The legislative initiative by the government to introduce compulsory motor insurance will double the motor insurance market, <b>Levon Altunyan </b>, executive director of the Ingo Armenia insurance company told a PanARMENIAN.Net reporter.

"The adoption of this law will intensify the development of the motor insurance market, and taking into account the voluntary insurance in the near future the Armenia’s financial market can grow 3-4 times," he said. According to him, this bill will only have a positive impact, since it would protect the rights of citizens suffered in road accidents. "Citizens will feel protected at the state level," he assured.

The Government of Armenia on December 18 approved a draft law "On compulsory insurance of liability arising from the operation of vehicles. This bill provides the establishment of a bureau for determining insurance rates. Damage to property is estimated at AMD 2 million, caused to one person - AMD 4 million, and two or more persons - AMD 9 million. The minimum monthly payment by insurers will be AMD 1000.

Discussion of the draft law "On compulsory insurance of liability of car owners” will be held on February 12, 2010 at the National Assembly of Armenia.