Insurance laws Azerbaijan
The insurance legal framework in Azerbaijan is primarily defined by the Law of the Republic of Azerbaijan "On Insurance Activity" and the Law of the Republic of Azerbaijan "On Compulsory Insurances." The sector is regulated and supervised by the Central Bank of the Republic of Azerbaijan (CBAR).
Here are some key aspects of Azerbaijan's insurance laws:
1. Regulatory and Supervisory Body:
The Central Bank of the Republic of Azerbaijan (CBAR) is the main body responsible for regulating and supervising the insurance market. It licenses insurance companies and intermediaries, oversees their operations, and ensures compliance with the law.
2. Legal Framework:
Law "On Insurance Activity": This is the core law that defines the principles of the insurance system, including the activities of insurers, reinsurers, and intermediaries. It outlines the legal and economic basis for state regulation and supervision in the insurance field.
Law "On Compulsory Insurances": This specific law details the types of insurance that are mandatory in Azerbaijan, the conditions for their application, and the rights and obligations of the parties involved.
The Civil Code of the Republic of Azerbaijan also provides general provisions that apply to insurance contracts.
3. Compulsory Insurance:
Azerbaijan has several types of mandatory insurance designed to protect the public and ensure financial stability. These include:
Compulsory Motor Third-Party Liability Insurance: This is a legally required insurance for all vehicle owners. It covers damages caused to third parties (including bodily injury, death, and property damage) in the event of a motor vehicle accident.
Compulsory Health Insurance: Azerbaijan has a nationwide compulsory health insurance system, which was fully implemented in 2021. It provides citizens with a range of basic healthcare services and is administered by the State Agency on Mandatory Health Insurance.
Compulsory Insurance of Real Estate: This type of insurance is mandatory for certain properties and aims to compensate for damage or destruction from events like fire or natural disasters.
Compulsory Insurance of Employee Accidents at Work: Employers are required to provide this insurance to their employees to cover injuries or occupational diseases sustained in the workplace.
4. Insurance Intermediaries:
The law distinguishes between insurance agents and insurance brokers, both of whom must be licensed by the CBAR.
Insurance Agents act on behalf of a specific insurer to facilitate the sale of policies.
Insurance Brokers represent the interests of the client, providing them with recommendations and arranging policies from various insurers.
5. Other Key Provisions:
The legal framework sets out requirements for insurers' capital adequacy and solvency to ensure they can meet their obligations to policyholders.
There are rules for the handling of claims and the resolution of disputes, with a statute of limitations for filing claims.
The Compulsory Insurance Bureau (ISB) is an important institution in the country, playing a key role in the administration and enforcement of mandatory insurance schemes.
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