Will APPA fees go up?

06/02/2012

The director of Rosgosstrakh company Rafael Minasbekyan yesterday stated that sooner or later the APPA fees will be revised. According to the Armenian traditions “revision” most probably means “increase.” And the justification of the increase is that the insurance companies not only don’t receive super incomes (as many other thinks) but also lose in certain case (this trend already exists). In that case, the drivers will have to pay more for APPA. The pessimism of the insurance companies creates astonishment. 55% of the APPA funds is returned to the drivers as compensation for damage. It means that the damage rate of the companies depends on the number of road accidents. Starting from January 16 of the current year technical means for fixing traffic violations have been installed (the speed meters and cameras), which according to the patrol police, will essentially reduce the number of accidents and increase the driving discipline. This will decrease the rate of APPA reimbursement. The healthy logic prompts that the opposite should have happened and the APPA fees should have been reduced. But there is no word about that. The insurance companies, unlike the police, are not very optimistic.