An Information Exchange Agreement on vehicles used by physical and legal persons and compulsory insurance contract was signed among Financial Market Control Chamber (FMCC), Ministry of Internal Affairs (MIA) and Compulsory Insurance Bureau (CIB).

The agreement signed in order to implement the decree of the President of the Republic of Azerbaijan for application of the law "on compulsory insurances" dated 15 September, 2011 defines the rules for the information exchange between the MIA and the CIB information systems on the inspection of compulsory insurance contracts of the automotive vehicles being used.

According to the document the exchange of information will be carried out in electronic format between the Central Information System of the MIA and the “Compulsory Insurance Information System” of the CIB in a centralized manner. The automotive vehicles which do not have compulsory insurance contract will be revealed by speed guns and the owner of the vehicles will be fined under the current legislation.

We also note that, according to the article 469.3 of the Code of Administrative Offences physical entities are fined in the amount of 50 manats, while legal entities  300 manats for using automotive vehicle without compulsory insurance contract.

Currently the sum insured for damage to the property over the compulsory insurance of civil liability of the automotive vehicle owners is 5000 manats, and for damage to  life and health is 5000 manats. As the result of the agreement, increased number of the automotive vehicles with compulsory insurance will be achieved in the country.

It is also worth mentioning that in the current period of time the penetration of this kind of insurance reaches 75 percent and an increase is expected after the completion of integration.