Azerbaijani insurance firms can participate in creation of Labor Protection Fund
Baku, Azerbaijan, March 7
By Anvar Mammadov - Trend:
Azerbaijani insurance companies can take part in creation of Labor Protection Fund, insurance expert Khayal Mammadkhanli told Trend on March 7.
Insurance companies have the necessary financial means for this, according to him.
"There is no obstacle before the insurance companies for participating in creation and operation of the Labor Protection Fund. Each insurance company has its own fund of preventive measures. A part of the money collected by insurance companies is directed to this fund. Subsequently, these funds are used to prevent insured events. If these funds are not spent during a year, they are simply reckoned to the profit of the insurance company, "Mammadkhanli said.
Meanwhil, the expert notes that insurance companies should take part not only in creation of the Fund, but also in its management.
"The insurance companies should understand the principle of the Fund's activity, to where its funds will be directed. Only in this case, they can take part in creation of the Fund. But in this case, they should take a direct part in the management of the Fund. It is also necessary to define other sources of funding for the Fund, "Mammadkhanli said.
Azerbaijan's Minister of Labor and Social Protection of Population Salim Muslumov previously said that insurance organizations should actively participate in the creation of the labor protection fund.
“I believe that this system should be established in Azerbaijan, and insurance companies operating in this sphere should contribute to the creation of the fund,” Muslumov said. “This will also allow insurance companies to participate in the work of the fund and control the deductions from it. I also believe that a part of the income of insurance companies should be allocated to this fund.”
Presently, three insurance companies - Ateshgah Life, Qala Life and PASHA Life - render compulsory insurance services against accidents at work in Azerbaijan.
According to the data of Azerbaijan’s Financial Market Supervisory Authority (FIMSA), in 2017 these insurance companies collected premiums worth 33.17 million manats for insurance against accidents at work with payments worth 4.23 million manats. In January 2018, fees and payments for this type of insurance amounted to 1.77 million manats and 446,700 manats, respectively.
(1.7 manats = $1 on March 7)