Insurance business abides by ethics
07 October, 2010
Insurance business  abides by ethics

Insurance companies of Georgia signed a code of ethics on September 22, 2010. The initiative is a precondition of improved insurance service, better consumer rights protection and fairer competition at insurance market.


Association of Georgian Insurance Companies (AGIC) in cooperation with the Health Project of USAID (US Agency for International Development), initiates partnership for improved insurance culture through increase of service quality and raise awareness of consumers. Ministry of Health, Labor, and Social Protection support the initiative.
The joint initiative

aims to improve the quality of insurance service to insured people, as well as insurance of protection consumers’ right and raise awareness of Georgian population in insurance products specifically of health insurance.
The point is that in July of this year, government transformed the non-governmental watch-dog Mediator been handling with the protection of consumers right in insurance sector [via consultation, mediating at courts etc] into the state-owned company. Mediator is now responsible for protection rights of consumers insured in frames of the state-budget-supported programs including people employed at defense and military structure, law-enforcers, teachers, and socially vulnerable people. The number of such insured population accounts for 1. 2 million ultimately that makes the bigger portion of the total amount of insured people in Georgia figuring to 1.5 all in all. The remainder 300 thousand is insured by private insurance companies and seems vulnerable to violation consumer rights. Besides the state provides by health-insurance, that takes the bigger portion of the entire insurance business actually, but the clientele of other insurance products also need care and protection, Devi Khechinashvili, President of the Association of Georgian Insurance Companies, believes.

 


“That’s why we initiated this project in cooperation with USAID and aim to help these 300 thousand to be in course of affairs, raise their awareness in all sorts of insurance service products,”Khechinashvili told Georgian Journal. “An experimental working group has already been working for a month by knocking door-to-door across the country to find out what problems already insured or potential insurance clients have.”
Moreover to insure better service and make insurance market competition healthier the 12 member-companies of AGIC worked out and signed an Ethic Code that obliges assignees to observe morale principles of the code lest be an outcast in the sector. This first ethic code a concrete sector of Georgian business found apt to adopt. Georgian banks initiated ethic code last year, however few banks signed it and the ventures werehalted. Khechinashvili believes the ethic code is a guarantee of corporate reputation and will increase social responsibility of insurance companies and make the insurance industry much more transparent.


According to Khechinahsvili, on one hand the code regulates inter-sector business ethic so as to prevent anti-insurance-business activities, that some newly fledged companies affiliated with pharmaceutics industry practiced lately affecting insurance companies’ interests. He meant Alfa, an insurance company founded by Aversi, one of the Georgian pharmaceutics market monopolist players, that while advertising its service offended insurance market players.
“Alfa is not an insurance-company, it is an augmentation of Aversi in fact, but if it signs the ethic code it will be forced to behave itself insurance-oriented and not as a pharmaceutical company, there is an obvious interest clash that Aversi runs an insurance business and uses it to improve sales of Aversi in fact. The ethic code cannot act as a criminal code but it is a matter of honor to sign it and once a company signs the code it should observe its principles and never undertake an action that can affect interests of its peer companies. Social responsibility and reputation is very important in insurance business, because if any of them spoils its product it affects the entire industry, that’s why the Code is important,” Khechinahsvili said.
On the other hand the code can improve protection of consumers’ rights. Consumer can appeal to AGIC if any of its members violates the code morale and discriminates consumers. AGIC will discuss the issue to reprimand the culprit company and even oust it from the Association if the company does not comply with the rules again.

Print
Other Stories
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
Winemakers to produce Kvanchkara in its place of origin - Racha
Khvanchakara is a semi-sweet Georgian red wine which originates from Racha, in the western part of Georgia. Kvanchkara is made of two types of grape Mujuretuli and Aleksandrouli.
The level of Georgian wine and Chacha exported has increased
The National Wine Agency of Georgia has recently published statistical information about the level of Georgian wine and Chacha exported between January and July, 2018.
New fire engines to be Manufactured in Georgia
The Acting Head of the Emergency Management Agency Shalva Khutsishvili said that the old Zili fire engines (which were made in the USSR) will be phased out and replaced with new ones, manufactured in Georgia.
Georgia witnesses a record number of tourists
The Georgian National Tourism Administration publishes statistical information about international visits to Georgia.
Canadian businessman plans to build a hotel in Bakhmaro
Canadian businessman Vadim Malishev plans to build a hotel in Bakhmaro resort, Guria, in the western part of Georgia.
Coffee Factory will open in Tbilisi in October
The first coffee factory (which will be located on the Kakheti highway) in Tbilisi will open in October.
Places in Georgia where real estate is the most expensive
The real estate market in Georgia is growing annually. In Tbilisi as well as other regions of Georgia new developments are increasingly taking place.
How much does a vacation cost in Tbilisi?
It is the middle of summer and those who have not yet taken a vacation are looking for an appropriate place for sure!
The price for extreme sports in Georgia
Georgia offers a variety of options to extreme sport lovers.
The number of Georgians who own property abroad increases
The number of foreign properties owned by Georgians is increasing.
How much does Taxi cost in Tbilisi?
Stories how Taxi drivers try to deceive passengers and charge them with more money than they should pay are known for everybody all over the world.
What are the highest paid areas in Georgia
According to the data collected by the National Statistics Office of Georgia in the first quarter of 2018 the highest paid jobs in Georgia are found in the financial and insurance fields.
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
19.09.2018
20.09.2018
USD
1
USD
2.6188
2.6179
EUR
1
EUR
3.0593
3.0606
GBP
1
GBP
3.4414
3.4517
RUB
100
RUB
3.8673
3.9087
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6179
EUR
1
EUR
3.0606
GBP
1
GBP
3.4517
RUB
100
RUB
3.9087