Thursday, August 2 2012 16:38
Consumers Union of Armenia suggests reducing MTPL tariffs by 20%-30%
ArmInfo. President of the Consumers Union of Armenia Armen Poghosyan suggests reducing the motor third-party liability insurance (MTPL) tariffs by 20%-30%. He told media Thursday that the insurance market received over 10 billion drams MTPL premiums for Q1 2012 and paid 5.3 billion drams indemnities. In the same period a year ago, insurance companies collected 15 billion drams premiums and paid only 5.6 billion drams indemnities.
Poghosyan says that indemnities began to grow only after numerous complaints by drivers. He said that compulsory insurance brings high profits to the market though insurers say that it is low profitable.
By Poghosyan's subjective assessment, the difference between the premiums and indemnities should not exceed 10%, while this difference reaches 40%-50% now. "I do not speak of the owners of Rolls Royces or Plymouths, but the drivers of Zhigulis, who cannot afford them car fuel and use their cards a few times in a year. So, why should they pay such high tariffs?" the consumer rights defender says.
He recalled that starting 2013 a bonus-malus system will be introduced in the market of motor insurance. It is a form of merit-rating in automobile third party liability insurance. Such systems penalize at-fault accidents by premium surcharges and rewarding claim-free years by discounts.
To recall, the minimum insurance premium is 18634 drams, the maximum being 110313 drams. Experts of the financial information service of ArmInfo say loss of MTPL will exceed 60% by late 2012, which is not a critical level for the market given the high operational and administrative expenses of insurers that made up 15% of total premiums for Q1 2012 (1.9 bln drams). The expenses are made mainly for MTPL.
Active consumer lending causes double-digit growth in bad loans 
Luys Foundation: Armenian government continues to face challenges in budget planning
Armenia`s brandy and winemaking industry in crisis - economist 
Even at embryonic stage, powerful impetus given to economic activity in energy sector - ENA acting manager 
Armenian NA OKs ENA nationalization 
China preparing to open new chapter of One Belt, One Road initiative with involvement of Armenia - diplomat 
The Merger between "Ardshinbank" CJSC and "Ardshininvestbank" CJSC Has Been Completed
Ticket packets 1.2% of total number of transport tickets in Yerevan