BAKU, Azerbaijan, May 25
By Fidan Babayeva - Trend:
The Central Bank of Azerbaijan set the requirements regarding the minimum amount of required capital for the management company of the Agricultural Insurance Fund in March 2020, Chairman of the board of the Azerbaijani Agricultural Insurance Fund Fuad Sadigov told Trend.
“The minimum amount of the required capital has been set at 1 million manat ($588,235),” Sadigov added. “But the company is entitled to form the authorized capital more than the norm set by the state.”
"The amount of the share of each insurance company has been established in accordance with the Azerbaijani law "On Agricultural Insurance" and is divided equally among the companies-founders, that is, a single fixed share for all founders of the management company," chairman said.
Touching upon the impact of the special quarantine regime in the country on the process of introducing the agricultural insurance mechanism, Sadigov emphasized that the COVID-19 pandemic had a negative impact on all sectors of the economy, including insurance, in all countries, as well as in Azerbaijan.
“That is, the process of making any decisions has slowed down in connection with the quarantine regime,” chairman added.
"As soon as the process of creating a management company is over, we will be able to render insurance services to farmers, as it was previously planned,” chairman said. “A new agricultural insurance mechanism is expected to be used in Azerbaijan from the second half of 2020."
Azerbaijani President Ilham Aliyev signed a decree on August 19, 2019 on the applying of the Law on Agricultural Insurance and the establishment of the Agricultural Insurance Fund, a non-profit legal entity that ensures organization, development and sustainability of the agricultural insurance system in Azerbaijan, as well as the formation of a governing structure and exercises control for its activity.
The Azerbaijani Cabinet of Ministers approved the Charter of the Agricultural Insurance Fund on December 14, 2019. The Charter includes the goals of the activity, obligations and rights of the Fund, the fundamentals of its management, authorized capital, property and financial activity, the procedure for compiling and submitting audit and accounting reports, as well as other issues.
Today 21 insurance companies and one reinsurance company operate in Azerbaijan.
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