Regulatory Alerts2023-04-26
Regulation on Mutual Payments Between Insurers for Vehicle Damage Compensation in Road Traffic Accidents
The Central Bank of the Republic of Azerbaijan issued Resolution № 25/2 to standardize electronic subrogation claims and netting procedures between insurers compensating for vehicle damage in road traffic accidents. The regulation mandates that participating insurers register claims via a central Bureau system, maintain minimum guarantee accounts, and execute cashless settlements within a weekly cycle of up to three working days. It further establishes precise formulas for calculating average claim liabilities, requires quarterly guarantee account adjustments based on operational volumes, and defines strict timelines for fund transfers and dispute resolution.
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