“Basically, we are not against compulsory car insurance,” Ara Nranyan, a member of the ARF-D parliamentary faction, told journalists December 27. Compulsory car insurance is an important means of dealing with social problems in European countries. However, it is not the best solution with respect to social; risk management, Nranyan said. Medical insurance was more rapidly introduced than compulsory car insurance in European countries, he said.

As regards the RA Law on Compulsory Car Insurance, the MP pointed out two flaws. First, the calculations are based on expected 32,000 car accidents, whereas only 2,000 accidents are registered in Armenia. “Even if the number of car accidents shows a 4-5-fold increase after car insurance has been introduced, it means that the insurance premium rates are based on grossly inflated calculations. If the rates were two times lower, people would be much less discontented,” the MP said.

Secondly, the assessment of the crashed car’s repair costs. “We will are going to encounter serious problems in assessing property damage,” the MP said.