New motor TPL tariff increase in Tunisia
The Ministry of Finances has published a Circular announcing the increase of the mandatory motor third party liability tariffs by 10-20% starting from May 8th, 2017. In contrast, the optional coverages are subject to reduction. These new tariffs shall be applicable during a contract renewal or the subscription of a new coverage.
The 10% increase concerns the individuals’ vehicles whose fiscal power does not exceed 6 horses, vehicles transporting goods whose horsepower does not go beyond 3.5 tons, and the motorcycles (small and medium).
The 20% increase is applicable to the individuals’ vehicles whose fiscal power equals or exceeds 7 horses, the vehicles whose weight surpasses 3.5 tons and the large motorcycles.
Such a tariff increase aims at striking a balance in the motor class of business which has recorded during the previous years, an increase in the loss experience (mandatory risk insurance + optional coverages) with a combined ratio of 102.8% in 2015. The motor TPL alone, represents a loss ratio of 180%.
For the record, the motor TPL tariffs have known two 10% increases during the past couple of years.
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