Compulsory Property Usage Insurance

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.