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Motor Insurance Terms and Conditions


According to Insurance Agency Contract N 451 signed between INGO ARMENIA ICJSC and HSBC Bank Armenia CJSC on 02.07.2012


1.1. Insurer: “INGO ARMENIA” Insurance CJSC.

1.2. Insured (also, Insurant): A person, who has entered into a motor vehicle insurance policy and/or a certificate (henceforth, the Policy) with the Insurer.

1.3. Insured person: A person specified in the Policy, in connection with whom occurrence of insurance event shall be deemed a subject of the Policy. Where an Insured person is not specified in the Policy, the Insured shall be deemed an Insured person.

1.4. Beneficiary: Any person entitled to receive the insurance indemnity stipulated by the Policy in case of occurrence of an insurance accident.

1.5. Object of Insurance: Property and personal interests subject to Insurance.

1.6. Insurance accident: An event or incident stipulated by the Policy, in the event of occurrence of which the Insurer shall be liable to pay an insurance indemnity to the Insured or the Beneficiary, in the manner and within terms and conditions determined by the Policy .

1.7. Insurance indemnity: Monetary or equivalent property expression of an amount, which the Insurer shall be liable to pay to the Insured or the Beneficiary upon occurrence of Insurance Accident stipulated by the Policy.

1.8. Insurance amount: The maximum amount of potential insurance indemnity subject to payment by the Insurer specified by the Policy.

1.9. Insurance premium: An amount paid by the Insured to the Insurer, against which the Insurer assumes the liability to indemnify the Insured (Beneficiary) for the loss caused by the insurance accident as stipulated in the Policy.

1.10. Deductible amount: A specific amount or a percentage rate of an insurance amount determined in a Policy, at the size of which the Insurer shall be relieved from making an insurance indemnity.

1.11. Authorized Driver: Any person defined as an authorized driver in the Policy.


2.1. Based on “Motor Insurance General Terms and Conditions” (henceforth, the “Conditions”) and governed by the effective Armenian legislation, hereby the Insurer enters into Policies with sections as follows:

  • Section I: Ground Motor Vehicle Insurance covering damages or losses caused to Sub-class (a) ground vehicles
  • Section II: Personal Accident Insurance covering injuries to Sub-class (d) passengers.

2.2. For application of the insurance coverage, it is necessary that the particular Section is included in the Policy, and the insurance amount(s) and premium(s) determined for the insurance of corresponding object(s) are specified therein.

2.3. The insurance shall be fulfilled by the Policy signed by the Insured with the Insurer.

2.4. The Insurer shall have the right to reject the offer to sign or renew the Policy.

2.5. The Policy shall apply in the territory of the Republic of Armenia (RA), if it is not stipulate otherwise in the Policy.

2.6. These Conditions shall be deemed indivisible part of the Policy.

2.7. The Insurer shall familiarize the Insured with these Conditions, provide a copy thereof and make a respective note about it in the Policy.

2.8. In the event of any inconsistencies between the Policy and the Conditions, the Policy shall prevail.

2.9. If, at the time any claim arises under this Policy, there is any other existing Insurance covering the same loss, damage or liability, the Insurer shall indemnify only its ratable proportion of loss, damage, cost or expenses. The amount of indemnity payable by the Insurer shall be determined by the ratio of the insurance amount specified in the Policy to the total insurance amounts effective under all insurance Policies.

2.10. The vehicle may be used/exploited by the Insured, or by his/her written consent (unless defined otherwise in the Policy), by any other person holding the right to drive the particular type of vehicle, who shall be recognized by the Insurer as an Authorized Driver.

2.11. The Insured or the Authorized Driver shall take all reasonable steps to safeguard the vehicle from any loss or damage and to maintain it in working condition.

2.12. If any provision of these Conditions or the Policy is held invalid or unenforceable, it shall be revised to achieve the intent of the Parties within the scope of respective laws and norms. Such invalidity or unenforceability shall not influence the validity and enforceability of any other provision of these Conditions and the Policy. Neither Party shall use the unenforceability of any provision to avoid their obligations under these Conditions and the Policy.


3.1. Object of Insurance shall be deemed interests of the Insured (Beneficiary, Insured person) not contradicting to the RA laws and related to the risks as follows:

  • Section I. Damage, loss, fire, and stealing/theft of vehicle and/or additional devices/equipments (tape-recorder, loudspeakers, antitheft device, communication means, etc.) permanently fitted therein, caused due to possession and/or use/exploitation of the vehicle;
  • Section II. Damage to life or health of Authorized Driver and/or passengers caused due to possession and/or use/exploitation of the vehicle;

3.2. Any vehicle may be insured on these Conditions, if:

  • it can be used used/exploited on general-purpose roads, according to traffic regulations;
  • it lacks any major mechanical damages or physical damages caused by corrosion;
  • it is owned or leased/subleased by the Insured under a lease/sublease agreement, or where the Insured has a property interest therein as defined by the RA legislation.



