Insurance against Accidents at Work Not Used at Full Strength

Compulsory insurance of disability of individuals in accidents and occupational diseases is going through hard times.

In January-June, local insurance companies collected in this position AZN 17,269,470 (+ 21.9% compared to the data on 1 July last year). The aggregate premium on life insurance is much more - 25.73 million manat. However, experts believe that this segment is designed for a quarter of the opportunity and for this type they could harvest about 60 million manat with all the potential employers.

According to the State Insurance Supervision Service of the Ministry of Finance, the services on this type of insurance are provided by three insurance companies - Ateshgah Hayat Sigorta leading with 12.17 million manat, Pasha Hayat Sigorta with AZN 9.12 million, and Qala Hayat Sigorta with AZN 4.47 million.

In the first half of 2012 the mentioned companies paid on accidents and deaths in production 795.61 thousand manat, which is almost 5 times more than last year.

The law "On mandatory insurance of disability of individuals from accidents and occupational diseases in production" was approved in July 2010. On 17 December of the same year, the Ministry of Finance approved the regulations, which gave start to services on this type of insurance.

In November 2010, the Cabinet of Ministers of Azerbaijan approved tariffs that all economic activities are divided into 14 levels of risk. On the basis of it, they determined the amount of the insurance rate for employees and workers, which is 0.2% to 2%, depending on the risk level at the enterprise.

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

In addition, the annual budgetary estimates of Azerbaijan include items on the allocation of funds for the compulsory insurance of employees against accidents at work in the amount of AZN 10 million. -17D-