Speaking at the event "Property Insurance and Risk Protection: Ensuring the Safety of Homes and Businesses" in Baku, Gurbanov emphasized that the main goal of compulsory motor insurance is the prompt compensation of damage caused to third parties.
"If such a system did not exist, serious conflicts would arise between parties after road traffic accidents, and the perpetrator in most cases would not be able to compensate for the damage caused. That is why an insurance model has been introduced: when civil liability arises, the insurance company makes a payment on behalf of the policyholder."
According to the head of the Central Bank, Azerbaijani insurance companies under compulsory motor insurance pay out about 100–120 million manats to victims annually.
"Without this system, the entire amount would have to be covered by citizens themselves from their personal funds," Gurbanov added.
He also drew a parallel with compulsory property insurance, where a similar mechanism for protecting the interests of citizens and businesses operates.