Compulsory Insurance Bureau is established and exists as a union of legal entities in accordance with the Civil Code of the Republic of Azerbaijan and subject to the requirements contained in the Law On Compulsory Insurance with the purpose of protection of interests of insured persons and third parties who suffer damages and losses, as well as for the purpose of stabilization and development of the system of compulsory insurance and fulfillment of duties prescribed by the law.
The foundation meeting of the Compulsory Insurance Bureau was called by the State Insurance Supervisory Service of the Ministry of Finance of the Azerbaijan Republic In accordance with clause 3.1.12 of the Decree of the President of Azerbaijan dated September 15, 2011 “On Application of the Law of the Republic of Azerbaijan dated June 24, 2011, No. 165-IVQ On Compulsory Insurance”.
Insurance companies whose total capital will be in compliance with the legislation requirements after paying the participation fee, according to the Article 28.3, and the security deposit according to the Article 30.1.1 of the Law of the Azerbaijan Republic ‘On Compulsory Insurance’ were invited to participate in the foundation meeting.
At the foundation meeting of the Bureau the following were resolved:
- Foundation of the Bureau;
- Approval of the Bureau’s Articles of Association;
- Implementation of organizational measures for the commencement of the activities of the Bureau, including the selection of the temporary administrator for the purposes of the State registration of the Bureau.
An insurance company intending to obtain a permission for implementation of and dealing with any type of compulsory insurance provided for by the Law On Compulsory Insurance shall be member of Bureau and make a security deposit in an amount specified for relevant type of compulsory insurance. An insurance company, who is willing to become a member of the Bureau, shall also provide to the Bureau a formal application to the State Insurance Supervision Service related to the issue of the permission for the relevant category of the compulsory insurance cover, accompanied with the preliminary consent for such operations. The insurance company shall be included in the register of member insurers of the Bureau upon date on which such insurance company has submitted the documentation confirming placement of security deposit provided for by Article 30.1.1 of the Law ‘On Compulsory Insurance’ and payment of participation fee.