Azerbaijan to guarantee another type of compulsory insurance
Azerbaijan, Baku, Feb. 27 / Trend A.Akhundov /
Azerbaijani Finance Ministry is preparing proposals to amend the insurance laws of the country, and one of the key proposals is to ensure participation of life insurance companies in the Bureau for compulsory insurance, the State Insurance Supervision Service under the ministry told Trend on Monday.
"One of the key points is the participation in the Bureau for compulsory insurance of companies which obtained permission to work on compulsory insurance of workers against occupational disease and disability in the workplace. This is done to guarantee their compensation," the State Service said.
As many as 3 companies have the right to work on this type of compulsory insurance: Pasha Heyat, Ateshgah Heyat and Qala Heyat. Use of this type of insurance began in Azerbaijan from Dec, 2010.
According to the report, the draft offers no point of the contribution on ensuring deposit for this type of insurance and its size.
"Today, there are rules for joining the Bureau for compulsory insurance, but is not yet known what the rules will be set for life insurance companies during the debates in Parliament. On this occasion there was no proposal, it is only to make amendments to the legislation for their participation in the bureau," the State Service said.
The draft proposal is being prepared and is endorsed with the relevant government agencies.
"Until the document is submitted to the Parliament as a formal bill, one can not talk about the details. It is expected that proposals will be presented to parliament this year," the State Service said.
Bureau on compulsory insurance was signed in Azerbaijan in Dec, 2011 in accordance with requirements of the new law "On compulsory types of insurance".
The law regulates four types of compulsory insurance - real estate, liability of owners of vehicles, passenger insurance and liability insurance while touching on real estate. Insurance companies started using the law since December 16, 2011.
The last company to join the bureau was the State Insurance Commercial Company of Azerbaijan. The company will work on compulsory insurance of real estate and civil liability when touching on real estate.
The bureau's other members offer services on three types of compulsory insurance except for compulsory insurance of passengers. Pasha Sıgorta, Ateshgah Sıgorta, Ata Sıgorta, AXA MBASK, Xalq Sıgorta and Standard Insurance are the founders of the bureau. AzSıgorta and Alfa Sigorta joined the bureau later.
The finance ministry set a membership fee at 200,000 manat. Fees worth 200,000 manat for obligatory liability insurance of vehicle owners, 200,000 manat for insurance of passengers, 100,000 manat for property insurance and 100,000 manat for liability insurance of real estate operation defined to obtain permission to engage in these kinds of insurance.
Besides the contributions for participation, permits and fees to the sum of five per cent per transaction, there will be additional benefits in the course of the activities (transfers to warranty service coupon and calendar payments and other).
There are 29 insurance and one reinsurance companies in Azerbaijan. At the same time the insurance license of the Fidan Sığorta Company was suspended.
The official exchange rate is 0.7863 AZN to $1 on Feb. 27.