Baku, Azerbaijan, May 3
By Anvar Mammadov – Trend:
Creation of an institute of insurance ombudsman maybe delayed in Azerbaijan, insurance expert Khayal Mammadkhanli told Trend on May 3.
The expert reminded that the issue was raised several years ago, but the discussions on the issue have been suspended.
"The issue of creating an insurance ombudsman institute was raised a few years ago. This is quite interesting practice, which is used in many countries of the world. However, as far as I know, presently the issue is not being considered. Because, an alternative proposal on application of principles and institute of mediation is being discussed in the country now,” he said.
He stressed that, in principle, activities of the ombudsman institute and mediators are almost the same, while the Financial Markets Supervisory Authority may assume those functions of the ombudsman that are not related to the mediators.
"The main difference between an ombudsman and a mediator is that the first institution is a service provided by the state. They have own structure, staff and budget, while anyone can be a mediator. The mediator is determined during signing of an insurance contract between the insurer and the client of the company. Under the contract, if a controversial situation arises, it will be considered by the person indicated in the contract. I don’t think that there is much difference between the two institutions, but one of them should be created in the country. Shortage of independent specialists can be seen very often at a time when there is a need to solve problems between the sides,” he said.
Bank ombudsman Ikram Karimov also noted a need to establish the insurance ombudsman institute in Azerbaijan.
“Clients have certain dissatisfaction with provision of insurance services. I think that the insurance ombudsman institution, which will settle the disputes, is needed in this sphere," Karimov said.
The Azerbaijan Insurers Association seeks to introduce the institute of mediation in the country. The association chairman, Mustafa Abbasbayli, told Trend earlier that the country plans to adopt a law on mediation before the end of 2018.
"We want to take this opportunity to bring the mediation institute principle (a tool for pre-trial settlement of disputes) to Azerbaijan’s insurance market. Presently, there are disputes mainly in the insurance market, and the proceedings on these disputes take a long time. We want such disputes to be resolved more quickly and more objectively, which contributes to the development of the market," Abbasbayli said.
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