Tunisia : Motor insurance, the new tariff comes into force

New tariffs of the motor third party liability in addition to theft and fire facultative risks are coming into effects for policies underwritten or renewed on January 1, 2016.

The 10% increase of the TPL cover applies to all vehicles either private or commercial as well as the two wheeled motorcycles. Meanwhile, a reduction of 5% on the fire and theft optional coverage is granted to the insured. These last two guarantees remain poorly underwritten in Tunisia.

In recent years, the motor class of business has been facing difficulties with a loss ratio highly above 100%. As the rates have been framed, insurance companies are struggling to offset their balance sheets. Tariff increases are periodically granted by the authorities.

These increases which are supposed to help insurers overcome their deficit in the class of business will continue to be granted in the upcoming years. The motor fleet has more than 1.5 million vehicles in Tunisia.