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Several insurance firms may forfeit licenses in Azerbaijan

19 December 2008 12:33 (UTC +04:00)

Mahir Abdullayev, Chief of the State Insurance Supervision Office, said all insurers based in the country shall switch to OJSC within one year under the Insurance Law that came effective in March, 2008.
â€œCurrently, 5-6 insurers are closed joint stock companies or limited liability companies. The legal status of the rest is OJSC. It is long a difficult procedure to switch to OJSC. The CJSCs and LLCs shall complete the transition by March 31. After the deadline expires, the companies not switching to OJSC will see their licenses limited and will be given a 6-month grace period. If a company fails to meet the requirement within the grace time, its license will be revoked,â€ he added.
According to him, several insurers have already submitted documents to the Ministry of Taxes to switch to OJSC.
There are 28 insurance companies in Azerbaijan. A-Group, Pasha Sighorta, MBASK, International Insurance Company, AÄ°G Caspian Insurance and Xalq Sighorta have not switched to OJSC.
The insurance companies earned AZN 146.41 million in premiums and paid AZN 36.82 million for insurance claims altogether. As at December 1, their total share capital stood at AZN 110 million.