Activating driver’s liability compulsory insurance is inevitable – AYFB
Driving force of the insurance industry is obligatory insurance, Yet,
in Georgia, such simple matters as easening vechile and other
insurances to protect and comfort citizens are not resolved.
In every developed country there are numerous such insurances.Obligatory
insurance in these countries is the main tool of risk management.
One major part of obligatory insurance is Motor third party vehicle
insurance and it covers civil legal liability for damage caused to third
party by driving the motor vehicle, which means that this will not be
paid by a driver, but by the insurance company which issued the policy.
Works on the “Compulsory Insurance of Liability of Vehicle Owners
towards Third Parties” bill,in Georgia began in 2013 and postponed to
2017,this year.
The activation of the mandatory insurance for vehicle owner
responsibility to be of utmost importance to the country’s economy and
its residents, as well as being critical for the insurance sector
itself-According to the Association of Young Financers and Businessmen
(AFBA)
Currently AFBA is facilitating a study which will make it clear how
informed car owners are regarding the insurance product about to be
implemented in the future, as well as gauge the loyalty of vehicle
owners towards the mandatory responsibility insurance. The study will
evaluate the social-economic impact of this product throughout its
implementation progress.
Implementing the mandatory insurance for vehicle owner responsibility
was announced since 2015, although there’s no according legislative
initiative in the parliament from the government’s side. Relevant
parliament committees are waiting for that very governmental initiative,
after which certain procedural steps will be made.
Wholesome insurance industry assets throughout advanced countries
fluctuate between 25% and 5% towards internal products. From this
standpoint Georgia’s state doesn’t offer much perspective. For the
country to have a higher level of insurance culture and at the same time
experience growth in the sector and turn its advancement into an
irreversible process, the insurance companies itself must increase
marketing activities and intensively start taking care of product
publicity. The second important condition is the implementation of
mandatory insurance products. For this angle the first step to be
discussed should be the matter of implementing mandatory insurance for
vehicle owner responsibilities.
Mr Devi Khechinashvili, President of
Insurance Association said that the government should take
responsibility for managing these risks, there needs to be a modern
system implemented which will, in technical terms, house itself entirely
in the cloud. There are international companies who can adapt cloud
systems to Georgia on short notice.
The Georgian market is an unattractive one for investors, since a market without insurance is practically unmanaged.
It’s important to seek arguments for the government and the parliament
to accept the MTPL law this year, so it becomes active in 2017.
Meanwhile, the needed infrastructure will be formed, which will be
relevant for user security. The insurance companies and the
administration will undergo serious preparations, as will the patrol
police and the drivers. Best case scenario would involve the law being
split in two stages, with one covering local insurance on damages
inflicted to Georgian citizens via transit movements, and the second
being the introduction of the insurances themselves.
MTPL is an insurance of a totally different nature which has no-fault
regulations, which means it provides compensation no matter the
circumstance.
MTPL is a social project, with its main goal being to ensure swift and
bureaucracy-free compensation of all vehicle accident damages.
Insurance must find a way into government execution practices, and
mandatory insurances will create the needed drive for this to happen.
This will contribute in advancing the market and attracting investors,
there is no otherwise technical issue in activating the vehicle
insurance. It’s the changing of the law and the attitude in governmental
planning that holds the utmost importance.
President of Georgian Insurance Institute George Gigolashvili told to CBW that the financial security of insured individuals during
vehicle collision accidents will be high, insurance companies will have
additional incomes, the staffing for this type of insurance will
increase and the infrastructure will experience advancements.
It will lessen the problematic matters around the fees for compensating
damages after vehicle collisions and will hasten these compensation
deadlines, so that the victims don’t have to wait months for their
recompense and receiving only part of it. At the same time the insured
vehicle owners won’t have to get into debt or sell their property in
order to compensate inflicted damage.
The implementation of the mandatory vehicle ownership responsibility
insurance to be one of those initiatives which will considerably raise
the social security of the citizens and become a serious contributing
factor in business advancement. Accordingly, its implementation and
timely activation is in everyone’s interests, be this vehicle owners,
the insurance sector or the government.
“Business week caucasian “
