Azerbaijan Nears Final Stage Of Mandatory Property Insurance Law Revision

(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 15. Work on improving legislation regarding mandatory real estate insurance in Azerbaijan is in its final stages, the Director General of the Central Bank of Azerbaijan (CBA), Vusal Gurbanov, said at a press conference on Thursday dedicated to the presentation of the Financial Stability Report, Trend 's correspondent reports from the event.

He noted that the main goal of the proposed changes is to increase the transparency of insurance payouts and ensure a more appropriate determination of insurance coverage amounts.

In addition, the Director General emphasized that the decline in the number of compulsory insurance policies is due to several factors.
"These include changes in indicators related to the terms of insurance contracts, an increase in coverage amounts for certain types of insurance, and the government's implementation of insurance programs for certain categories," he added.

He noted that there has been a decline in the number of compulsory insurance policies.

“One of the reasons for this is the timing of insurance policy issuance. On the other hand, an increase in insured amounts has been recorded for certain types of compulsory insurance. These figures were also influenced by the fact that, for some categories, insurance is provided by the state,” V. Gurbanov noted.

A representative of the Central Bank of Azerbaijan (CBA) reported that draft legislation on mandatory real estate insurance has been under review with the relevant government agencies for some time and is currently in its final stages.

"In addition, the Central Bank continues to work on other conceptual issues arising from the legislation," he emphasized.

According to him, the changes are aimed at ensuring greater transparency in insurance payouts, as well as a more accurate determination of insurance coverage amounts in accordance with the value of the property.

“The main goal of the new version of the legislation is to make insurance payouts more transparent and ensure a more appropriate determination of insurance coverage amounts. It is important that the insurance coverage amount be set taking into account the value of the property,” he stated.

Gurbanov emphasized that the proposed changes are not intended to increase the number of mandatory insurance policies. The main focus of the bill is to improve the quality of insurance services, streamline insurance processes, and ensure a more accurate assessment of the actual value of property for insurance purposes.

“We do not intend to increase the number of insurance policies. The goal of the bill is to improve the level of service, increase the transparency of insurance payouts, and ensure that coverage is provided in accordance with the value of the property,” the CBA's director general added.

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