This article is dedicated to tourism insurance in Azerbaijan and its recommendations.
Key words: Azerbaijan, insurance, tourism, risk, damage.
Данная статья посвящена туристическому страхованию в Азербайджане и его рекомендациям.
Ключевые слова: Азербайджан, страхование, туризм, риск, ущерб.
In recent years, the tourism sector has become one of the flagships of the non-oil sector of the Azerbaijani economy. Great efforts have been made towards its development: the service sector was improved, Azerbaijan is actively promoted as a touristic country-destination .
Tourists, during travel, having been subjected to cases of damage to their health, property or in cases where, by negligence, tourists themselves can cause damage to third parties, they can create problems both for themselves and travel agencies, hotels, transport companies and other organizations that provide them with services. One of the tools to minimize these kind of risks is insurance. Travel activities and potential travelers are exposed to various types of risks. Sources of such risks, first of all, can be connected with transport, injuries or injuries during travel, risk during accommodation, etc. According to these facts, insurance is important in the tourism sector, raising the importance of the concept of integrity and personality of the tourist and this type of business. In a one word, insurance is very important to improve the quality of travel services. The tourist himself or the travel agency may conclude an insurance contract on behalf of the tourist. Currently, two types of personal outbound tourism insurance schemes are used in travel insurance:
- Service (or assistance), providing a wide range of insurance services abroad;
- Compensation, the most widely used before modern time in domestic insurance.
As it is obvious that, insurance is used to protect against possible negative events in all areas of activity. Travel insurance aims to avoid the insolvency of the company as part of the mechanism for the allocation of travel risks, income and expenses. There are insurance companies in Azerbaijan, as well as in other countries. Insurance companies work in different directions.These measures are carried out in accordance with the Law of the Republic of Azerbaijan on insurance. One of such activities is the tourism sector. Since tourism became an area of international activity, the development of insurance in this area became one of the most major problems of our time. Because the tourism industry is a very large global service sector and is considered economically profitable, its relationship with the insurance industry should be important. Due to the fact that tourism is directly related to travel, tourists are insured on various types of insurance to prevent and compensate for unforeseen loses and ensure their safety. As in other areas of tourism, the parties of insurance during insurance activities are both insurers and participants in the insurance market. Insurance companies in Azerbaijan operate under the license. Licensing of insurance activities In accordance with the Decree of the President of the Republic of Azerbaijan in 2002 “Rules for issuing special permits for certain types of activities in the Republic of Azerbaijan” and issued by the Ministry of Finance. Licensing of insurance activities defines the basis of the insurance regulation process. Licensing is carried out in accordance with the rules of the Council of Europe. Reported victim:
– Licenses for insurance activities in the countries of the Council of Europe are valid in all countries of the Council;
– a subsidiary insurance company may carry out insurance activities independently;
– Branches or representative offices of insurance companies can also work under a license obtained by the main insurance organization .
The regulation of insurance activities in the sector of tourism is regulated by its own legal framework, domestic legislation and international law. Given the prevalence of tourism integration, especially in a globalized world, its regulation is highly relevant. The regulation of this area occurs both at the international and national levels. Accordingly, it should be noted that the Law on the Regulation of Tourism in our country was adopted on June 4, 1999 . At the same time, persons involved in this activity must comply with a number of laws, such as the laws “On Departure, Entry and Passport”, “On Entrepreneurship and the Protection of Consumer Rights”. At the international level, the Tourism Charter, adopted by the World Trade Organization, which regulates tourism activities and organizes events in accordance with international tourism standards.
It should be noted that in recent years, the growth rate of domestic tourism in our country has been increasing. That is why those involved in tourism also seek travel insurance. Statistics show that every 10 seconds an accident occurs in the world. Here there are insurance systems for medical care, cargo loss and other areas. Currently, in our country more insurance is applied for foreign tourists. Insurance of medical expenses from accidents and sudden illnesses of citizens of the country outside Azerbaijan, accident, personal cargo loses, travel cancellation or change of date of departure, delay of air transport, insurance of loss of foreign passports and travel documents, etc. are included.
