The issues arising out from the compensation of property damages in the light of insurance law: practical analyses

Abstract

The practical significance of the paper lies in the fact that nowadays there is no effective mechanism which could help to develop the institute of compensation (hereinafter “Institute”) for the property damage. Compensation in kind is not the preferable way of compensation in Armenia, people do not rely on repair companies that are included in a list of insurance companies. As consequence, the relationships between insurance and repair companies do not developed as there is no stimulus for it. The paper aims to examine the possible mechanisms for developing the institute of compensation for property damages in kind. -To achieve the aim of the research the following objectives have been set forth -To examine the Institute for property damages in Armenian legislation -To analyze the concept of compensation for vehicle damages in kind -To offer an insight on international practice related to the Institute for the damages caused to the vehicles in the light of Insurance Law -To present the problems related to property damages compensation that Armenian legislator faces -To discuss and analyze the possible defense mechanism from fraud cases for Armenian legislator to come up with some general recommendations to manage and prepare for changes in Armenian insurance legislation