The Bonus-Malus system is still operating to the prejudice of the insurance companies, Samvel Grigoryan, Chief Executive Officer of RESO insurance company, has told ArmInfo.
"At present, the companies are providing bonuses rather than receiving maluses, since we calculate the maluses for a calendar year. That is, the balance is still being formed to the prejudice of the insurance companies," he says.
Grigoryan says that the system was launched in 2013 and the bonuses were introduced at the initial stage. The maluses were introduced in 2014. "The system logic is as follows: the bad drivers have an expensive insurance policy and the good drivers enjoy a cheap one. The ideal situation for the insurers is when the expenses on bonuses are covered by the revenues from the maluses," he stresses.
In the meantime, Grigoryan thinks that the Bonus-Malus system is gradually changing the consciousness of the car owners, who start realizing that the fewer accidents they register, the cheaper insurance they will enjoy.