AZERBAIJAN: direct settlement in MTPL is planned to be introduced in Azerbaijan

11 January 2022 — Marina MAGNAVAL
Over 90% of cars in Azerbaijan are insured under MTPL, said Vusal GURBANOV, director of the department for control over insurance activities of the Central Bank of Azerbaijan, Forinsurer reports.

"We are planning to introduce innovations in MTPL as we are studying international experience. Now, upon occurrence of an insured event, compensation is paid by the insurance company of the responsible for the accident. We plan to make changes when a victim will contact his/her insurance company. This will increase responsibility of insurers for their work", said Vusal GURBANOV.

At the moment, the problem has several sources such as: a responsible for an accident does not have a valid MTPL policy and statistics show that this category includes 10% of vehicle owners; 9% of responsibles for of accidents leave the accident scene every year, or MTPL policy turns out to be fake, expired, issued by a company that has been deprived of a license. Due to these reasons, compensation payments to victims may be delayed.

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