The Chamber of Accounts of the Republic of Azerbaijan has identified significant deficiencies in the compulsory insurance of real estate belonging to low-income families receiving targeted state social assistance. According to the "State Audit" bulletin, despite the allocation of 24.3 million manats in 2023 and 27 million manats in 2024 from the state budget for this purpose, the insurance of these properties was not effectively ensured.
Operative Information Center-OMM reports that the audit covered 117 organizations for real estate and 178 for vehicles. The Chamber found that 19,344 properties in 2023 and 16,925 in 2024 belonging to social assistance recipients were left without insurance coverage, indicating that the property interests of socially vulnerable groups remain unprotected. Furthermore, the report highlighted a legal contradiction: a decree by the Cabinet of Ministers stipulates that insurance premiums are paid only after a contract is signed, which conflicts with general legislation requiring advance payment for a contract to take effect. The audit also revealed that 75% of the insurance portfolio was concentrated in a single company among only four participating insurers.
The findings underscore systemic vulnerabilities in the protection of property interests within Azerbaijan. Data from the Ministry of Emergency Situations and the Ministry of Science and Education further illustrated the risk, noting several fire incidents and property damages where insurance payouts were either non-existent or delayed due to the lack of active policies. The Chamber of Accounts has submitted its findings to the Ministry of Finance, the Central Bank of Azerbaijan, the Ministry of Economy, and other relevant government bodies to address these discrepancies and ensure the efficient use of budget funds in the insurance sector.
