Towards an increase in MTPL rates in Algeria

The Algerian Union of Insurance and Reinsurance Companies (UAR) and the National Insurance Council (CNA) have submitted to the Ministry of Finance their proposals concerning the law on insurance, currently being drafted.

Increasing the rates of motor third party liability coverage is among the proposed amendments. Both institutions claim that insurers lost 3.75 DZD (0.025 USD) in road accidents compensation for each dinar paid as third-party liability. This burden worsens the financial situation of Algerian insurance companies.

The halt in imports and the suspension of local production of vehicles have also impacted the motor insurance activity in Algeria.