Mandatory Auto Insurance Coverage in Armenia To Begin on January 1, 2011

Starting this week insurance companies in Armenia have started selling policies in anticipation of the new law on automobile insurance. Starting next January 1, owners of cars which do not have insurance will be fined.

If a car owner does not insure his vehicle he will be liable to a fine of 5,000 drams ($13) daily for each day until a policy is issued. Cars will carry special stickers as proof of insurance. In case of other violations (false insurance or not displaying proof) the amount of the fine will be 10,000-500,000 drams ($16-$1,388).

Many owners of the 300,000 vehicles registered in Armenia welcome the new law. Others, though, question whether the law will be aptly applied, or if it might be another temptation for law enforcement to apply "the Armenian way" (meaning bribes.)  Read more... (957 words)

Armenian News