“Rules for insuring the borrower's life from death and disability under loan agreements provided to individuals” was approved by the decision of the Board of the Ministry of Finance of the Republic of Azerbaijan No. Q-21 dated September 23, 2014.

According to the rules, the object of insurance is the property interests related to the life and working capacity of the insured, and the subject of insurance is individuals who borrow under loan agreements.

The insurer provides insurance coverage for at least the following risks under the insurance contract:

• death of the insured;
• determination of the degree of disability of the insured in connection with the complete or partial loss of ability to work as a result of illness or accident.

The sum insured under the insurance contract shall not exceed the amount of debt under the loan agreement and shall be determined on the basis of the agreement of the insurer and the insured on one of the following:

• in the amount of fixed insurance, which does not change until the end of the term stipulated in the insurance agreement, regardless of the repayment and reduction of debt under the loan agreement;
• in the amount of insurance reduced in accordance with the reduction of debt under the loan agreement in the manner prescribed by the repayment schedule.