Matter of reduction of life insurance payments clarified


May 25, Fineko/ Life insurance as a type of insurance has its own characteristics and conditions. So, this type of insurance is offered to insurers in our country with an insurance contract validity of 3 years. This gives reason to say that in different periods there is volatility in the amounts of payments for this type of insurance. Based on this, various periodic payments for this type can increase, decrease and even exceed the amount of the fee.

ABC.AZ reports that Azerbaijan Insurers Association’s chairman Azer Aliyev said about this when commenting on the issue of decline of life insurance payments over the past 4 months.

He added that in the Jan-Apr insurance review observes a decrease in payments.

Thus, over Jan-Apr 2022, the payments amounted to AZN 29.1 million (AZN 70 million less against Jan-Apr 2021).

"This does not mean that life insurance companies refuse from payments. This decrease, as I’ve already mentioned, directly relates to the specific features of the type of insurance about which we talked, and the issue of the validity of the contract for 3 years. That is, the corresponding decrease does not have any negative impact on either the policyholders or the policyholders," Aliyev said.