4.1 Notwithstanding cases stipulated in the Policy and Conditions, under Section I, insurance accident shall be deemed any loss of or damage to insured vehicle and/or permanently installed and insured additional equipments therein caused by actually occurred random event (incident), including:

4.1.1. Road traffic accident;

4.1.2. Fire (uncontrolled burning or explosion due to external influence, or spontaneous ignition of the vehicle);

4.1.3. Illegal actions of third parties, such as:

a) illegal deliberate actions, or attempt thereof, by third parties against the vehicle;

b) theft/stealing, loss/damage, robbery and/or illegal possession of vehicle with no intention to appropriate;

The following shall not be deemed an insurance accident:

  • appropriation of a vehicle by fraud (deceit, abuse of trust);
  • loss of a vehicle due to banditry assault.

4.2 Notwithstanding cases stipulated in the Policy and Conditions, under Section II, insurance accident shall be deemed any damage to the life and/or health of the Authorized Driver and/or passengers caused due to possession and/or use/exploitation of the insured vehicle.


4.3 In all cases, any loss, damage or body injury shall not be deemed an insurance accident and shall not be covered, if such loss, damage or body injury:

4.3.1. is due to deliberate actions of the Insured (Authorized Driver, Beneficiary);

4.3.2. arises from ionizing radiation or pollution by radioactive materials from any irradiated nuclear fuel or from any nuclear waste from the combustion of nuclear fuel or radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component;

4.3.3. is due to or in consequence of earthquake;

4.3.4. is due to or in consequence of terrorism, usurpation, banditry, formation of and/or participation in crime confederation and armed unions, strikes, mass riots or civil commotions;

4.3.5. is in consequence of war, invasion, act of foreign hostile forces, military actions (whether war has been declared or not), armed conflicts, civil war, rebellion, revolution, insurrection or military coup or usurped power.

4.3.6. is directly caused by pressure waves from aircraft or other aerial device traveling at sonic or supersonic speeds;

4.3.7. is due to discharge or spillage from the Insured vehicle resulting in water pollution or damage to environment that causes death, body injury or any other damage;

4.3.8. is in consequence of arrest of, foreclosure on, confiscation, nationalization, demolition of, or damage to the insured vehicle by the decision of court, government or other political or local authorities;

4.3.9. is caused to any property owned by, or under control of the Insured, Authorized Driver or passengers, or any property being conveyed in the insured vehicle.

4.4 The Insurer shall not be liable to cover any loss, damage or body injury whilst the insured vehicle is being:

4.4.1. used/exploited in condition of technical failure;

4.4.2. used/exploited by any person other than the Authorized Driver or, at the time of occurrence of insurance accident, the Authorized Driver has been deprived of driver’s license.

4.4.3. driven by any person or used for any purpose not allowed by the Policy;

4.4.4. used/exploited under the influence of alcohol, drugs, psychoactive drugs or, immediately after the occurrence of accident, the Authorized Driver has refused to take alcohol, drug or psychoactive drug tests;

4.4.5. used/exploited for purposes other than provided in technical specifications of such vehicle;

4.4.6. used/exploited for taking part in a race, trial, rally or other competitions;

4.4.7. used/exploited in violation of fire safety rules or, for keeping or transportation of explosive materials.

4.5 The Insurance shall not bear the liability to pay for:

4.5.1. Costs generated due to impossibility to use the vehicle, including costs of temporary replacement of such vehicle;

4.5.2. Stealing of parts, components, equipments and additional equipments/devices of the vehicle(s) after the insurance accident;

4.5.3. Depreciation and wear and tear of the vehicle;

4.5.4. Mechanical or electrical breakdowns, failures or breakages of the vehicle, which are not the consequence of the insurance accident;

4.5.5. Physical damages to state license plates, decorative wheel covers, manufacturer’s logo signs, tires and wheels, at the time of occurrence of which no other damage has been caused to the vehicle;

4.5.6. Loss of, or damage to additional equipments permanently fitted in the vehicle, if such equipments are not parts of manufacturing set, that is, they are not installed during the manufacturing of the vehicle, and are not specified in the Policy as insured additional equipments;

