Azerbaijan to set upper limit for insurance payments

Azerbaijan plans to set an upper limit for lump-sum insurance payments under compulsory insurance against loss of occupational ability caused by workplace accidents and occupational diseases. 

The proposed amendment to the law on compulsory insurance against loss of occupational ability due to workplace accidents and occupational diseases was discussed by parliament’s Labour and Social Policy Committee.

Under the draft, in cases where a one-time insurance payment is envisaged, the calculated payment would be capped at no more than 1,000 times the minimum monthly wage. 

The cap is intended to preserve the stability of the insurance fund, make the system more predictable and maintain a balance between payments to very high-income and average-income individuals. 

The draft says regulating the upper limit would help define the scope of risks and the insurer’s liability. Otherwise, risks could become difficult to manage, weakening the insurance system and creating problems in meeting obligations to insured persons. 

N.Tebrizli