New Bill on Insurance Activity Passed in Azerbaijan
Azerbaijan, Baku / Trend corr. I.Khalilova / A new bill on Insurance Activity was passed during the third reading of the Azerbaijani Parliament.
According to the head of the Parliamentary Commission on Economy Policy Ziyad Samadzadeh, only editorial changes have been made in the document.
Limits on licensing of insurance activity in Azerbaijan were taken away during the first reading of the reading. Henceforth, the process will be implemented on the base of term-less licenses.
The item which envisaged prohibition on opening of representatives of foreign re-insurance organizations and brokers in Azerbaijan was abolished. However, the prohibition that had been imposed on opening of branches of foreign companies in Azerbaijan was remained in force as local companies have not reached the level of companies in developed countries.
For the first time compulsory payments in the amount of 0.3$ from insurance premiums was introduced in compliance with demands of international experience. These assignments will be produced at every quarter. These resources will be sent to measures directed to popularization and agitation of insurance, increase of qualification, trainings, attendance at workshops and conferences.
In compliance with international experience insurance companies operating in life insurance sphere of Azerbaijan cannot render other insurance services besides life insurance. Companies would have a double capital in compliance with minimum demands.