YEREVAN, March 17. /ARKA/. In Armenia, maximum payout limits for compulsory motor third-party liability insurance (OSAGO) will increase on April 1, 2026.
The decision is due to rising average compensation costs, Vaghinak Yeghiazaryan, Executive Director of the Armenian Bureau of Motor Insurers, stated at a press conference on Tuesday.
“Calculations show a steady increase in the average compensation amount. Over the past five years, the average payout for one accident per car has increased by approximately 35%,” Yeghiazaryan noted.
He explained that this is due to two main factors: rising prices, including for auto parts, and the increasing number of electric vehicles.
According to the head of the Armenian Bureau of Motor Insurers, the current compensation rate is approximately 94%. “Increasing the limits will help reduce the gap between actual damages and insurance payments,” he said.
According to the new parameters:
- the property damage compensation limit per victim will increase from 1.8 million drams to 2.5 million drams (an increase of almost 39%);
- the compensation limit for damage to life and health will increase from 3.3 million drams to 3.5 million drams per victim (an increase of approximately 6%);
- the total payout limit for a single accident will be up to 25 million drams for property damage and up to 35 million drams for damage to life and health.
Yeghiazaryan explained that the decision to increase the limits was made in October 2025, after which insurance companies were given time to recalculate their rates.
According to him, the changes have already been incorporated into insurance rates. “The increased limits also apply to contracts concluded in late 2025 and early 2026,” he emphasized. ($1 – 377.41 drams).
