YEREVAN, October 8, /ARKA/. Vache Gabrielian, a deputy governor of Armenia’s Central Bank, said today the amount of insurance premiums that owners of motor vehicles will have to pay will range from 19,000 Drams to 106,000 a year. The law on mandatory insurance of motor vehicles and stemming responsibility comes into force from January 1, 2011. The amount of premiums was registered by the Bureau of Motor Vehicles Insurers.

Speaking at a news conference at Novosti international press center, Vache Gabrielian said the highest insurance premium of 106,000 Dram will be applied to cars with super strong engines on condition that it is driven by different persons, one of whom is young and inexperienced and the car is used as a taxi.

A typical case, he said is a Soviet or Russia-manufactured car with a driver below 23 and with less than three year driving experience. The insurance premium for such car is 32,000 Drams a year. The amount of premium for older Russian cars will be 25,000 Drams.

According to him, the amount of the premium is calculated based on several factors – the type of the vehicle, the purpose it is used for, the age and driving experience of driver and the capacity (in horsepower) of the vehicles.

He said such factors as the place where the vehicle is used, the intensity it is used as well as the health condition of drivers are ignored. Insurance polices will be on sale from October 18. ($1 – 361.17 Drams). -0-