Some time ago in Azerbaijan, it was announced that intelligence would be completed between the system of the Executive Insurance Bureau and the Ministry of Economic Affairs. In other words, there is already an opportunity to check whether there is executive insurance for non-transferable assets, as in automotive executive insurance over the ISB system, while applying fines recorded many years ago. This is a new window of opportunity opened in recent times for insurance companies that have disclosed the harmful effects of automobile executive insurance, informally refusing to insure some car brands. As a result, a campaign has been launched in recent days by insurance companies on executive insurance for non-transferable assets, saying "those who don't insure their homes will be fined" by June 1. It is reported that citizens who do not insure their property or their homes will be fined 30 manat, 80 manat, and 110 manat. Plus fines can be renewed once every 20 days. The topic has become a topic of discussion among the population and on social media.

AAPA-Economics has conducted an investigation into the matter and found that some insurance companies have encouraged them to insure on their social media pages on the grounds that citizens who do not insure their homes will be fined.

Under the law, a fine on non-transferable assets that citizens do not have executive insurance can be applied by a local executive authority. The problem is that there is no penalty mechanism.

Experts believe the current manipulative steps of insurance companies are unfounded and alarming among citizens.

Akram Hasanov, a financial markets expert, noted that the issue had previously come up on a daily basis in January 2020. The Baku City Executive Authority said at the time that there was no fine mechanism for failing to provide executive insurance for homes. This mechanism still does not exist. He noted that President Ilham Əliyev had commissioned educational work in this area at the time. And the Central Bank, which has overseen the insurance market for more than the past 3 years, has done nothing in this area.

'In fact, those who are getting the water are insurance companies that threaten them by sending notifications to citizens. They're looking for an easy place to earn." - Akram Hasanov added.

According to the expert, the fine mechanism for executive insurance of non-speaking assets is not working, but it is not right for the owner to be the executive of the type of insurance as a whole because the conversation goes from potential damage to the owner, not to third parties. Everyone should be free to insure their property. So it has to be a kind of voluntary insurance. Therefore, the law needs to be amended: "The type of executive insurance has been in place since 2 under Chapter 2011 of the Executive Insurance Act and is compulsory. The law has required executive insurance for non-transferable assets for more than 10 years. There is also a fine for those who fail to insure their non-transferable assets. But it does not have a mechanism. So it's a "dead" law. It is also unfair. Because this insurance has to be voluntary. In Azerbaijan, not only a commercial insurance model but also a joint insurance model (a citizen's insurance premiums do not fully sink in the absence of an insurance incident). Otherwise, there will be no confidence in insurance companies as it is now. Because they mostly think only of their earnings and are distracted from paying when insurance events occur."

Insurance expert Ilkin Ibrahimov, on the other hand, noted that the country's relevant institution is a soft policy place: "Because there is no example of a protocol for fines for individuals, it is impossible to write fines. Therefore, the law does not yet have a procedural rule. Physical persons have been given the power to write a fine protocol to local executive authorities. They are not yet deeply involved."

First Ibrahimov has indicated that under the current circumstances, the side of insurance companies is unfounded: "In general, I can tell him that from June 1 there will be an electronic exchange program between the Executive Insurance Bureau and the State Property Service. This means that the State Real Estate Service will verify to the Executive Insurance Bureau, which will transmit the data, which assets are insured and which are uninsured. These institutions do not have the authority to fine. Neither insurance companies nor the Executive Insurance Bureau can take action on the issue. All of this is manipulative."

Currently, executive insurance for non-transferable assets is required only during the purchase, legal documentation processes, he said. Overall, however, in the current climate, strict measures such as those in automobile executive insurance for non-speaking assets could create serious social injustice while reducing interest in documenting non-transferable assets, further slowing the process: "There are a large number of undocumented homes in the country. Undocumented homes cannot be insured. In view of this, a citizen may delay documenting his assets in a fund of harsh fines. This means a dual attitude towards citizens in the country. That is, a citizen who has a certificate and a fine and who does not have a certificate or a fine."

Expert believes that non-transferable real estate insurance with the application of fines should not be a "easy profit" place for insurance companies. It should be instilled in social characteristics and voluntarily applied: "Citizens should be taught the benefits of non-transferable property insurance. It should be emphasized that by paying 30-50 manat, it can actually be useful in eliminating 15-25,<> manat damages."

And the Central Bank of Azerbaijan has told AAPA-Economics that a clarification will be made on how the fine issue can be applied.