"Silk Road Insurance" OJSC's license for insurance activity has been limited since January 24, 2023 by canceling the permit issued for "Compulsory insurance of civil liability of motor vehicle owners".

"APA-Economics" was informed about this by the Central Bank of Azerbaijan.

It was stated that the application of "Silk Road Insurance" company is related to planning the development of other types of insurance based on the new business strategy adopted taking into account the existing human, financial and technological resources of the company, as well as the future development prospects.

"Silk Road Insurance" Open Joint Stock Company collected 334,520 manat insurance premiums for the type of compulsory insurance of civil liability of motor vehicle owners in 2022.

This is 0.29% of the insurance premiums collected for that type (114,065,708 manats).

It was noted that limiting the validity of the insurer's license in accordance with Articles 105.3 and 105.4 of the Law prohibits him from concluding new insurance contracts for the relevant type of insurance, as well as extending the term of the insurance contracts in force for that type.

The insurer must fulfill the obligations assumed in the insurance contracts concluded earlier for the type of insurance for which the validity of the insurer's license is limited until the expiration of the term of those contracts or until they are prematurely terminated on the grounds provided for in Article 919 of the Civil Code of the Republic of Azerbaijan.