Information about limited licenses in the insurance sector

30-01-2023

30 January 2023, Baku – The license issued to “Ipek Yolu Sigorta” Open Joint Stock Company to carry out insurance activities has been limited from 24 January 2023 by revoking the permit for compulsory insurance of civil liabiliity of motor vehicle owners issued to “Ipek Yolu Sigorta” Open Joint Stock Company on the basis of a voluntary application in accordance with Article 105.1.1 of the Law of the Republic of Azerbaijan “On Insurance Activity”.

The aplication of “Ipek Yolu Sigorta” OJSC is related to planning the development of other insurance types on the  basis of a new business strategy of the company adopted taking into account the company’s existing human, financial and technological   resources, as well as the future development prospects. In 2022, “Ipek Yolu Sigorta” OJSC collected 334,520 manat of insurance fees by the type of compulsory insurance of civil liability of motor vehicle owners. This makes 0.29% of collected insurance fees (114,065,708 manat) of this type of insurance. 

According to Articles 105.3 and 105.4 of the Law, limitation of the insurer’s license prohibits the insurer to conclude new insurance agreements on the relevant type of insurance, as well as to extend the validity of existing insurance agreements for this type.  The insurer is obliged to fulfill the obligations assumed under the insurance agreements previously concluded for the type of insurance for which the insurer's license is limited until the expiration of these agreements or early termination on the grounds stipulated by Article  919 of the Civil Code of the Republic of Azerbaijan.