Action to reclaim money begins against Archimedes Insurance Group

Action has begun to reclaim money from a local insurance company who have debts with several hundred medical service suppliers.

Bankruptcy proceedings against Archimedes Global Georgia started on December 31 after the company could not take control of a complicated financial situation.

The deadline was set for the company by the Insurance Supervision Service in August when the financial problems of Archimedes Global Georgia were revealed.

Head of the Insurance Supervision Service, Lasha Nikoladze, said Archimedes had an accumulated debt towards several hundred medical service providers and if the company declared bankruptcy, debtors would only be partially compensated.

"Archimedes has not had any significant debt to the Government, Nikoladze said.

Previously Archimedes Global Georgia was serving 364,000 beneficiaries in framework of the State Insurance Program and was receiving 5.2 million GEL from the state budget for this service.

Starting from today this service will be provided by the state. Several thousand corporate clients will now have to find and connect with other insurance companies.

Other companies have also been checked by the State Insurance Service Agency, including Alfa and Cartu.

The agency is planning to review 14 other insurance companies before the end of 2014.

Archimedes Global Georgia was founded by Israeli investments and included three insurance companies in Georgia, Kazakhstan and Greece, as well as hospitals.