Azerbaijan, Baku /corr. Trend U.Ismaylova / The Head of State Insurance Control Department of Azerbaijan's Ministry of Finance, Namig Khalilov, said on 22 September that the Ministry temporarily ceased the activity of the insurance company Qorgud Sigorta.
According to Khalilov, during the quarter inspection, the Ministry made clear that the activity of Qorgud Sigorta is contrary to the article section of article N46 of the Law on Insurance. According to law, the own capital of the company should not be less than the authorized capital. According to the active law, the minimally required authorized capital of the insurance companies should total AZN 700.000.
"The own capital of Qorgud Sigorta was significantly less than the authorized capital," Khalilov said.
The representatives of Qorgud Sigorta expressed their hope that the problem will be resolved after talks with the Ministry on 24 September.
On 21 September the Ministry of Finances cancelled the license for the activity of Qorgud Sigorta which was issued on 25 October 2006.
In 2006 Qorgud Sigorta replaced Birlik Sigorta company in the insurance market of Azerbaijan. The activity of Birlik Sigorta was ceased due to non-fulfillment of its liabilities before the clients. The founders of the company made structure changes and renamed the company as Qorgud Sigorta.