Amendments to Regulations on compulsory insurance of civil liability of vehicle owners approved

03-04-2026

4 April 2026, Baku: The Central Bank continues its activities with the aim of achieving sustainable development in the insurance market and strengthening the fair treatment of insurance service consumers and public trust in insurance services. One of the steps taken within the framework of the implemented reforms is improving the mechanisms for determining insurance premiums for compulsory insurance of civil liability of motor vehicle owners (compulsory auto insurance).

Insurance premiums for compulsory motor insurance are determined by applying risk factor-based coefficients that cover the likelihood of causing damage to third-party property and health during the operation of a motor vehicle.

The regular and intensive use of taxis, which are designed for carrying passengers, increases the risk of accidents in traffic due to the high number of incidents in this area. Analyses have shown that taxis used for passenger transport are more likely to cause damage to property and harm to third parties than personal vehicles.

These factors have led to the need for special coefficients to be applied to vehicles used for taxi operations.

Based on analysis and successful international practices, the approved changes include the application of different risk coefficients for motor vehicles used in passenger transportation.

The envisaged changes are intended to provide a clearer definition of vehicle owners' civil liability insurance for risks, increase driving discipline, improve insurance services in the event of damage to third parties' health and property, and protect the stability of social welfare more effectively.