Azerbaijan introduces new car insurance tracking system
By Vusala Abbasova
In the next two to three months, a new system will be in place allowing State Traffic Police to able to easily check the car insurance policies using radar technology.
Special equipment to be installed on the roads will transmit the necessary information about each car that passes, including its state registration number to the Compulsory Insurers Bureau ISB, said Namig Khalilov, head of the State Insurance Supervision Service.
The ISB, established by mandate from the law "On compulsory types of insurance" in 2011, will detect the driver’s car insurance policy based on data it has received.
The ISB information system integrates with the vehicles and identity cards database at the Interior Ministry to resolve any technical issues concerning the new trafficking system.
The ISB, which oversees 15 companies, 11 of which have the right to sell compulsory motor liability insurance policies, will allow the switch to the electronic system of the insurance policy in accordance with the integration.
The State Traffic Police will be able to remotely check the insurance policy on OSAGO (compulsory insurance of liability of owners of vehicles) after technical issues are resolved.
Currently, the State Traffic Police is only able to inspect the vehicle, discover whether or not it has been stolen, or acquire other information through radars without stopping the car. The new system will allow police to also check the driver'
In the case of a lack of appropriate insurance, the fine is set to the amount of 50 manat for individuals, 100 manat for officials, and 300 manat for legal entities. (1 USD=1.05 AZN)
Moreover, the ISB is developing proposals to expand compulsory insurance up to 95 percent of eligible drivers over the next 2 years, according to Elkhan Guliyev, Executive Director of the ISB in an announcement at the Azerbaijan International Insurance Forum (AIIF) on June 2.
Only half of the 1 million cars registered in the country have been insured, necessitating the expansion of compulsory insurance.
There are 26 insurance and one reinsurance company in Azerbaijan. The insurance companies have signed 476,000 insurance contracts on OSAGO during the first six months of 2015, which gathered premium revenues amounting to 36.4 million manat.
The number of insurance policies on OSAGO increased by 14 percent in this period as compared to January to June 2014.
The payments to OSAGO have total 11.9 million manat, which is by 6 percent less as compared to that of January to June 2014.
The basic cost of the insurance policy on OSAGO is 50 manat, which applies to vehicles with an engine capacity of 1,500 cubic centimeters. That price figure increases from a coefficient of 1.5 to 5 in engines that are 5,000 ccm or more.
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