Armenia 'awards' money to some people through car insurance, says opposition MP

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.