Pace of compulsory vehicle insurance sale too slow in Armenia

PanARMENIAN.Net - Vice Chairman of the Central Bank of Armenia (CBA) Vache Gabrielyan said that, unfortunately, the sales paces of insurance policies for compulsory vehicle insurance are far from being perfect.

Up to 10% of vehicles have been insured up to date, what is a very low index, Gabrielyan told a press conference.

“We urge drivers to buy the policies more actively, as the law will be enforced from January 1, 2011. Insurance companies will be working on Saturdays, sometimes, on Sundays. There were only 100 insurance agents six months ago, while their number currently makes thousands,” he said.

The inactivity of drivers is not reasoned by high tariffs, Gabrielyan said, adding that “they won't lock the barn door till after the horse is stolen.”

He believes that there is zero possibility that the Armenian government will postpone the enactment of the law on mandatory vehicle insurance, as the terms have been set under the law, while the government in unlikely to submit urgently a legislative initiative to the parliament to postpone the terms.

Currently, around 430,000 vehicles are registered in Armenia.