Armenian parliamentarians proposed reduction of MTPL tariffs. Insurers do not agree with this
Less than a year since the implementation of the law regarding mandatory MTPL insurance for Armenian drivers, the regulation rises controversies, members of Parliament proposing the reduction of the price of the policy: "Our main task is to ensure the system's security, on the one hand, and the citizen's "wallet", on the other hand", said Artsvik MINASYAN, DASHNAKTSUTYUN opposition party representative, quoted by armbanks.am.
Armenian MP also proposed that insurance companies decrease the policies price and also stressed that "it is not right for citizens to pay extra if they use, when concluding the policies, the insurance brokers services".
MINASYAN aims at changing the minimum and maximum price limits, because "current values hinder the increasing of competitiveness in the market". At the same time, MINASYAN consideres appropriate to introduce the mandatory MTPL policy from January 1st, 2011, enumerating among the positive factors the guarantee of compensation in case of an accident. As for negative factors, the MP mentioned the "extra financial charge for citizens".
Gagik GRIGORYAN, Executive Director of ROSGOSSTRAKH Armenia, believes that if MTPL tarrifs were 15% cheaper, citizens "would save" about AMD 300 per month (about EUR 0.5), and that would not bring great benefits to the citizens.
Also, insurance company representative does not appreciate the benefits of tariff liberalization: "MTPL insurance market is still being formed, and it would be unacceptable for rates be liberalized over the next three years. At the same time, if rates didn't remain stable, nothing could prevent the appearance of insurers who sell MTPL insurance for a short period of time, and then disappear".
According to Motor Insurers Bureau of Armenia, the minimum price limit for a MTPL policy concluded for a 80CP vehicle, for personal use, is AMD 25,000 (about EUR 47), and for taxies - AMD 37,000 (EUR 69).
For the same car, the maximum MTPL price is set at AMD 42,000 (about EUR 79) - for personal use and AMD 61,000 (EUR 114) - for taxies.
The exchange rate used for currency conversion: EUR 1 = AMD 535
Less than a year since the implementation of the law regarding mandatory MTPL insurance for Armenian drivers, the regulation rises controversies, members of Parliament proposing the reduction of the price of the policy: "Our main task is to ensure the system's security, on the one hand, and the citizen's "wallet", on the other hand", said Artsvik MINASYAN, DASHNAKTSUTYUN opposition party representative, quoted by armbanks.am.