Compulsory insurance

Any person, who either has a vehicle in his/her ownership or has a vehicle in his/her possession by fact (including vehicle lease or usage by power of attorney or under any other legitimate ground), is obliged to have an insurance coverage for that vehicle usage within the territory of the Republic of Azerbaijan – Compulsory  Motor Third Party Liability (TPL) Insurance.

The purpose of Compulsory Motor TPL Insurance Contract is to secure reimbursement of the damage to individual’s health, as well as reimbursement of the loss or damage to individual’s or legal entity’s property, resulted from a vehicle usage.

Compulsory Motor TPL Insurance Contract can be issued by means of the appropriate information system only, and has a legal power only if included into database of that information system.

The fact of occurrence of a liability for reimbursement for the third party sufferer’s health and/or property damage, resulted from a vehicle usage within the territory of the Republic of Azerbaijan, is considered an insured event or accident.

Individuals, who are not a party of the Compulsory Motor TPL Insurance Contract and got a damage by an action or omission of the Insured, or those in right of receiving reimbursement (in case of the individual’s death – his/her family members), or legal entities, or their legal successors are considered a third party.

Family members of the Insured and/or Insurance Persons are not considered a third party.

Payment will be denied if the driver committed an accident is under the influence of alcohol or the driver had no right to drive the care or the accident was committed purposely.  

Tariffs:

Compulsory Property Insurance secures reimbursement of loss and damage, ruining or any form of the property destruction, resulted from the listed below situations:

• fire, lightning strike;
• explosion while household and business usage of gas;
• shortcut circuit in the power lines;
• explosion of  boilers, gas reservoirs, gas pipelines, vehicles, apparatus and other similar constructions and devices;
• accidents with the water supplying, heating, sewerage lines and fire protection systems, as well as flooding from the nearby buildings, inhabited or technical areas, dwellings, flats, rooms;
• impact on any item or its pieces by falling, throw, hit, destruction, split, flow and other similar forms;
• hit of an on-ground mean of transportation;
• natural disasters - earthquake, volcano, storm, snow storm, thunderstorm, hail, flow, flood, heavy shower, landslide;
• actions of the third parties. 

Sum Insured and Deductible

For the property located in the city of Baku the sum insured is 25.000 AZN, and deductible amount is 250 AZN; Insurance premium 50 azn
For the property located in the cities of Ganja, Sumgayit and Nakhchivan the sum insured is 20.000 AZN, and deductible amount is 200 AZN; Insurance premium 40 azn
For the property in other locations the sum insured is 15.000 AZN, and deductible amount is 150 AZN. Insurance premium 30 azn

Legal entities, as well as private entrepreneurs, are obliged to have an insurance coverage for usage of the property in their actual ownership, as well as for usage of the property in their possession by fact (leased, or managed by power of attorney or under any other legitimate ground).

The purpose of Compulsory Property Usage Insurance Contract is to secure reimbursement of the damage to the third part’s health and property, resulted while usage of the insured property including construction, reconstruction, repairing, rearrangement and similar works.

Here the property expression means buildings, constructions, plants and areas used by legal entities as well as private entrepreneurs for the purpose of performing their status activities.

The fact of occurrence of a liability for reimbursement for the third party sufferer’s health and/or property damage resulted while exploitation of the property, including construction, repairing, rearrangement or similar works, is considered an insured event in following cases:

• fire, resulted from the usage of electrical and gas devices, as well as outcomes of the measures applied to prevent/stop such a fire;
• gas explosion;
• shortcut circuit in the power lines;
• flooding resulted from accidents in the water supplying, heating and sewerage systems;
• impact on any item or its pieces by falling, throw, hit, destruction, split, flow and other similar forms;

Third Parties in context of the Compulsory Property Usage Third Party Liability (TPL) Insurance

Individuals (Insured and/or Insured Person’s family members excluded), who are not a party of the Compulsory Property Usage TPL Insurance Contract and got a damage by an action or omission of the Insured, and those who entered the property objects including construction, repairing, rearrangement and similar works’ areas where entrance was not properly prohibited, as well as their family members – are considered a third party.

Sums insured for Compulsory Property Usage TPL Insurance are determined as per below:

• the sum insured for the individual’s health damage is 5000 AZN per one person’s health damage under the limit of 50.000 AZN per one accident;

· 50.000 AZN for the property damage.

Compulsory life insurance envisages payment of insurance to the person disabled in the result of accident occurred during working times. The payment will be provided in following cases:

• full or partial disability as a result of accident;
• partial disability as a result of any accident or disease;
• incurable illness occurred during validity of insurance contract