4.5.7. Any reduction in the market value of the vehicle following repairs;

4.5.8. Losses/damages to parts, equipments, additional equipments of the vehicle, which exist at the time of entering into the Policy;

4.5.9. Loss/damage to the vehicle if caused due to conveyance of the vehicle otherwise than driving, or
transportation as a cargo, or at the time of, or due to tow evacuation of the vehicle;

4.5.10. Loss/damage sustained during or in consequence of loading or unloading operations of the vehicle;

4.5.11. Failures of parts and aggregates of the vehicle, due to ordinary course of use/exploitation thereof, even if such failures are due to falling of other objects or materials therein;

4.5.12. Damage caused during and/or in consequence of repairs and installation of parts, components,
equipments and additional equipments thereon or therein;

4.5.13. Any losses caused in consequence of any type of accidents, which have occurred beyond the territorial limits specified in the Policy;

4.5.14. Financial and other related damages and/or losses suffered by the Insured, Beneficiary, Authorized Driver and/or passengers of the insured vehicle, such as lost/unearned income, fines, compulsory payments, costs and other expenditures associated with full and/or partial failure to fulfill obligations under any contract, even if such costs and expenditures are consequences of the insurance accident.



5.1. Insurance amount(s) is (are) determined separately for each Section and object of insurance, if otherwise is not prescribed by the Policy.

5.2. The insurance amount determined by the Policy for a vehicle and additional equipments may not
exceed the real (market) value of the latter as of the date of entering into the Policy.

5.3. The insurance amount of additional equipments as defined by the Policy may not exceed the Insurance Amount determined for the vehicle.

5.4. When calculating the real (market) value of the vehicle, the Insurer may rely on actual expenses (invoice, contract, etc.), or determine it independently.

5.5. Insurance at partial (not full) value [applied only to object(s) of insurance in Section I]. If the real (market) value of object of insurance is larger than authorized insurance amount of particular object of insurance, the Insured shall receive indemnity for damaged or lost object of insurance in the same proportion as the insurance amount bears to the real (market) value of the particular object of insurance, if otherwise is not stipulated by the Policy.

5.6. If the insurance amount of vehicle and/or additional equipments specified in the Policy exceeds the real (market) value thereof, the loss caused to the vehicle and/or additional equipments shall be subject to indemnity solely at the amount of real (market) value of such vehicle and/or additional equipments. In this case, the portion of premium paid in excess shall not be refunded.

5.7. When entering into the Policy, the Insurer shall be entitled to determine a deductible amount, upon incorporating a special notice about it in the Policy.

5.8. Under these Conditions, deductible amount shall be defined as non-contingent. The Insurer shall be relieved of paying an indemnity on each claim/accident at the size of the deductible amount, irrespective of the total amount of damage or loss.

5.9. If it is not stipulated otherwise in the Policy, after the payment of each insurance indemnity, the
insurance amount for the respective object shall be reduced by the amount of paid indemnity.

5.10. The Insured shall be entitled to restore original/initial size of the insurance amount, by making an addendum to the effective Policy. In this case, for such portion of the insurance amount that has been reduced due to payment of indemnity, the Insured shall pay a premium pro rata to the unexpired period of the Policy.



6.1. The size, the manner and the terms of payment of the insurance premium shall be determined by the

6.2. The premium shall be calculated by the Insurer, based on the real (market) value and other
characteristics of the object of insurance, the insurance amount, the type (class) of insurance, available
information on terms of the Policy, approved rates of the Insurer, applied discount and additional

6.3. The premium shall be paid in lump sum, if otherwise is not stipulated by the Policy. It shall be the right of
the Insurer to decide on the installments and the schedule of the premium.

6.4. If the Insured submits a claim to the Insurer before he/she makes the regular installment of premium, the
Insurer shall be entitled to retain an amount equal to the unpaid premium from the refundable amount.

6.5. The insurance premium of the Policy signed for up to one-year period shall be calculated pro rata to the
period, which however shall not be less than the minimum premium established by the Insurer.

6.6. Any person making the payment by the instruction of the Insured shall not obtain any right to the Policy
in connection thereof.

6.7. In the event of failure to pay the regular installment of premium, the Insurer shall be entitled to suspend
the Policy, without any notice to the Insured, starting from 00 hour and 00 minute of the day following the
payment date as determined in the Policy. The effectiveness of the Policy suspended pursuant to this
clause may be restored within 30 days once the respective premium is paid. The effectiveness of the
Policy is restored from the moment of payment of the premium (if otherwise is not defined by an
additional agreement), if no new physical damage/loss is caused the insured vehicle or parts and
components thereof. The Insured, at the request of the Insurer, shall make the vehicle available for
examination. In this case, the effective terms of the Policy shall not be renewed.

