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Enactment of a Compulsory Auto Insurance Law may be Postponed

The enactment of a compulsory automobile insurance law may be deferred until 2017-2018. According to President of the Georgian Insurance Association Devi Khechinashvili ,  if the active work on the bill on Compulsory Insurance against Civil Liability in respect of Motor Vehicles  has not  started at the end  of the year and it was not  initiated in the Parliament, it will not  enter into force  as long as the Association Agreement  signed with the European Union  requires.

Khechinashvili states that the enactment of this law is very important for the country, although he has no confirmed information as to when the government is going to initiate a draft law to parliament.

Khechinashvili  notes that  it is also worth noting the government’s positive attitude in this direction.

President of the Insurance Institute of Georgia Giorgi Gigolashvili  considers an enactment of the auto insurance  necessary and important. In his words,  Georgia  needs this  law and the Insurance Supervision Service will submit it to Parliament.

Gigolashvili  doesn’t expect the bill  will be  suspended due to  Lasha Nikoladze’s  resignation from the post  of the head of the Insurance Supervision Service because he believes that “this process will not depend on any  person.”

A few months ago, Lasha Nikoladze, who stepped down from the position on his own initiative a few days ago, told  “Commersant” that auto insurance would be  mandatory next year without specifying the date.

Nikoladze said that the work on the draft law was  still in progress. The legal part of the law was virtually completed, several variants of the numerical part were calculated by  the insurance mathematicians (actuaries).

Insurance operates on the following principle: if the  owner of the vehicle is guilty of a traffic accident, the driver is liable to pay  damages to the victim inflicted on the body, health, life or property. The insurance company will cover the damage instead of the insured driver. It is unknown how much the insurance  package will cost, however, experts believe that the price will not exceed $ 100.

Chairman of Parliament’s  Finance and  Budget Committee David Onoprishvili does not comment on the bill  on a compulsory  auto insurance as well  as  the resignation of the head of the Insurance Supervision Service.