Payout ratio and CTP premiums for the year decreased by 5.5%

Payment of local insurers under liability insurance of vehicle owners (CTP) is gradually reduced.

According to the specialized office, in March this year, they accounted for 1,209,660 manat (1,410 manat per car) on the concluded 61,215 contracts valued at more than 4.4 million manat. The payout ratio to premiums was 27.5%. A year earlier, the ratio was more than acceptable - 33% with payments of AZN 1,426,500.

The head of Azerbaijan Insurers Association (AIA) Orkhan Bayramov, commenting on the situation, told Turan that the reduction in payments and premiums is associated with the stringent conditions of automobile lending brought by the Central Bank. This led to reduction in car sales and, consequently, to reduction in the number of signed agreements. In addition, the rules of technical inspection of cars were relaxed, which also affected the dynamics of contracting. "Until the end of the year the situation will improve. Since the beginning of the year, for this type there have been insured more than 80% of vehicles, and payments for the year will amount to at least 27-28 million manat," he said. According to him, it's about 2 million more than last year.

CTP is not purely social, but unprofitable insurance, as it covers the interests of the mass of citizens. Non-profitability of CTP in Azerbaijan is 50 % due to the large staff of insurance agents and a large number of serious road accidents, he concluded.

The sale of new policies on CTP began in mid-December 2011. The base rate (vehicles with engine capacity up to 1500 cubic cm) is set at 50 manats. The maximum rate is 5 with the amount of the contract 250 manats applies to vehicles engine capacity exceeding 5,000 cubic cm.

Owners of buses and minibuses with the number of seats from 9 to 16 pay 150 manat, and more than 16 seats pay 200 manats.

By CTP the insurance amount for damage to property is 5,000 manat , the insurance amount for damage to health , per person is 5,000 manat, and the total limit for one event is 50,000 manat. Maximum insurance coverage for CTP does not exceed 55,000 manat.

License for the provision of CTP is owned by 11 members of the Bureau of Compulsory Insurance, except Alfa Sigorta. -17D