6.8. Any events occurred in the suspended period of the Policy shall not be deemed insurance accidents.

6.9. If the Insured fails to make the payment within terms defined by 6.7 hereof, the Policy shall be deemed
unilaterally terminated in 30 days after the suspension date.



7.1. The Policy is signed for one-year period, if otherwise is not stipulated therein.

7.2. The Policy is singed based on verbal or, if requested by the Insurer, written application of the Insured. At
the request of the Insurer, the Policy is signed based on the written application of the Insured, which
shall be deemed an indivisible part of the Policy. The form of the insurance application shall be
developed and approved by the Insurer.

7.3. The Policy shall become effective from 00 hour 00 minute of the date following the date when the
premium is paid (if otherwise is not defined by the Policy), but not earlier than the date specified in the

7.4. The renewal of the Policy shall be made by the Insurer, based on verbal or, in the event of material
changes in the risk and characteristics of the object of insurance, written application of the Insured,
through entering into a new Policy.

7.5. The list of persons authorized to drive the vehicle may be changed, by the consent of the Insurer, only
based on verbal or written application of the Insured, by producing an attachment to the effective Policy;

7.6. Attachments to the Policy shall become effective not earlier than on the date of bilateral signing thereof.

7.7. The Policy shall terminate:

  • by the virtue of expiration of the term stipulated by the Policy;
  • upon full execution of obligations of Insurer towards the Insured;
  • in cases stipulated by the Policy and Conditions;
  • In cases stipulated by the RA legislation.

7.8. The Policy may terminate early:

  • If after the Policy becomes effective the likelihood of occurrence of the insurance accident is removed,
    and the effectiveness of the insurance risk is terminated for circumstances other than the insurance
  • By issuing at least 15-day advance written notice to the Insurer. In this case, the Insured shall be
    entitled to receive premiums for the remaining effective period of the Policy;
  • On the initiative of each Party, if the other Party has violated the Policy and/or material conditions
    thereof, within three months after detecting the violation.

7.9. If the Policy is terminated on the initiative of the Insured, for violation of these Conditions by the Insurer,
the Insured shall have the right to receive the positive difference between the premiums paid by the
Insured in the effective period of the Policy and the Insurance Indemnity actually received on accident

7.10. If the Policy is terminated on the initiative of the Insurer, due to violation of these Conditions by the
Insured, the premiums shall not be returned to the Insured.

7.11. If the Policy is terminated on the initiative of the Insured, the Insurer shall return to the Insured premiums for the unexpired period of the Policy, calculated according to the following formula:

Pu = (P –Ii)*Up/Ep-AMD 5,000


Pu – Premium for the unexpired period of the Policy;

P – Premium determined by the Policy;

Ii – Insurance Indemnity paid on accident claims occurred during the effective period of the Policy;

Up – Unexpired period of the Policy;

Ep – Effective period of the Policy as stipulated therein;

AMD 5, 000 – operating costs.

7.12. If the Insurer becomes liable to make amendments in the Conditions in the manner stipulated by the RA legislation, the Insurer shall notify the Insured about it, as soon as possible.

7.13. The Parties may agree to amend/restate certain provisions of the Policy and these Conditions in the effective period of the Policy. Any amendments/restatements to this Policy and Conditions shall be made in writing, in the form of producing a separate document, which shall be signed by the Insured and the



8.1. The Insured shall be entitled to:

8.1.1. Sign a Policy;

8.1.2. Apply for making amendments in the terms and conditions of the Policy;

8.1.3. Early terminate the Policy in the established manner;

8.1.4. Benefit from discounts determined by the Insurer;

8.1.5. Receive insurance indemnity, in compliance with the procedure defined by these Conditions and

the Policy;

8.1.6. Receive a copy of the Policy/Certificate, in the event of loss of the original;

8.2. The Insured shall:

8.2.1. Fulfill provisions defined by these Conditions and the Policy;

8.2.2. When entering into the Policy, furnish the Insurer with necessary information about the vehicle,
and other information know to it, which may have significant influence on assessment of risk and likelihood of occurrence of insurance accident;

8.2.3. Take reasonable care in the choice and employment of competent and sober drivers, and check their driving experience and licenses before allowing them to drive the insured vehicle;

8.2.4. In the effective period of the Policy, notify the Insurer about any changes related to the insured vehicle, by any means of communication (telephone, facsimile, e-mail), within 24 hours, and then, within two business days, issue a written notice to the Insurer, if:

