- Insurance is a relationship to protect the property interests of individuals and legal entities upon the occurrence of certain events (insurance events) paid by the Insurance Company with the money coming out of the funds generated from the paid premium (premiums).
- Insured - a legal entity or a capable person who has entered into an insurance agreement with the insurance company.
- Insurer - a legal entity (insurance company) licensed to operate an insurance business, assuming under the insurance contract for a certain fee (a premium) an obligation to indemnify the insured or other person in whose favor the insurance contract was signed, the damages caused by the onset of insurance claims, stipulated in the contract.
- Beneficiary - a physical or legal person who is appointed by the insurer authorized to receive the insurance payments.
- Deductible – is a part of the damage not covered by the insurance company in the occurrence of an insurance event.
- Property insurance is a type of insurance where the insured object is real and personal (movable and immovable) property owned, used and under disposal of the insured.
- Insurance of construction risks - a complex type of insurance that provides protection for all construction participants from the risks of accidental damage of construction facilities, construction equipment, materials and other property, as well as civil liability for damage caused to third parties.
- Cargo insurance is a type of property insurance designed to protect the property interests of the goods’ owners in case of losses caused by various types of accidents (insured events) during cargo transportation.
- Liability insurance presumes insurance compensation to the third parties for the unintentional damages caused by the insured.
- Re-insurance – is a risk distribution based on which an insurer (insurance company) accepts insurance of risks and transfers part of their liabilities to other insurers (insurance companies). This enables an insurance company to undertake risks that would be too large for a single insurer.
- Medical insurance – a form of social protection of the population's health reflected in the guarantee of payment of medical expenses in the occurrence of an insurance event based on funds accumulated by the insurer.
- The subjects of health insurance are: citizen (the insured), policy owner, the insurance company (underwriter), and a medical facility.
- Travel insurance – is a special insurance program under which a person travelling abroad insures her or his own life and health.
- International medical insurance policy guarantees 24-hour medical help and coverage of medical expenses in case of sudden illness or accident during a trip abroad to any country of the world.
- AUTO-CASCO – is the insurance of car from damage caused as a result of an accident, a collision with an object, natural disasters, fire, illegal actions of third parties or theft. This kind of insurance does not include third-party liability, as a separate type applied for liability insurance.
- Compulsory insurance of civil liability of vehicle owners apply for compensating damages to the medical of and property of physical entities, as well as property of physical and legal entities resulting from using motor vehicles on the territory of the Republic of Azerbaijan. This type of insurance implies compensation of damages resulting from errors of persons exploiting vehicle lawfully (persons owning a motor vehicle or persons performing the actual possession of the motor vehicle, that is renting a vehicle or running it under power of attorney or exploiting it on other legal grounds).
- If due to insolvency an insurer is unable to fulfill its obligations under the contract of compulsory insurance, that requires covering of damage caused to health and/or property;
* If health damage caused by an unidentified vehicle;
* If health damage caused to a third party who has not signed a contract of compulsory insurance for civil liability under Section III of the Law "On mandatory insurance", provided that the harmed person applied to the person who caused the damage for compensation, but this requirement was left unsatisfied.
- The amount of insurance premium for the compulsory civil liability insurance of vehicle owners is determined by the “Rules of amounts of insurance premiums for the compulsory civil liability insurance of vehicle owners” approved as part of the Decree G-1 of the Ministry of Finance of Azerbaijan Republic dated December 6, 2011. According to the Rules, the base amount of insurance premium is determined in the amount of 50 manat and applied to vehicles with engine volume of up to 1500 cm3. As the engine size increases, a multiplying factor of 1.5 to 5 is applied to the base insurance premium rate. In addition, the insurance premium to be paid by the car owners is also affected by the ‘claim history’ of an individual car owner, based on the Bonus-Malus system. Per this system, the insurance premiums of drivers without claims during the year are to be reduced, while the insurance premiums of drivers who caused accidents and received compensation for these accidents ought to be increased. The calculation rates on car types and per the Bonus-Malus grading system are presented in the above-mentioned Guidelines.
- Payment of compensation is done based on the written request of the party entitled to compensation. The relationships between the party entitled to compensation payment and Bureau are regulated based on the requirements established by the law on relations between beneficiaries of relevant contract of compulsory insurance and the insurer. Compensation payment is made in accordance with and in the amount determined by law on relevant compulsory insurance.
- According to the Article 56 “About compulsory insurance”, insurance payment under liability insurance of auto-owners during possible damage to the third party is determined in the following way:
* in the case of damage to the health of individuals, insurance payment is set in the amount of 5,000 manat per person who suffered injury, and not more than 50,000 manat of total amount for a single insurance event.
* in the case of damages to the property of third parties, in the amount of 5000 manat.
- Based on the Article 53.4 of the Law “On compulsory insurance”, no matter in whose name the insurance card was issued, any person operating a given vehicle in accordance with law (person owning the vehicle, or renting vehicle, operating it based on the power of attorney or using it under other lawful means) is considered insured with a civil liability for property damage to third parties. In other words, if multiple persons lawfully use a vehicle, it is sufficient that one of them is covered under the civil liability insurance. The insurance of this person will apply to all lawful users of the car. Certificate of compulsory insurance is contracted through the information system of the Bureau of Compulsory Insurance. This information system enables to register only one insurance certificate per one vehicle.
- According to Article 51.3 of the Law "On compulsory insurance" in all cases of alienation of property for which the contract of compulsory insurance of civil liability was signed, the contract is annulled. When you sell your car, your insurance interests related this vehicle, are already moving to another person - a person who has acquired your car. In this case the contract expires before the preset time.
- Yes, you can get this information and other date reflected in the insurance contract (on liability insurance of vehicle owners), using SMS service 9707.