AZE.US
Taxi fares in Azerbaijan could come under fresh pressure after new insurance rules raised costs for officially registered cab drivers.
Under changes approved by the Central Bank’s board, a 1.5 coefficient will now be applied when calculating annual compulsory insurance premiums for vehicles used in taxi passenger transport. In practical terms, that means a driver who previously paid 100 manats a year for mandatory insurance would now pay 150 manats.
The new rule applies to vehicles that are formally registered for taxi operations and have the required permits and system records confirming their use in passenger transport.
If a vehicle’s taxi status cannot be verified, or if the driver fails to declare that the car is being used for passenger transport, the insurer will be able to apply a correction amount when the next insurance contract is signed. That effectively increases the cost for those who provide inaccurate information about how the vehicle is used.
Market watchers do not expect an immediate sharp jump in passenger fares solely because of this change. They note that compulsory insurance is paid once a year, which limits its direct impact on the cost of each individual trip.
Still, the increase adds to the financial burden on taxi drivers, and that could eventually feed into fare adjustments, especially if operators and drivers continue to complain about rising costs.
The Compulsory Insurance Bureau said the move reflects the higher risks associated with taxi vehicles, which spend more time on the road and operate in heavier traffic conditions than privately used cars. According to the bureau, analysis showed that taxis used for passenger transport carry a higher probability of causing damage to third-party property and health.
Officials say the changes are meant to make insurance pricing more closely match actual risk, improve driver discipline and strengthen insurance protection when accidents happen.