-The insured vehicle is alienated;

-The insured vehicle is provided for rent;

-The insured vehicle is pledged;

-The purpose of use of the insured vehicle is changed (taxi, participation in rallies, etc.);

-Double insurance is applied;

-Any damages to the vehicle, which may be qualified as insurance accidents under these Conditions;

8.2.5. Make the payment of the premium, at the amount and in the manner stipulated by the Policy;

8.2.6. Maintain the vehicle in technically functioning condition and use/exploit it in accordance with its
main purpose;

8.2.7. Take necessary measures to prevent potential accidents;

8.2.8. Promptly inform the Insurer about learning any news on finding the vehicle, where the Insured
has received an indemnity due to stealing/theft of the vehicle;

8.2.9. Deliver and submit to the Insurer any documents and information in possession of the Insured,
and assist the Insurer in exercising the right of damage claim assigned to it;

8.2.10. Familiarize the Beneficiary and the Authorized Drivers with provisions of these Conditions and
the Policy;

8.3. The Insurer shall be entitled to:

8.3.1. Reject or reduce the insurance indemnity, if in the effective period of the Policy the Insured has violated terms and conditions of the Policy and these Conditions;

8.3.2. Check the object being insured and information about it provided by the Insured;

8.3.3. If necessary, inspect the insured vehicle in the effective period of the Policy;

8.3.4. Early terminate the Policy unilaterally, in the event of occurrence of such circumstances in the effective period of the Policy, which permit the Insurer to mistrust the Insured. i.e. provision of incomplete or false information to the Insurer when entering into the Policy; fraud in respect of getting indemnity

8.3.5. Require and receive from the Insured information and documents necessary to prove the fact of
occurrence of the insurance accident and to determine the amount of indemnity;

8.3.6. Carry investigation, independently or with the involvement of other parties, to detect reasons and
circumstances of insurance accident and, if necessary, make inquiries with law enforcement or other competent authorities, to confirm the fact and reason of occurrence of the insurance accident, and to determine the amount of indemnity;

8.3.7. Reject the application of the Insured on renewal of, or making amendments/restatements to the
Policy, if such renewal or amendment/restatement may cause considerable increase of the insurance risk, or on any other reasonable grounds;

8.3.8. In case when the Insurer provides indemnity under Sections I the Insurer shall be entitled to require from the Insured (or third parties, through the Insured, if the damage is caused to property of third parties) to present such property or components thereof, or spare parts and/or devices/equipments replaced in the course of repairs/restoration of the property damaged due to the insurance accident;

8.4. The Insurer shall:

8.4.1. Familiarize the Insured with these Conditions and provide a copy thereof;

8.4.2. Comply with and fulfill terms and conditions of these Conditions and the Policy;

8.4.3. Receive and study information and documents from the Insured in compliance with these Conditions and, in the event the Insured submits an application to make significant amendment/restatements to conditions stipulated under the Policy, review and issue a decision thereof, within three business days;

8.4.4. After the Insured files, in writing, an accident claim with the Insurer, the Insurer shall:

- Inspect the damaged vehicle, if available, within three business days, and produce a respective Accident Report. The damaged vehicle may be inspected by an authorized person of the Insurer, as well;

- Agree with the Insured on the procedure of restoring/repairing the damaged vehicle;

- Issue and execute a decision on indemnity, in the manner and within terms stipulated by these Conditions and the Policy, once the Insurer receives all necessary information and documents. Where the insurance indemnity is reduced or rejected, the Insurer shall issue a substantiated decision thereof, which shall be delivered, in five days, to the Insured (Beneficiary), by registered mail, at his/her permanent residence address.

8.5. Notwithstanding cases stipulated by the RA legislation, the Parties hereby agree not to publish, disclose, or otherwise provide to any third parties any information deemed and/or containing medical, financial and insurance secret known to the Parties in respect of execution of this Policy (hereinafter “Confidential Information”). The Parties also agree not to use Confidential Information for their own benefit and/or for the benefit of third parties, as well as for harming the business of the other Party.



