Since January 1, 2012, the insurance compensation limits in the mandatory car insurance sector have been raised for drivers in Armenia. It is noteworthy that the rise in the insurance compensation limits will not cause rise in car insurance tariffs paid by drivers.

According to the Armenian Car Insurance Bureau, the compensation on insurance policies in cases when a person’s health or life are concerned, has been raised by 300,000 drams ($773), totaling 3,300,000 drams (about $8,505) per each victim. And when several people are victims in one road accident, payment on the insurance policy cannot be more than ten million drams (about $25,773) – one million drams ($2,577) more as compared to previous year.

The compensation of property damage has also been raised by 300,000 drams (about $773), thus making 1 million, 800 thousand drams (about $4,639) per each car accident. The compensation funds to cover the expenses of a victim’s funeral now make 1 million drams (about $2,577) as compared to 650,000 drams (about $1,675) last year.

According to the Road Patrol Service of the Armenian Police data, 2,319 road accidents were registered in 2011 (by 345 accidents more as compared to the previous year), and from January 1 to February 15, 2012, a total of 218 road accidents were registered.

“Because this is a social-oriented program, the rise in compensation limits is connected with not the increase in car accidents but is rather directed at full compensation of accident damages, so that drivers themselves pay as little money as possible for damages caused by road accidents,” says Armine Hakobyan, the press officer of the Armenian Car Insurance Bureau.

“Such changes are important for our clients, because their interests are taken into consideration and are defended. This is a step towards the customer,” says public relations specialist at the Ingo Armenia Insurance Company Gayane Davtyan.