Compulsory insurance bureau to be established in Azerbaijan
Azerbaijan, Baku, June 17 /Trend, I.Khalilova/
A compulsory insurance bureau will be created in Azerbaijan in order to ensure stability and development of insurance system in the country, as well as to protect the interests of insured, Deputy Finance Minister Azer Bayramov said on Friday at a joint meeting of parliamentary committees on economic and social policies, which discussed the draft law on compulsory insurances."
"The initial bill on the establishment of the bureau was envisaged only to deal with the compulsory motor TPL insurance, but given the suggestions expressed during the discussion of the bill, it will apply to all types of compulsory insurances covered by this law," said Bayramov .
The draft law on compulsory insurances was adopted on second reading and is now being finalized by a special commission.
There are about nine types of compulsory insurances, the bill regulates four types of compulsory insurance - real estate, TPL, passenger insurance, liability insurance in the operation of real estate.
The working group established under the leadership of deputy chairman of the parliamentary committee on economic policy Chingiz Asadullayev found it necessary to expand the powers of the bureau, given the probability of bankruptcy of insurance companies.
The executive director of Insurers Association Azer Aliyev told Trend that at the beginning stage, the main activities of the bureau will account for TPL, given the large number of losses in this type of insurance unlike other insurances. Over time, these losses will be reduced, said Aliyev.
According to Bayramov, the changes to the bill also envisage simplifying the process of obtaining refunds by heirs of the insured.
"This process usually lasts for several months. As part of the changes, the process can be enhanced through the provision of a document confirming the family relationship with the insured," said Bayramov.
Bayramov said fundamental changes have been made to about 20 articles of the bill.