“This will become an additional problem for citizens”
Azerbaijan The Board of Directors of the Central Bank (CBA) “Road transport approved the Regulation on the regulation of mutual payments (direct regulation of damages) between insurers regarding compensation for the damage caused to the motor vehicle driven by the victim and the “Rule for calculating the insurance premium amounts for the compulsory civil liability insurance of motor vehicle owners (AVSMMİS)”.
Changes to the rules for calculating insurance rates for compulsory auto insurance will be determined according to the level of risk borne by drivers.
That is, those with little age and driving experience, or those over the age of 65, as well as those with a high engine capacity of their car, Baku and those who live in Sumgait, the age of their car 20More than the insurance premiums they will pay.
Car annual insurance premiums for owners will be around 50-470 manats.
Transport expert Eldeniz Jafarov tells Meydan TV that the average price will increase by 25-30 percent compared to the previous rule: “According to the new rules, even those with a lot of driving experience and new cars, even if they use the area with accident risks, will have to pay insurance premiums with the highest coefficient. This means that the increase in insurance premiums can cover all categories.”
“Before, the bonus-malus system was applied in our country. Bonus-incentive, malus – on the contrary, to put it mildly, is the punishment of an unreliable driver in connection with the increase of the insurance premium. In earlier times, we saw that the bonus system worked, but the malus system did not. central bank changed the rules related to the malus system”, – insurance expert Primary Ibrahimov says so.
According to him, this will become an additional problem: “Overall, everyone’s insurance premiums will go up here, because there is no one who has only one power of attorney for the car. Therefore, 15-20 insurance premiums are expected to rise on all cars up to percent. This, of course, will become an additional problem for citizens.”
Economist Togrul Mashalli believes that the insurance sector should not be an exception, as there is an increase in payments in many areas: “There is a price increase, many prices has become more expensive. The insurance service should also become more expensive in response. Fixed payments, of course prices should be changed. However, some differentiation should be applied so that the payments are different. The main issue here is the citizens’ trust in insurance companies. The reason is known, the insurance market in Azerbaijan is very small.”
“Companies in the insurance market are often deprived of the opportunity to make a lot of profit from direct insurance activities. That is why they try to stop payments as much as possible, or to save. Because now they don’t have enough funds. In this regard, the price increase will serve to increase their efficiency. The main issue here is the mechanism of application of the rules. It is necessary to take a comprehensive approach to the regulation of traffic, the condition of roads, and other such issues,” said the economist.