Insurance laws Armenia
The insurance sector in Armenia is regulated by the Central Bank of Armenia (CBA), which acts as the integrated financial regulator for the entire financial system. The CBA is responsible for licensing, supervising, and setting the regulatory framework for insurance companies, as well as promoting financial literacy and consumer protection.
Here are the key aspects of insurance laws and regulations in Armenia:
Regulatory Framework
The legal framework for insurance activities in Armenia is primarily governed by the Law on Insurance and Insurance Activities. This law sets out the requirements for the establishment, licensing, and operation of insurance and reinsurance companies.
The CBA plays a strategic role in developing the insurance market, ensuring its stability, and aligning regulatory standards with international best practices.
A key aspect of the CBA's role is its risk-based approach to supervision, which involves regularly reviewing and updating regulatory standards.
Mandatory Insurance
Motor Third-Party Liability (MTPL) Insurance: This is a key mandatory insurance in Armenia. All owners of motor vehicles are required to have MTPL insurance, which covers damages to third parties in the event of a car accident.
Mandatory Health Insurance: Armenia is in the process of rolling out a mandatory health insurance system. This has been a long-delayed reform, but plans are in place for a phased implementation. The goal is to provide universal health coverage to all citizens, with the state subsidizing contributions for vulnerable groups such as children, the elderly, and people with disabilities. This system is expected to be managed by a new insurance fund and a national register.
Types of Insurance
Armenian law distinguishes between compulsory and voluntary insurance. While MTPL is currently the only compulsory type, other forms of insurance are widely available on a voluntary basis.
Voluntary Insurance includes:
Health Insurance: Many large companies provide corporate health insurance to their employees. This is a rapidly developing sector.
Travel Insurance: Although not mandatory for entry into Armenia, it is a popular voluntary choice for travelers to cover medical emergencies, accidents, and other travel-related risks.
CASCO Insurance: This is a comprehensive motor insurance that covers physical damage to a car regardless of who is at fault, and is often purchased in addition to mandatory MTPL insurance.
Professional Indemnity and Other Liability Insurance: There are insurance options available to protect individuals and businesses from damages they may cause to third parties in the course of their professional activities.
Agricultural Insurance: The CBA, in collaboration with the government, has initiated a pilot agricultural insurance scheme to help manage risks associated with farming.
Consumer Protection
The CBA has a "for consumer" section on its website, providing information on financial services, how to file a complaint against a financial institution, and an online platform for comparing financial services.
The Armenian Motor Insurers Bureau and a Financial Ombudsman also exist to help handle disputes and ensure a fair and transparent market.
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