Law on compulsory insurance of motor vehicles to complicate traffic police work

PanARMENIAN.Net - Armenian traffic police chief, colonel Norik Sargsyan said that the traffic police work will become complicated as soon as the law on compulsory vehicle insurance comes into force.

“Earlier, drivers could reach an agreement in case of an accident and the traffic police had nothing to do in such case, but now any accident should be registered and administrative proceedings should be launched,” Sargsyan told a press conference in Yerevan.

On May 18, 2010 Armenian National Assembly approved the law on compulsory insurance of motor vehicles, which envisages payment of compensation to people who suffered in car accidents. The law will come into force from January 1, 2011. The minimum and maximum annual insurance payments will total AMD 19,000 and 110,000 respectively.

The law on compulsory insurance of motor vehicles will be applied to all owners of motor vehicles. Moreover, the owners of motor vehicles crossing the border will be have to purchase a transit policy for 15 days or a minimum one for 3 months.

If an insurance policy is absent, the fine will make AMD 50,000, but not above AMD 100,000 with consideration of overdue days. At the same time, the maximum compensation for damage caused to a property and aggrieved person will be up to AMD 1.5mln and 3mln respectively.