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Insurance types

Voluntary Insurance Types Of Life Insurance

Life Insurance Death
Provides insurance payment in case of death of the insured within a certain period of time. For example, if the insurance contract was concluded for 10 years, the beneficiary will receive insurance payment when the insured person dies during this period. If the insured person lives at the time of its expiration, the insurance contract will be terminated and payment will not be given.
Life Assurance
During the validity of the insurance contract, life insurance envisions the insurance payment in case of the death of the person being insured or if lived or reached to a certain age. That is, if insured lives to the end of the period as it is mentioned in the insurance contract, he will get the insurance payment by the insurance amount as it is mentioned in the insurance contract(the last limit of the insurer's commitment under the insurance contract). No, if he dies during this period, the insurance amount will be paid to the beneficiary (as a rule, to his heir). As it seems, life insurance, in contrast to death insurance, in both casesthe insurance payment envisions not only the person being insuredwho dies while the mentioned period of time but also the person who lives at the end of this period. Depending on these circumstances, the person receiving the insurance payment will be changed. That is why life insurance contracts based on this class of insurance are the most expensive (the most paid insurance premium) contracts.
Life Annuity
In case of loss of ability to work due to the age, disability or illness of the insured person, loss of the head of the family, unemployment and other circumstances leading to a decrease or loss of his / her personal income, he / she is provided with periodic insurance compensation in the form of pensions or rent. That is, in the cases mentioned in the annuity insurance contract, the insurance company provides the insured with monthly, quarterly, semi-annual or annual payments, depending on the contract. Obviously, due to the disability of a 60 year old person, there is a high probability that his / her profits will decrease. In this case, with annuity insurance, from 60 years until the end of your life, reimbursement may be made in exchange for insurance reimbursement paid each year before the age of 60 years. This insurance coverage, known among the population as a pension.
Employee Accident Insurance
It envisions the periodically realization of the insurance payment for the compensation of the lost earnings in the case of insured's loss of the ability to work full or partly as a result of the an accident or illness. As a result of a sudden event, the person lost his ability to work partially and as a result deprived income, did not even think that such a situation would arise. Of course, if he / she insures his ability to work, he will partially lighten his condition.
Critical Illness Insurance
It envisions the realization of the insurance payment for a disease that threatens the insured's life in his health.
Insurance against incurable diseases - cancer; Myocardial infarction; stroke; Terminal renal failure; Surgical treatment of coronary arteries; Diseases such as transportation organs of vital importance are encircled.
Insurance of incurable diseases neither replace nor repeat the medical insurance. In the case of an insured event, there is no demand to the report any costs of the wasting insurance amount given to the insured, and no need any additional document confirming health insurance to enter into an insurance contract.

Compulsory Insurance Type Of Life Insurance

Compulsory insurance against industrial accidents and occupational diseases
This type of insurance envisions the payment of insurance compensation for the loss or death of their occupational ability to work as a result of damage to the life and health of the insured person in the case of the loss of the occupational ability to work as a result of industrial accidents and occupational diseases. To conclude a contract for this type of insurance you need the following:

1) Enterprises, institutions and organizations, their branches and representative offices, regardless of the form of ownership and legal form in the Republic of Azerbaijan, established by the legislation of the Republic of Azerbaijan or a foreign state;
2) state bodies;
3) individuals engaged in entrepreneurial activities without forming a legal entity;
4) elected bodies;
5) individuals are engaged in entrepreneurial and labor activities individually.

Followings must be compulsory insured from the cases of the loss of the occupational ability to work as a result of the industrial accidents and occupational diseases:
1) persons engaged in entrepreneurial activities without a legal or legal entity are those performing their labor duties on the basis of an employment contract or civil law concluded in accordance with the Labor Code or the Civil Code, government employees working in government bodies, and other employees.
2) persons employed in elected positions intended for participation in compulsory state social insurance
3) students and schoolchildren undergoing production experience;
4)military involved to work in enterprises;
5) persons involved in the prevention and mitigation of natural disasters, as well as in military and emergency situations;
6) individuals engaged in entrepreneurial and labor activities individually

In accordance with the Labor Code, foreigners and stateless persons engaged in labor activities in the Republic of Azerbaijan must also be insured.

