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Armenia 'Awards' Money To Some People Through Car Insurance, Says Op

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  • Armenia 'Awards' Money To Some People Through Car Insurance, Says Op

    ARMENIA 'AWARDS' MONEY TO SOME PEOPLE THROUGH CAR INSURANCE, SAYS OPPOSITION MP

    Tert.am
    17.12.10

    The Armenian government is channeling money to some people through the
    mandatory car insurance, Armen Martirosyan of the opposition Heritage
    party has said at a debate with Gagik Minasyan of the Republican
    Party of Armenia (RPA).

    "The government awards money to some people. We consider this as a
    legalized robbery," said Martirosyan.

    Though the government introduced some amendments to the regulations for
    mandatory car insurance following complaints by some MPs, Martirosyan
    thinks that the problem will not solve that way and that systemic
    changes are required.

    Further he said that Heritage party does not oppose the idea of car
    insurance, but finds its introduction premature given the current
    socio-economic situation in Armenia. The party is also against those
    mechanisms used for mandatory car insurance.

    Martirosyan also expressed his discontent over the fact that the fees
    for insurance are as high as in Eastern Europe, while the compensation
    is rather small.

    Besides, according to him, the process of mandatory car insurance
    in Armenia is aimed at gaining super profits for a few people to get
    richer as a result - something acceptable for the RPA.

    Gagik Minasyan countered him, saying the fees for mandatory car
    insurance are lower compared to those not only in Eastern Europe,
    but also in Russia.

    Concerning the super profits, Minasyan mentioned that the profit
    gained from the mandatory car insurance makes 2%.

    "Just show me a business that gets 2% in profits. I think they will
    be wasted efforts as there is no such thing," he explained.




    From: A. Papazian
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