YEREVAN, July 13. / ARKA /. On January 1, 2013 Armenia began introducing the so-called bonus-malus system designed to reduce an insurance premium, especially one covering a motor vehicle, if no claims have been made within a specified period.
This in view, the Motor Insurers Bureau of Armenia began a wide-ranging program to inform the public about the changes that have been made to the obligatory insurance of vehicles and the incoming changes. As part of that campaign the Motor Insurers Bureau conducted a seminar today for experts and journalists.
Anna Vardikyan, the executive director of the Motor Insurers Bureau, said 75 percent of car owners who have made no claims have been awarded bonuses worth 350 million drams.
As for car owners who have been involved in car accidents more than one time within a specific period they will have to pay larger premiums (malus) beginning from January 1, 2014. Vardikyan explained that when calculating the size insurance premium the motorists’ records will be considered, including, for 2013.
According to the Bureau, on 31 May 2013, owners of 371,926 vehicles had car insurances. Ms. Vardikyan said at the first stage (in the next two years) when calculating the size of premiums the insurance companies will ignore such factors as the number of traffic violations, as well as the degree of responsibility of the driver in a road accident.
Vardikyan said the size of annual insurance premium for a driver who was not involved in a traffic accident will be reduced by 3%a year, and in ten years, the bonus will be 50% of the insurance premium – in other words, such a driver would pay half of the insurance.
For motorists found guilty of traffic accidents after the first and subsequent insurance cases the premium size would increase by 16%, and if the number of accidents are three or more, the reckless driver will have to pay a double premium.
“However, if such a driver will not be a party to the accident in four years, his/her insurance history will be nullified ” she added.
The net profit of Armenian insurance companies in the first quarter of 2013 amounted to 340.8 million drams against a loss of 688.3 million drams in the first quarter of 2012.
The mandatory insurance against physical damage caused to other cars and individuals became mandatory in the country on January 1, 2011 in accordance with a government-designed law. ($ 1 – 409.78 drams). -0 –
