Tuesday, June 14 2022 16:43

ArmInfo. In Armenia, the amount  of the fine for the lack of an CMTPL policy will be halved   (compulsory third-party liability insurance policy-CMTPL policy). At  the plenary session on June 14, the Parliament of the country  discusses the amendments to the Code of Administrative Offenses in  the first reading.

According to the co-author of the presented document, MP from the  ruling "Civil Contract" faction Armen Khachatryan, the government of  the country in its policy is guided not by the toughening of  penalties, but by the education of persons who commit offenses. Based  on this logic, the MP proposes to halve the amount of the fine for  the lack of a CMPTL policy - from 100,000 drams to 50,000 drams At  the same time, the one-time fine for driving without CMPTL is planned  to be reduced four times - up to 25,000 drams, but this will happen  if the driver receives a policy. Otherwise, he will have to pay the  same 100 thousand drams.

Khachatryan does not consider it expedient to completely abolish  fines, but he is sure that they need to be mitigated.

In Armenia, the number of vehicles with a CMPTL policy increased in  January-April 2022 more significantly than in the pre-Covid  comparable period, which allowed the volume of insurance premiums to  exceed the upward trend of two  years ago.  Thus, according to the  Armenian Motor Insurers' Bureau,  the number of vehicles with a CMPTL  policy increased by 11.1% per  annum in January-April 2022, with an  exit from the 2.8% decline in  2021 and exceeding the pre-Covid 5.5%  in 2019 . In quantitative terms, there were already 587.297 thousand  such vehicles by May 2022,  against 517.105 thousand pieces in  pre-Covid 2019.In terms of the  number of CMTPL agreements, the  resumption of growth was also  observed, which is approaching the  pre- liquid growth rates.  Thus, during the reporting period, y-o-y  growth accelerated from  0.4%to 18.7%, against the pre-Covid 21.1%  growth in 2019. But in  quantitative terms, in January- April 2022,  it was possible to  conclude more CMPTL-contracts than in the same  period of 2019 - 335.506 thousand pieces against 312.672 thousand  pieces. And the  volume of insurance premiums collected on them  increased by 20.6% per  annum, exceeding 7.5 billion drams ($16.6  million), against the  pre-Covid 6.4 billion drams. The average  insurance premium for one  CMPTL-contract amounted to 22,372 drams in  the reporting period, with  a slowdown in y-o-y growth from 4.1% to  1.7% (against a 4.1% decline  in 2019).