Bureau Azerbaijan Baku 2012 Tel 99412 595 00 20 infoisbaz wwwisbaz Compulsory Insurance Bureau Responsibilities Challenges Priorities BAKU 2012 Compulsory Insurance ID: 815058
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Slide1
Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
Compulsory Insurance Bureau: Responsibilities, Challenges, Priorities
BAKU, 2012
Slide2Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
COMPULSORY INSURANCE BUREAU: HISTORY OF DEVELOPMENT
On October 8, 2011 the Law of the Azerbaijan Republic «On Compulsory Insurance» comes to force
;
On
October 19, 2011
State Insurance Supervisory Service with
the participation of 6 insurance companies holds the constituent assembly of Compulsory Insurance Bureau ( CIB
)
On
November 29, 2011 CIB passes the state registration with Ministry of Justice as an Union of Legal Entities
On
December 06, 2011 CIB is registered by the Ministry of
Taxes
On
December 16, 2011 The first MTPL is issued by means of information system of CIB.
Slide3Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
PRIMARY MISSION OF CIB
protection of interests of insured persons and third parties suffering damages and
losses
stabilization
and development of the compulsory insurance system
and fulfillment
of duties prescribed by the
Law of Azerbaijan Republic “On Compulsory Insurance”
Slide4Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
PRIMARY FUNCTIONS OF CIB
The CIB shall carry out the following key functions stipulated by the Law:
coordinate activities of CIB participants (hereafter: participants)
represent
and protect interests of
participants when interfacing with local and international organizations
provide
recommendations
and initiate adjustments to
the legislation and practical
procedures
associated with types of compulsory
insurance
development and application of guidelines for technical
expert examinations in
relation
with investigation of
claim-cases and
assessment of
damages
Slide5PRIMARY
FUNCTIONS OF CIBprovide compensation payments to third persons, injured on road accidentsensure availability, stable usage of an electronic information system and its integration with other electronic information systems
;
availability and centralized control of compulsory insurance certificate forms as per provisions of the same law
Slide6REQUIREMENTS FOR CIB PARTICIPATION
obtain preliminary consent from State Insurance Supervisory Service install Participation fee ( 200 000 AZN)install Security Deposits as follows:Real estate (100 000 AZN)third party liability associated with the use of the real estate (100 000 AZN)third party liability of owners of motor
vehicles (200 000 AZN)personal accident insurance of passengers (200 000)
Slide7Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
At present the register of participating insurers of bureau already includes 12 insurance companies
CURRENT CIB PARTICIPANTS
OJSC
«А
T
ƏŞGAH
»
INSURANCE
COMPANY
OJSC
«
STANDARD INSURANCE»
OJSC
«
АТА
SIĞORTA»
OJSC
«
XALQ SIĞORTA»
OJSC
«
PAŞA SIĞORTA»
OJSC
INSURANCE COMPANY
«AXA MBASK»
OJSC
«
AZSIĞORTA»
OJSC
«
ALFA SIĞORTA»
OJSC
“
MEQA SIĞORTA"
Commercial State Insurance Company of the Republic of Azerbaijan
OJSC
"
İPƏK YOLU SIĞORTA“
OJSC
“
AZ
Ə
RBAYCAN S
Ə
NAYE SIĞORTA
“
Slide8Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
CIB FUNDS & RESOURCES
compulsory payments made by
participants
monetary funds raised from debt securities issued by the
Bureau
incomes derived as a result of direct investment by the
CIB
funds received from grants, donations or other sources not prohibited by the
legislation
borrowed funds received to cover lacking amount for compensation
payments
funds received by exercising the subrogation right
Slide9Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
INVESTMENT PORTFOLIO
INVESTMENT PORTFOLIO - 6,4 MILLION AZN*
THE AVERAGE PROFITABILITY - 8 % PER
ANNUM
THE SUM OF GUARANTEE DEPOSITS – 4,6 MILLION
AZN*
*
As of June 01 2012
Slide10Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
TYPES OF COMPULSORY INSURANCE
COMPULSORY PERSONAL ACCIDENT INSURANCE OF PASSENGERS
COMPULSORY REAL ESTATE INSURANCE
COMPULSORY THIRD PARTY LIABILITY INSURANCE ASSOCIATED
WITH THE USE OF THE REAL ESTATE
COMPULSORY THIRD PARTY LIABILITY INSURANCE OF MOTOR VEHICLES
Slide11Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
COMPULSORY REAL ESTATE INSURANCE
Compulsory Real Estate Insurance is used to compensate losses
that
are caused
by damages, destruction or any kind of loss of the real
estate caused by fire
or
other natural disasters.
