ACRA Opposes a Single Surcharge Coefficient on Compulsory Motor Insurance for Rental Cars
The Association of Car Rental Companies of Azerbaijan (ACRA) has published its position on a possible surcharge coefficient on compulsory motor insurance for rental cars. The statement responds to experts’ comments in the media after the Central Bank introduced a 1.5 coefficient for taxis.
The key points of the position:
- ACRA opposes a single surcharge for all rental cars, because such a coefficient does not separate responsible operators from unregistered ones and ultimately makes renting more expensive for every customer;
- the association proposes an insurance history coefficient of 0.6 to 3 for rental companies, calculated from the frequency of claims per car, whereas it is currently fixed at one for legal entities;
- the surcharge for a specific accident should continue to fall on the driver at fault;
- White List members with a clean record should qualify for a discount, and premium decisions should be taken only on the basis of published loss statistics.
“We are not against insurance reflecting risk. We are against an honest rental company paying for those who work without an inspection report and without insurance,” said the ACRA chairman.
The association is chaired by Karavan Rent A Car in Baku. For the full position, a breakdown of the current rules and the comment for the media, read the article on the company website.
