INFRASTRUCTURE FOR IMPLEMENTING CALI TO BE CREATED IN ARMENIA BY END OF 2007
ARKA News Agency, Armenia
July 27 2007
YEREVAN, July 27. /ARKA/. The infrastructure for implementing
Compulsory Automobile Liability Insurance (CALI) will be created
in Armenia by the end of 2007, said Chairman of the Central Bank of
Armenia (CBA) Tigran Sargsyan.
He said, in particular, it is planned to create database for all car
accidents, and all the insurance companies will join it.
Besides, Sargsyan pointed out, that it is planned to create an
infrastructure for implementing CALI, in particular, registering
insurance companies.
"The register will represent a united database, the participation
of all insurance companies in it will be compulsory. After this,
the CBA will start elaborating terms and schedules for implementing
this type of insurance," Sargsyan said.
According to his estimations, the CBA will be ready to implement CALI
from January 1, 2009.
At the same time, Sargsyan pointed out that in connection with
the market liberalization, after the adoption of the new Law "On
insurance", the competition on the market will allow the consumer
to use the services of the company which will offer more qualitative
and available services.
In particular, market tariffs, publications of companies’ tariff plans
and use of punishment system in case of deviation from accepted norms
– all these will contribute to the formation of the above-mentioned
system.
Own capital of Armenian insurance companies made AMD 4.9bln against
minus AMD 20.6bln in 2006
As of June 30, 2007, the total volume of the insurance companies’
authorized capital made AMD 4.7bln against AMD 5.3bln in 2006. The
amount of insurance bonuses in the first half-year of 2007 made AMD
2.5bln against AMD 3.3bln for the same period in 2006.
The number of licensed insurance companies reduced by 7: on June 30,
2006 there 18 companies and on June 30, 2007 – 11.
Starting from January 1, 2006, the Central Bank of Armenia, within
which the system of united financial control functions, has been
implementing control over the insurance market. ($1 – AMD 337.64).