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Introduction of compulsory insurance against accidents to be serious push to improve conditions

Business Materials 6 May 2010 18:53 (UTC +04:00)

Azerbaijan, Baku, May 6 / Trend U. Ismayilova /

The introduction of the Azerbaijan Law "Compulsory Insurance against disability resulting from occupational diseases and accidents at work" will become a serious impetus for the development of several areas, the Azerbaijani Ministry of Labour and Social Protection department head Nabi Shukurlu said.

"First and foremost, the application of the law helps employers to create acceptable conditions for work, develop the insurance market in the country, as well as increase accountability to the employees to prevent the spread of occupational injuries," Shukurlu said.

He said that employers, given the mandatory nature of the law, will provide employees with all the technical means of security. Workers, in their turn, will be obliged to comply with them (there are cases where accidents occur due to negligence of the workers). Insurers are also interested in obtaining a large insurance contract to provide a regular income from premiums.

Shukurlu believes that all interested parties should begin active actions among employees and employers for effective implementation of the requirements of the law.

He said that educating of workers and employers is one of the important activities of the inspection.

Chief Inspector of labor in the country also noted that employers will not have serious problems with the introduction of compulsory insurance against accidents at work.

The parliament has recently planned to consider the bill on compulsory insurance for disability resulting from occupational diseases and accidents at work in the third reading.

The law will be applied to prisoners involved in labor activity, students and pupils who are undergoing the practice, military personnel assigned to the enterprises, physical entities engaged in individual entrepreneurship and labor activity as well as military and those involved in the work in mode of emergency. The document will also apply to foreigners and people without citizenship of Azerbaijan.

Insurance cases will be determined according to the developed act on industrial accidents in accordance with the law or by a court decision.

The maximal insurance rate is fixed at 2 percent of the fund's salary. According to various sectors tariffs will be differentiated. Presumably, all spheres of economic activity will be divided into three or four groups depending on the degree of risk. Under the project, the insurance rates for some sectors can be reviewed by relevant executive authority annually. At the same, tariffs for the next year must be approved before December 1, this year.

There are 27 insurance and one reinsurance company in Azerbaijan.

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