Friday, January 18 2013 18:18
Bonus-malus system not to influence motor third party liability insurance price
ArmInfo. The bonus-malus system partly introduced in Armenia on Jan 1 2013 will have no essential impact on the price of the motor third party liability (MTPL) insurance, Eduard Hovhannisyan, Chairman of Achilles Center for Protection of Drivers' Rights, said at the Jan 18 press conference.
He recalled that the bonus component of this system was introduced in the republic on Jan 1, and the malus system will be introduced in November 2013. Hovhannisyan said that the bonus will make up 3% of the insurance premium paid by the drivers over 2012, and the malus rate is not defined yet. According to Achilles, there were nearly 60 thsd road accidents fixed by the insurance companies in 2012. This means that in 2012 there were about 30 thsd violators, and the malus system will cover them. Armenia has about 450 thsd vehicles and nearly 400 thsd drivers. The rest 370 thsd drivers will receive bonuses, however, their total amount is small and will not considerably increase the loss ratio of motor third party liability insurance.
To note, the bonus-malus system is based on the behavioral history of the driver. This system will allow the insurers to reduce the risks concerning the most undisciplined drivers, particularly, taxi drivers. The insurers think that in terms of this category of drivers, the MTPL loss ratio exceeds 110%.