Friday, October 8 2010 19:28
Central Bank of Armenia registers tariff plan for calculating motor third party liability insurance policy
ArmInfo. The Central Bank of Armenia has registered criteria for determining admissible amounts of the principal and basic insurance premium and risk factors for motor third party liability insurance (MTPL). The criteria were approved by the Bureau of Motor Insurers of Armenia a few days ago.
The press service of the Central Bank reports that the minimum and maximum sizes of principal insurance premium are 31,848 AMD and 33,122 AMD, respectively, the minimum and maximum sizes of basic insurance premium - 18,634 AMD and 110,313 AMD, respectively. The admissible amounts of risk factors are as follows: annual operation rate factor - 1.0; brand rating for bike - 0.58m car - 1.0, truck - 1.12, bus - 1.1; operation area factor - 1.0; operation purpose factor: personal - 1.0, commercial, office, public - 1.03; taxi, rent, public transport - 1.44; engine capacity factor: for 80 HP - 0.80, 81-140 HP - 1.0, 141-230 HP - 1.27, over 230 HP - 1.45; insurer age and driving experience factor: under 23 and 3 years, respectively - 1.47, under 23 and 3 and more years - 1.36, under 23 and 1-3 years - 1.09, 23 and more and 3 and more years - 1.0.
The new tariff plan will take effect within 10 days.
Only 17,000 of 400,000 vehicles in Armenia are insured: 260,000 passenger cars, 15,000 buses, 55,000 trucks. The average age of the vehicles was 12 years in 2007. The preliminary cost of Armenia's MTPL market is $35mln. The Bureau of Insurers of Armenia was registered June 28 2010 and comprises INGO Armenia, Nairi Insurance, Sil Insurance, Rosgosstakh-Armenia, Garant Limens, Cascade Insurance and RESO.
The law on MTPL is to take force Jan 1 2011. The Government of Armenia has approved a concept for transfer of data between the insurance register of the Central Bank and the databases of the police. The law mentions insurance agreement, which can be concluded for 3 months-1 year (15 days for imported and transit vehicles).
According to the Ranking of the Insurance Companies of Armenia prepared by ArmInfo, July 1 2010 there were 10 insurance companies in Armenia insuring vehicles and motor liability. In Jan-June 2010 the total amount of their premiums in this segment was 892.3mln AMD.
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