Wednesday, May 22 2013 18:52
Armenian insurers find a way to delay motor third-party liability insurance payments
ArmInfo. Armenian insurers has found a way to delay motor third-party liability insurance payments, President of Achilles Center for Protection of Drivers' Rights Eduard Hovhannisyan told journalists on Wednesday.
He explained that accident managers prefer "inviting" road policemen to the scene so the latter institute administrative proceedings.
"The point is that if the damage caused by a road accident is less than 200,000 AMD, accident managers should pay it with no assistance from the road police. But they prefer inviting road policemen without preliminary appraisals so the latter institute administrative or criminal proceedings and they had 15 days or even 2 months for paying the damage," Hovhannisyan said.
Motor third-party liability insurance is becoming unprofitable in Armenia. Insurers are complaining of a big number of road accidents, but the real reason is high administrative expenses.
The decision to introduce the bonus-malus scheme is supposed to help them to reduce their losses, but the key obstacle here is the bureaucratic system of vehicle inspection.
According to ArmInfo's Ranking of Insurance Companies of Armenia, in 2012 the companies paid 9bln AMD in motor third-party liability insurance compensation – 76% more than a year before.