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Absence of contracts restricts chances for disability insurance in Azerbaijan

Business Materials 21 April 2010 17:53 (UTC +04:00)

Azerbaijan, Baku, April 21 / corr Trend I.Khalilova /

The permanent parliamentary commissions on economic policy and social policy recommended to submit the draft law "On obligatory insurance for loss of ability as a result of professional diseases and industrial accidents" to the consideration of plenary meeting of the Milli Mejlis in the third reading.

Ziyad Samedzadeh, chairman of the parliamentary commission on economic policy, said this law will be beneficial for use of roughly 1.5 million people, who have been registered as payers of obligatory state social insurance, whereas the country registered 4 million employed people.

"Respectively, in the first stage individuals who work without contracts will be unable to receive insurance for loss of labor ability as a result of professional diseases and industrial accidents," Samedzadeh said.

Musa Guliyev, Deputy Chairman of the permanent parliamentary commission on social policy, offered to take in to consideration interests of people who work without contracts, which is particularly observed in the construction sector in the country. He considers expedient maintaining annual benefits and once for all payments for injuries in the job places and professional diseases, as it was during the Soviet period.

Deputy Finance Minister Azer Bayramov said the law will meet people's interests, who got professional injuries at enterprises they worked after the collapse of the USSR. Their number is increasing, while there is no legislation for social protection for this category of people, he added.

Insurance cases will be applied on individuals, who lost ability as a result of accidents, students and schoolchildren, passing industrial practice, military attracted to work at enterprises, individuals involved in private business and jobs, people attracted to prevent natural cataclysms and their outcomes, including jobs in conditions of war and emergency situations, as well as death of individuals. In the last case people who are under their patronage and those who become disabled, children who have been born after their death, will receive benefits over five years.

After injecting obligatory disability insurance, the insurance companies should receive permission at the Finance Ministry. Enterprises select insurance company on tender basis.

Maximal insurance tariff was defined in the amount of up to 2 percent of the salary fund.

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