The following types of real estate property are subject to compulsory insurance:
residential and non-residential premises
residential houses
industrial buildings
apartments
Slide12Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
COMPULSORY REAL ESTATE INSURANCE
Settlement Location
Amount of
Insurance
franchise
Insurance Premium
Baku
25.000
250
50
Ganja, Sumgait, and
Nakhichevan
20.000
200
40
other locations
15.000
150
30
Real Estate Insurance
premiums
to be paid on
houses and apartments
belonging to individuals (AZN)
* Real Estate Insurance
premiums
to be paid on non-residential as well as industrial premises are subject to calculation based on the guidelines developed by the Ministry of Finance
Slide13Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
COMPULSORY THIRD PARTY LIABILITY INSURANCE OF MOTOR VEHICLES
Individuals
(AZN)
Legal Entities
(AZN)
CARS AND OTHER VEHICLES MADE ON THEIR BASE
min
50
-
max
250
min
60
-
max
300
LORRIES AND OTHER VEHICLES MADE ON THEIR BASE
min
150
– max 250
min
180
– max 240
MINIBUSES, BUSES AND OTHER VEHICLES MADE ON THEIR BASE;
min
150
- max 200
min
180
– max 300
MOTORCYCLES AND MOTOR SCOOTERS
50
60
TRACTORS, THE VEHICLES USED IN ROAD-BUILDING WORKS, WOOD AND RURAL FARMS
50
60
TROLLEYBUSES AND TRAMS
100
For vehicles registered abroad
entering the
Azerbaijani Republic for the purpose of transit (for one month)
–
coefficient
0.25
Slide14Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
COMPULSORY THIRD PARTY LIABILITY INSURANCE ASSOCIATED WITH USE OF REAL ESTATE (Real Estate TPL)
Real Estate TPL
provides insurance coverage
for damages
caused
to health and property of third parties as a result of use of the relevant property, as well as
while carrying
of construction, repair, reconstruction or other works within the territory of such property
.
The
following types of real estate property are subject to compulsory insurance:
Buildings, constructions, premises
Facilities
and areas being used by legal entities for the purposes of their operations, as well as by physical persons engaged into entrepreneurial activities without the creation of the legal entity for their
activities
Real Estate TPL
premiums to be paid on non-residential as well as industrial premises are subject to calculation based on the guidelines developed by the Ministry of Finance
Slide15Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
COMPULSORY PERSONAL ACCIDENT INSURANCE OF PASSENGERS (Passenger Insurance)
Passenger Insurance
is used for the purpose of securing a compensation for damages
caused
to health and life of passengers
travelling
by
air
, water, railway or automobile
transport
the
insurance amount per passenger in
a vehicle - 5000
AZN
Slide16Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
COMPULSORY INSURANCE - MARKET DEVELOPMENT HISTORYinsurance premium history by type
MTPL
115
500
2
040
218
3
173
264
5
930
665
9
039
539
8
921
170
Real
Estate
150
278
443
524
359
625
714
702
752
940
695
Real Estate
TPL
30
17
110
22
240
20
468
19
146
222
024
Passenger Insurance
0
0
0
0
0
52
052
Slide17Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
COMPULSORY INSURANCE MARKET STRUCTURE
MTPL
29
220
355,25
AZN
REAL ESTATE -
3
072
112,6
AZN
REAL ESTATE TPL -
301
017,91
AZN
PASSENGER INSURANCE
-
52
052
AZN
*
As of June 01 2012
Slide18Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
INDICATORS OF COMPULSORY INSURANCE MARKET DEVELOPMENT
TOTAL AMOUNT OF COMPULSORY INSURANCE PREMIUMS
RECEIVED
TO DATE: 32,646,000 AZN
SINCE THE
DATE - THE
LAW
“ON
COMPULSORY
INSURANCE”
CAME INTO FORCE – A TOTAL
OF 426,174 CONTRACTS OF COMPULSORY INSURANCE