Persons covered by the compulsory insurance contract in favor of the insurance contract are determined on the basis of deducting the insurance premium in the amount of one annual salary fund calculated in accordance with the procedure established by the relevant executive authority. The insured event is the basis for the payment of insurance compensation to the beneficiary in connection with the loss or death of the insured person in the event of an accident or occupational disease during the term of the compulsory insurance contract.

Insurance payments under the contract are realized in the following cases:
1) Death as a result of an industrial accident or occupational disease;
2) Loss of occupational ability to work as a result of an industrial accident or occupational disease.

The contract provides the following insurance payments:
1) Monthly premium - this is compensation paid to the beneficiary in exchange for the lost monthly salary due to the employee’s disability upon occurrence of the insured event..
2) A lump-sum insurance payment is a one-time payment of the monthly amount of insurance compensation in the manner prescribed by law.

Non-Life Insurance Types Of Compulsory Insurance

Compulsory liability insurance of vehicle owners
This type of insurance envisions the provision of the insurance compensation to the damaged third parties as required by the law and as a result of traffic accident.

The insurance premium for this type of insurance varies from 50 to 300 manat, depending on the type of vehicle, juridical and physical person, engine volume, load capacity and number of passengers.In the previous years depending on the occurrence of insurance event (bonus-malus), the insurance pemium may be less than 50 manat and more than 300 manat.

The amount of insurance on this type of insurance, that is if the event occurs, the amount that will be paid to the injured by the insurance company, consists of 5,000 AZN for damage to the property, 50,000 manats for damage to the health (up to 5,000 manats per person), total 55,000 manats.

This type of insurance is the only type of insurance that the amount of insurance will not be reduced when payment is provided. That is, the above mentioned amounts can be repaid several times during the insurance period.

Motor vehicles, trucks, minibuses, buses, motorcycles and motorcycles, tractors, road construction works, motor vehicles used in forestry and agriculture, trolleybus and trams, registered in the Republic of Azerbaijan must be insured compulsory.
Compulsory real estate insurance (compulsory property)
This is the type of insurance that is required by law and provides insurance compensation in the case of natural disasters, fire, explosion, flood and other cases.

The insurance premium for this type of insuranceaccording to the residential houses and apartments is 50 AZN in Baku, 40 AZN in Ganja, Sumgayit and in Nakhchivan and in other cities and regions is 30 AZN. The insurance premium for other types of real estate varies from 0.16% to 0.35% depending on the value of the property.

The amount of insurance for this type of insurance paid by the insurance company to the owner is 25000
AZN in Baku, 20000 AZN in Ganja, Sumgait and Nakhchivan, 15000 AZN in other cities and regions.

Buildings, residential and non-residential premises, residential buildings and buildings, apartments belonging to the individuals and legal entities, as well as state property should be insured compulsory in the Republic of Azerbaijan.
Compulsory property liability insurance
This type of insurance covers the operation of the relevant property, including compensation for damage caused to the health and property of third parties during the construction, repair, reconstruction or other work in this property.

For these purposes, an exploitation of property that is compulsory for civil liability insurance, is understood the activities of legal entities, as well as the buildings, structures, installations, areas, such as real estate is exploited by the individuals engaged in entrepreneurial activities without the creation of a legal entity. Liability insurance is the compulsory for the third parties related to the exploitation of the property listed above.

An exploitation of real estate that is compulsory for civil liability insurance, is understood the activities of legal entities, as well as the buildings, structures, installations, areas, such as real estate is exploited by the individuals engaged in entrepreneurial activities without the creation of a legal entity.
Compulsory accident insurance for passengers
This type of insurance is used to provide insurance coverage in case of damage to life and health of passengers in air, water, rail and road transport of passengers. Personal accident insurance is compulsory for passengers.

Non-Life Insurance Related Types Of Voluntary Insurance

Medical Insurance
Full or partial payment by the Insured of expenses incurred by medical institutions, as well as the purchase of medicines for medical examination and treatment for diseases, shall be made in accordance with the insurance contract.
Personal Accident Insurance
This type of insurance envisions the realization of the insurance payment for the insured's whole or partially compensation of additional costs mentioned in the contract in the case of he dies as a result of accident or illness, total or lost of the occupational ability to work whole or partially.

