Reduced Amount of Payments to Victims in Manufacturing

Insurance companies of Azerbaijan in January-February this year as part of compulsory insurance and disability of individuals from accidents and occupational diseases in the aggregate collected 5.6 million manat (3.4% to 1 March last year).

According to the Association of Insurers of Azerbaijan (AIA), in January-February 2015, insurers made payments on this type of insurance in the amount of 628.5 thousand manat (minus 58.8%).

Services for this type of insurance are provided by three insurance companies.

The law "On compulsory insurance and disability of individuals from accidents and occupational diseases" was promulgated from December 16, 2010, after the completion of the approval of legal acts to the commencement of services for this type of insurance.

According to the decree of the Cabinet, all economic activities are divided into 14 levels of risk. Based on this level of risk, the amount of the insurance rate is determined for employees and workers in the enterprise, which ranges from 0.2% to 2%, depending on the risk level of the enterprise.

Under the law insurance rate is estimated to fund wages in the enterprise. The law provides for three types of insurance payments: monthly, one-time and extra. --17D-