Yerevan/Mediamax/. There are no grounds to expect abolishment of the Compulsory Third Party Liability Insurance for Motor Vehicle Owners (CTP) in Armenia.

Mediamax reports that Executive Director of “INGO Armenia” Company Levon Altunyan said this in Yerevan today. He noted that the Armenian legislation and the normative base, which regulate CTP, are well-reasoned and based on deep analysis.

Levon Altunyan stated that, as opposed to Armenia, in Georgia this type of insurance was introduced “spontaneously, copying the European examples without taking into account the local specificities”, and as a result it led to a larger number of fraud and bankruptcy of the guarantee fund.

Executive Director of “INGO Armenia” expressed an opinion that from next year, the cost of CTP policies may increase, taking into account the fact that the number of traffic accidents, registered in Armenia from January 1 to 17, 2011, equals to the number of all traffic accidents, registered in 2010.

Levon Altunyan informed that the insurance cases of CTP make about 49% of “INGO Armenia” portfolio or AMD 1.8bln, and the number of cars, the liability of the owners of which is registered in “INGO Armenia”, makes about 62 thousands, or 18% of the car fund of Armenia. The process of compensation payment in the company takes 3-4 days.