CBA Head: From April 1, fair system of CMPTL in terms of pricing to be introduced

ArmInfo. According to the preliminary estimate of the Motor Insurers' Bureau, as a result of the liberalization of the  CMTPL (Compulsory Motor Third Party Liability) market, from April 1, prices will decrease for 56% of car owners who choose the minimum base rate, for 21% they will remain approximately the same, and for 23% they will increase.

This does not apply to the bonus-malus system. This was stated on March 30 at a government meeting by the Chairman of the Central Bank of the Republic of Armenia Martin Galstyan.

According to the head of the Regulator, a fair insurance system in terms of pricing will be introduced from April 1. As a result of market liberalization, the correlation between their behavior and the formed tariff for CMPTL will become obvious to citizens. <Factors not related to the personal behavior of the driver will be eliminated, for example, previously there was a group approach for taxi drivers or owners of cars with a power of up to 80 hp. Now, the behavior of the driver will form the tariff that he will have to pay for CMPTL>, the head of the Central Bank explained.

In addition, all price offers will be collected on an online platform, which will make it easier for citizens to find an insurer that provides the best quality of services.

Earlier, in conversations with ArmInfo, Tigran Keyan, head of the "Driver's Friend" NGO said that as a result of market liberalization, insurers will also take into account the place of registration of the vehicle - in Yerevan or in the regions when forming the tariff. The range of tariffs of a number of insurance companies will depend on the period of production of the car.  However, When calculating CMPTL insurance rates, the decisive factor will be <the history of the car owner> - that is, accidents in the past ( bonus/ malus). This will allow experienced and careful drivers to receive additional discounts. 

CMPTL  has been introduced in Armenia since 2011. are 6 insurance companies the insurance market of Armenia, operating from the available 20 classes of 18, with the exception of liability insurance from the use of railway transport, insurance of legal and extrajudicial expenses. The largest number  of classes are licensed by IC INGO Armenia - 16 and IC Rosgosstrakh  Armenia - 15.