Reforms Center talks procedures for compulsory real estate insurance in Azerbaijan

Finance Materials 14 January 2020 12:43 (UTC +04:00)
Reforms Center talks procedures for compulsory real estate insurance in Azerbaijan

BAKU, Azerbaijan, Jan. 14

By Eldar Janashvili - Trend:

Azerbaijan's Center for Analysis of Economic Reforms and Communication summarized procedures needed to obtain compulsory real estate insurance in the country, Trend reports referring to the center.

An identification card and an extract from the State Real Estate Register are required for compulsory real estate insurance in Azerbaijan, a source at the center said.

According to the center, the first step to real estate insurance is to choose an insurance company - the actual owner of the property can freely choose any insurer who has the right to carry out the mandatory type of insurance to conclude a compulsory insurance contract.

"The next step is to conclude a compulsory insurance contract with the selected insurance company. The compulsory insurance contract is valid only if there is an information system provided for by the law 'On Compulsory Insurance'," the source said.

"This is followed by the preparation of a certificate of compulsory real estate insurance. The certificate contains information about both insured (actual owner of the property, ie leased or otherwise legally used) and insuring parties, real estate information - location, purpose, serial number of the State Register and other documents that give the insurer right to use it, including insurance terms - insurance amount, premiums, the territory where the insurance is in force, the date of the beginning and ending of the insurance agreement etc. The final stage is the printing of the certificate form - the Order of the Compulsory Insurance Bureau is printed in a special licensed printing house at the expense of the insurer."

According to the source, upon the occurrence of an insured event, the insured must immediately inform the insurance company and relevant state authorities, to make sure that all necessary measures are taken to prevent further loss of real estate, begin maintaining the damaged property immediately after the accident, have written consent of the insurance company and not inspect the damaged property until visit of its representatives, then it is necessary to create conditions for representatives of insurance companies to inspect the damaged property, as well as the necessary information and documents.

The center said that it is necessary to follow the instructions of the insurance company, and also advise to request a written form of insurance compensation from the company and send it in full to the insurance company within three business days from the date of providing oral information about the incident.

If the insurer does not fulfill its liability for material damage due to its certificate of insolvency, the loss is paid by the Compulsory Insurance Bureau at the request of the insured.


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