Mechanism for monitoring implementation of legislation on compulsory insurance must be observed in Azerbaijan

By Trend

As part of compulsory liability insurance of vehicle owners, it was possible to create the most effective, transparent and innovative mechanism to protect the property interests of citizens affected as a result of traffic accidents in Azerbaijan, Chairman of the Supervisory Board of the Association of Insurers of Azerbaijan Azer Aliyev told Trend.

“As a result of fruitful, joint efforts of the Association of Insurers of Azerbaijan, the Compulsory Insurance Bureau, the Central Bank of Azerbaijan and other professional participants of the insurance market, it was possible to develop and introduce a very effective mechanism of compensation for damage caused to citizens as a result of using vehicles in accordance with modern standards,” Aliyev said.

Today all operational processes within this type of insurance beginning from the conclusion of the contract and ending with the payment of insurance compensation have been fully digitalized.

The recent step was the introduction of electronic document management system in the process of registration of insured events (traffic accidents) as part of compulsory liability insurance of vehicle owners, related to the issuance of a certificate of a traffic accident necessary to register an insured event as part of compulsory liability insurance of vehicle owners and sending it to the insurance companies in electronic form by the representatives of the state traffic police department of the Interior Ministry.

As a result, all processes within this type of insurance became as transparent as possible, the role of the human factor was minimized. The result is clearly demonstrated by the periodically growing amounts of payments on compulsory liability insurance of vehicle owners.

“In the conditions of the economic downturn associated with the spread of the coronavirus pandemic, this type of insurance guarantees the effective protection of the economic interests of citizens affected as a result of traffic accidents, therefore, the mechanism for monitoring its implementation within the current legislation must be strictly observed,” Aliyev said.

The compulsory insurance in Azerbaijan is carried out by insurance companies licensed for a certain type of compulsory insurance, included in the Compulsory Insurance Bureau. There are currently 16 such companies.

There are 22 insurance companies and one reinsurance company in Azerbaijan.