Azer Aliyev: Car owner`s liability insurance works with financial losses


March 13, Fineko/abc.az. The largest number of complaints in connection with insurance companies comes to car owner's liability insurance, said Azer Aliyev, the chairman of the Azerbaijan Insurers Association (ASA), in an interview for ABC.AZ.

Specifying his opinion, Aliev noted that the majority of complaints have been made not by companies, but by individuals.

Linking the complaints of car owners about the insurer's financial losses, the ASA chairman said that this product does not meet the requirements: "In 2010, when determining the prices of this product, insurance premiums, it met the then statistics, prices and financial situation for that period. But you know that so far the country faced devaluation twice and about 10 years have passed. Inflation, premiums gathered for various reasons, and paid guarantees no longer meet the current situation. Therefore, insurance companies cannot provide the necessary services in full. You know that insurance has a bonus-malus system. Everyone uses the bonus, the average insurance premium for this type has fallen to 40%. This leads to the fact that insurance companies do not have the necessary funds to sell such a product. Because the insurance business is such that you need to accumulate a lot of premiums, then create reserve based on them and then make daily payments."

By Elmir Murad