Khayal Mammedkhanli: This type of insurance becomes undesirable for companies


January 21, Fineko/abc.az. The discounts in the Bonus-Malus system used for compulsory car insurance in Azerbaijan have increased up to 40%.

Experts consider this a good event for drivers, but are in no hurry to say the same about insurance companies. So, according to the information, every driver who completed the last year without an accident will now pay only 60% of the amount of compulsory insurance.

Naturally, for drivers this news was an unexpected joy.

But after those discounts the insurance companies that observe the reduction of premiums every year are expected to gather further less insurance premiums. This, of course, creates a number of problems.

Expressing his opinion about discounts in an interview for ABC.AZ, insurance expert Khayal Mammadhanli also does not hide his concern on the occasion. The expert believes that the matter can not only affect the collection of insurance premiums, but also cause problems with payment to citizens. Mammadkhanli says that due to the increase in the number of cars imported in the country, we do not feel a difference in their insurance premiums, we feel even a slight increase. But as a whole, the insurance premiums for each car with each past year reduce, and, therefore, this Bonus system is a big burden for insurance companies.

"It is natural that increasing insurance premiums here remains only one way for insurance companies to get out of this problem, since this is not a subject of discussion. A way to avoid paying the insurance indemnity or reduce the payment. But you know this is an unacceptable way, and in this regard, citizens should not be harmed. The amount of insurance is not a citizen's problem. The payment of the citizen must be made up to a penny.

But, unfortunately, some insurance companies are starting to reduce payments to avoid this damage. This is unacceptable. Whatever it is, the damage must be compensated. If it's bad for you, don't do it. As for the issue of company losses, there is a way. Insurance companies should be optimized for their line, that is, to reduce the commission that agents give, or not to give a commission to a certain category. Or they should reduce the cost of this type of insurance on administrative lines, office lines for incident management, in order to get at least a small income eventually. Another option is completion with little damage. But the fact is that this type of insurance is becoming undesirable for companies."