"The bill was submitted to the parliament in December 2018 and hasn't been considered since then. We are actively working with the parliament, committees and it seems that we have their support, but at the same time we are not supported. They never started to consider the bill and most likely it is about populism, politics and future elections. A priori, it is believed that this topic brings disadvantage from electoral point of view. Although this is debatable," Devi KHECHINASHVILI said.
According to the insurer GPI Holding, Georgia is currently one of the few countries that do not have compulsory motor insurance. "This is often very surprising for investors, as well-developed insurance is one of the basic elements of the investment climate in any country. If the law on compulsory motor insurance is adopted, this will contribute to the development of the insurance market in general. Besides, this is an important social problem. In 2018, up to 40,000 car accidents were registered in Georgia, 10,000 people were injured and 459 died," the company explained.
At the request of the EU, compulsory motor insurance was supposed to be introduced in 2019, however, it did not happen. According to GPI Holding, transition to compulsory insurance is a complex process, both for vehicle owners and the insurance market. As of now, only 70,000 cars are insured in the country, and if the law is adopted, this figure should grow up to 1 million, commersant.ge writes.