YEREVAN, February 3. /ARKA/. The number of insured cars has grown from 390,457 in 2011, when mandatory car insurance was introduced in Armenia, to 457,878 in 2015, Vahan Avetisyan, executive director of the Car Insurers Bureau, said Tuesday at a news conference summarizing the results of the first five years of obligatory car insurance in the country.

However, compared with 2014, their number shed 1.33% or by 6183.

Insurance premiums grew from AMD 14.8 billion in 2011 to AMD 17.7 billion in 2015, but shrank 0.56%, compared with 2014.

The number of mandatory car insurance compensation contracts has grown from 25,313 to 41,203 over these five years.

In 2015, compared with 2014, the number of the contracts under which compensations had been paid reduced by 9,211, while compensation requests on 929 contracts were declined in 2015 against 349 in 2011.

Insurance payments grew from AMD 7.2 billion in 2011 to AMD 8.8 billion in 2015, but reduced 9.27%, compared with 2014.

An average mandatory car insurance compensation payment slid from AMD 223,392 to AMD 212,661.

The insurance sector’s loss ratio on mandatory car insurance stood at 53% against 55.1%.
Avetisyan said that there were many uncertain things in Armenia when the mandatory car insurance was instituted in the country in 2011.

He pointed out figures on car accidents as example – 2,000 car crashes, on average, had been recorded every year before obligatory car insurance introduction, while after the introduction, the annual average number of crashes is reported at 4,045.

“This means that the number of unreported, ‘shady’ traffic accidents was 20 times greater than the reported cases,” he said. ($1 – AMD 489.16). ---0---