Wednesday, February 16 2011 15:10

Rosgosstrakh Vice President: 36% share in Motor Third Party Liability Insurance (MTL) market in Armenia makes us absolute leader

ArmInfo. Rosgosstrakh Armenia has made 120,000 contracts of compulsory motor third party liability insurance (MTL), which is nearly 36% of MTL market in Armenia. Rafael Minasbekyan, Rosgosstrakh Vice President, brought such data in a press conference on Wednesday. He said that "such number of contracts automatically makes the company the absolute leader in Armenia and leaves the rivals far behind."

The first and the main part of the Law on MTL has already been introduced in Armenia and in a unique way, R. Minasbekyan said.

"It was unique because in the first month after the Law On MTL came into effect, nearly 80% of all drivers were officially insured. However, by the company's assessment, this figure was much higher and reached 90%," he said.

"Such indicator is record-breaking for Central, Eastern and Western Europe," he said. In Russia such coverage would take a year, R. Minasbekyan said.

"Despite our expectations, the Armenian people, at least drivers, proved more law-abiding and well- organized, which changes the general insurance picture in the country. Insurance is a significant part of the financial market and the latter defines the level of civilization of a country," Minasbekyan said. The company considers its first task to gain leadership in the market fulfilled. Now, the company's task is to maintain its lead position in the market. The next strategic task of the company is to improve the loss regulation system.

Executive Director of Rosgosstrakh-Armenia Gagik Grigoryan says that the number of settled insurance cases is nearly 350 and insurants received compensations in the amount of 55 million drams. Over one thousand applications are in the process of regulation and the insurance amount is 300 million drams by preliminary calculations of the company.

The statutory capital of Rosgosstrakh-Armenia is 2.13 billion drams ($6 million). The company collected 1.6 billion drams insurance premiums for 9 months of 2010. Ranking of Armenian Insurance Companies prepared by ArmInfo News Agency says the company is the leader in terms of overland motor insurance, general responsibility and financial risks. The company occupies the 2nd position in terms of property insurance against fires and natural disasters and traveler's insurance. The company has offices throughout Armenia, 10 sales offices in Yerevan and 11 in the largest regional centers.

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