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Compulsory Motor Third Party Liability (TPL) Insurance

Compulsory Motor Third Party Liability (TPL) Insurance

Any person, who either has a vehicle in his/her ownership or has a vehicle in his/her possession by fact (including vehicle lease or usage by power of attorney or under any other legitimate ground), is obliged to have an insurance coverage for that vehicle usage within the territory of the Republic of Azerbaijan – Compulsory  Motor Third Party Liability (TPL) Insurance.

The purpose of Compulsory Motor TPL Insurance Contract is to secure reimbursement of the damage to individual’s health, as well as reimbursement of the loss or damage to individual’s or legal entity’s property, resulted from a vehicle usage.

Compulsory Motor TPL Insurance Contract can be issued by means of the appropriate information system only, and has a legal power only if included into database of that information system.

The fact of occurrence of a liability for reimbursement for the third party sufferer’s health and/or property damage, resulted from a vehicle usage within the territory of the Republic of Azerbaijan, is considered an insured event or accident.

Individuals, who are not a party of the Compulsory Motor TPL Insurance Contract and got a damage by an action or omission of the Insured, or those in right of receiving reimbursement (in case of the individual’s death – his/her family members), or legal entities, or their legal successors are considered a third party.

Family members of the Insured and/or Insurance Persons are not considered a third party.