Friday, December 9 2016 17:52
Karina Melikyan

Motor Insurers` Bureau: Lump-sum benefit provision rules to come into effect under bonus/malus system on 12 Dec 2016

Motor Insurers` Bureau: Lump-sum benefit provision rules to come into effect under bonus/malus system on 12 Dec 2016

ArmInfo. The lump-sum benefit provision rules will come into effect under the bonus/malus system on 12 Dec 2016 by minimizing 4 malus classes. The rules apply to the motor third party liability (MTPL) insurance contracts concluded after December 12. The Board of the Central Bank of Armenia (CBA) has already registered the relevant decision of the Armenian Motor Insurers' Bureau.   

The press office of the Armenian Motor Insurers' Bureau has told ArmInfo that the matter concerns malus class insurers that have more than one transport vehicle in the field of public transport and taxi services.  Further information about the rules of lump-sum benefit provision is available on the Motor Insurers' Bureau website at http://paap.am/datas/zdocs/5da8d25a91c8bae411305ff2154726c1.pdf. The Bureau has taken this decision with due regard for a number of social problems, as well as public opinion about the critical condition of the public transport and taxi car fleet. 

Based on the five-year statistics in the MTPL segment and taking into account the transition to the bonus/malus system in September 2016, the Bureau has adjusted the risk ratios: some ratios have been increased, others have been reduced or left unchanged. Some factors have been neutralized in the tariff calculation. The result of the changes is as follows: the size of the basic insurance premium for 80% of the public transport has not changed, with the annual basic premium for the remaining 20% reduced to 28,000 AMD; for 71% of taxis the annual basic insurance premium has been increased to 28,600 AMD, for the remaining 29% the premium has been reduced to almost 17,000 AMD. The introduction of the bonus/malus system has revealed that in the field of the public transport and taxi services the owners of more than one transport vehicle have found themselves in the high malus class due to the big number of accidents. The final insurance premium has been increased for them and this has created some tension. In fact, the final picture of the transition to the bonus/malus system is unbiased, fair and grounded, because it reflects the problems in the given field and the real statistics of the accidents and the inefficiency of the process management. In particular, high insurance premiums are set for the high risk category, and low insurance premiums - for the low risk one.

According to the Ranking of Armenian Insurance Companies by the Agency of Rating Marketing Information (ArmInfo), as of 1 October 2016, the premiums of the Armenian insurance companies grew by 2.6% y-o-y, while the payouts increased by 2.4%. By 1 October 2016, the aggregate amount of insurance premiums made up 23.2 bln AMD, with the amount of payouts exceeding 9.8 bln AMD.  In the structure of insurance premiums, the share of motor third party liability insurance (MTPL) was the biggest - 55.7%, or 13.2 bln AMD (up 1.4% versus Jan-Sep 2015). The share of MTPL in the payouts was also the biggest - 59.82%, or 6.01 bln AMD (down 1.5%). According to the Motor Insurers' Bureau, as of 1 Oct 2016, the number of applications for MTPL indemnities grew by 26% to 4336, satisfied applications - by 25% to 4056, repaid indemnities - by 13% to 786 mln AMD, with further growth to 852 mln AMD by 1 Nov 2016.

To note, there are 6 companies in the insurance market of Armenia, which operate in 17 classes (out of 19) of insurance. INGO Armenia (the only company insuring water transport) is licensed to provide services in 16 classes of insurance, and Rosgosstrakh Armenia (the only company providing credit risk insurance) provides services in 15 classes of insurance (as of 30 Sep 2016, the AMD/USD exchange rate was 474.46 AMD/$1).