But domestic travel insurance is not developed as related insurance. Foreign travel insurance is so developed that it is considered mandatory in Azerbaijan.
In particular case, insurance is mandatory, as the relations of other countries with Azerbaijan are based on the visa system, with the exception of the UIC countries. Because the opportunity for an Azerbaijani citizen to travel abroad is possible only after obtaining a visa. Therefore, in any case, travel insurance during out of border travel is required. Internal travel insurance is not yet fully covered. However, in recent times there has been a discussion about the active use of travel insurance in domestic tourism. At the same time, work is underway to establish liability of insurance of travel companies to consumers. The access to international health insurance certificates for travelers from various insurance companies in Azerbaijan is offered as well. This insurance certificate in case of sudden illness during traveling anywhere in the world ensures that all medical care and medical expenses are covered in the event of an accident or illness.
Travel Insurance Certificate covers the following costs :
– payment for medical services and medical remedies;
– payment of expenses related to medical transportation of patients-travelers to the clinic, including hospital stay, examination and treatment (operating expenses);
– payment of emergency dental services;
– payment of expenses related to evacuation patient to home country after treatment;
– payment of expenses related to the evacuation of under-aged children;
– payment for lost or damaged baggage;
– payments related to suspension or delay of travel;
– travel and hotel expenses of the close relative of the insured person;
Payment of other expenses in accordance with the category of insurance certificate.
Also, in accordance with clause 13 of the Law of the Republic of Azerbaijan «On Tourism” tourists are provided with insurance in case of sudden illness and accidents. Thus, the insurance certificate provides for the payment of medical care and other expenses associated with the incident in the event of an accident in the foreign country or in place of temporary stay of tourists. Article 12 of the Law states that tourists visited to a country (place) at risk of infectious diseases must undergo proper medical examination in accordance with international medical requirements and be vaccinated against dangerous infectious diseases. It is also noted that persons accompanying tourist groups (travel guides) must have minimum medical training, medical supplies and a medical bag for first aid programs. Tourist groups with more than 100 people should be accompanied by a qualified physician-doctor. Other aspects of travel insurance are regulated by various rules. As an example, «Rules for Passenger and Baggage Transportation by Road”, as regulated by the Cabinet of Ministers Resolution of September 17, 2009, or «Compulsory insurance of passengers by air, rail, sea and road transport and the rules for determining and issuing insurance amounts could be considered. In addition, violations of travel insurance may result in administrative, civil, and criminal liability.
Local tourists, like tourists traveling abroad, may face different dangers and force majeure cases as well. Therefore, it is proposed to apply travel insurance with domestic tourism .
It is worth noting that insurance of domestic tourists and sightseers should be given special attention in the laws and in other regulatory documents. If we apply compulsory tourist insurance, we can protect tourists, as well as companies that provide them various services from a number of undesirable consequences. And in such types of tourism as outdoor activities, hunting, extreme sports, mountaineering, etc. Travel insurance should be the focus of particular attention. We would suggest that one of the requirements for tour operators — is the availability of insurance funds and insurance mechanisms. Improvement of interaction between the participants of the specialized tourism insurance market and its participants and the development of areas of cooperation between insurance companies and tourism organizations would promote greater reliability of tourism activities.
- Bagirzade E. Sectoral analysis of the economy of Azerbaijan (in azeb.language) https://elsenbagirzade.files.wordpress.com/ course – Azerbaijan — economy 1.pdf. (date of the application: 10.01.2020).
- Law of the Republic of Azerbaijan on tourism.https://docplayer.ru/31303200 — the law of the Azerbaijan Republic on tourism.html.
- https://www.pasha-insurance.az/products-and-services/individual insurance/travel-insurance /(date of the application: 25.01.2020).
- https://www.votpusk.ru/news.asp?msg=555796 (date of the application: 20.01.2020).