Baku, Azerbaijan, Jan.21
By Azad Hasanli - Trend:
Era-Trans Sigorta JSC plans to restore the license for insurance activity, the chairman of the insurance company Elshan Babayev told Trend Jan.19.
The State Insurance Supervision Service under the Ministry of Finance of Azerbaijan suspended the license of the Era Trans Sigorta insurance company Nov.25 2014.
The reason for the decision taken is mismatch of the aggregate capital to the minimum requirements specified by the legislation, as well as due to other irregularities in the activity of the insurer.
In accordance with the law, six months are provided to eliminate defects.
The requirement of the Ministry of Finance for the minimum size of the total capital of insurers, operating by non-life types, amounts to 5 million AZN.
"Because of the insured accident [fire], which occurred in 2014, we had to pay a large compensation of 750,000 AZN, which resulted in a reduction of our capital to a level below the required one," Babayev said.
At present, the total capital of the company is 4.3 million AZN, and authorized capital - about 6 million AZN.
"In the near future we intend to make up for the missing amount, and then appeal to the ministry of finance to restore the license," he said.
Era Trans Sigorta Company operates since 1994. The company collected premiums worth 414, 945 AZN, with payments worth 1, 029, 562 AZN, according to the results of activity in January-October.
There are 27 insurance companies and one reinsurance company in Azerbaijan.
The license of the three companies, Royal Sigorta, Gunay Sigorta and Basak İnam Sigorta Sirketi, has been suspended this year. The license of Royal Sigorta was completely revoked in early September due to its failure to meet the minimum requirements to the capital, while Gunay Sigorta and Basak İnam Sigorta Sirketi regained its license.
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