POST A COMMENT
Input digits     


News
By the end of 2025, Armenia`s public debt to increase by nearly 900  billion drams- Minister of FinanceBy the end of 2025, Armenia`s public debt to increase by nearly 900  billion drams- Minister of Finance
Armenia plans to secure $1.3 billion for the southern section of the  North-South construction`s program.Armenia plans to secure $1.3 billion for the southern section of the  North-South construction`s program.
GDP growth in Armenia in 2025 expected to be in line with potential:  Central Bank HeadGDP growth in Armenia in 2025 expected to be in line with potential:  Central Bank Head
Go Digital or Go Home: Sergey ArakelyanGo Digital or Go Home: Sergey Arakelyan
Ardshinbank Recognized as Leader in Armenia’s Secondary Corporate Bond MarketArdshinbank Recognized as Leader in Armenia’s Secondary Corporate Bond Market
Threshold for bad accounts receivable to be raised in Armenia Threshold for bad accounts receivable to be raised in Armenia 
Yes to cashless! - cruises and gifts for AraratBank MC cardholdersYes to cashless! - cruises and gifts for AraratBank MC cardholders
Priorities of Armenian-Iranian cooperation discussed in Yerevan Priorities of Armenian-Iranian cooperation discussed in Yerevan 
Armenia participating in 7th International Import ExpoArmenia participating in 7th International Import Expo
Gevorg Papoyan: $250 million needed to launch Amulsar mineGevorg Papoyan: $250 million needed to launch Amulsar mine
Security Council Chief of Armenia highlighted the importance of  enhancing bilateral economic relations in a meeting with Iranian  expertsSecurity Council Chief of Armenia highlighted the importance of  enhancing bilateral economic relations in a meeting with Iranian  experts
AraratBank: Five-Time Winner at AMX Awards 2024AraratBank: Five-Time Winner at AMX Awards 2024
Most Armenian respondents opposed closure of Metsamor NPPMost Armenian respondents opposed closure of Metsamor NPP
Economy Minister clarifies factors leading to decreased exports to  EUEconomy Minister clarifies factors leading to decreased exports to  EU
EU program to rebrand Armenian cognac to begin in second half of  NovemberEU program to rebrand Armenian cognac to begin in second half of  November
.Armenia plans to attract 2 grants from EU for construction of  North-South road section.Armenia plans to attract 2 grants from EU for construction of  North-South road section
Legal issues of transfer of Armenian government`s shares to Masdar  discussed Legal issues of transfer of Armenian government`s shares to Masdar  discussed 
EU could provide EUR 235mln to Armenia for resilience improvement  programme EU could provide EUR 235mln to Armenia for resilience improvement  programme 
Head of Armenian NA committee reports information Head of Armenian NA committee reports information "to consider"
Armenia, Turkey ministers discuss potential usage of idle  infrastructures - SanosyanArmenia, Turkey ministers discuss potential usage of idle  infrastructures - Sanosyan
Minister:  In 2024, Iran to supply Armenia with significantly higher  amount of natural gas compared to previous yearsMinister:  In 2024, Iran to supply Armenia with significantly higher  amount of natural gas compared to previous years
The state should establish strict rules for its relations with  investors, rather than engaging in promiscuous partnerships with them  - Artur AshugyanThe state should establish strict rules for its relations with  investors, rather than engaging in promiscuous partnerships with them  - Artur Ashugyan
AraratBank Initiates a Panel Discussion on AI and LeadershipAraratBank Initiates a Panel Discussion on AI and Leadership
Tourism sector financing to be reduced in 2025Tourism sector financing to be reduced in 2025
Fast Shift has joined Idram`s open QR infrastructureFast Shift has joined Idram`s open QR infrastructure
All tax administration in Armenia is primarily focused on large  businesses - State Revenue Committee Head All tax administration in Armenia is primarily focused on large  businesses - State Revenue Committee Head 
No problems in ensuring tax revenues - official No problems in ensuring tax revenues - official 
Share of taxes in Armenia`s GDP to be brought up to 25% next year -  official Share of taxes in Armenia`s GDP to be brought up to 25% next year -  official 
Armenian CB to continue reducing refinancing rate - EDBArmenian CB to continue reducing refinancing rate - EDB
ADB to provide Armenia with a loan of 89.5 million euros as part of  budget assistance frameworkADB to provide Armenia with a loan of 89.5 million euros as part of  budget assistance framework
The sale of HSBC Bank Armenia to Ardshinbank to be completed on  November 29, 2024The sale of HSBC Bank Armenia to Ardshinbank to be completed on  November 29, 2024
