Azerbaijan’s Finance Ministry Terminates  Insurance Company’s Activity

Business Materials 17 July 2008 17:30 (UTC +04:00)

Azerbaijan, Baku, 17 July / corr. Trend U.Ismayilova / The Azerbaijani Finance Ministry temporarily terminated validity of license of Absheron joint-stock insurance company, the Ministry said on 17 July.

License of the company was terminated by 2 September because of numerous violations of legislation and shortages.

In May the Azerbaijani Finance Ministry decided to restrict license of Absheron company through liquidation of earlier granted permission on obligatory insurance of civil responsibilities of motor transport mean owners. The reason was serious violations of the current legislation, which was exposed during examinations of Absheron's activity.

Namig Khalilov, Head of the Finance Ministry's Head Insurance Control Department, said that Absheron insurance company had considerable debts on obligatory payments to the Central Insurance Fund and Fund of Preventive Measure, provided with the Law on Obligatory insurance of civil responsibilities of motor transport means' owners.

"According to the Law on Insurance Activity, presence of these debts gives a ground to restrict a license on insurance activity through cancellation of earlier granted permission to implement activity on obligatory insurance, Khalilov said. It will be necessary to re-examine opportunities in order to grant a permission to re-establish company's activity in this regard".

The company gathered premium totaling AZN 0.12mln and payments amounted to AZN 0.004mln in the first quarter.

At present a total of 28 insurance companies are operating in the country.

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