No one is secured from accidents. A common question causes stress in our heads – what if it happens to me some day and somewhere…
The history of insurance traces the development of the modern business of insurance against risks and heavy damages, especially regarding cargo, property, death, automobile accidents, and medical treatment. In our modern world, many developed countries offer some advanced packages such as life, property, national, travel, etc.
The organisation of insurance work began in Azerbaijan from the mid-XIX century. In the third stage of its development period in Azerbaijan, the insurance companies could further broaden its coverage in a number of fields of businesses. However, the consequences from the large-scaled accidents in Azerbaijan does not support this fact.
A couple of days ago the fire accident at the EUROHOME construction supermarket spilled the beans about the capability of insurance services in Azerbaijan. This was the second biggest fire that took place in the mid night by unknown reason. The news reports said the fire caused damaged over 3000 sq. m area, where most of the goods were completely burnt. The worst-case scenario on this situation was for the owners who were quite hopeless to appeal for insurance of the damage.
According to victims, the insurance companies in Azerbaijan have refused to cover their properties despite requests since the first accident in the previous year.
“We asked many companies to insure our properties here, but unfortunately we had no any positive response from them.”
Another victim claimed all the insurance companies in the country avoided to sign a contract of insurance with such big supermarkets in Azerbaijan.
To bring further clarification to the issues with activities of insurance companies in Azerbaijan, EDNews.net contacted the economic expert Natig Jafarli.
According to expert, there are few major reasons that affect the function of insurance system in Azerbaijan.
“Nowadays insurance is one of the important issues and in fact, many shortcomings hinder development of this system in the country. One of the problems for the time being is with trade facilities, majority of which in the country is unable to afford a proper insurance contract. Another issue is the contract itself that is not most of the time based on legal documents. This can, on the one hand be explained with the opaqueness in revenues, values and legal sources of goods, because of which that affects transparency between insurer and insured in terms of calculation process. Therefore many insurance companies don not want to undergo risks by signing contract with such supermarkets.
On the other hand, in order to evade from taxes many businesspersons, vendors try to hide real values of products in the market forging documents. So this is the reason that insurance system fails to provide service as well as being reason for those vendors facing such dire accidents.”
“In the meantime, it is the responsibility of the government to propagate those businessmen, vendors to be transparent and mutual in earning profits,” the expert added.
“First of all, the tax system should be balanced and softened for businesspersons and vendors, who could then have tendency for having his properties insured. This is a sort of culture that has to be established in a systematic process. Imagine, in Europe nobody could start a business without having insurance as this system is tough and well settled. However, today in Azerbaijan the informal economy is widespread, as many businesses are not regulated by state. I think before the government takes measures on issues with insurance such as making propagandas or imposing punishments, the taxes should be balanced for benefits of both sides.”
By Elnur Enveroglu