Armenian companies can enter Warsaw Stock Exchange with IPO through  cross- or dual listing Armenian companies can enter Warsaw Stock Exchange with IPO through  cross- or dual listing 
New and modern. Arabkir branch of IDBank reopenedNew and modern. Arabkir branch of IDBank reopened
Armenia`s Universal health insurance implementation postponed with no  set timelineArmenia`s Universal health insurance implementation postponed with no  set timeline
"Irrigated Agriculture Development in Ararat and Armavir Provinces"  to open new page for Armenia`s agricultural sector
2025 budget message: Higher GDP growth potential in Armenia 2025 budget message: Higher GDP growth potential in Armenia 
Armenia s gross international reserves 14.2% down as of Oct 2024Armenia s gross international reserves 14.2% down as of Oct 2024
Armenian AMX joins Tabadul project by Abu Dhabi ADXArmenian AMX joins Tabadul project by Abu Dhabi ADX
Armenian Airlines launches Yerevan-Batumi-Yerevan flight Armenian Airlines launches Yerevan-Batumi-Yerevan flight 
Converse Bank starts initial placement of the next AMD, USD bonds in  amount of AMD 5 billion, $5 millionConverse Bank starts initial placement of the next AMD, USD bonds in  amount of AMD 5 billion, $5 million
Armenia s tax revenues AMD 1,827.7bln as of Oct 20, 2024Armenia s tax revenues AMD 1,827.7bln as of Oct 20, 2024
Armenia, Kyrgyzstan discuss development of transport cooperationArmenia, Kyrgyzstan discuss development of transport cooperation
Armenia`s government to allocate AMD 2.9bln under regional subvention  programmes approved and implemented in 2014-2022Armenia`s government to allocate AMD 2.9bln under regional subvention  programmes approved and implemented in 2014-2022
Economy Minister: Rallies and marches in Yerevan  in 2024 cause a  decrease in Russian tourist arrivalsEconomy Minister: Rallies and marches in Yerevan  in 2024 cause a  decrease in Russian tourist arrivals
AMX 2024 awards most active market participantsAMX 2024 awards most active market participants
Learn to save. World Savings Day with Idram JuniorLearn to save. World Savings Day with Idram Junior
The price of the issue: how much will MMR construction cost ArmeniaThe price of the issue: how much will MMR construction cost Armenia
Martin Galstyan: Reduction of refinancing rate from 9.75% to 7.25%  kept loan rates from rising significantlyMartin Galstyan: Reduction of refinancing rate from 9.75% to 7.25%  kept loan rates from rising significantly
Armenia`s Deputy Minister of Finance presents country`s economic  development strategies at t the annual meetings of IMF, WB Board of  Governors Armenia`s Deputy Minister of Finance presents country`s economic  development strategies at t the annual meetings of IMF, WB Board of  Governors 
Armenia`s CB reduces refinancing rate - 7.5% down to 7.25%Armenia`s CB reduces refinancing rate - 7.5% down to 7.25%
Armenia to develop business tourismArmenia to develop business tourism
Central Bank of Armenia considers it necessary to enhance  effectiveness of government capital expenditures and refine tax  policiesCentral Bank of Armenia considers it necessary to enhance  effectiveness of government capital expenditures and refine tax  policies
Zangezur Copper and Molybdenum Plant- top taxpayer in ArmeniaZangezur Copper and Molybdenum Plant- top taxpayer in Armenia
Minister: Armenia`s planned 5.6% GDP growth for 2025 is a very high  figureMinister: Armenia`s planned 5.6% GDP growth for 2025 is a very high  figure
Gold re-export contributed to Armenia`s economic activity this  Jan-Aug - ministerGold re-export contributed to Armenia`s economic activity this  Jan-Aug - minister
Armenia`s government plans EUR 500mln Eurobond issue Armenia`s government plans EUR 500mln Eurobond issue 
Stregthening resilience and increasing economic potential one of  major tasks of Armenia`s government next year - minister Stregthening resilience and increasing economic potential one of  major tasks of Armenia`s government next year - minister 
No effort must be spared for Armenian citizens to grow rich by  working under law - premier No effort must be spared for Armenian citizens to grow rich by  working under law - premier 
Consensus on medical insurance intriduction stages reached - ministerConsensus on medical insurance intriduction stages reached - minister
Customs duties for Armenian exporters to be reduced after agreement  with Iran ratified Customs duties for Armenian exporters to be reduced after agreement  with Iran ratified 
Read more
Exchange rates
06.11.2024
RUB3.94-0.03
USD387.360.12
EUR416.10-5.80
GBP499.15-3.53
CAD278.82-0.09
JPY25.15-0.28
CNY54.03-0.49
CHF442.39-6.90