YEREVAN, March 30. /ARKA/. From April 1, 2023, Armenia will switch to a system of liberalized mandatory insurance of vehicles against physical damage caused to other cars and individuals, Central Bank Governor Martin Galstyan said at a government meeting on Thursday.

He said liberalization is another step in the natural development of the system. 'We believe that the Motor Insurers Bureau is both technically and in terms of capabilities ready for the transition to the liberalized system," he said.

Galstyan said that a system of fair pricing in proportion to their risks will be implemented for car owners. As a result of liberalization, he said, citizens will have a better idea of the connection between their behavior and the cost of the insurance.

"As a result of price liberalization, factors that have nothing to do with driver behavior will be eliminated. For example, we had a group approach for cab drivers, owners of cars under 80 horsepower. From now on there will only be a free market mechanism, which will form the cost of insurance, based on the individual data of the driver, "- he explained.

The head of the Central Bank also said that from April 1, citizens will be able to see all the price offers of all insurance companies on an online platform and choose the best one when concluding  an insurance contract on.

"If all car owners choose the lowest of the proposed prices, then for 56% of car owners  the prices will decrease, for 21%  will remain almost unchanged, and for 23%  will increase," he said.

The mandatory insurance against physical damage caused to other cars and individuals became mandatory in the country on January 1, 2011. -0-