CONSULATES OF SEVERAL EUROPEAN EMBASSIES IN ARMENIA DISCREDIT NATIONAL
INSURANCE COMPANIES

YEREVAN, JULY 13. ARMINFO. Consular services of the embassies of
Schengen zone – Germany, France and in several cases of Italy
accrediting in Armenia – take measures against Armenian insurance
companies, refusing to recognize insurance policies acquired by
citizens, who leave for foreign countries.

As President of the Association of Insurers of Armenia Levon Altunian
informed ARMINFO, since Jan of the current year several clients of
insurance companies of Armenia began to apply to the insurers, who had
given them accident and acute disease policies. They complain that the
embassies of the Schengen zone refuse to declare validity of the
policies and they put a claim to obtain the policies of foreign
countries for receiving the entrance visa.

According to the president of the Association, similar requirements
cause not only material, but more moral damage, thus undermining the
grounds of the development of Armenia’s insurance market. “One should
not deny that the Armenian insurance market is far from being
perfect. Unfortunately, dumping tariffs and imitation of re-insurance
and cases of groundless denials of insurance payments take place, but
at the same time during the last years the national insurance market
grew, strengthened and very positive processes are taking place in the
market”, Altunian said. During the last years the Armenian insurers
established very close business mutual relations with largest and
authoritative insurance companies of the West, many of which are in
the lead in the world ratings. the insurance market of Armenia became
quite attractive for foreign, including institutional investors as
well.

Moreover, this new practice of invalidation of the policies of
Armenian insurance companies by the consular services of the countries
of the schengen zone contradicts both the goals of the development of
Armenia’s economy and the acting legislation of Armenia, Altunian
said. In particular, the Law on insurance and Civil Code of Armenia
prohibit sale of policies of foreign countries and those unlicensed
organization, who today sell them for these embassies, in fact, are
liable to be punished according to the Criminal Code, the head of the
association said.

In order to avoid undesirable problems, Altunian suggests consular
services to restore earlier acting institute of accreditation of
Armenian insurance companies in foreign diplomatic representations and
in this connection to establish closer consultative relations with
Insurance Supervision of the Ministry of Finances and Economy and
Association of Insurers.