Regulatory Alerts2025-07-22
Regulation on Calculation of Insurance Premium Amounts for Vehicle Owners’ Compulsory Civil Liability Insurance
The Central Bank of the Republic of Azerbaijan issued Resolution 25/1 to establish a standardized calculation framework for vehicle owners’ compulsory civil liability insurance premiums. The regulation sets a base premium of AZN 50 and mandates the application of seven specific coefficients, including vehicle type, driver age and experience, geographic location, vehicle life, number of licensed drivers, and a Bonus-Malus class system. It caps the maximum calculated premium at three times the base amount, defines distinct calculation procedures for individual and corporate policyholders, and outlines transitional rules to map existing Bonus-Malus classifications to the new system.
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