9.1. In the event of occurrence of insurance accident, the Insured, or the Beneficiary, or the Authorized Driver

9.1.1. Take necessary actions to reduce the size of the damage;

9.1.2. Report the accident to the Insurer, promptly, not later than within 24 hours (immediately, in the event of stealing/theft), by any available means of communication (telephone, facsimile, email);

9.1.3. Promptly report the accident to respective competent authorities:

- Police, in case of road traffic accident, or stealing/theft of, or damage to the vehicle, due to unlawful actions, or attempt thereof;

- Fire service, in case of fire, explosion;

9.1.4. Receive from competent authorities duly produced appropriate documents related to the accident;

9.1.5. In case of road traffic accident, promptly after it occurs, the Authorized Driver driving the insured vehicle at the time of the road traffic accident shall pass a sobriety test, and get a statement on the result thereof; except for cases when the Authorized Driver may not pass such test due to his/her health condition;

9.1.6. In case of road traffic accident, Authorized Driver driving the insured vehicle at the time of the road traffic accident shall refrain from using any alcohol within 24-hours after the occurrence of the insurance accident and, at the request and expense of the Insurer, pass sobriety test with competent authorities, even if the Authorized Drive has passed such test after the occurrence of the accident;

9.1.7. Ensure proper protection of their rights and interests, in their relations with other parties;

9.1.8. Where a second party (party at fault) is involved in the accident, ask for the names addresses and proof of identity;

9.1.9. If possible, ask for the names, addresses and proof of identify of witnesses;

9.1.10. Take all required actions to prevent leaving the insured vehicle unattended, if the wrecked vehicle is unfit for driving;

9.1.11. Not repair/restore the vehicle, unless inspected by the Insurer or its authorized representative; and during such inspection present to the Insurer remnants of the vehicle, or parts (if any) of the damaged vehicle separated/torn due to the accident;

9.1.12. File a written claim application with the Insurer, within seven-day period;

9.1.13. Deliver to the Insurer information know to him/her about other persons involved in the accident and witnesses thereof;

9.1.14. Agree with the Insurer on follow-up actions to effect the insurance indemnity;

9.1.15. Promptly inform the Insurer about any claims to the Insured in connection with the accident.

9.2. If the Insured fails to restore original/initial size of insurance amount in the manner stipulated by 5.10
hereinabove, the Beneficiary’s indemnity against the next insurance accident shall be in such proportion as the insurance amount of the particular object reduced due to payment of indemnity bears to the insurance amount determined in the Policy for the given object. This provision shall not apply, if the Policy explicitly defines that insurance amount(s) is (are) determined as irreducible.

9.3. When entering into the Policy, the Insurer shall bear all costs associated with assessment of real (market) value of the vehicle. The Insurer shall also pay for detecting reasons and assessing the size of damage (to people, property, vehicles) due to occurrence of the insurance accident, if such assessment/expertise is carried out on the initiative of the Insurer.

9.4. Section I. The Insurer, in accordance with the Policy and these Conditions, will indemnify the Insurer
against the loss of and damage to the insured vehicle and/or permanently fitted and insured additionalequipments therein.

9.4.1. In case of total loss of insured vehicle (it has become totally unfit for use), i.e. restoration valueis 80% and over the real (market) value (which means that the restoration of the vehicle is technically impossible and/or economically inefficient), the Insurer on its own discretion, has the right to pay an amount equal to the real (market) value of the insured vehicle as of the date of occurrence of insurance accident, in which case, the right of ownership of the vehicle is transferred to the Insurer, or to recover the loss on the bases of the difference between the property’s market value and salvage value.

9.4.2. In the event of stealing/theft of the vehicle (or permanently fitted additional equipment therein), the Insurer, at its discretion, will pay an indemnity, in cash form, or replace the robbed/stolen vehicle/additional equipment with similar other vehicle/additional equipment (same brand and manufacturing year, color, wear and tear).

9.4.3. The Insurer, at its discretion, may choose to restore, repair or replace the vehicle, or may pay in cash the amount of loss or damage. The amount payable by the Insurer in respect of any loss or damage claim shall be based on the market value of particular vehicle, spare part or equipment, established in the Armenian market at the time of loss or damage.

9.4.4. In the event of damage to a vehicle, the amount of damage shall be determined based on expenses required for repairs thereof, which in any case shall not exceed the insurance amount determined by the Policy. Damaged parts, components and equipments shall be replaced when the repairs thereof is economically inexpedient or, if the repairs will not bring them into a condition fit for further use.

9.4.5. If during the repairs/restoration of the vehicle other damages resulted from the insurance accident are detected, which have not been detected before and specified in insured vehicle’s inspection/accident report, the Insured shall inform the Insurer about such damages prior to remedy the damages. The Insurer, within three business days after the Insured informs the Insurer about such damages, shall carry out inspection of previously undetected damages and produce a respective document thereof, and only thereafter, the Insured shall have the right to remedy the damages. The Insurer will cover previously undetected damages due to the
insurance accident, in the event the Insured submits duly produced documents evidencing such damages.

