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Legal Update

Legal act: Law of the Republic of Azerbaijan No. 1650-VQD on Labor Pensions (the “Law”)

Authority: Milli Majlis

Enactment date: June 12, 2019

Effective date: October 1, 2019

According to the Law, the minimum amount of  labor pension will increase from 160 to 200 manats from the October 1, 2019.

Legal act: Law of the Republic of Azerbaijan No. 1618-VQD on Amendments to the Law on Insurance Activity (the “Law”)

Authority: Milli Majlis

Enactment date: June 27, 2019

Effective date: January 1, 2020

According to the Law, provisions on co-insurance were added to the Law of the Republic of Azerbaijan on Insurance Activities.

Thus, co-insurance is a system of relations based on the distribution of risks, including the profit and loss arising from the fund through co-insurance fund.

A co-insurance fund is a sum of money paid by individuals and legal entities for the purpose of insurance of their property interests based on co-insurance, as well as funds allocated from the state budget for this purpose.

As for a co-insurer, it is an insurer that has the appropriate license to operate on a basis of co-insurance.

28 Oct, 2019