Transcript Document

Compulsory Insurance Bureau:
Responsibilities, Challenges, Priorities
BAKU, 2012
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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.
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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”
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
PRIMARY FUNCTIONS OF CIB
 provide compensation payments to third persons, injured on road accidents
 ensure 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
REQUIREMENTS 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)
CURRENT CIB PARTICIPANTS
At present the register of participating insurers of bureau already includes 12
insurance companies
1.
OJSC «АTƏŞGAH» INSURANCE COMPANY
2.
OJSC «STANDARD INSURANCE»
3.
OJSC «АТАSIĞORTA»
4.
OJSC «XALQ SIĞORTA»
5.
OJSC «PAŞA SIĞORTA»
6.
OJSC INSURANCE COMPANY «AXA MBASK»
7.
OJSC «AZSIĞORTA»
8.
OJSC «ALFA SIĞORTA»
9.
OJSC “MEQA SIĞORTA"
10. Commercial State Insurance Company of the Republic of Azerbaijan
11. OJSC "İPƏK YOLU SIĞORTA“
12. OJSC “AZƏRBAYCAN SƏNAYE SIĞORTA“
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
TYPES OF COMPULSORY INSURANCE
COMPULSORY THIRD PARTY LIABILITY INSURANCE OF MOTOR VEHICLES
COMPULSORY REAL ESTATE INSURANCE
COMPULSORY THIRD PARTY LIABILITY INSURANCE ASSOCIATED
WITH THE USE OF THE REAL ESTATE
COMPULSORY PERSONAL ACCIDENT INSURANCE OF PASSENGERS
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
COMPULSORY REAL ESTATE INSURANCE
Real Estate Insurance premiums to be paid on houses and apartments belonging
to individuals (AZN)
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
Settlement Location
* 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
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
COMPULSORY INSURANCE - MARKET DEVELOPMENT HISTORY
insurance premium history by type
AZN 10,000,000
AZN 9,000,000
AZN 8,000,000
AZN 7,000,000
AZN 6,000,000
AZN 5,000,000
AZN 4,000,000
AZN 3,000,000
AZN 2,000,000
AZN 1,000,000
AZN 0
Dek
MTPL
2011
Jan
Fev
2012
Mar
Apr
May
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
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
INDICATORS OF COMPULSORY INSURANCE MARKET DEVELOPMENT
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
TOTAL AMOUNT OF COMPULSORY INSURANCE PREMIUMS
RECEIVED TO DATE: 32,646,000 AZN
*As of June 01 2012
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
«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
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
MTPL CLAIMS
Damage to
property
Damage to
vehicles
Death of the
person
Damage to
health
TOTAL
Quantity
11
312
1
1
325
Amount Paid
20991.8 AZN
448707.7 AZN
5000 AZN
250 AZN
474949.5 AZN
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.
*As of June 01, 2012
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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)
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
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”
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012
THANK YOU
Tel: (+99412) 595 00 20 [email protected] | www.isb.az
Compulsory Insurance Bureau
Azerbaijan, Baku 2012