Azerbaijan, Baku, 7 March /corr. Trend U.Ismaylova / After the division of insurance companies into Life and Non-Lifeinsurance in Azerbaijan, the insurance companies will not have the opportunity to finance losses at the expense of long-term (accumulated) reserves, said the Head of the State Insurance Control Department of Azerbaijan's Ministry of Finance, Namik Khalilov, on 7 March.
According to the law on insurance which has been adopted by the Azerbaijan Parliament and is expected to be approved by the President of Azerbaijan, the insurance companies have to be divided into Life and Non-Life companies. According to the Law, in the first three years, the companies will be able to provide both services, but later the companies should be divided.
Khalilov said that the experience of dividing the insurance companies into Life and Non-Life has been accepted internationally. It is carried out so that in cases such as insuring a car, the insurer cannot make the payment at the expense of the life insurance of another insurant.
According to the law, life insurance envisages accumulated insurance. In certain periods or even up to the death of the insurer, the funds accumulate in the company. After completion of the period and/or death of insurant, the company must re-pay the accumulated funds.
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