Yerevan /Mediamax/. Micro insurance model for citizens with low incomes is in process of implementation in Armenia.

Mediamax reports that the Chairman of Insurance Market Participants Association of Armenia Levon Mamikonyan said this today, speaking at the presentation of the program in Yerevan.

According to him, the micro insurance model is being implemented by the Microfinance Center for Central and Eastern Europe and the New Independent States (Polish non-governmental organization) and the Center for Micro Insurance (a company, located in the USA) at the financial support of the International Fund for Agriculture Development (IFAD).

Levon Mamikonyan informed that two insurance companies – “Nairi Insurance” and “Cascade Insurance”, agreed to participate in implementing micro insurance in Armenia. The companies elaborated packages on health and accident micro insurance, which meet the needs of people with low incomes. At that, the conclusion of an annual contract on providing micro insurance services provides for monthly payment of an insurance fee from 60 to 2200 AMD by the customer. Insurance compensation will make from 150 thousand to 1.5mln AMD.

“Taking into account the fact that it is planned to provide micro insurance services in the entire territory of Armenia, the contacts between the insurer and the customer will be realized by mediators, who have work experience in regions”, Levon Mamikonyan stated, specifying that the mediators of “Cascade Insurance” and “Nairi Insurance” will be, respectively, “Aregak” Universal Credit Organization and “HayPost” postal operator.

Executive Director of “Cascade Insurance” Garnik Tonoyan stated that the pilot program on implementing micro insurance model will be realized in May, 2009, in Kotayk marz of Armenia, and if it is successful, starting October, 2009, micro insurance will be implemented in the entire territory of the country.

Chairman of “Nairi Insurance” Board Vahan Gabrielyan noted that, since the sums of insurance compensation will not be large, the insurers will not demand from the customers to undergo medical examination or any other procedures.

“In order to avoid cases of insurance fraud, the compensation liability will come into effect in a month after concluding the contract”, Vahan Gabrielyan stated, adding that the given condition will not affect customers, prolonging the contract.