TPL system in Armenia to use digital technologies

ArmInfo. In the system of compulsory motor third party liability insurance (CTP) in Armenia, digital technologies will begin to be applied. The decision on this  was made at a meeting of the RA Government on October 10.

Presenting the draft decision, RA Minister of Finance Atom  Dzhandzhugazyan emphasized that the project was developed by the  Central Bank and was designed to significantly reduce the workflow by  introducing digital technologies. In addition, some provisions of the  current regulations are being streamlined, which will be applied  after their approval by the Auto Insurers Bureau. In turn, Deputy  Prime Minister Tigran Avinyan drew attention to the problems of  traffic jams. He called on the Ministry of Territorial Administration  and Infrastructure, together with the Central Bank, to discuss  possible solutions to this issue. The Vice Prime Minister emphasized  that often due to traffic accidents many kilometers of traffic jams  form, which, in turn, lead to the emergence of risks of new  accidents. "We hope to get solutions to this problem within two  months," said the Deputy Prime Minister.

It should be noted that the Bureau of Auto Insurers of Armenia  updated the procedure for contractual relations with expert  organizations, in particular, reduced the time for conducting a  repeated examination to 3 working days, and reduced the fee for it to  5000 drams. Re-examination is aimed at protecting the rights of  victims of an insurance accident under compulsory motor third-party  liability insurance, and is provided for cases where victims do not  agree with the assessment of the degree of guilt and / or the amount  of damage caused by an accident received from the insurance company.  From this moment, drivers participating in road accidents with damage  not exceeding 100 thousand drams can, without calling an insurance  officer and a representative of the Traffic Police, independently  fill out an agreed declaration, attach photos from the scene of the  accident and send this package to the appropriate insurance company.   According to the data of the Bureau of Auto Insurers of Armenia, by  January 1, 2019, there are 508,297 units of vehicles with a valid  MTPL agreement. A year earlier they were 497838, an increase of 2.1%.  By January 1, 2019, the number of concluded CTP insurance contracts  reached 902365 (annual growth of 11.4%), under which the volume of  insurance premiums amounted to 19.6 billion drams (annual growth of  5.5%). Of this number, 1.9% or 17550 were concluded electronically.  According to the results of 2018, CTP loss was 72.7%, against 65% a  year earlier. According to the ranking of insurance companies of  Armenia, prepared by IC ArmInfo, as of January 1, 2019, there are 6  insurance companies in Armenia and there are 2,794 insurance agents.  The share of OSAGO in total insurance premiums decreased by January  1, 2019 to 48.82%, against 54.41% as of January 1, 2018. The volume  of insurance premiums for compulsory motor third-party liability  insurance increased by 5.3% on an annualized basis to 20.02 billion  drams, with an increase in indemnities of 15.9% to 13.5 billion  drams, against the growth of these indicators a year earlier, by 4.4%  and 32.7%, respectively.