Armenian motorists protest against rise in car insurance policies

YEREVAN, February 3. /ARKA/. Tens of motorists protested today outside the Central Bank of Armenia against a decision raising the size of car insurance policies against physical damage caused to other cars and individuals starting from February 7, 2022.

According to the decision of the Car Insurers’ Bureau, the basic amount of the car insurance policy will increase by 1,500-3,000 drams (over $3-6).

"Our protest is apolitical, but as they say, the fish rots from the head. This is exactly the situation right now. We have gathered in front of the Central Bank as our protest is addressed to its management. Our next step will be the Car Insurers’ Bureau. We will try to get this stupid and illegal decision overturned," said one of the protesters.

They demanded a meeting with representatives of the Central Bank to demand reasonable answers to their questions.

"This is not a riot, but they (representatives of the authorities) are doing everything to drive the situation to just that," said one of the protesters.

The protesters brought posters and leaflets which they intended to hang on the posts near the Central Bank building, but the police officers warned them against such actions. After one of the protesters fixed a leaflet right in front of the entrance to the Central Bank building, the police officers detained him.

A police representative approached protesters and said that the Central Bank believes it is inexpedient to meet with the protesters in the street and offered that protesters present their demands and questions in writing for greater efficiency, which would be answered in due time.

To substantiate the rise, the Car Insurer’s Bureau said earlier that 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--