Motor third-party liability insurance is a mandatory insurance for motor vehicles that insures the driver's liability towards third parties (pedestrians, drivers, and passengers of other vehicles), compensating for personal and property damage caused to them.

No. In the Republic of Armenia, an MTPL insurance contract is mandatory for driving on public roads.

Driving a vehicle without a valid MTPL insurance contract is subject to a fine of 100,000 AMD.

The required documents are:

• An identification card or passport and social card.
• Vehicle technical passport.
• Owner's driver's license.
• Customs declaration (in case of import) or purchase and sale contract if the vehicle's owner is not the person specified in the technical passport.

If the contract is to be signed on behalf of the policyholder by their authorized representative, the power of attorney and the authorized person's passport must also be submitted.

The MTPL contract is concluded for a minimum period of 3 months and a maximum period of 1 year.

In cases stipulated by the Customs Code of the Republic of Armenia, the MTPL contract for motor vehicles is concluded for a minimum period of 10 days.

A fine of 100,000 AMD is imposed for not having an MTPL contract. This fine can be reduced to 25,000 AMD if an MTPL contract is signed and presented to the traffic police officer within 24 hours of the fine being issued.

The MTPL contract covers:

• Personal injuries caused to third parties, which includes:
  • Damage to the victim's health as a result of a car accident
  • Resulting lost wages (income)
  • The death of the victim
• Property damage

In case of personal damage:

• 33,000,000 AMD per insured case
• 3,300,000 AMD per insured person

In case of property damage:

• 18,000,000 AMD per insured case
• 1,800,000 AMD per insured person

• Vehicles with a speed of up to 50 km/h or an engine capacity of less than 50 cm³.
• Vehicles used for sports or entertainment purposes in designated areas, solely when operated within those areas.
• Vehicles exclusively intended for operation on non-public roads.
• Vehicles imported into the Republic of Armenia without being driven until they are used within the territory of the Republic of Armenia.

Bonus-Malus is a system of discounts (bonuses) and surcharges (maluses) applied to insurance premiums in the field of Motor Third-Party Liability (MTPL) insurance. Based on your driving history, you are assigned a Bonus-Malus class. This class then determines the amount of your insurance premium.

If you are a low-risk driver, you can receive a discount of up to 50%. If no motor vehicle accident occurred due to your fault during the contractual year, you will receive a bonus of 1 class, and the insurance premium will decrease by 3%. In the case of such discipline, your bonuses will increase year by year in the same way.

And if you are a risky driver, the insurance premium can be up to 2.5 times more.

You can get more detailed information about the risk groups of the Bonus-Malus class and their corresponding coefficients by visiting the "Bonus-Malus" section of the appa.am website.

To terminate the Motor Third Party Liability (MTPL) insurance contract early, you must submit an application to the insurance company that issued the contract.

If the contract is terminated unilaterally, solely by you, then the amount paid for the unexpired term of the contract may not be fully refunded.

CASCO is a type of insurance that compensates for damage to the insured's car, even if the insured is at fault for the accident.

CASCO insurance is not mandatory, and you can drive even without it.

The CASCO contract is valid if:

• The vehicle is a light passenger vehicle.
• The vehicle is used solely for personal purposes.
• The owner is an individual.
• The authorized drivers are 23 years or older, and the driving experience is 3 years or more.

• The vehicle owner's identification card or passport and social security card
• The vehicle registration certificate
• The authorized driver's passport, driver's license, social security card
• If an authorized person represents the vehicle owner, the appropriate power of attorney and the authorized person's passport

To sign a CASCO contract:

• Choose one of the operating insurance companies and review the offered rates.
• You can sign the contract either online or at the insurer's office.
• You can also order the contract by phone, providing the necessary documents and signing the contract at a location convenient for you.

The CASCO contract is usually concluded for a period of 1 year.

The amount of the insurance premium is determined based on the market value of the car, the number of drivers, and the number of passengers insured.

To find out the amount of the premium, you can contact the insurance company of your choice, provide the necessary information, and an employee will make the appropriate calculations.

• Collision of the insured vehicle with another vehicle
• Collision of the insured vehicle with another moving or stationary object
• Fire and natural disasters
• Falling of other objects, including snow and ice, on the insured vehicle
• The overturning or falling of the insured vehicle from a height
• Theft of the insured vehicle, as well as such an attempt to do so
• Damage to the insured vehicle as a result of illegal actions of third parties

Insurance companies generally do not cover:

• Damage or theft of license plates
• Damage to tires
• Minor damage to the paintwork of a car
• Damage caused by driving under the influence of alcohol or without a driver's license
• Damage caused by speeding

• With a CASCO contract, you can also insure against damages caused by third parties for an additional premium, as is the case with MTPL. This type of coverage is often also referred to as MTPL.
• You can also insure the driver and passengers of the car, and bodily injuries they receive as a result of accidents will be compensated.

Insurance companies also offer a number of other services:

• Free tow truck service
• Tire vulcanization service
• Free legal advice
• Provision of another car during repairs

Contact your insurance company and provide a detailed description of the accident location and the damages you suffered.

Depending on the nature of the accident, the insurance company may send a representative or invite the Traffic Police to record it. In the case of small and simple damages, insurance company representatives often do not approach the scene of the accident but record it remotely by exchanging photos of the accident online (via Viber, WhatsApp applications, and other means).

After the application of the car owner or driver (often without a formal application), insurance companies conduct a damage assessment and organize repairs with their partner repair companies. New cars are mainly repaired by official repair companies.

You can appeal the conclusion of the initial examination by requesting a re-examination. If the conclusion of the re-examination also does not satisfy you, you can appeal it by requesting a second re-examination. You must submit these requests through your insurance company.

The re-examination takes place within 2 business days after the application, and the second re-examination takes place within 5 business days.

Please note that a fee of 20,000 AMD is required for a second re-examination request within the specified timeframe. There is no fee for the 1st re-examination.

The results of the re-examination can only be appealed in court. Before the trial, within 3 business days of filing the appeal, a vehicle inspection is conducted according to established procedures. The inspection results are then submitted to the court.