GEORGIA: Mandatory MTPL insurance may provide the sector extra GEL 200 million business

29 July 2022 —
The insurance sector of Georgia has been waiting for the approval of the draft law on MTPL introduction for more than three years now. This draft law was registered in Parliament on December 31, 2018, but discussion has not yet begun. Experts expect the process to start this year, Business Georgia wrote.

Georgia is one of the few countries in the world that does not yet have a law on mandatory insurance, said Devi KHECHINASHVILI, Chairman of the Board of the Association of Insurance Companies of Georgia.

"Mandatory liability insurance of vehicle owners is one way to increase the market size and protect the population and the economy. Insurance of vehicle owners will give us an additional GEL 200 million, which will directly contribute to the development of insurance culture and work on other services", KHECHINASHVILI explained.

Currently, approximately 1.5 million cars are registered in Georgia, and their insurance is voluntary. Only 7% of vehicles registered in Georgia are insured. Total number of active insurance policies is 105,454.