Armenian car owners are promised an ideal insurance model

PanARMENIAN.Net - The car insurance will cost AMD 30-40 thousand per annum, with 3 months as minimum and 1 year as maximum insurance term.

The law says that after the expiration of two years, i.e. from January 2013, a system of bonus malus will be introduced to provide responsible car owners with bonus points and impose penalty points on unfair clients. Besides, each insurance company will install a special counter on its website to help the car owners calculate the amount of the obligatory insurance.

For property damage the minimum sum will total AMD 1.5 mln; personal injury is estimated up to 3 mln per head and up to 9 mln for an accident.

Thus, the owners of vehicles registered in Armenia have to obtain an insurance policy by January 1, 2011, otherwise they will be fined at the amount of AMD 50 thousand. All road police officers will have access to the database of Bureau of Car Insurers of Armenia and will be able to check the validity of the policy online.

The main task of the Bureau of Car Insurers will be protection of accident victims as well as control over the activities of insurance companies. The Bureau's fund will be made of flat payments at the amount of AMD 10 million and quarterly contributions at the amount of 0,25% of insurance payments for the previous 12 months. Besides, the Bureau will have a guarantee fund for compensation of damage in case the party at fault is not known or not insured.

Armenia also intends to join the Green Card service which enables car owners to travel abroad with valid insurance. The Green Card certificate entitles the car owner who purchased car insurance in the Country of Origin to the handling of claims in respect of legal liability vis-à-vis a third party in the destination country.

As of today, 450 thousand vehicles have registered in Armenia. According to statistical data, over 2000 accidents are fixed annually, as result of which over 300 people die.

11 insurance companies are functioning in the territory of Armenia.

Specialists of the RA Central Bank assure that the best experience of foreign countries was used while developing the law. Armenian car owners will soon have the opportunity to assess the work done.