Heritage: vehicle is income source for some companies rather than means of transportation in Armenia

PanARMENIAN.Net - Chairman of the Heritage party Board Armen Martirosyan said that the mandatory vehicle insurance should have been introduced in Armenia not now and not under the current economic and social conditions in the country.

“Drivers pay huge sums for cars customs clearance, mandatory vehicle insurance, property tax, technical checkup, which due to unknown reasons is conducted by a private company and these funds are not send to the budget. In other words, a vehicle has become a source of income (and not of the state) rather than a means of transportation,” he said.

Martirosyan noted that in case of vehicle accidents of a small scale, when the damage amount is below AMD 30,000, the damage will not be compensated under the law, i.e. insurance companies will be making profit.

Member of Heritage party Larisa Alaverdyan believes that preferential terms under the mandatory vehicle insurance should be created for residents of frontier villages. “The law does not envisage differentiation for small and big towns, vulnerable or solvent groups of population,” she said.

At the same time, the Bureau of Motor Vehicle Insurers of Armenia told a PanARMENIAN.Net reporter that there is no a minimum amount of compensation under the mandatory vehicle insurance, while the maximum amount in case of personal damage makes AMD 3mln per suffered person and AMD 9mln per accident.