Baku, Azerbaijan, Oct. 31
By Zeyni Jafarov - Trend:
At present, every car enthusiast knows about the imperativeness of compulsory civil liability insurance of motor vehicle owners (OSAGO), the Azerbaijan Insurers Association (AIA) told Trend.
“Along with this, few car owners know about the insured risks and benefits of OSAGO. The reason for this is the fact that the vast majority of people still view OSAGO as a mandatory duty to avoid fines. This approach is an obstacle to the development of this type of insurance. The main priority for AIA is to change the existing traditionally conservative approach to this insurance product,” said the association.
“Despite this approach, OSAGO plays an important role in the fundamental development of the insurance market in Azerbaijan, and we can say with confidence that almost 100 percent penetration has been achieved via this type of insurance. So, the preliminary acquaintance of everyone with insurance is directly related specifically to this insurance product,” said the AIA.
“Based on the survey indicators, OSAGO has a greater share among compulsory types of insurance. However, due to the conditions existing in connection with the COVID-19 pandemic in the country, there has been a slight decrease in fees and payments for this type. So, if we pay attention to the insurance report for the first nine months of 2020, we can conclude that, compared to the same period last year, fees for this insurance product decreased by 7 percent, and payments - by 13 percent,” the association noted.
“Each change has new approaches and we believe that the mechanisms of the local insurance market should also be adapted to these realities. It is for this reason that serious work is being carried out in the appropriate direction and ways out of the current situation in Azerbaijan are being discussed,” the AIA added.