Expected Amount of Required Premiums on Accidents Depends on Mechanism of Control

The results of the collection of premiums for compulsory insurance for incapacitating individuals from accidents and occupational diseases is poor. At the optimum amount of the local insurance market of 35-40 million manat for elapsed time of the year, they collected (in the released data) 17 million 269.47 thousand manat with payments of 795.61 thousand manat.

The deputy chief of department of Public Insurance Control under the Finance Ministry Mahir Abdullayev told Turan that the government is not waiting for a perfect result on the segment, launched in December 2010. However, there is a shift - so, in the same period last year, they collected and paid much less - 14 million 529.52 thousand manat with payments of 105.59 thousand manat. According to him, at the end of this year it is expected to cover 75-80% of enterprises with 25 or even 30 million manat of prizes. To complete the same amount of expected premiums they should initiate a series of fines for negligent business, believes the experienced official.

In Azerbaijan, operating are only three companies specializing in life insurance and having the legal right to provide services for compulsory insurance and disability of individuals from accidents and occupational diseases in the workplace.

According to the Ministry of Taxes, there are only 462,110 entrepreneurs (potential employers). Of these, about one-fifth in one way or another provides real employment. In this case, all of the natural monopolies and business leaders inspected by the Ministry of Labor and Social Security have signed contracts with insurance companies.

As previously reported, the law "On mandatory insurance of disability of individuals from accidents and occupational diseases in the production" was approved in July 2010. In December 2010, the process of approval of the regulations for this type of insurance started.

The Cabinet of Ministers in November 2010 approved the tariffs for compulsory insurance and disability due to accidents in the workplace. According to the decision of the Cabinet, all economic activities are divided into 14 levels of risk. Based on this level of risk, they determine the amount of the insurance rate for employees and workers at the plant, which is 0.2% to 2% depending on the risk level of the enterprise. The state budget for 2012 stipulates AZN 10 million for the insurance of persons working in the public and governmental entities or organizations

According to the law, the insurance rate is estimated to payroll at the company. The law provides for three types of insurance payments: monthly, single and extra. - 17D-