Thursday, July 29 2010 11:42
CB Board approves members of Motor Insurers Bureau of Armenia self-regulating organization
ArmInfo. At July 28 sitting the Board of the Central Bank of Armenia (CBA) provided the status of a member of the union of legal entities of the Motor Insurers Bureau of Armenia self-regulating organization to the following insurance companies: INGO ARMENIA, Nairi Insurance, Sil Insurance, Rosgosstrakh-Armenia, Garant Limens, Cascade Insurance and PECO. The CBA press service told ArmInfo that the membership fee is 15 mln AMD, and 10 mln AMD more will be paid by each member of the Bureau for the current expenditures. Starting 1 January 2011, the insurance companies will quarterly pay a fee worth 0.5% of their insurance premiums collected over the previous year.
To note, the Motor Insurers Bureau of Armenia self-regulating organization was registered by the CBA on 28 June 2010. This organization and the guarantee fund have been set up for effective operation of the motor third-party liability insurance (MTPL), and coordination of the motor insurers' activity. In addition, a centralized e-database on motor insurance, as well as an institute of independent surveyors will be created. According to the preliminary data, at least 5-6 large insurers are already ready to enter the MTPL market.
The Law on Compulsory Motor Vehicle Liability Insurance will come into force on Jan 1 2011. The Government has already approved the oncept of data transfer between the insurance register of the Central Bank and the Armenian Police bases necessary for effective activity of the given Law. The Law On OSAGO introduces the concept of insurance agreement concluded for 3 months up to 1-year period (for motor vehicles imported in the regime of temporary import or transit the minimum term is 15 days). There are nearly 330,000 vehicles, including 260,000 cars. 15,000 buses, 55,000 tracks in Armenia. The average age of the vehicles in use in the country is 12 years by data of 2007. By preliminary calculation the OSAGO market in Armenia is estimated at US$35 million (based on 300,000 vehicles).
Ranking of Armenian Insurance Companies prepared by ArmInfo says that as of April 1 2010 all the 10 operating insurance companies had licenses for insurance of land transport and third party liability insurance. The aggregate premiums of the 10 insurance companies on these insurance lines for the first quarter of 2010 totaled 490 million drams.