Approved by the Order of the Ministry of Finance of the Azerbaijan Republic of December 15, 2010, No. i-211

Procedure for determination of insurance sum under the agreement of compulsory insurance from loss of professional working capacity as a result of labor accidents and occupational diseases

1. General provisions

1.1. This procedure is prepared according to article 14.4 of the Law of the Azerbaijan Republic "About compulsory insurance from loss of professional working capacity as a result of labor accidents and occupational diseases" and regulates calculation of insurance sum for the agreement of compulsory insurance for the purposes of this Law.

1.2. For the purposes of this Procedure the following concepts are used:

1.2.1. actuarial methods - the economic-mathematical methods of calculation applied by the actuary when calculating insurance rates, insurance reserves and insurance payments;

1.2.2. the given expected profit - the cost, specified expected (probable) for date of the conclusion of the obligatory insurance agreement, of the amounts calculated (discounted) taking into account interest rate or age of the insured person and belonging to future dates;

1.2.3. annuity due - the annuity performing payments at the beginning of the period.

2. Determination of insurance sum

2.1. The insurer when calculating insurance sum takes annual interest rate in the amount of 8%.

2.2. The insurance sum concerning i-go insured under the obligatory insurance agreement signed for insured in number of N, is calculated by the following formula:

     Здесь:
     SM  - сумма страховки в отношении i-го страхуемого;
       i
     x  - возраст i-го страхуемого;
      i
     

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