Armenia’s CMTPL system is proud 10 years old. Back in 2010, CBA introduced mandatory insurance of third party liability risen from employment of motor vehicles. It was aimed at solving a social problem: the prevention of unfortunate events following the guilty driver’s inability to compensate for the damages done. Throughout the years, the system proved itself successful, yet it still continues to improve itself. Notable achievements and milestones were:
- significantly simplified contract purchasing process,
- consolidation of all affairs concerning an accident, at road police,
- formation of self-regulatory system with agreed declaration for relatively lighter accidents,
- administration of direct compensation procedure (the injured, who is also a policyholder, receiving their compensation from their insurer, then insurance firms sorting out their internal affairs separately),
- transition to 100% email notification system,
- advancement of Bonus/Malus system (adjusted rates for incentivizing good and alert drivers).
This June, the Armenian Motor Insurers Bureau (regulatory body overseeing CMTPL system) appointed their new General Manager, Vaghinak Eghiazaryan. Prior to that position, Mr. Eghiazaryan was Head of Banking Supervision Division at the Central Bank of Armenia.