View of private sector to be taken into account during change of insurance legislation in Azerbaijan

Business Materials 7 May 2012 18:29 (UTC +04:00)

Azerbaijan, Baku, May 7 / Trend A.Akhundov /

The State Insurance Supervision Service under the Ministry of Finance of Azerbaijan continues to discuss with relevant government agencies proposals to amend the insurance laws of the country, the Service told Trend on Monday.

"The draft proposals are under preparation and coordination with relevant government agencies. It is expected that proposals will be agreed upon in June, after which they will be submitted to the Cabinet of Ministers. Until the bill is not submitted to Parliament, we cannot talk about the details. Proposals are expected to be submitted to parliament this year," State Insurance Supervision Service said.

One of the main proposals is participation of life insurance companies in the Bureau for compulsory insurance.

"One of the highlights is the participation in the Bureau of 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," State Insurance Supervision Service said.

Three companies have the right to engage in this type of compulsory insurance in Azerbaijan: have: Pasha Heyat, Ateshgah Heyat and Qala Heyat. Use of this type of service began in Azerbaijan in December 2010.

The compulsory insurance bureau was established in Azerbaijan in December last year in accordance with the 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.

In addition, these changes are associated with improvement and development of the actuarial and insurance brokering.

"Also, changes concern improvement of envisaged in the law corporate governance standards in companies, ensuring use in insurance companies of electronic information systems, provision of insurance services in electronic form, creation in the insurance legislation of a legal framework for electronic signature applications," the State Service said.

In preparation of the changes opinion of the private sector will be taken into account.

The Executive Director of Azerbaijan Insurers Association (AIA), Azer Aliyev, told Trend on Monday, AIA is preparing its proposals.

"We are preparing proposals for changes in legislation. After their approval by the legal committee of the association we will forward them to the State Insurance," Aliyev said.

There are 28 insurance companies and one reinsurance company in Azerbaijan.