YEREVAN, January 31, /ARKA/. Armenia’s Car Insurers’ Bureau said today it will raise the cost of mandatory insurance of vehicles against physical damage caused to other cars and individuals starting from February 7, 2022 as well revise the bonus malus system, saying the latter change will come into force on March 1.
To substantiate the rise, the car Insurer’s Bureau said the size of insurance premiums has not changed since their introduction in 2010, ‘but there have been many changes since then’, specifically a system of direct compensation of insurance claims has been introduced, which has improved the quality of service by increasing the amount of compensation and the speed of payment, the system of self-regulation of traffic incidents with a small amount of damage up to 200 thousand AMD was introduced, which made it possible to have a more convenient and quick settlement, the maximum level of compensation claim has risen 10 times, reaching 18 million and 33 million drams for property and personal damage respectively,
the bonuses given to the insurers with positive history during the period of the system operation, exceeded significantly the amounts received by the insurers with negative history, which led to imbalance of the “bonus-malus” system.
The growth of prices for repairs and spare parts, especially during the last years, led to an increase in the volume of compensations.
It said also a number of studies show that the insurance premiums will rise no more than 3000 drams a year.
The mandatory insurance against physical damage caused to other cars and individuals became mandatory in Armenia on January 1, 2012. ($1 – 482.57 drams). –0–
