Approved Amendments to Law "On Compulsory Types of Insurance"

The Head of State approved the amendments to the law "On compulsory types of insurance," according to the official press.

The innovation is intended to regulate issues related to the local device security in the international system Green Card. According to legislative amendments, domestic insurers, claiming to conduct the international activities of CTP, carry out calendar payments in the Bureau of Compulsory Insurance (BCI) in the amount of 5% of the amount of premiums on policies Green Card concluded during a calendar month. The Bureau, in turn, is obliged to create reserves for current liabilities, formed due to single and calendar payments of insurers.

Calendar payments are used for the formation of reserves under current obligations and for other work of the Bureau, including financing the printing of Green Card forms. Calendar payments are to be listed on the appropriate account of the Bureau no later than on the 15th day of the following month. The size of the lump sum will be determined by the State Insurance Supervision Service under the Ministry of Finance of Azerbaijan. It also determines the size of the tariff applied by insurers under this system.

Points of amendments to the law relating to the implementation of Green Card will take effect from 1 January 2016.

In addition, changes and additions to the Act provide for additional requirements for reinsurance on compulsory insurance of immovable property, the types of CTP contracts and additional requirements for insurers providing services under this type of insurance.

The Green Card System was created in 1949 at the international conference of car insurers in London. According to it, the insurance policy on compulsory motor insurance is valid for all countries - partners. The system includes 46 countries from Europe, Asia and Africa. The headquarters is located in Brussels. --17D-