Afət Ziyadqızı
Assessing damage to vehicles after road accidents, the amounts allocated for insurance claims and payment timelines are among the issues most often discussed by drivers. While complaints that insurance payouts do not cover repair costs or are delayed are frequently reported, specialists say actual market conditions and legal mechanisms may differ.
What criteria are used to calculate damage? What steps should people take if they are dissatisfied with an insurance payout, and how many days does the law allow for payments to be transferred?
Emil Aghabaghirov, a member of the expert group of the Azerbaijan Insurers Association (ASA) and public relations head at Mega Insurance OJSC, answered questions from "Operativ Məlumat Mərkəzi-OMM":
- Mr. Emil, what criteria are used to calculate damage to a vehicle after an accident? How is the difference in spare-part prices for old and new cars taken into account?
- When it comes to motor insurance, there is compulsory motor insurance and CASCO (voluntary) insurance. Although the two types involve somewhat different approaches, the main aim is to restore the vehicle to its pre-accident condition. If a vehicle part is completely unusable, it is replaced with a new one. If the vehicle is a newer model and used spare parts are unavailable on the market, the part must be replaced with a new one.
- Drivers often say that the amount allocated by insurers is not enough to repair their cars. What causes this discrepancy?
- In fact, such cases are very rare. The amounts allocated by companies are, in general, close to actual market prices. The difference may result from wholesale pricing and service discounts. For example, if an ordinary customer buys a spare part from a shop for 100 manats, an insurance company may obtain the same part for 80 manats because it works with that partner shop in larger volumes. Similarly, a repair shop might charge an ordinary customer 100 manats to repair a part but charge an insurance company 70 to 80 manats. So there can be some difference, but substantial discrepancies are very rare.
- What legal steps should a customer take if dissatisfied with an expert's assessment or the amount set by an insurance company? How is an appeal to an independent expert regulated?
- If there is any discrepancy or dissatisfaction, a person can consult an independent expert or file a complaint with the Central Bank of the Republic of Azerbaijan. To choose an independent expert, it is possible to select and contact any specialist from the official register of independent experts.
- How many days does the law allow for an insurance payout to be transferred, and what are the main reasons for delays in practice?
- After all the required documents — Form 4 issued by the State Traffic Police, the assessment report, the cost estimate provided by the repair shop and the customer's application — have been submitted to the insurance company, it must make the payment within seven business days. In practice, delayed payments by insurance companies are almost unheard of, and the money is transferred within the statutory seven business days once all the documents are complete.
