In Absence of Effective Mechanism for Security of Passengers

Local stakeholders of the Bureau of Compulsory Insurance CTP lagging behind in comparison with the voluntary health insurance - in January and April of liability insurance of vehicle owners to third parties collected a total of 20 million 130.32 thousand manats against 34.38 million for VHI. This is despite the fact that only in Baku registered 800 thousand cars that could saturate the market for more than 100 million manats.

According to the State Insurance Supervision Service of the Ministry of Finance (http://sigorta.maliyye.gov.az/sites/default/files/Yanvar_aprel%20sinifler_2.pdf), worse case with a premium property - collected 3.53 million manat though that the annual contribution rate for each dwelling unit only in Baku is 50 manats, Ganja, Sumgait and Nakhchivan - 40, in other areas - 30 manats. Today, the amount of the housing stock of the country is (as of the end of last year), 162 million square meters at about 2 million housing units, including individual buildings and apartments.

On mandatory insurance of liability of owners of property earned even less - 129.54 thousand manats.

The least popular article of the Bureau of Compulsory Insurance is private insurance of passengers for which they collected 42.45 million manat. Under the current version of the law "On mandatory insurance" contracts are not with each passenger, and the owners of vehicles engaged in international and long-distance transport by air, sea, rail and road. Tariffs for "compulsory insurance of passengers" depend on transport places and the insurance contract is for one year.

However, under the law, there is no difference between the presence and absence of a passenger ticket - in the case of accident insurance receive all affected passengers of the vehicle, which is unfavorable to the insurer, there is no benefit for the insured as well. Amount of the annual fee for each passenger seat for air transport - 14 manat for ships - 5 manat, for trains and trains - 3 manat, for buses and taxis - 6 manat.

On the one hand, under the law, private insurance of passengers in the prescribed manner required, the other - the sum insured for each passenger in a vehicle in an accident - 5 thousand manats, which could "destroy" the owner of transport.

Enforcement of the law "On mandatory insurance" started from December 16, 2011.

Passengers will be grateful to the Ministry of Finance if it develops an effective mechanism for their insurance. - 17D-