HAS BEEN ISSUED BY
11 PARTICIPANTS OF
BUREAU
*
As of June 01 2012
Slide19Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
«CIB INFORMATION SYSTEM»
CIB information system has been developed in accordance to the provisions of the Law
“On Compulsory
Insurance” and has the following goals
:
centralized
system of
policy
issue &
registry
centralized depository of claim associated documentation
automatic system of bonus-
malus
calculation and associated
premiums
centralized database of insured persons and vehicles
facilitate statistics and reporting
information
Slide20Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
MTPL POLICY STATUS NOTIFICATION
From March 13, 2012 subscribers of "
Azercell
", «
Azerfon
» and «
Bakcell
» may
query
the Compulsory Insurance status of each vehicle by sending an SMS to a short number of 9707.
SMS
must contain one of the following
:
state registration plate number of vehicle
MTPL policy number
The
system will provide with the following information in return
:
Validity of insurance policy (TRUE or FALSE)
Name of insurance company issued the policy
Emergency contact numbers of associated insurance company
MTPL policy status or status of vehicle may be also checked at CIB website -
www.isb.az
- in a special “Check Your Policy” section
Slide21Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
MTPL CLAIMS
Damage to property
Damage to vehicles
Death of the person
Damage to health
TOTAL
Quantity
11
312
1
1
325
A
mount Paid
20991.8
AZN
448707.7
AZN
5000 AZN
250 AZN
474949.5
AZN
*
As of June
01,
2012
Note: As per official
statistics,
covering period of January-May, 2012 - there
were
1035
road accidents,
which resulted in
313
victims, and
1144
injured
persones
.
Slide22Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
COMPENSATION TERMS
Compensation shall be covered by CIB in the following cases:
in case an insurer is not able to meet its obligations due to its insolvency;
in case of a third person’s injury by an unknown motor vehicle;
in case of a third person’s injury as a result of use of a vehicle operated by a person, who had no compulsory insurance agreement for civil liability of owners of
vehicles
(
provided that, despite a claim being put forward by a victim against the owner of the car to remedy the damage, this claim was not
satisfied
)
Slide23Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
AMOUNT OF COMPENSATORY PAYMENTS
Amount of compensations to third persons injured at a road accident
5000 AZN in case of death of the individual
4000
AZN for the I group of disability
3000
AZN for the II group of disability
2000
AZN for the III group of disability
1500
AZN receiving heavy injuries without disability assignment
250
AZN receiving slight injuries
Slide24Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
DEVELOPMENT PERSPECTIVES
Integration of electronic information system with information systems of the Ministry of Internal Affairs, State Traffic Police, State Migration Service and the Ministry of Taxes.
Inclusion of other types of compulsory insurance into CIB information system
Deployment of Bonus-
Malus
system is planned at the beginning of 2013
Ensuring integration of electronic information system with electronic information systems of
CIB participants
and full transition away from operating via Web Interface
The conclusions of contracts on compulsory insurance on electronic carriers without use of paper forms
Entry of the Azerbaijani Republic into system “Green card”
Slide25Compulsory Insurance
BureauAzerbaijan, Baku 2012
Tel
: (+99412) 595 00 20 info@isb.az | www.isb.az
THANK YOU