the obligatory liability insurance of the owners of automobiles and vehicles. "This type of insurance costs AZN 50 to the Insurance Company, but is sold at the cost of AZN 10 and is therefore it is not advantageous to us," he said.

In the beginning of the year, the regional branches of the Company resumed their activity, but now they will not offer obligatory insurance services of owners of automobiles and vehicles. "These branch-offices will offer only more expensive types of insurance services that will not harm the MBASK budget," he said.

Mr. Malikov noted that MBASK had spent $0.5 mln. buying new technical resources.

MBASK has operated in Azerbaijan's insurance market since 1992, by offering 29 types of insurance services, with four of them being obligatory.