BAKU, Azerbaijan, Sept. 7
By Tamilla Mammadova – Trend:
The lack of legislation can be considered the main reason for the car insurance market lag in Georgia, Trend reports via Georgian media.
As reported, the draft law on the introduction of compulsory third-party liability insurance of car owners, on which the development of the insurance industry depends, is delayed. The bill was brought before parliament at the end of 2018.
"The situation in the car insurance market is really bad and will not be improved until the compulsory auto insurance is introduced. It is obvious that health insurance, which covers more than 50 percent of our business, is on the profit-loss edge. We strive to are trying to maintain positions in an intense and competitive environment and even to grow that requires new products released to the market," said President of the Insurance Association Devi Khechinashvili.
According to the available data, almost 1.5 million cars are registered in Georgia while less than 100,000 are insured.
According to the Insurance Supervision Service, 98,594 cars are insured in Georgia that is 7 percent of the total fleet.
Statistics show that in the same period of 2020, in total 92,753 vehicles were insured which was also 7 percent of the total vehicle fleet.
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