Institution of insurance ombudsman to be established in Azerbaijan

Business Materials 24 June 2009 20:18 (UTC +04:00)

Azerbaijan, Baku, June 24 / Trend , U.Ismaylova /

The establishment of a system of protection of rights of consumers of financial services and increasing the confidence of potential customers in Azerbaijan is very important for the development of the financial market, said the Director of the State Agency for Insurance Supervision at the Ministry of Finance of Azerbaijan Namig Khalilov.

"Along with the establishment of a system of protection of consumer rights, it needs to actively inform the public about the importance of understanding their rights when they receive any type of financial services," said Khalilov.

According to him, if people are sufficiently informed about their rights and benefit from the contract, they will more confidently make a decision on obtaining these services.

Khalilov said that due to it, the plans of the Agency include establishing an institution of insurance ombudsman in order to protect the rights of consumers in the market without court. This mechanism exists in many countries and is quite effective.

The existence of the insurance ombudsman is important because some insurers do not file a lawsuit for the small amount of non-payment by insurant because of the unnecessary waste of time, cost and other reasons, said Khalilov.

Formerly he stated that the institution of the ombudsman would be a state organization that provides free services for the protection of insurers. Free provision of services to address the controversial issues of insurance will be implemented in order to protect the rights of insurance consumers. The decision to establish the institution of insurance ombudsman was made for a quick and effective solution to disputes between insurers and insurants, as well as for building trust and transparency in the insurance market of Azerbaijan.

The exact dates of establishing institution of insurance ombudsman have not been determined yet, said Khalilov, but it was included in important plans of the Ministry.

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