YEREVAN.- The mandatory automobile insurance system was installed in Armenia on October 17, 2010. This process can generally be considered a success, albeit discussions over insurance fees still continue. For each vehicle these fees range between 19,000-110,000 drams ($50-$295 US), depending on several factors, and an average of approximately 36,000 drams ($96) are collected from each vehicle.    

Suspicions that car insurance fees are too high and they secure superprofits for insurance companies seem to be justified. As of October 1, 2011, 13.5 billion drams ($36,180,100) were collected as automobile insurance fees, and 3.5 billion drams ($9,380,000) were paid as insurance compensation. That is, the insurance compensation payments comprise around 25 percent of collected insurance fees.   

Originally, the amount for insurance payments was calculated based on 30 thousand yearly, or 2,500 monthly, car accidents. But the current course shows it is highly unlikely there will be more than 2,000 accidents per month. Approximately 16 thousand compensation petitions were complied with in nine months, and the average compensation payment amount is around 220,000 drams ($590).

A maximum of 9 million drams ($24,120), in case of personal damages, and 1.5 million drams ($4,020), in case of property damages, are specified as insurance compensation payments for one accident.