YEREVAN, June 13. / ARKA /. The introduction of compulsory insurance of motor vehicles in Armenia should serve as a catalyst for the development of voluntary insurance, " director general of Rosgosstrakh-Armenia insurance company, Gagik Grigorian, said last week.

"People should believe that buying insurance policies is profitable,’ he said Saturday during a seminar organized by the company to the media.

According to Grigoryan, before the introduction of mandatory insurance of motor vehicles this sector involved a very small segment of the population, mostly those who took bank loans and corporate clients working for large organizations and international organizations, which offered insurance as part of social security packages.

"To date, about 400,000 people and their families are involved in the process of insurance. Most importantly, the insurers should be able to make all understand that insurance is an important and indispensable process, particularly in the context of risk management and preservation of property, " he said.

Grigorian argued then in favor of mandatory introduction of health insurance and pension reform.

The mandatory insurance against physical damage caused to other cars and individuals became mandatory in the country on January 1, 2011 in accordance with a government-drafted law passed by the Armenian parliament last year. According to official numbers, there are about 430,000 vehicles in Armenia. -0-