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Parliament to Discuss Third Party Insurance Bill

Georgian insurance sector calls for introducing third party obligatory insurance component. New regulations will draw 70 million USD to the country.

The due bill has been already developed and forwarded to the government”, Devi Khechinashvili, head of Association of Insurance Companies, told Business Course.

-Mr. Devi, insurance companies raised this issue long before and what job is being performed in this direction?

-An important fact took place several weeks ago.  The Government started discussing a specific project that includes several  important ideas. There is a law on civil safety that regulates government responsibility  to a certain degree. Corresponding changes  are made so as the Government make rapid reaction, including to the facts like Children World shopping mall. We should adopt this bill to authorize the Government to discuss the mentioned issues itself. Naturally, fairs are one of the most important issues. There are 220 fairs in Georgia and the issue of sellers is also very important.

-What about technical details of third party insurance component?

-Insurance companies are united under a joint insurance agreement. They are insurers themselves, but one agreement and one package will exist, because it is a standard package and it will be offered everywhere.

We will see how it will work. This change will enter the Administrative Code and traffic patrol will be entitled and authorized to detect similar vehicles and fine them and so on.

It is important how this mechanism will work, because drivers  should understand importance of this mechanism. We will get ready for these regulations. Everything will be open within one space, where everybody will be able to pass authorization.

What do you think when the law will come into force?

-We hope the parliament will approve the bill in spring session and we will start implementing the law in September-October.