Azerbaijan approves new laws on compulsory motor third-party liability insurance

BAKU, Azerbaijan, August 3. The Central Bank of Azerbaijan (CBA) continues to implement reforms with the aim of improving the quality of services provided to consumers and consumer protection rights using the successful international experience in the field of insurance Compulsory Motor Third Party Liability (CALI), as well as in other areas , Trend reports via the Central Bank of Azerbaijan.

“As part of this, the CBA Board of Directors approved the “Regulation of Mutual Payments for Compensation Caused to Carriage Act, which was driven by a victim in a traffic accident (Direct Regulation of losses)” and the “Procedure for Calculating Premium Insurance Amounts for Compulsory Vehicle Owners’ Third Party Liability Insurance,” the ABC said.

The rules developed for the direct settlement of claims establish the procedure for collecting insurance compensation in the form of subrogation from the insurer of the injured person, who goes directly to the insurer with whom he concluded the contract CALI, in the event of a traffic accident which caused a collision of two vehicles, and the policyholder to receive the insurance victim’s compensation made by his insurer.

“Based on the changes, the index of risk factors taking into account the possibility of damage to the property and health of third parties when driving the vehicle according to the experience and age of the driver, the number of persons entitled to drive the vehicle, the traffic intensity in the area, in which the vehicle is driven and the duration of operation of the vehicle,” the ABC said.

In addition, changes are made to the bonus-malus system (the bonus-malus is a system of discounts or supplements applied to the rates depending on whether the insured has committed an event or not), established by the relevant laws and the application of which is intended.

These changes will help to increase the responsibility of drivers when using the car and eliminate existing problems in the area of ​​CTP by motivating insurance companies to provide better service to customers, increasing public confidence in insurance and developing the insurance market as a whole. , said the ABC.