Life Insurance Services to be Introduced in Azerbaijan
Azerbaijan, Baku, 14 March / Trend corr. U.Ismayilova / The introduction of compulsory medical insurance, as well as division of the companies into daughter enterprises to render Life and Non-life insurance, will develop concrete life insurance services in Azerbaijan, Shukur Huseyinov, manager of insurance Azergrant company, stated.
In 2008, the compulsory medical insurance will be introduced in Azerbaijan as per the orders of Azerbaijani President Ilham Aliyev. The Parliament passed new Bill on 'Insurance activity', and it is expected that the Bill will be ratified by the President himself. Under the new Bill, the companies which render Life and Non-life services must be divided into daughter enterprises.
According to Huseyinov, the life insurance as well as the medical insurance are the most passive types of insurance in Azerbaijan. The population will understand the real significance of medical insurance only after the Government will introduce compulsory medical insurance.
"In spite of the Bill on compulsory medical insurance being passed in 1990s, its rules have not been implemented due to the lack of common mechanism,' he said.
A new agency on medical insurance will be established at the Cabinet of Ministers. The agency will introduce the insurance policy and collection of funds.
According to the Finance Ministry of Azerbaijan, in 2007, the premiums of insurance companies on life insurance made up AZN 2.1mln even after the payments of AZN 223,000.
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