Changes to Law on Compulsory Insurance

The local insurers that have got a right to work in the Green Card system will have to carry out the calendar of payment to the Bureau of Compulsory Insurance (BCI) in the amount of 5% of the premiums on the policies Green Card concluded during the calendar month. This rule provides for amendments to the law On Compulsory Insurance adopted by Milli Majlis on Friday.

BCI, in turn, is obliged to create reserves for current liabilities, which will be formed at the expense of one-time and calendar payments from the insurers.

Calendar payments are intended for the formation of reserves under current obligations and for other work of BCI, including finance of the printing of forms Green Card. Calendar payments are to be listed on the appropriate account of BCI no later than the 15^th 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.

The Civil Service will also determine the size of the tariff, which insurers will apply when working on this system. The system is open only to companies that are members of BCI.

Contracts are concluded within a month, a quarter, six months and one calendar year. BCI as a single re-insurer acts on behalf of local insurers. Today, the "green card" includes 46 countries from Europe, Asia and Africa. Since 2006, the headquarters of the BCI Board is based in Brussels.

Members of the local BCI are 15 out of the 27 insurers; 11 of them have the right to insurance under CTP. --17D-