Although the issue of entrepreneurs insuring their own properties has remained relevant for years, there are still significant gaps in practice in this area. A few days ago, a fire broke out in a furniture workshop located in the Binagadi district of the capital, which has brought this problem back to the agenda. The incident once again highlighted the risks that institutions operating without insurance may face.
Why, then, do entrepreneurs avoid insuring their properties so much?
According to Medianews.az, insurance expert Parviz Guliyev, speaking to Oxu.Az on the matter, stated that legislation requires the use of compulsory insurance.
P. Guliyev emphasized that the control mechanism regarding this issue is weak:
"Moreover, the level of awareness among the population is low. Insurance education should be at a high level. Also, the insurance company is a commercial entity and needs to make a profit. When the company provides insurance, it must conduct serious research about the other party. For example, security, fire risks, and similar matters must be taken into account. It should also be noted that when the insurance company insures property of significant value, it transfers it to reinsurance. This is the distribution of risk.
When transferred to reinsurance, foreign companies examine the standards, and if they are not met, no contract is concluded with the other party. There are some companies that, although transferred to reinsurance, are not insured because they do not meet the required standards. As I mentioned, overall awareness among the population should be increased. Only then can certain results be achieved."
Member of the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship Mushfiq Jafarov emphasized in his statement that immovable property insurance is mandatory in the country:
"Although immovable property insurance has been compulsory in the country since 2011, there are significant gaps in this area. During fires in many shopping centers, we witnessed once again deficiencies in the field of insurance. Fire protection measures in shopping centers are implemented in a makeshift manner, safety requirements are not observed, and non-compliance is allowed in laying electrical wiring.
Due to such cases, insurance companies are not interested in insuring risks in those shopping centers. Every entrepreneur should be interested in ensuring that their property complies with regulations and is insured. The amount paid for insurance is not an unnecessary expense for them, but a beneficial investment."