The opposition in Armenia intends to stage protests over the parliament-adopted compulsory car insurance law which it views as untimely and a cause of social tensions.

Insurance policies of what is known by its Armenian abbreviation as APPA have been sold by eight insurance companies in Armenia since October 18. Motorists who do not buy a policy, priced between 19,000 and 106,000 drams ($50-$295), depending on the type of vehicle, driving experience and age, will face hefty fines beginning January 1.

Meanwhile, the opposition Armenian National Congress (ANC) and the Heritage party have issued statements lambasting the government for the flawed legislation and process.

Heritage even said it would initiate a ‘motor rally’ of protest later this month in Yerevan, Gyumri and Vanadzor to show the discontent of motorists with the policy. The organizers of the December 21 action say the protests will continue until the government reconsiders the law.

While many motorists have already complied with this novelty that the government says will favor the poor by compensating their third-party damage, still many are either short of money or cautious of buying an insurance policy.

According to police data, there are about 450,000 car owners in Armenia at present and growing.

For car owners, insurance policies come as an additional expense during the costly New Year holiday season and amid general inflation. Those who fail to buy these policies will have to pay a fine of 50,000 drams (about $140) each time they get flagged down by the road police.

The Heritage and Dashnaktsutyun factions were opposed to the law still when it was discussed in parliament earlier this year. However, it was eventually adopted through the coalition majority’s efforts.

Heritage, however, has decided to continue the struggle, stressing that it does not oppose insurance in general, but is against it being carried out in heavy social conditions and on what it sees as flawed principles.

“We will try to do everything for the government to acknowledge that the introduction of APPA at this point is inappropriate, this decision was hasty and will unnecessarily put an additional financial strain on the population of Armenia,” said senior Heritage member Armen Martirosyan.

According to Martirosyan, the party is concerned not only about the time of the introduction of the compulsory car insurance, but also about the law proper that enables “a few private [companies] to make money at people’s expense”.

Besides, according to Heritage’s representatives, breaking the principles of market economy, the authorities of Armenia have not allowed insurance companies to set prices themselves, which excludes competition and lower insurance tariff.

Armenia’s main extra-parliamentary opposition alliance, ANC, is also against the car insurance process that it says “is not at all urgent in these conditions fraught with a social cataclysm”, but former president Levon Ter-Petrosyan’s supporters do not yet plan to join the Heritage action.

While many pro-establishment politicians say that APPA has merely become a good occasion for the opposition to stir a new wave of protest, some of them also see a risk of social tension.

Republican Party lawmaker Rafik Petrosyan says that he was also against the law, but could not resist the party’s decision.

“I said then that this is a new form of robbing the people. Before that, garbage collection fees were raised. Surely this will create tension, but the law cannot be canceled,” Petrosyan told ArmeniaNow.

The only solution, according to Petrosyan, is lowering the insurance policy prices.

Finance Minister Tigran Davtyan also signaled there was no backpedaling in the process as he answered Heritage MP Martirosyan’s question in parliament last week.

Davtyan said giving up the process half way through it was “dangerous” and added that insurance is an international practice.

Martirosyan countered that it is also “international practice” when citizens earn a normal salary. Besides, he said, “one shouldn’t be falling into an abyss and saying just because we are rolling down we should go all the way. One can stop and go back and minimize the damage.”