Under the Article 27.1.6 of the Law of the Azerbaijan Republic “On compulsory insurance”, Compulsory Insurance Bureau shall ensure compensation payments in the following cases for third persons suffering from damage caused to the health as a result of accidents occurred in the territory of the Azerbaijan Republic:
- where a damage is caused to third person by means of unknown motor vehicle;
- where damage is caused to the health of third person as a result of use of motor vehicle by the person who does not have an agreement on civil liability insurance of motor vehicle owners, provided that the claim related to reimbursement of damage would not be satisfied, despite the presentation of that claim by the victim against the person causing such a damage;
Injured third person (natural persons injured as a result of traffic accident and his/her family members, in case of his/her death) shall be entitled to claim and receive compensation payment.
Compensation payment for the damage caused to the health shall be made following to written application lodged by the person entitled to claim such payment.
Damage caused to the health shall include the following:
1. slight or serious injury of the person (it shall be determined by the decision of the Cabinet of Ministers of the Azerbaijan Republic dated 13 May 2003 № 66 “On approval of the list of types of serious and slight injuries”.)
2. full or partial loss of working ability by the person (disability);
3. death of the person.
Compensation payments for the damage caused to the health shall be paid in the following amounts:
1. death of injured person, including death within the period of 3 years from the date of insured accident occurred as a result of bodily injury, disease, poisoning or contusion received — 5000 manats;
2. declaration of the injured person as dead by the legally effective court decision — 5000 manats;
3. designation of disability group, as required by the legislation, within the period of 3 years from the date of occurrence of insured accident as a result of bodily injury, disease, poisoning or contusion of injured person:
- 4000 manats for I disability group;
- 3000 manats for II disability group;
- 2000 manats for III disability group;
4. 1500 manats for serious injury without designation of disability group;
5. 750 manats for slight injury.
While calculating compensation payments, the amount paid by the liable person to the injured person for the respective damage shall be deducted.
Where a total amount of obligation calculated separately in respect of injured persons for the damage caused to a number of third persons exceeds 50000 manats, compensation payment to be granted to each injured person shall be made in the sum of that amount (50000 manats) proportionate to the damage caused to him/her.
Where the Insurer fails to comply with obligations associated with damage to the health and/or property under relevant compulsory insurance agreements due to payment inability, the payment shall be made by the Bureau. Where the participant fails to comply with obligations under relevant compulsory insurance agreements due to payment inability, Board of Trustees shall adopt a decision on making of compensation payments and, in such case, compensation payments shall be made as provided in the legislation.
With a view of receipt of compensation payment, the person entitled to claim such payment should address with the application to the Compulsory Insurance Bureau, as provided. Application and supporting documents may be submitted to the Bureau by the person entitled to claim compensation payment personally or via mail.
Application on compensation payment shall be registered by the Bureau.
After that, documents submitted by the applicant shall be examined and if any of documents is missing or information contained in the documents is inaccurate, applicant shall be informed thereof.
After receipt of relevant documents from the applicant, the Bureau shall immediately make a request to the competent authorities in order to obtain reference certifying the occurrence of the accident (REFERENCE certifying the occurrence of the event which may be deemed as insured accident related to compulsory insurance of civil liability of motor vehicle owners) and other documents associated with the accident.
The Bureau shall make payment or communicate substantiated written notification on rejection to make compensation payment to the applicant not later than 7 working days from the date of submission to and/or receipt by the Bureau of last accident-related document.
Under the legislation, compensation payment shall be rejected in the following cases:
- where accident or event is concerned with military operations, terror activity, mass riots, nuclear explosion, radioactive contamination;
- where compensation claim is concerned with moral damage or profit loss;
- where traffic accident is the result of intentional illegal actions of injured person aimed at occurrence of such accident, except for cases excluding liability provided for in the legislation.
Compensation payment shall be paid by means of bank transfer or postal order through cashless settlement.