Expert talks compulsory personal accident insurance in Azerbaijan

Finance Materials 20 November 2019 20:58 (UTC +04:00)

BAKU, Azerbaijan, Nov. 20

By Eldar Janashvili – Trend:

Presently, there is no dynamics either in fees or in payments in compulsory personal accident insurance of passengers, Azerbaijani expert in insurance sphere Kamran Babayev told Trend.

“People do not choose this type of insurance even after accidents,” the expert added.

"Compulsory liability insurance for passengers refers to the intercity transport,” Babayev said. “However, while considering the fees indicated in the statistics, it is clear that this type of insurance is one of the least effective. To change this situation, a control mechanism is required here, for example, in compulsory motor third party liability insurance, where the fees increase when the fines are imposed."

“The control mechanisms are required in compulsory types of insurance at the current stage of development of the insurance market,” the expert said. “The market will not develop in the absence of an insurance culture and awareness of the population till the control mechanisms are created.”

"It is impossible to do everything at once,” Babayev said. “The market is at the stage of development. First of all, it is necessary to establish compulsory insurance of real estate and then deal with other types of compulsory insurance."

In accordance with the data of the Financial Market Supervisory Authority (FIMSA), from January through September 2019, the fees of compulsory personal accident insurance of passengers reached 86,100 manat ($50,751) which makes only 0.05 percent of all compulsory insurance fees. The volume of payments amounted to zero manat.


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