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30 mln is Expected to Enter Georgia by Insurance of Abroad Registered Cars

30 mln is Expected to Enter Georgia by Insurance of Abroad Registered Cars

Travelers cannot cross the Georgian border without their own insurance package.

The owner of the registered vehicle abroad will be offered 1-year, 1-day and 15-day packages, respectively 30 GEL; 50 GEL and 292 GEL.

The compulsory tariff package is determined for insurance of the bus (1Y- 480 GEL) and motorcycle, to the third person.

The initiative of the State Service of Insurance Supervision has also been supported by the Parliament on financing of the abovementioned service. It will be considered as an article in the plenary session after the election moratorium.

Kote Sulamanidze had to answer several questions of the parliamentary minority: in which country this model is operating; which agency issues policies and why the surveillance budget is increased at the expense of private business.

According to Sulamanadze, the insurance broker sells the policies and in many countries, exclusively 1 insurance company. To his opinion, the model of Georgia is much more progressive, as the amendments will be the pledged subsidiary of all insurers.

The opponents evaluated this innovation as a step-behind, because holder of the exclusive license should be selected by the competition, as it is more reliable instead of a collective model.

According to Kote Sulamanidze, Georgia must pass these stages before the entry into the global green card space. The green card is universal and operates in several countries simultaneously.

However, 15 insurance companies shall equally distributed money from the financing of unauthorized transport at the first stage. Therefore, factor of the competition is proportionate in the future. There is 100 GEL for a car and 200 GEL – a bus.

Kote Salamanidze discusses changes in the context of export promotion. Each package is a foreign currency injecting. According to the 2016 statistics, 1.8 million cars crossed Georgia’s border and roughly 30 million flows.

Policies will be sold from January, 2018.Financing of the supervision will start this year from 0.5% rate (Bruita Generated Premium) and 1% from January.