Information by the Central Bank

16-01-2023

16 January 2023, Baku: One of the main activities of the Central Bank of the Republic of Azerbaijan (Central Bank) is to carry out the regulation and supervision functions in the insurance sector. In this direction, the public is regularly informed about the recently implemented measures and innovations in the field of compulsory insurance of civil liability of motor vehicle owners.

Reform measures taken in the sphere of insurance serve to develop insurance services in our country, protect the rights of insured persons and ensure the accessibility of insurance services. One of the latest decisions taken is the definition a new requirement for the official website of insurers concluding an insurance agreement on compulsory insurance of motor vehicles.  The Management Board of the Central Bank by its Resolution No. 60/5 dated 28 December 2022 approved the amendments made to the Additional Requirements Permitting the Implementation of Compulsory Insurance Types (Requirements). According to these amendments, every insurer wishing to obtain permission for compulsory insurance of vehicles must be able to conclude an appropriate compulsory insurance agreement with the insured through its official website in accordance with law. Insurers permitted to carry out the relevant insurance type are obliged to adapt the technical capabilities of their official website to this requirement within 10 days from the date of entry into force of the Requirements.

In the modern era, when information and communication technologies are developing at a high speed, internet access is expanding in our country, as well as all over the world, and digitalization technologies are applied, it was considered necessary to make the above change in the Requirements taking into account the need of the time. This change will ensure convenient receipt of insurance certificates on the type of compulsory motor insurance by customers online through the official websites of the companies.

At the same time, it should be noted that the recent amendments to the Law of the Republic of Azerbaijan "On Compulsory Insurance", as well as the corresponding Decree on its implementation serve this purpose. All these changes will create conditions for full electronization of compulsory insurance and, consequently, digitization of all services rendered in this sphere, including application of information and communication technologies in the sphere of insurance.

Central Bank will regularly carry out reforms to maximize the accessibility of insurance services and digitalization of insurance activities.

Regarding the conclusion of insurance contracts for the compulsory civil liability insurance of motor vehicle owners, it should be noted once again that according to the legislation insurance companies with the appropriate permission to carry out compulsory insurance activities of this type are not entitled to refuse to insure motor vehicles in response to requests made to them for compulsory motor insurance. Thus, according to Article 23.3 of the Law of the Republic of Azerbaijan "On Compulsory Insurance", an insurer cannot refuse to conclude a compulsory insurance agreement with a person who applies for insurance of relevant risks and has an insurable interest. In case of refusal by insurers regarding the abovementioned issue, citizens can appeal to the Central Bank by calling the hotline 966 or by writing. All incoming complaints are promptly monitored, the issues specified in the appeals are considered immediately, and the compulsory insurance certificate is issued by the insurance company chosen by the citizen within a short period of time.

Currently, in order to control the situation in the compulsory motor insurance market and solve the existing problems, the Central Bank regularly conducts strict monitoring, comprehensive analyzes and evaluations. Based on the results of the assessments, the Central Bank will continue to take necessary measures.