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

Procedure of payments of the amount of the annuity fee connected with 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 15 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 for the purposes of this Law regulates procedure of payments of annuity fee, and also other questions, stipulated by the legislation in this regard.

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

1.2.1. the actuarial principles principles based on 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 of the amounts, specified expected (probable) for date of lump sum payment, relating to future dates calculated (discounted) taking into account interest rate or age of the insured person;

1.2.3. annuity - the mechanism providing implementation of periodical payments during certain time;

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

2. Net annuity fee

2.1. When calculating net annuity fee the insurer for providing the created insurance reserves on class of annuity insurance shall use the annual interest rate equal to level of the predicted profitability on the investment portfolio of the accepted assets.

2.2. The net annuity fee for annuity which insurance payments are equal is calculated by the following formula:

2.2.1. for term annuity 

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