Azernews.Az

By Amina Nazarli

Azerbaijan’s Compulsory Insurance Bureau, established to protect interests of insured persons and third parties, who suffer damages and losses, increased the number of contracts in 2016.

So, the Bureau registered 996,632 contracts on obligatory civil liability insurance of vehicles (OSAGO), which is 3.3 percent more than in 2015.

Premiums collected under these contracts totaled 79.8 million manats ($44.3 million) (annual growth of 4.4 percent).

The average amount of charges for OSAGO registered in Azerbaijan amounted to 88 manats ($48) in 2016. This is 15.2 percent more than the year before.

In 2016, insurance companies of the Bureau concluded 1,152,066 insurance contracts on non-life insurance, which is 6.8 percent more than in 2015.

The fees on these contracts amounted to 106.08 million manats ($58 million), which is 4.8 percent more than in 2015.

As much as 16 companies are the members of the Bureau with 13 being eligible for the sale of compulsory insurance policy.

OSAGO is compulsory by law for anyone, who owns a vehicle. Driver must have the minimum OSAGO insurance (which must be carried all times while driving) in order to drive any vehicle in Azerbaijan.

After the entry into force the law "On compulsory types of insurance" in December 2011, the basic cost of the insurance policy on OSAGO is 50 manat ($27), which applies to vehicles with an engine capacity of 1,500 cubic centimeters.

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Amina Nazarli is AzerNews’ staff journalist, follow her on Twitter: @amina_nazarli

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