Azerbaijan, Baku, July 5 / Trend A.Akhundov /
A committee on life insurance was established under Azerbaijan Insurers Association, executive director of the association Azer Aliyev told Trend on Thursday.
The committee includes representatives from three companies possessing the right to engage in life insurance, - Pasha Heyat, Ateshgah Heyat and Qala Heyat, as well as two potential participants of this market - Ata Sigorta and Standard Insurance, which announced plans to create specialized life-companies.
The Committee is headed by Deputy Chairman of the Board of Pasha Heyat Niyaz Ismayilov.
"We have approved the committee on life insurance, and plan to launch its work from August 1. Existence of a committee in the association says that there are urgent problems in this sphere that need to be addressed. Today, life insurance is developing, and it has a great potential, but it all depends on how we will continue this development," Aliyev said.
Chairman of the Ateshgah Heyat company Akbar Madatli said in a speech at the Azerbaijan International Insurance Forum AIIF 2012 on Thursday, this area can be promoted by elimination of a number of paragraphs in the legislation.
"For example, contracts on insurance of life of borrower of mortgage lending are signed up to three years, while the contracts themselves are signed for 15-25 years. It would be advisable to increase this period. Also, by law, part of the salary of the person which goes to life insurance, is exempt from income tax, but these benefits do not apply to deductions for state social compulsory insurance. Exemption of these payments will increase people's interest in life insurance," Madatli said.
To solve these problems, Azerbaijani life-companies are going through the association to make proposals to the government, he told Trend on Thursday.
"The purpose of the committee is through the Association to gain access to the ministry of finance, and through it to other relevant government agencies. We need to express our attitude to these matters, so that it should be taken into account when making changes to insurance laws," Madatli said.