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Azerbaijan grants grace period to two insurance companies for transition to OJSC

07 April 2009 10:00 (UTC +04:00)

Baku. Elnur Huseynguluyev â€“ APA-ECONOMICS. Azerbaijanâ€™s Ministry of Finance will grant a grace period to International Insurance Company and AzerSighorta State Insurance Company for transition to Open Joint-Stock Company (OJSC).
Mahir Abdullayev, Chief of Insurance Supervision Department under the Ministry of Finance, said the switch of the legal status to OJSC is a requirement for all insurance companies under the new Insurance Law.
â€œAll insurance companies except International Insurance Company and AzerSighorta have completed transition to OJSC. The delay in these two companies is related to the fact the state holds a stake in these companies and there is a need for some time-consuming procedures. They will be given a grace period to complete transition,â€ he added.
Under the Insurance Law that came effective in March, 2008 all insurers based in the country should have switched to OJSC within one year.
The CJSCs and LLCs should have completed the transition by March 31, 2009.
After the deadline expires, the companies not switching to OJSC would see their licenses limited and would be given a 6-month grace period. If a company fails to meet the requirement within the grace time, its license will be revoked
There are 28 insurance companies in Azerbaijan.