Azerbaijan, Baku, Jan.7 / Trend A.Akhundov /
The use of the deductible by the Azerbaijani insurers gives a negative idea about the insurance market, chairman of the Gunay Sığorta company's board Ilham Amiraslanov said.
"For example, a company grants a deductible and offers to reduce the level of fees. If damage on insured event doesn't exceed the amount of agreed deductible, the insurer does not make a payment on this damage. Problems arise with insurance. Since the damage is small, for example less than 500 manat and if there is a deductible the payment on this event doesn't take place and the insurer remains dissatisfied. Overall, negative idea about this company as well as the whole market arises," Mr Amiraslanov told Trend on Friday.
He said the market should move away from the use of the deductible.
"Even if it is used its amount should not exceed the minimum sum, for example, 100 manat," Mr Amiraslanov said.
He said the government should take decisive actions towards companies withholding payments or avoiding it.
There are 29 insurance companies and one reinsurance company in Azerbaijan. The insurance license of Fidan Sıgorta was suspended.
The official exchange rate is 0.7864 AZN/USD.