OREANDA-NEWS. December 14, 2011. Azerbaijan has established the Compulsory Insurance Bureau. The Bureau was founded within the Law on Mandatory Types of Insurance approved by the Head of State this September.

Deputy head of the State Insurance Supervision Service under the Ministry of Finance of Azerbaijan Mushfig Israfilov says that the Bureau has already passed registration in the Ministry of Justice of Azerbaijan.

"Bureau’s Charter and the Regulation have been registered as well. Elkhan Guliyev was appointed the executive director of the Bureau," Israfilov.

The Law on Mandatory Types of Insurance will cover the 4 types of compulsory insurance - vehicle owner liability insurance, real estate insurance, liability insurance for real estate operation, and insurance of passengers.

Earlier Service’s head Namig Khalilov informed that the main requirements for participation in the Bureau are lump-sum registration fee and guarantee fee for each type with which the insurance company intends to deal with.

"The cost of participation in the Bureau will be acceptable for insurers but along with it the companies should meet the minimal aggregated capital requirements. The Bureau’s work will be fully transparent and the companies themselves will decide whether they should join it or not. The Insurance Supervision Service will carry out control over the Bureau,” Khalilov said.