AZE.US
Azerbaijan is preparing to introduce new rules for voluntary comprehensive automobile insurance, commonly known as casco, the Central Bank of Azerbaijan has announced.
The changes are intended to align the country’s insurance system with international principles, define the rights and obligations of insurers and customers more clearly, and improve consumer protection. The Central Bank has not yet specified when the new rules will take effect.
Insurance expert Nijat Alibayli said casco policies are voluntary and therefore depend heavily on the terms of the contract signed between the driver and the insurance company.
According to Alibayli, an insurer may refuse to cover damages in several circumstances:
- The driver was under the influence of alcohol, narcotics or other psychoactive substances at the time of the accident.
- The person driving the vehicle did not have a valid license for the relevant category or had been restricted from driving.
- The accident was proven to have been caused deliberately.
- The policyholder violated the terms of the contract – for example, the vehicle was driven by someone not listed in the policy or the insurer was not notified about the accident within the required period.
One of the most common sources of disputes is the cost of repairs and replacement parts. The same component may be priced very differently by independent retailers and authorized service centers, leading insurers and vehicle owners to calculate the damage at substantially different amounts.
Alibayli said a unified registry or electronic database of automobile parts prices could help resolve the problem by establishing standardized and transparent damage assessments.
He cited systems such as SilverDAT and Audatex, which are used in Germany and other European Union countries. Such platforms can reduce subjective decision-making, calculate repair costs more accurately, accelerate claims processing and limit the risk of fraud or unjustified payouts.
The expert said the Central Bank’s insurance reforms could eventually support the creation of a transparent digital pricing system in Azerbaijan. If fully implemented, it could ensure that casco payouts are calculated using consistent criteria rather than prices selected by individual repair shops, retailers or insurance companies.
AZE.US