Central Bank of the Republic of Azerbaijan approves differentiated risk coefficients for compulsory motor liability insurance premiums for taxis

The Central Bank of the Republic of Azerbaijan has approved amendments to the rules governing compulsory civil liability insurance for motor vehicle owners, updating how premiums are determined for mandatory motor third-party liability cover. The changes introduce different risk coefficients for vehicles used in passenger transport, including taxis. Premiums under the mandatory motor insurance are set by applying coefficients based on risk factors linked to the probability of harm to third parties’ property and health. The Central Bank’s analysis found that taxis’ regular and intensive road use is associated with a higher frequency of incidents and a higher likelihood of causing third-party damage compared with vehicles used for personal purposes, creating a need for specific coefficients for taxi activity. The amendments are based on the analysis and international practice and are intended to make risk assessment more adequate and support improved insurance service in cases where third-party harm occurs.