Algerian insurance companies are discussing measures aimed at improving the pace of settlement for motor claims, with an initial inter-company convention being already signed.
This agreement is designed to reduce the number of outstanding claims by setting up a systematic settlement system for the files whose cost is deemed to be “medium”. By 2016, all motor claims, piled up for five years, should be processed.
The second convention is now under discussion with the ministry of finance that is in charge of defining the terms of reimbursement for redress cases as of January 2016. In 2014, insurers disbursed 44.8 billion DZD (512 million USD) in motor insurance compensation to the insured, that is 10% more than 2013. This amount accounts for 75% of the claims including all classes of business.