Azerbaijan, Baku, December 21 / korr.Trend U. Ismayilova /
The introduction of the compulsory insurance on labor ability loss in production in Azerbaijan will improve social development and welfare of the working population in the country, the head of the State Insurance Supervision Service under the Ministry of Finance of Azerbaijan Namik Khalilov said Tuesday.
"The introduction of the new law will also reduce the number of lawsuits between workers and employers regarding non-payment of compensation," Khalilov said.
According to him, from now, all employers in the country are obliged to insure their employees. Compulsory insurance will apply to persons who are registered with the State Fund of Social Protection, in accordance with the Law on Social Insurance, as well as to legal entities, foreign citizens, persons without citizenship, as well as those engaged in entrepreneurial activities without creating a legal entity.
Khalilov also said that the tariffs on the new form of compulsory insurance will depend on the level of risk insured. Employers will be free to choose their insurer, it is also possible to suspend activities of the insurance police and conclude a contract with another insurance company. Insurance contract for a new type of insurance is mandatory for an indefinite period.
"Annual premiums for this type of insurance are expected to total 30-40 million manat," Khalilov said.
At present, only two companies Atesgah Heyat and Qala Heyat have the right to provide services on compulsory insurance on labor ability loss in production. The number of companies dealing exclusively with life insurance is expected to increase in 2011.
Regarding the application of a new type of insurance, Khalilov said that the law officially took effect, but its practical application will take several months. The 2011 Public budget of Azerbaijan has allocated 10 million manat for budgetary organizations for the implementation of compulsory insurance.
The introduction of compulsory insurance on labor ability loss in production in Azerbaijan will create conditions for the elimination of facts of employers' concealment of accidents and deaths at work, said the deputy head of the Labour Inspectorate of the Ministry of Labour and Social Protection of Azerbaijan Maharram Maharov.
"The Labour Inspectorate has repeatedly faced with similar facts, and appealed to the Ministry of Health, the Republic Prosecutor's Office and police about the notification in case of detection of such facts by these structures," said Maharov.
According to Maharov, the penalties to employers who do not conclude labor contract was determined at 2,000 manat in accordance with the Code of Administrative Offences. Sanctions to employers who do not fulfill the requirements of the new law will be subjected to penalty of 1,500-3,000 manat.
According to the World Labor Organization, the accidents at work kill 2.3 million people each year worldwide, three times more people are injured.
In Azerbaijan, in 2007, there had been recorded 259 accidents, 128 facts of death, 202 facts of injury, in 2008 - 255 accidents, 79 deaths and 212 facts of injury, in 2009 - 250 accidents, 69 deaths and 218 injuries.
Maharov said that employers must pay compensation workers as a result of production injuries within one day.
In July 2010, Azerbaijani President Ilham Aliyev approved the Law on compulsory insurance on labor ability loss in production.
Official exchange rate on Dec. 21 is 0.7987 AZN/USD.