The Management Board of the Central Bank of Azerbaijan (CBA) issued the "Rule on the regulation of mutual payments between insurers (direct settlement of damages) in connection with compensation for damage to the vehicle driven by the victim in a traffic accident" and "Insurance premium amounts for the compulsory civil liability insurance of motor vehicle owners" Calculation Rule" was approved.
"APA-Economics" reports with reference to the CBA that the rules developed for the direct settlement of damages, when a traffic accident resulting in a collision between two vehicles occurs, the victim must apply directly to the insurer with whom he has signed an insurance contract and receive the insurance payment, and the insurer of the victim must pay the insurance to his insured. determines the procedure for receiving the insurance payment from the insurer of the injured party in the form of subrogation.
These rules define a new approach to insurer-insured relations of the AVSMMIS type by ensuring that each insurer provides direct service to its client.
This will result in improved service quality.
At the same time, within the framework of reforms in the field of AVSMMIS, changes were also made to the rules for calculating insurance premiums in accordance with advanced international practices.
According to the change, taking into account the probability of damage to the property and health of third parties during the operation of the motor vehicle, coefficients for risk factors - the age and driving experience of the driver, the number of persons with the right to drive the vehicle, the traffic intensity of the region where the vehicle is driven, the operation of the vehicle coefficients are determined according to the duration.
Also, changes have been made to the bonus-malus system (discounts or additions applied to tariffs depending on whether the insured has caused an incident or not) defined in the relevant regulations, and it is planned to be applied in real time.
The new bonus-malus system that has been implemented encourages vehicle owners to be more responsible in order not to damage property and health when driving their vehicles.
The envisaged changes will serve to increase the driving responsibility of vehicle drivers, and by motivating insurance companies to provide better services to consumers, to eliminate existing problems in the field of AVSMMIS, to increase public trust in insurance, and to develop the insurance market as a whole.