In this case, the insurance payment is provided in the amount of determined in the contract, as well as in the amount of full or partial payment of the additional expenses of the insured. For example, it is envisioned in the insurance contract that the insurance sum is 50000 AZN for the personal accident and it is determined that if the insured person dies as a result of an accident, 100% of the insurance sum, if he loses his legs, 80% of the insurance sum and if he loses his one arm 40% of insurance sum will be paid. If the insured lost his one arm as a result of an accident considered as an insurance event, the insurer will be paid insurance compensation in the amount of 20000 AZN.
Travel Insurance
During visit abroad, this is a type of insurance that provides insurance coverage when you have medical expenses during your trip. Medical expenses include the vital medical expenses which are related the illness or damage to the health of the person, as well as the other costs envisioned in the insurance contract, as a result of a person's illness or accident during the visit.

The insurance premium for this type of insurance varies depending on the country that will be visited, purpose of the visit, time of the visit, age of the insured person, the insurance limit and other factors.

The insurance payment for this type of insurance is equal to the costs of medical expenses, not exceeding the insurance limit according to the contract.
Medical Insurance (for foreigners)
Is a type of insurance providing insurance compensation in case of occurance of medical expenses during the period foreigners stay in Azerbaijan.

The insurance premium for this type of insurance varies depending on the purpose of the trip, the time of your visit, the age of the insured, the insurance limit and other factors.

The sum insured, is equal to the cost of medical expenses, not exceeding the contractual insurance limit.

Insured Events:
The Insured Events shall be recognized as sudden illness or accident of the Insured Person which have occurred during the Insured person’s stay in Azerbaijan thin the effective period stipulated in the Insurance Contact.
a. A sudden illness shall mean an unexpected disease, which have occurred within the effective period of the Insurance Policy and requires urgent medical interference.
b. An accident shall mean a sudden short-term external event caused injury or any other health breakdown of the Insured Person.

Expenses covered by the Insurer:
a. Emergency Aid within Azerbaijan (ambulance, medical evacuation)
b. Urgent In-Patient Care
c. Medicines Supply (100% for emergency and in-patient care)
d. Urgent Dental Care
e. Urgent vaccination (In case of the Insured Event the Insurer arranges rendering of medical help and controls the treatment)

Medical expenses:
a. Expenses for in-patient treatment and hospital stay (in a standard-type ward), including those for doctor’s services
b. For surgery, for diagnostic tests as well as for medicine
c. Dressing materials and means of fixation prescribed by the doctor
d. Expenses for out-patient treatment including those for the doctor's services
e. Diagnostic tests, medicine, dressing materials and means of fixation prescribed by the doctor

Expenses for medical transportation:
a. Expenses for evacuation (transportation by ground ambulance or any other means of conveyance) from the place of accident to the hospital or to airport
Property Insurance
Insurance of property against fire and other risks covers full or partial compensation for damage, destruction or loss of property located on its territory and / or inside it with its objects as a result of fire or other events. Fire insurance covers the risks of damage to buildings and their contents as a result of the explosion of gas or steam boilers used for domestic purposes, such as fire, lightning, heating and cooking. Such risks include events that may occur in homes and buildings and structures used for commercial and industrial purposes. The standard insurance coverage covered by the above-mentioned fire risk may be extended by coverage from other risks against the additional insurance premium . For instance, if you have an explosion (such as a steam boiler and the like), the effects of rebellion, inhumane acts, earthquakes, vehicles and other extraneous objects, floods, pipe blasts, water leaks, theft and such as other things you will need to pay a higher premium than you would pay for the standard insurance certificate if you want compensation for the damage to your property. If the property is stolen despite of the following all the safety events , the insurance payment will be paid in the case of the insuring property from the risk of the theft. So the one who forgets to close the door of the house will not be able to get insurance payment. This means that to consider the theft as a insurance event, it needs to provide entry or exit of the insured objects with violent ways, the thief must overcome the security ways to enter the place. The loss or damage in the coverage of fire and theft must be the particular risk —the result of the realization of the fire or theft. However, there may be other cases where the property may be damaged. Insured property may suddenly fall, strike or simply get lost. Property insurance from the all risks is also suggested for such cases. In this coverage, the property is insured from the any loss or damage (including fire and theft).
Motor Insurance (Casco)
It envisions the whole or partial payment of the compensation as a result of the damage, destruction as well as hijack or theft of the vehicle. This insurance covers personal vehicles, motorcycles, trucks, as well as public transport, such as buses and taxis, machinery used in agriculture and construction. Occasionally, car insurance certification ensures “full car insurance” including the insurance of the car owner from the above-mentioned risks, as well as the liability of the insured for damages caused by the same car to other persons, as well as the insurance of drivers and passengers from the personal accidents.
Railway Insurance
It envisions the whole or partial payment of the compensation for the damage to the property interests as a result of damage, destruction as well as hijack or theft of a railway vehicle.
Water Transport Insurance
It includes bad weather, collision, fire, seizure, and so on. such as the insurance of marine hazard. You can insure three types of water transport insurance:

A. The ship itself - its hull and equipment;
B. The load carried by ship;
C. Freight - freight charges.
Air Transport Insurance
There is a comprehensive insurance for air transport, which covers the body of the vehicle in case of damage to the ground or air, as well as liability for the load and passengers.
Cargo Insurance
This type of insurance includes whole or partial payment of compensation as a result of damage, spoiling, destruction or loss of any kind of the cargo, regardless of the transportation method. Cargo insurance is carried out on the basis of coverage while the period of transportation, that is, from the point of delivery to the destination.
Civil Liability Insurance
This type of insurance includes full or partial compensation for any damage caused to any other person or property by any individual or legal person. There is civil liability insurance to fulfill such financial responsibilities. In liability insurance, you often come across a third party testimony. The third person is the person who suffered as a result of the insured event according to the liability insurance. That is, the insured and the insurance company are the first and second parties, and the injured party is the third party according to the relevant insurance contract.
Civil Liability Insurance Of Motor Vehicle Owner
It envisions the realization of compensation by the insurer, while the insured or the person that he trusted uses the insured vehicle if he faces obligation to pay the compensation for the damage caused to other persons or property. The insurance contract for this type of insurance class is concluded (car owners must insure their responsibilities in the order prescribed by the state) both in mandatory and voluntary form.
Insurance of Civil Liability Of The Owners Of Rail, Water and Air Transport
This type of insurance involves the payment of insurance compensation in the amount of full or partial damages, when the insured is responsible for the compensation of losses caused to other persons when using rail, water and air transport belonging to the insured.
Carrier Liability Insurance
It envisions the realization of insurance payment in the amount of full or partial compensation of the damage, when there is liability for compensation for damages caused to the owner of the cargo in the case damage, theft of the cargo and other similar cases while the insured uses the vehicle as a carrier.
Civil Liability Insurance
The amount of civil liability of the insured person for his liability for failure to comply with the terms of the contract entered into by the insured with another person shall be borne by the insurer in the amount stipulated by the insurance contract.
Professional Liability Insurance
It envisions the realization of the insurance payment due to misconduct or negligence caused by various professions (doctors, lawyers, auditors, brokers, etc.) during their professional activities.
Employer's Liability Insurance
It envisions the realization of compensation of the insurance payment to the employee or his\her family by the employer as a result of damage to his\her health or death of him\her during accomplishing his\her occupational activities
Credit Insurance
Credit insurance implies an insurance payment for the full or partial repayment of damage caused to the lender as a result of bankruptcy or death of the creditor, as well as non-repayment of debt (credit) due to the impossibility of fulfilling its obligations for other reasons.
Mortgage Insurance
Mortgage means a pledge of real estate, for example, a house. Pledge, as a rule, serves as a coverage of the creditor’s debt. If the debtor is unable to repay his debt by pledging his property, if the market price of mortgaged property (real estate) has also fallen, this time the creditor`s coverage may not be fully paid. In this regard, as a result of the debtor’s failure to fulfill its obligations to the creditor in the event of a fall in the market price of the subject of the mortgage, the creditor’s losses can be paid by means of mortgage insurance.