Azerbaijan, Iran fail to agree on liquidation of joint insurance company

Business Materials 11 June 2009 14:03 (UTC +04:00)

Azerbaijan, Baku, June 11 / Trend , U.Ismayilova/

Founders of the Azerbaijani-Iranian insurance company Azer-Asia still have not establish a liquidation commission, despite the refusal of Azerbaijani insurance supervisory to prolong company's license.

"Liquidation commission is not created due to the fact that the Iranian side does not agree with the suspension of the joint company," the company said.

According to a source, Azerbaijani founder expressed the desire to liquidate the company Azer-Asia, but the Iranian side has once again refused to accept this decision.

The Iranian Embassy, according to a source, has sent a formal letter to the Ministry of Finance of Azerbaijan saying that it agrees with this decision after receiving a formal rejection on the resuming company's functioning.

In February, the Azerbaijani Finance Ministry refused to the joint Azeri-Asia insurance company to extend term of license on insurance activity, which was issued on 21 November in 2002. It was revealed that the company's activity did not correspond to the insurance legislation and requirements of license as a result of analyses held from 1 October 2006 to 1 October 2007 and this fact was a basic reason of the ministry's refusal to prolong term of license. Violation facts were revealed during examinations, as well.

In September, the board of Azeri-Asia took a decision to pass its portfolio to another BE& G insurance company. At the moment of closing the company had 17,000 individuals and 60 corporative clients.

The joint Azer-Asiya insurance company, whose founders are the Iranian Asiya Sigorta (49 percent) and AzerSigorta (51 percent), the state insurance commercial company, has operated at the Azerbaijani insurance company since 1997.

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