Friday, December 3 2010 11:40
Motor Third Party Liability is a culture shock that Armenia should get through
ArmInfo. The Motor Third Party Liability Insurance (MTPL) is a culture shock that Armenia should get through, President of Rosgosstrakh Danil Khachaturov said at today's press conference. According to him, Armenia practically lacks an insurance market. "Therefore our main task is to form an insurance market in Armenia", he said.
Khachaturov considers MTPL to be the driving force of motor insurance. According to him, MTPL will allow Armenian insurers to form a clientele base, raise the insurance culture of citizens, thereby promoting and developing the voluntary types of insurance. "Sooner or later the necessity of formation of a clientele base will arise, for this reason one should serve the clients, even in unprofitable types of business insurance", said Khachaturov and added that the MTPL loss ratio is growing with every passing year and currently makes up about 80% in Russia.
Khachaturov stressed that at present almost 30 mln cars are insured within MTPL frames in Russia, and this seriously develops the voluntary types of insurance. He added that the cross-sales on CASCO have grown for many times after introduction of MTPL, whereas CASCO works in Russia on a voluntary basis.
According to Khachaturov, an efficient loss control system is a pledge of success for motor third party liability insurance. But this requires professional personnel and full technological "chain" for customer loss control. Rosgosstrakh Armenia has all resources for implementing motor third party liability insurance contracts. Jan 1 2011 the company will open a unified center for loss control.
Khachaturov said that the rate of insurance fraud in the world is almost 10%. In Russia it is 15%-17%. "This is quite high but motor third party liability insurance has more advantages than disadvantages," he said.
In Jan-Sept 2010 Rosgosstrakh Armenia (a company owned by Russian Rosgosstrakh) collected 1.6bln AMD in insurance premiums - almost twice as in Jan-Sept 2009. According to the Ranking of the Insurance Companies of Armenia prepared by the Agency of Rating Marketing Information (ArmInfo), Rosgosstrakh Armenia is the 1st in insurance of land transport, general liability and against financial risks and the 2nd in insurance of property against fires and natural capacities and insurance of people going abroad.
To recall, Armenian insurers started selling MTPL policies starting 18 Oct 2010. The Law on MTPL will come into force on 1 Jan 2011. According to the tariff plan worked out by the Motor Insurers Bureau and approved the Central Bank of Armenia, the minimum amount of the insurance premium is 18634 AMD, and the maximum one is 110313 AMD.
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