Azerbaijan, Baku, March 11 / Trend U.Ismayilova /
The population of the Azerbaijani regions does not adequately utilize the services of insurance, Chairman of the only state commercial insurance company in Azerbaijan - JSC "Azersigorta" Mammad Mammadov said in an interview that was posted on the ruling New Azerbaijan Party's official website.
"The recent natural disasters (earthquakes, mudslides, landslides, fires and others) have caused great damage to property of the rural population," he aid. "But as the people's property is not insured, they can receive assistance only from the state budget.'
Azerbaijan's economy was built on the principles of market economy, so every businessman and a citizen should insure his property and to obtain health insurance guarantee, he said.
"It is unfortunate to note that farms operating in the country do not pay enough attention to its insurance sector," he added.
Earlier, AzerSigorta CJSC submitted to the government proposal to grant additional funds for insurance of agriculture. The company proposes 100-percent coverage of the insurance contract in the field of agriculture, while the coverage in this area is 50 percent. The proposals were developed in connection with the fact that most farmers do not insure their farms due to lack of, as they explain additional funds.
Based on the Law on aid and agricultural development in Azerbaijan approved in summer 2007, the share of public financing of premiums in agricultural insurance was increased from 25 percent to 50 percent. Wheat, barley, maize, sunflowers, potatoes, sugar beets and vegetables (except green) were included in the list of crops insured through the state budget funds.
The average tariff on agricultural insurance is about 1,500 manat per year, despite the fact that the average profit per hectare of land is about 25,000 manat per year.
State Insurance Company AzerSigorta was founded in 1992. After the collapse of the Soviet Union, it was set up on the basis of former state insurance board. It has 80 insurance agencies in all cities and districts of the republic.
The company renders services to 10 mandatory and 27 voluntary types of insurance. As a result of activity in 2009, the company became the leader among all companies with premiums worth 26.5 million manat and payments of 12.22 million manat.
March 11, the official exchange rate is 0.8034 manat to $1.
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