Important increase for motor third party liability insurance in Ethiopia

The deadline to comply with the obligation of motor third party liability insurance was extended by a month from December 10, 2011 to January 10, 2012. The increase of activity for insurance companies in this particular class of business has been noticeable.

Nyala Insurance has, for example, registered 10 000 coverage applications from law–abiding policyholders. The company has been compelled to train staff and dedicate a new annex in order to cope with this influx.

Ethiopian Insurance Corporation has been designated by the authorities to manage the material aspect of this operation including the printing of certificates and insurance labels as well as claims management.

Setting tariff rates remains in the hands of the insurance regulatory authority.