Compulsory insurance of property of recipients of targeted social aid in Azerbaijan to be covered through state budget

Compulsory insurance of property of recipients of targeted social aid in Azerbaijan will be covered through the state budget, Deputy Finance Minister Azer Bayramov said on Friday at a joint meeting of parliamentary committees on economic and social policies, which discussed the draft law on compulsory insurances.

"This is one of the most important changes to the bill and it once again demonstrates that the state takes care about social protection, particularly the poor," said Bayramov.

The draft law "Compulsory Insurance Types" was adopted during the second reading.
The new draft law regulates the four types of compulsory insurance - real estate, liability of owners of motor vehicles, passenger insurance, and liability insurance for exploitation of real estate.

Under the bill, regardless of the housing cost the insurance sum is set at 25,000 manat for Baku, and the release amount at 250 manat. The figures are 20,000 manat and 200 manat, respectively, for Sumgait, Ganja and Nakhchivan and 15,000 manat and 150 manat for other regions.

The insurance fee for Baku’s resident will hit 50 manat a year with an insurance rate at 0.2 percent for this type of insurance. Those seeking higher insurance compensation may purchase a voluntary property insurance policy which will allow development of this type of insurance.

The compulsory insurance of real estate will be distributed for all types of buildings, houses and apartments belonging to individuals, offices, legal entities and public property. In this case the insured event will be considered related to damage to this property as a result of fire, explosion, lightning, short circuit in the electrical system, an accident in the sewer or water system, natural disasters, etc.

Compulsory insurance of civil liability, associated with the operation of real estate, provides insurance protection for third parties from harm caused by using this property. This insurance will apply to legal entities and individuals engaged in entrepreneurial activities. The amount of reimbursement for this type of insurance for damage to health will be 5,000 manat per person and 50,000 manat for property.

Compulsory insurance for passengers will be applied to persons using the vehicles, regardless of form. The amount of the insurance coverage will be 5,000 manat per person. Until now, this type of insurance is regulated by a law adopted in 2003, but the acting form is unacceptable today and creates complications in obtaining compensation.

The draft law contains a differentiated approach in determining the insurance rate, depending on the type of vehicle. The fee for compulsory motor TPL insurance amounts to 5,000 manat (currently 1,000 manat) for property and 50,000 manat (presently 5,000 manat) for health. At present, this activity is regulated by the 1996 law.


/Trend/