9.4.6. If the real (market) value of the insured vehicle changes in the effective period of the Policy and, at the time of occurrence of insurance accident, exceeds the insurance amount, the indemnity shall be calculated based on the size of the insurance amount and, if less, based on the real (market) value of the insured vehicle.

9.4.7. The Insurer shall not be liable to pay indemnity in respect of insured additional equipments, if at the time of occurrence of insurance accident such equipments were not installed in the vehicle in accordance with their respective purpose.

9.4.8. In the event of stealing/theft of the insured vehicle, the Insured (Beneficiary, Authorized Driver) shall deliver to the Insurer all manufacturer-made keys and remote control panels of the antitheft (if any) and particular vehicle.

9.4.9. After receiving the repaired/restored vehicle damaged due to the insurance accident, the Insured (Beneficiary, Authorized Driver) shall, at the request of the Insurer, submit such vehicle for the inspection of authorized representative of he Insurer.

9.4.10. If the Insured fails to fulfill responsibilities defined by 9.4.9. hereinabove, the Insurer will not cover any damage and/or loss caused to the same component and equipment of the vehicle (additional equipments), even if such damage or loss is caused by a new accident; and in the event of total loss, stealing/theft of the vehicle, the Insurer will reduce the insurance indemnity at the amount equal to previously paid claims on damages/losses of such component and equipment.

9.5. Section II. The Insurer will provide coverage to Authorized Driver and/or passengers for loss caused in the result of insurance accident:

- Loss of life – 100% of insurance amount determined per seat/person;

- Loss of two and more parts of body (hands, feet) – 50% of insurance amount determined per seat/person;

- Loss of one part of body (hand, foot) – 25% of insurance amount determined per seat/person;

- Total loss of sight (two eyes) - 50% of insurance amount determined per seat/person;

- Permanent loss of sight of one eye - 25% of insurance amount determined per seat/person.

- If a body injury is caused to the Insured or Authorized Driver and/or passenger of insured vehicle, which directly relates to possession, use/exploitation of vehicle, the Insurer will pay up to AMD 100,000 per seat/passenger for ambulance and other reasonable medical expenses.

9.5.1. The maximum amount per seat/person subject to payment is specified in the corresponding section of the Policy.

9.5.2. In the event of death, the indemnity is paid to the beneficiary (-es), if specified, or his/her heirs, in
accordance with RA legislation.

9.6 The insurance indemnity paid due to insurance accidents specified under all insurance Sections of the
Policy shall not exceed the insurance amount determined for the particular object.

9.7 Where an insurance accident occurs and disputes regarding the loss amount arise between the Parties,
each Party, at its account, shall have the right to carry out an independent expertise. However, results and
conclusions of such expertise shall not be binding for the other Party.



10.1. To receive an insurance indemnity, the Insured (Beneficiary, Insured person), shall actually prove its
legal interest in the object of insurance, and introduce to the Insurer the fact of occurrence of insurance
accident and submit documents confirming the size of damage.

10.2. Documents required to prove interests in the object of insurance include:

10.2.1. Document proving the identity, social card, claim application, Policy;

10.2.2. Documents certifying the Insured’s (Beneficiary’s) right to possess, use and administer the vehicle (vehicle registration certificate, purchase and sales agreement or lease agreement or power of attorney, validated by public notary), otherwise, the insurance indemnity is paid to the owner of the vehicle.

10.3. Documents certifying the insurance accident include:

10.3.1. In the event of road traffic accident, report or statement of traffic police, and statement of sobriety test issued by competent authorities to Authorized Driver driving the insured vehicle at the time of occurrence of accident, except for cases when the Authorized Driver is unable to pass such test due to his/her health condition.

10.3.2. In the event the vehicle is set to fire, conclusion or report of the Fire Service, or other competent authority;

10.3.3. In case of stealing/theft of vehicle, decision of the police to institute a criminal case;

10.3.4. In cases other than those mentioned above, expert conclusion or report issued by an independent expert or a competent authority.

10.4. Documents certifying the size of damage caused in the result of an insurance accident include:

10.4.1. Section I. Financial document (invoice, account statement) and/or statement issued by an individual or entity legislatively vested with the right to perform, and engage in, repair/renovation of particular vehicle, or Conclusion, or report, or statement, issued by an independent expert; If costs are incurred by the Insured independently, by written consent of the Insurer, the Insured shall submit the following financial documents supporting such costs:

a) contract and/or invoice and

b) cash entry order ticket, in case of cash payment, or

c) Bank payment instruction, in case of payment by transfer.

10.4.2. Section II. In the event of death of Authorized Driver/Passenger of insured vehicle:

a) forensic medical examination report/conclusion, or

b) medical expertise report/conclusion

c) death certificate

d) documents certifying the fact of being a beneficiary/heir In the event of damage to the health of Authorized Driver/Passenger of insured vehicle:

a) forensic medical examination report/conclusion

b) medical expertise report/conclusion

c) medical certificate, or

d) medical consultation conclusion, or

e) excerpt from out-patient card, or

f) epicrisis

g) paraclinical test results (if necessary)

h) If costs are incurred by the Insured independently or by other person acting on its behalf, it is necessary to submit the following documents:

- contract and/or an invoice, and

- cash entry order ticket, in case of cash payment; or

- bank payment instruction, in case of payment through transfer

10.5. Other necessary documents include:

- Passport and driver’s license of a person driving the insured vehicle at the time of occurrence of the accident;

- Bank requisites of the Insured or the Beneficiary, in the event the claim is paid through transfer;

10.6. Necessity to submit additional documents shall be determined by the Insurer, depending on the
insurance accident and the size of damage;

10.7. In the event of failure to submit documents for respective event specified by 10.2 – 10.6 of these
Conditions hereof, the Insurer shall have the right to refuse or reduce the insurance indemnity.

10.8. If the Authorized Driver driving the insured vehicle at the time of occurrence of insurance accident leaves the accident scene, the Insured (Beneficiary) or the Authorized Driver shall submit to the Insurer
documents (medical justification) certifying the necessity to leave the accident scene. In the event of
failure to submit such justification, the Insurer, at its discretion, may refuse or reduce the Insurance
indemnity, irrespective of the circumstances that serve as reasoning to leave the accident scene.

10.9. The Insurer, within 15 business days after the date it receives the claim application and all required
documents from the Insured and/or competent authorities, shall accept or reject the claim for indemnity.
The Insurer shall issue a decision on settlement of claim, by producing a relevant report/conclusion thereof.

10.10. In the event of satisfaction of claim, the Insurer shall:

10.10.1. In the event of stealing/theft of insured vehicle and/or equipment permanently fitted equipments
therein, pay the claim within 3 calendar months after issuing a decision on satisfaction of claim,
but not earlier than the date when the police proves the fact of stealing/theft of insured vehicle and/or permanently fitted equipments therewith;

10.10.2. In all other cases, the claim is paid within 15 business days following the date of issuing a
decision/conclusion on the settlement of claim.

10.11. The payment on claim may be made in lump sum or, by the written consent of the Insured, by



11.1. When paying the insurance benefit, the right of claim against the person causing damage to the Insured
(Beneficiary) arising due to occurrence of insurance accident, shall be transferred to the Insurer, at the
amount of paid benefit.

11.2. The Insured (Insured person, Beneficiary) shall transfer to the Insurer any documents and other
evidences certifying its right of claim, and any other information required to exercise of subrogation right.

11.3. If the Insured (Insured person, Beneficiary) waives its right of claim in respect of a person responsible
for damages indemnified by the Insurer or, where exercising of subrogation right is impossible through fault
of Insured (Insured person, Beneficiary), the Insurer shall be entitled to refuse payment of insurance benefit and, if such payment is already made, request refund of paid excess benefit.



12.1. The parties shall be relieved from liability for full or partial failure to fulfill their respective obligations
under the present Policy to the extent that such failure occurs due to force-majeure events that have occurred after entering into this Policy , and that could not reasonably be anticipated or prevented by the Parties. Such events include earthquake, flood, fire, war, declaration of marital law and state of emergency, civil disturbances, strikes, cessation of operation of communication means, acts of state authorities, and other casualties, which make impossible the execution of obligations under this Policy . If the impact of force-majeure event continues for more than three months, each of the parties shall be entitled to terminate the Policy upon giving an advance notice to the other party.

12.2. If the impact of force-majeure event continues for more than 3 (three) months, each Parties shall be
entitled to terminate the Policy by issuing an advance notice to the other Party.

12.3. To prove the force-majeure impact on the execution of obligations hereof shall be the liability of such
Party, the execution of obligations of which is hindered by the impact thereof.



13.1. These Conditions are produced and regulated in the manner prescribed by the RA legislation



14.1. All disputes arising from this Policy shall be settled through negotiations and, if Parties fail to reach
mutual agreement, such disputes shall be resolved in the manner prescribed by the RA legislation.

Last updated on: 02.05.22, 08:26

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